TaxTMI 
TaxTMI 
TaxTMI 
2014 (1) TMI 1664
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.... through this consolidated order. We however, take up these appeals one after the other. I.T.A. No.568/Lkw/2013 to 572/Lkw/2013 2. These appeals are preferred by the Revenue against the order of CIT(A) either on one ground relating to addition u/s 68 of the Act on account of unexplained corpus donation or on both the grounds i.e. additions u/s 68 on account of corpus donation and addition u/s 69 of the Act on account of unexplained investment in the school building on account of D.V.O.'s report. 3. During the course of hearing of the appeals, our attention was invited to the fact that the assessment was reopened on the basis of the survey report and denial of registration u/s 12AA by the CIT through an order dated 17/12/2008 passed u/s 12AA(3) of the Act. This cancellation order was challenged before the Tribunal and the Tribunal vide its order dated 03/06/2009 cancelled the order of CIT dated17/12/2008 passed u/s 12A(3) of the Act. Against the order of the Tribunal, though the Revenue has preferred an appeal but since the order of the Tribunal has not been reversed so far, it holds field and the assessee is eligible for exemption u/s 11 of the Act. While framing the reasses....
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....essment year 2005-06 and the judgment of Hon'ble jurisdictional High Court in which the Tribunal has categorically held that once a particular credit or donation is already declared by the assessee, the same cannot be added again. This view was approved by Hon'ble Jurisdictional High Court in Income Tax Appeal 276 of 2009. Copy of the orders are placed on record. With regard to other grounds on unexplained investment in school building, it was contended that the reference to D.V.O. was made without rejecting the books of account of the assessee, therefore, the reference to D.V.O. is not valid in terms of judgment of Hon'ble Apex Court in the case of Sargam Cinema Vs Commissioner of Income-tax [2010] 328 ITR 513 (SC). Thus, the D.V.O.'s report cannot be used for making addition on account of unexplained investment u/s 69 of the Act. 6. Having carefully examined the orders of the lower authorities in the light of the rival submissions and the judgments referred to by the parties, we find that the assessee has some force in his arguments on merit. The issue of addition u/s 68 of the Act on account of corpus donation is squarely covered by the order of the Tribunal per....
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....en filed or that the donors had not been produced did not necessarily lead to the inference that the assessee had tried to introduce unaccounted money by way of donation receipts, This was shown in the facts of the case, where admittedly 75% of the donations were applied for charitable purposes. Section 68 of the Act had no application to the facts of the case because the assessee had in fact disclosed the donations of Rs. 18,24,200/- as its income and it could not be disputed that all receipts, other than corpus donations would be income in the hands of the assessee. There was thus full disclosure of income by the assessee and also application of the donations for charitable purposes. It was not in dispute that the objects and activities of the assessee were charitable in nature since it was duly registered under the provisions of section 12A. 20. Similarly, the Hon'ble AP High Court in the case of CIT vs. Hyderabad Secunderabad Foodgrains Association Ltd, 175 ITR 574 (supra) has held as under: "The Income-tax Officer denied exemption to the assessee under section 11 of the Income-tax Act, 1961, for the assessment year 1977-78. On appeal, the Commissione....
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.....267/2009. Copy of the judgment is placed on record. Since the Tribunal has taken a particular view in similar set of facts, we find no reason to take a contrary view in these appeals. Moreover, the CIT(A) has properly adjudicated the issue in the light of various judicial pronouncements and we find no infirmity therein. We, therefore, confirm his order in this regard. 6.2 So far as the addition on account of unexplained investment in the school building u/s 69 is concerned, undisputedly the reference to D.V.O. was made without rejecting the books of account of the assessee, therefore, in the light of judgment of Hon'ble Apex Court in the case of Sargam Cinema (supra), the D.V.O.'s report cannot be relied for determining the cost of investment in the property. In the case of Sargam Cinema (supra), their Lordships have categorically held that the Assessing Authority could not have referred the matter to D.V.O. without rejecting the books of account and, therefore, reliance placed on the report of the D.V.O. was misconceived. In the light of the aforesaid judgment, we are of the view that the CIT(A) has rightly deleted the addition u/s 69 of the Act made on the basis of D.V.....
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....such addition being upheld by the CIT(A) on an entirely different finding as that of the AO without, giving the assessee an opportunity is contrary to the provisions of law without jurisdiction and be deleted. 7. Because in any case and in all the circumstances of the case the addition of Rs. 26,13,080/- is contrary to facts bad in law and be deleted." 8. In both these appeals, we find that while making addition u/s 68 of the Act on account of unexplained corpus donation, the Revenue authorities have also applied the provision of section 115BBC of the Act, according to which the unanimous donation received by the trust is taxable as per the formula laid down under that section. The learned counsel for the assessee has invited our attention during the course of hearing of the appeal that provision of section 115BBC was brought on the statute by Finance Act, 2006 with effect from 01/04/2007, therefore, it would only apply for the assessment year 2008-09 and not from the assessment year 2007-08. Therefore, the issue of addition made u/s 68 of the Act relating to assessment year 2007-08 is squarely covered by the judgment of the Tribunal and also of the Hon'ble High Court by whic....
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....e the aggregate of- (i) the amount of income-tax calculated on the income by way of any anonymous donation, at the rate of thirty per cent. ; and (ii) the amount of income-tax with which the assessee would have been chargeable had his total income been reduced by the amount of income referred to in clause (i). (2) The provisions of sub-section (1) shall not apply to any anonymous donation received by-- (a) any trust or institution created or established wholly for religious purposes ; (b) any trust or institution created or established wholly for religious and charitable purposes other than any anonymous donation made with a specific direction that such donation is for any university or other educational institution or any hospital or other medical institution run by such trust or institution. (3) For the purposes of this section, "anonymous donation" means any voluntary contribution referred to in sub-clause (iia) of clause (24) of section 2, where a person receiving such contribution does not maintain a record of the identity indicating the n....