TaxTMI 
TaxTMI 
TaxTMI 
2020 (7) TMI 67
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....ein the appeal of the assessee is partly allowed. 02 The assessee is a charitable trust formed as per trust deed dated 9/7/2009 with an initial contribution of Rs. 1000. The assessee filed return of income. However on perusal of the balance sheet of assessee, the learned assessing officer noted that assessee has introduced capital fund of Rs. 2279062/-, assessee was asked to explain the above introduction of capital. Assessee could not explain the credit entry of the introduction of the capital fund, hence the learned AO made the addition of the above sum by reducing the initial contribution of Rs. 1000. The income and expenditure account also disclosed a donation of Rs. 15 lakhs received by the assessee during the year. On verification of....
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.... the addition confirmed by him. 03 The two issues involved in this appeal are (1 ) addition of Rs. 2278062/- and (2) donations received of Rs. 15 lakhs. 04 On behalf of the assessee, Shri Hemant Arrora CA and on behalf of the revenue Shri Bhopal Singh , SR DR, were heard. 05 Briefly stated facts, assessee is a charitable trust established with an object to create awareness among the farmers, to develop small-scale industries in rural areas and to enable the farmers by giving them training to make pesticides by an organic process and to create importance of agricultural activities, to motivate and train younger generation for the purpose of self-employment and business of pestcidies in agricultural activities. Thus it was formed to create....
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....ely by a book entry. As, the ownership of the assets namely land and building as well as the necessary plant and machinery, owned by the trustees was transferred to the assessee trust, is accepted by the trustees, who are also the donor of the above sum, there is no reason to deny the fact that above assets have been received by the assessee trust. The donor in the present case are also identified as secretary and his brother. The only dispute for which the addition has been made is that the entry of the donation as well as the introduction of the fixed assets has been made by a book entry only. In the present case, the donors are identified, the assets are identified as it has been received by the assessee trust, the only issue that remain....
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....be considered by the learned assessing officer and issue may be decided afresh. Accordingly, this issue is allowed with above direction. 06 With respect to the second addition of Rs. 15 lakhs where the AO has made the addition in the hands of the assessee trust as anonymous donation, the fact shows that assessee has shown the name and addresses of the donors. The assessee has also produced them before the assessing officer. The learned AO made the addition for the only reason that summons were issued to those donors but those summons could not be served and returned back to the AO. The learned CIT - A also confirmed the addition stating that assessee failed to show proper evidences on record during the assessment and remand proceedings. H....
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....rder itself the learned AO has mentioned that the authorised representative of the assessee has given the complete confirmation of those parties. The AO merely doubted that when summons were not served on those parties, the letters containing the confirmation from the donors should have been received by the AO himself and it should not have come through the authorised representative of the assessee. This issue may arise in case of verification of the genuineness of the donation. However the genuineness of the donation cannot be considered while determining whether the donation is' anonymous' or not. The only requirement as it appears in the act today is just to maintain a record of the identity indicating the name and address of the person ....