TaxTMI 
TaxTMI 
2019 (8) TMI 839
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.... Commissioner of Income Tax (Appeals), erred in upholding the action of the Assessing Officer (AO) of disallowing the Appel lants claim of receipt of corpus donat ions of Rs. 3,40,49,002/- and treat ing the same as anonymous donations, taxable u/s 115BBC of the I.T. Act. 2. On the facts and under the circumstances of the case and in law, the learned CIT (Appeals) erred in upholding the action of the AO of invoking the provisions of Section 115BBC of I .T. Act, without appreciating the fact that the AO has not sent any notice u/s 133(6) on the addresses mentioned in the donation letter. The appellant crave leave to add, to alter to delete the above groundof appeal if necessary." 2. Briefly stated, the assessee which is a trust engaged in the charitable activity in the field of education is registered with the Directorate of Income Tax (exemption), Mumbai under Sec.12A of the Act. Also, the trust is registered with the Charity Commissioner, Mumbai. The assessee had filed its return of income for A.Y. 2013-14 on 25.09.2013, and after claiming exemption under Sec.11 had declared its total income at Rs. Nil. Subsequently, the case of the assessee was selected for sc....
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....T(A) was not persuaded to subscribe to the contentions advanced by the assessee and upheld the disallowance made by the A.O under Sec.115BBC r.w. Sec. 11(3) of the Act. The CIT(A) while concluding as hereinabove observed, that though the Tribunal while disposing off the appeal of the assessee for A.Y. 2010- 11 had 'set aside' the issue for proper verification and examination by the A.O, however, that by itself would not mean that the questioned donations were either not covered under Sec. 115BBC or that the same were genuine in any manner. 5. The assessee being aggrieved with the order of the CIT(A) has carried the matter in appeal before us. The ld. Authorized Representative(for short 'A.R') for the assessee at the very outset of the hearing of the appeal submitted that the issue involved in the present appeal was squarely covered by the order of the Tribunal in its own case for A.Y. 2010-11. It was submitted by the ld. A.R, that the view taken by the Tribunal had thereafter been followed in its own case in A.Y. 2011-12 and A.Y 2012-13. In order to buttress his aforesaid contention the ld. A.R took us through the aforesaid respective orders of the Tribunal. Per contra, the Ld. ....
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.... address of the person making such contribution and such other particulars as may be prescribed or else it is a religious trust. Section 115BBC of 1961 Act is reproduced hereunder: "[Anonymous donations to be taxed in certain cases. 115BBC. (1) Where the total income of an assessee, being a person in receipt of income on behalf of any university or other educational institution referred to in sub-clause (iiiad) or sub-clause (vi) or any hospital or other institution referred to in sub-clause (iiiae) or sub-clause (via) or any fund or institution referred to in sub-clause (iv) or any trust or institution referred to in subclause (v) of clause (23C) of section 10 or any trust or institution referred to in section 11, includes any income by way of any anonymous donation, the income-tax payable shall be 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) (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). The following clauses (i) and (....
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.... relevant section 115BBC of 1961 Act. The onus as well burden of proof is entirely on the assessee to provide to the AO all relevant details as contemplated under section 115BBC of 1961 Act to the satisfaction of the AO as to compliance of Section 115BBC of 1961 Act and as to genuineness of the said donation. The assessee is directed to furnish PAN, addresses and all other relevant details of all the said donors before the AO to satisfy mandate of Section 115BBC of 1961 Act. The assessee is directed to produce before the AO donors, 25% in numbers for donation up-to Rs. 20,000/- and 10% in number for donations above Rs. 20,000/- to satisfy the AO about compliance of mandate of Section 115BBC of the Act and genuineness of the such donations. The selection of donors shall be on random basis at the sole discretion of the AO, which short listed list of donors shall be supplied by the AO to the assessee for necessary compliance as per our above directions. If so required for ensuring compliance of Section 115BBC of 1961 Act and for establishing genuineness of the said donations of Rs. 2,42,26,508/-, the AO can enhance the number of persons to be produced by the assessee before him higher....