2022 (12) TMI 848

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....ore, such delay is condoned and the appeal is admitted for disposal on merits. 3. All the grounds raised by the assessee are against the confirmation of addition of Rs.29,32,750/- made towards anonymous donations and taxing the same u/s.115BBC of the Act. 4. Briefly stated, the facts of the case are that the assessee trust filed its return declaring total income at Nil. During the course of assessment proceedings, the Assessing Officer (AO) observed that the Audit report indicated corpus donation of Rs.32,26,560/- received under the head "Building Fund". The assessee was called upon to furnish necessary details of the corpus donations. The AO recorded that the assessee did not furnish any details, which led to the making of addition of Rs....

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....e or religious purposes etc. Thus `income' primarily includes voluntary contributions both towards corpus and non-corpus donations. Section 11 deals with income from property held for charitable or religious purposes. Clause (d) sub-section (1) of section 11 provides that income in the form of voluntary contributions made with a specific direction, that they shall form part of the corpus of the trust or institution, shall not be included in the total income of the previous year of the person in receipt of such amount. On an analysis of section 11(1)(d) in conjunction with section 2(24)(iia), it becomes overt that corpus donations are also otherwise part of `income', but qualify for exemption u/s.11 at the threshold by virtue of the operatio....

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....section 11(1)(d) of the Act. The requisite conditions of maintaining record of the identity indicating the name and address of a person making contribution, as prescribed u/s 115BBC, also need to be satisfied anent to corpus donation in the same manner as the non-corpus. Failure to comply with such conditions exposes even the corpus donation to the mischief of section 115BBC of the Act. 6. Adverting to the facts of the extant case, it is seen that the assessee maintained a separate register for corpus donations and also furnished a list of corpus donations to the AO, as has been given at page 350 onwards of the paper book. Such list has columns, such as, Sl. No.; Name of the donor; Receipt No.; Amount; and address. It can be seen from this....