TaxTMI 
TaxTMI 
2021 (7) TMI 248
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....g Industrial Training to students. The assessee 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 a....
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....R of the assessee before us filed his written notes submission, wherein in para 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 ....
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....vailable in the records of the trust along with their respective counterfoil, therefore, 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 en....
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.... No.6 of the paper book was only Rs. 59,27,060/- out of which the trust incurred expenditure 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 av....
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....s were made neutralizing and nullifying the transaction of receipt of the donation, then it has to be presumed that no amount was received by the trust and entries made in the books of accounts and availability of the original receipts alongwith counterfoil also supports the explanation and stand of the assessee. I am also of the considered view that during the course of hearing a specific query by the bench, ld. DR in all fairness accepted that neither the AO nor the CIT(A) has made any exercise to verify from the so-called donors as to whether they actually gave any donation to the assessee trust or not. When the assessee trust is submitting all the receipts, relevant books of accounts and documentary evidence before the revenue authoriti....