TaxTMI 
TaxTMI 
TaxTMI 
2021 (7) TMI 248
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....ssee trust was registered vide registration No.842 on 30/10/1997 and reconstituted its instrument vide No.727 on 12.12.2007. The assessee trust is also registered under Section 12A of the Act. The assessee trust filed its return of income on 30.03.2013 declaring total income at Rs.Nil, which was processed u/s.143(1) of the Act. During the course of assessment proceedings, on verification of books of accounts of the assessee, the AO found that there are five entries on 31.03.2011 as donation received in ledger account amounting to Rs. 18,97,271/- and the same are also not reported in Audit Report. It was also found by the AO that there are no entries regarding the details of donor(s) in the ledger account. In reply to the show cause notice i....
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....ra 2, ld. AR stated that the assessee has produced the books of accounts, cash book, ledger, bills and vouchers, which were duly verified by the AO. With regard to query of AO in respect of anonymous donation, the ld. AR submitted that there was a wrong entry and the assessee has not received donations and the donations were not realized and the entry of donations has been cancelled. It was also submitted by the ld. AR that the name and address of the donors were mentioned in the receipts and mere mention of the donations in the money receipts does not amount to collection as the money receipts were not issued to anybody. Further the ld. AR submitted that when the entries have been reversed to the account, the addition cannot be made under ....
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....re, it cannot be presumed that the impugned amount was actually received by the trust. Ld. Counsel vehemently pointed out that these all facts and relevant documents and entries of the books of accounts were shown to the authorities below and were not included in the audited report but these facts were not rightly appreciated by the authorities below in the right perspective, therefore, the impugned addition has been made in the hands of the assessee without any justified reason and basis. Ld. Counsel also submitted that the AO only took note of credit entry made regarding proposed receipts of donation but did not pay any heed or attention to the counter entry on the debit side when the idea was dropped by the office bearer of the trust for....
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....ure and made compliance regarding application of funds leaving surplus of Rs. 5,47,497/- He also submitted that the assessee is entitled for exemption u/s.10(23) of the Act and if the impugned amount is also included to the actual receipts then also total amounts of receipt would be less than Rs. 1 crore, therefore, there would be no tax impact on the assessee and if the impugned amount is also tax free then what is the good reason for the trust to hide the donations which has actually received by it. Ld. Counsel submitted that neither the AO nor the ld. CIT(A) has made any exercise to verify these facts from the donors whose names and addresses were available with them to enquire as to whether they actually gave the donations to the assess....