TaxTMI 
TaxTMI 
2022 (10) TMI 1220
X X X X Extracts X X X X
X X X X Extracts X X X X
....he I.T. Act, 1961 vide order dated 30.12.2010 and the total income of the assessee-trust was determined at Rs.16,30,38,330/- after set off of losses of Rs.6,23,15,329/- Thereafter, an application was made by the assessee-trust under section 154 of the I.T. Act, 1961 on 03.01.2011 seeking allowance of deduction on account of further application of income to the extent of Rs.68,54,03,834/- made by the assessee-trust in acquiring fixed assets. The said claim was accepted vide order passed under section 154 of the I.T. Act, 1961 dated 27.05.2011 wherein the income of the assessee-trust was recomputed at Rs.NIL as the application of income made by the assessee-trust during the relevant period was in excess of the income received. Thereafter, the Ld. Commissioner of Income Tax (Central)- III, New Delhi, after examining the assessment records concluded that the order passed by the A.O. under section 154 of the I.T. Act, 1961 was prejudicial to the interests of Revenue and thereby, proceedings under section 263 of the I.T. Act, 1961 were initiated by issuing notice. The Ld. CIT, thereafter, in exercise of his revisional powers under section 263 of the I.T. Act, 1961, cancelled the assessme....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... make the assessment De-Novo as directed to assessing officer by Ld. Commissioner of Income-tax (Central)- III, New Delhi in his order u/s 263 of the Income-tax Act, 1961. 3. That the learned Commissioner of Income-tax (Appeals)-30, New Delhi has grossly erred in confirming an addition of Rs.1.46 Crores u/s 115 BBC of the Income-tax Act, 1961 even though the name, address & PAN of the donor was duly furnished and there is no anonymous donation and as such section 115 BBC of the Income-tax Act, 1961 is not applicable to the donation received by the trust. 4. That your appellant leaves to add, alter, amend or forgo any of the grounds at the time of hearing of the appeal". 5. First we proceed to decide the Revenue's appeal as under. 5.1. The brief facts emanating to the grounds raised by the Revenue in it's appeal are that in the original assessment order dated 30.12.2010 passed under section 143(3) of the I.T. Act, 1961, the A.O. made an addition under section 115BBC read with Section 68 of the I.T. Act, 1961 at Rs.12,50,83,785/- and Rs.10,02,70,000/- [totalling to Rs.22,53,53,785/-] on account of non-genuineness and creditworthiness of the of the donors. The ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....s of the donors during the assessment proceedings and which were accepted by the A.O. in the original assessment order, therefore, the provisions of Section 115BBC would not be applicable to the facts of the case. He has further noted that details of the names and addresses of the donors has not been proved to be wrong or those persons have not donated to the assessee-trust. He, therefore, held that for these reasons also the donation received by the assessee-trust cannot be considered to be anonymous donation by virtue of sub-section (3) of Section 115BBC of the I.T. Act, 1961. Before us, no fallacy in the findings of the Ld. CIT(A) has been pointed out by the Revenue. In such a situation, we find no reason to interfere with the order of the Ld. CIT(A) and thus, the grounds raised by the Revenue are dismissed. 10. In the result, appeal of the Revenue is dismissed. 11. Now, we proceed with Assessee's Appeal vide ITA.No.4692/Del./2016 for the A.Y. 2008-2009. 12. Before us, the Learned Counsel for the Assessee at the very outset submitted that only grounds of appeal number.3 of the assessee's appeal needs adjudication and the other grounds of appeal 1, 2 and 4 are not presse....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... submitted that in view of the evidences placed by the assessee in the paper book in the form of confirmations and copy of pay orders received from the donors, the matter may be remitted back to the file of A.O. for necessary verification and he may be directed to make necessary enquiries and thereafter, decide the issue. 16. The Ld. D.R. did not seriously object to the request made by Learned Counsel for the Assessee. 17. We have heard the Learned Representatives of both the parties and perused the material on record. We find that in the instant case the assessee-trust had placed the requisite documents i.e., letters issued by M/s. Adivasi Mahila Vikas Samiti confirming the payment of donors by pay orders and the copy of the pay orders issued in support of its claim of receipt of donations from M/s. Adivasi Mahila Vikas Samiti. Since the A.O. had not made any enquiries on the documentary evidences furnished by the assessee-trust to ascertain the genuineness of the donations so received by the assessee- trust by issuing summons under section 131 of the I.T. Act, 1961 to the alleged donars or to the Bank in view of pay orders furnished by the assessee-trust and in absence of a....
X X X X Extracts X X X X
X X X X Extracts X X X X
..../s 11 & 12 therefore, taxable income was computed at NIL as application of Income far exceeded the income even after addition of unexplained donation. Ld. CIT (Central)-III, New Delhi passed order u/s 263 holding that order u/s 154 and original assessment passed u/s 143(3) are erroneous & prejudicial to the interest of revenue & therefore, these orders were cancelled and the assessing officer was directed to make de-novo assessment after considering the facts & circumstances of the case and after considering the statutory provisions of subsection (7) of section 13 & provision of section 115 BBC. In the present impugned assessment order, no deduction was allowed u/s 11 on application of income and entire addition was taxed u/s 115 BBC of IT. Act, 1961. In view of the above facts the basic issue which has to be adjudicated whether application of income is to be allowed on such addition made on account of such alleged donation which remained unverified or creditworthiness of donors were doubtful. In the impugned assessment order, the bifurcation of total addition is not mentioned, only the reference of original assessment is made. I have pe....
X X X X Extracts X X X X
X X X X Extracts X X X X
....onation, the income-tax payable shall be the aggregate of- Document 4 (i) the amount of income-tax calculated at the rate of thirty per cent on the aggregate of anonymous donations received in excess of the higher of the following. namely:- (ii) the amount of income-tax with which the assessee would have been chargeable had his total income been reduced by the aggregate of anonymous donations received. Anonymous donation has been defined in subsection (3) of I.T. Act, 1961 reproduced as under:- For the purposes of this section, "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. A perusal of the above definition reveals that if the person receiving such donation maintains the record of identity and address of donors then such donation cannot be called anonymous have been notified as per the requirement of this section. In view of the above facts, I agree with the argument....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... address maintained by assessee denies to have paid donation, it means such details are not correctly maintained & therefore, not maintained. Neither during the present impugned assessment proceeding nor during the present appellate proceedings, the appellant has produced or contradicted this findings. Considering these above Rs. 146 Crores allegedly received from M/s. Adivasi Mahila Vikas Samiti is treated as anonymous donation and is taxable u/s 115 BBC of I.T. Act & no deduction is allowable on account of application of income under subsection (7) of section 13 of I.T. Act, 1961. As far as the balance donations are concerned, the enquiry conducted during the original assessment proceedings revealed that the enquiry letters mere either not replied or not served. This does not prove that the appellant has not maintained the requisite details to establish the identity of donors specially under the circumstances where all the alleged donation are through banking channels and letters of donors were produced during the assessment proceedings. The appellant has filed complete details of donation during the present impugned assessment proceeding....