TaxTMI 
TaxTMI 
2021 (2) TMI 545
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....he CIT(A) was not justified in treating the donation of Rs. 64,000/- and Rs. 1,00,000/- as unexplained u/s.115BBC of the Act, the addition made be deleted. 03. Because as a proper approval of the facts and also the provisions of section 115BBC, it would be found that the same are not applicable to the facts of the case, the CIT(A) has erred in upholding the addition made, the same be deleted. 04. Because name, address and complete identity of the donors as available, having being furnished, the donation having being received through banking channel, there was no reason to disbelieve the same and mere failure on the part of the donors to file confirmation; in response to the notice issued u/s.133(6) cannot be inferred as a ground to disbelieve the explanation filed by the assessee, the addition of Rs. 64,000/- and Rs. 1,00,000/- made by the AO and upheld by the CIT(A), be deleted." ITA No. 242/Lkw/2020 1. The Ld. CIT(A) has erred in law and on facts in deleting the addition of the non-corpus donation from students/others persons amounting to Rs. 71,64,000/- as anonymous donation u/s 115BBC of the Income Tax Act, 1961 by the AO even when out of the donat....
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....he case in disallowing the addition of the corpus donation from students/others persons amounting to Rs. 1,19,36,200/- as anonymous donation u/s 115BBC of the Income Tax Act, 1961. by the AO even when the plea taken by the assessee during the course of assessment proceedings, that the students studying in the school are minors and belong to the poor family of villagers and farmers, is self contradictory to the assessee and clearly proves that the said donations are anonymous donations. 7. The Ld. CIT(A) has erred in law and on facts in deleting the addition of the non-corpus donation from students/others persons amounting to Rs. 71,64,0007- and corpus donation from students / others persons amounting to Rs. 1,19,36,200/- as anonymous donation u/s 115BBC of the Income Tax Act, 1961 by the AO even when the donation confirmation exercise undertaken during the course cc assessment proceedings corroborate the same and present severe anomaly in the same,. 8. The Ld. CIT(A) has erred in law and on facts in deleting the addition in the case of Anupam Srivastava and Shivang Singh even when the addresses of the said students given by the assessee and that printed on aadhar ....
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.... same cannot be said to be anonymous donations. The ld. AR, therefore, argued that since assessee had maintained complete details and had provided complete details to the AO and CIT(A) the addition u/s. 115BBC was not justified. The ld. AR in this respect relied on the following case laws: 1. ACIT vs. Shree Shiv Vankeshwar Educational & Social Welfare Trust, ITA No. 4623/Del/2012 order dated 16.05.2019. 2. ITO (Exemption) vs. Shri Narain Educational & Welfare Trust, ITA No. 15/Lkw/2015 order dated 10.07.2015. 3. ACIT vs. Sahyog Jan Kalyan Samiti, ITA No. 568 to 572/Lkw/2013 order dated 07.01.2014. 4. ITO vs. Saraswati Educational Charitable Trust, ITA No. 776/Lkw/2014 order dated 17.01.2015. 5. ITO(Exemption) vs. Satyug Darshan Trust - [2016] 65 taxmann.com 15 (Del-Trib) order dated 04.11.2015. 6. Patanjali Yogpeeth (Nyas) vs. ADIT (Exemptions) [ 2017] 78 taxmann.com 128 (Del-Trib). 3. The ld. DR on the other hand, heavily placed reliance on the order of AO. Regarding the appeal filed by the Revenue, the ld. DR submitted that out of 599 students notices were sent only to 21 students and even during remand proceedings, the ....
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....ed and also allowed relief in respect of students to whom no notices were issued. The revenue is against the relief allowed on various grounds wherein one of the ground is that AO had issued notices to only 19 persons therefore, donations from rest of the persons verified cannot be said to be as they could not be confirmed. We find that the additions were made by AO by treating the donations as anonymous donations u/s. 115BBC of the Act. Therefore, it is important to first visit the provisions of Section 115BBC of the Act which reads as under: "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 sub-clause (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 th....
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....ormation has been filed before us also in the form of paper book which is placed Pgs. 6 to 24. This list of donors other then students contains PAN numbers also. Therefore, these donations cannot be termed as anonymous donations and hence cannot taxed u/s. 115BBC of the Act. 6. The ITAT Delhi Benches in the case of Shree Shiv Vankeshwar Educational & Social Welfare Trust, (Supra) vide order dated 16.05.2019 in Para 10 has held as under: "10. The anonymous donations will not be covered if donations received by any trust or institution created or established wholly for religious purposes or donations received by any trust or institution created or established for both religious as well as charitable purposes other than any anonymous donation Page | 6 ACIT Vs Shree Shiv Vankeshawar Educational & Social Welfare Trust, ITA No. 4623/Del/2012 (Assessment Year: 2009- 10) 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. Sub-section (3) defines "anonymous donation" to mean any voluntary contribution referred to in section 2(24)(iia), where a....
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....e through the material placed on record. We find that the assessee is registered u/s 12A of the Act vide order dated 10/06/2008 passed by learned CIT, Lucknow. During the assessment year the Assessing Officer observed that the assessee had received donation and voluntary contribution amounting to Rs. 95 lakh and therefore, the assessee was required to furnish complete names and addresses of the persons from whom donations and voluntary contributions were received. The assessee furnished the complete list of donors with names and addresses, a copy of which is placed at pages 11 to 40 of the paper book. As per the provisions of section 115BBC(3) the 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 name and address of the person making such contribution and such other particulars as may be prescribed. Learned D. R. was not able to demonstrate as to what other particulars have been prescribed for recording the voluntary contributions or donations. The record maintaining the name and address of the persons has already been m....
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....lant has established the identity of donors as provided u/s 115BBC of IT. Act, 1961 and the donations received by the appellant cannot be categorised as anonymous donations and cannot be subjected to tax as per provisions of sec 115BBC of IT. Act, 1961. 5.5 Reliance is also placed on decision of Hon'ble ITAT Bench A in ITO-2(3), Lucknow Vs. M/s Saraswati Educational Charitable Trust in ITA no 776/LKW/2014 Dated 17.06.2015 werein the facts on the issue of anonymous donations are similar to the appellant's case. 5.6 Reliance was placed on decision of Hon'ble Delhi bench of ITAT in case of Hans Raj Samarak Society Vs. ADIT 16 Taxman 103. As per the decision the receiver has the obligation to maintain the identity indicating the name and address only and nothing more. No other particular has been prescribed under the provision. No other word can be read in Sec-115BBC(3) other than words finding place therein. 5.7 Reliance was also placed on decision of Hon'ble Delhi High Court which confirmed the decision of Hon'ble ITAT in case of DIT(E) Delhi Vs. Hans Raj Samarak Society(2013) 35 Taxman642(Delhi). 5.8 Reliance is placed on decis....