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TaxTMI 
TaxTMI 
TaxTMI 
2023 (5) TMI 1300
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....he assessment order u/s 143(3) made on 26 12 2019. 3. Without prejudice to the generality of the ground of appeal no 1 above, on the facts and in the circumstances of the case and in law, learned Assessing Officer has erred in holding that Rs. 3.07.77.671/- was chargeable to tax u/s 115BBE of the Act as the same is considered by him as unexplained money u/s 69A of the Act. 4. That the impugned order being contrary to law, evidence and facts of the case may kindly be set aside, amended or modified in the light of the grounds of appeal enumerated above. 5. That each of the grounds of appeal enumerated above is without prejudice to and independent of one another. 6. That the appellant craves leave to reserve to himself the right to add to, alter or amend any of the aforesaid grounds of appeal before or at the time of hearing and to produce such further evidence, documents and papers as may be necessary." 1. Brief facts of the case are that assessee charitable trust is duly registered u/s. 12A of the Act. Filed its return of income on 24-02-2018 declaring total income of Rs Nil. The mandatory audit report in form no. 10B is filed on 24- 02-2019. Case of the assessee was s....
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.... be allowed to the assessee subject to verification. So, the only substantive ground remains with the assessee is to challenge the taxability of Rs 3, 07, 77,617/- u/s. 115BBE r.w.s. 69A. We have gone through the submissions of the assessee along with case laws relied upon. For sake of clarity on the issue we are reproducing herein below the relevant sections as under: Section - 69A, Income-tax Act, 1961 [Unexplained money, etc. 69A. Where in any financial year the assessee is found to be the owner of any money, bullion, jewellery or other valuable article and such money, bullion, jewellery or valuable article is not recorded in the books of account, if any, maintained by him for any source of income, and the assessee offers no explanation about the nature and source of acquisition of the money, bullion, jewellery or other valuable article, or the explanation offered by him is not, in the opinion of the[Assessing] Officer, satisfactory, the money and the value of the bullion, jewellery or other valuable article may be deemed to be the income of the assessee for such financial year. Section - 115BBC, Income-tax Act, 1961 [Anonymous donations to be taxed in certain case....
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.... determined by the Assessing Officer includes any income referred to in section 68, section 69, section 69A, section 69B, section 69C or section 69D, if such income is not covered under clause (a), the income-tax payable shall be the aggregate of- (i) the amount of income-tax calculated on the income referred to in clause (a) and clause (b), at the rate of sixty per cent; and (ii) the amount of income-tax with which the assessee would have been chargeable had his total income been reduced by the amount of income referred to in clause (i).] (2) Notwithstanding anything contained in this Act, no deduction in respect of any expenditure or allowance [or set off of any loss] shall be allowed to the assessee under any provision of this Act in computing his income referred to in clause (a) [and clause (b)] of sub-section (1).] 5. Section 69A can be applied only in those cases where the assessee is found to be the owner of any money, bullion, jewellery or other valuable article and such money, bullion, jewellery, or valuable article is not recorded in the books of account, if any, maintained by him for any source of income. In this case whatever ....
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....t that Rs. 15 lakhs had been paid by cheque to W and impugned entry of Rs. 15 lakhs were same and duly accounted in books of account - Whether therefore, addition made by Assessing Officer had rightly been deleted - Held, yes [Para 33] 3). [2014] 42 taxmann.com 361 (All.) CIT v. Uttaranchal Welfare Society "Shri Nikhil Agarwal, appearing for the respondent-assessee has relied on DIT (Exemption) v. Keshav Social & Charitable Foundation [2005] 278 ITR 152/146 Taxman 569 (Delhi) in which following S. RM. M. CT. M. Tiruppani Trust v. CIT [1998] 230 ITR 636/96 Taxman 635 (SC) it was held that under Section 11 (1) every charitable or religious trust is entitled to deduction of certain income from its total income of the previous year. The income so exempt is the income which is applied by the charitable or religious trust to its charitable or religious purposes in India. This is, of course, subject to accumulation up to a specified maximum which was 25 per cent. In that case it was found, as in the present case that the assessee had applied more than 75% of the donations for charitable purposes as per its objects. The Delhi High Court further held that Section 68 of the Act has no ....
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....as it is a case of a trust before asked which has already offered the above sum as income as voluntary contribution and respective receipts were also impounded by the learned Assessing Officer during the course of survey. Assessee has explained the nature of the receipt as voluntary contribution and the source of such voluntary contributions are already mentioned in the receipts impounded. Accordingly, ground number 3 is dismissed. [Para 9]" 6. In the light of above discussion on judicial pronouncements and factual matrix of the case, we are of the considered view that section 69A has no applicability in the present case, hence section 115BBE of the Act. Accordingly, Ground Nos. 1 & 2 raised by the assessee is allowed. 7. As far as Ground No. 3 is concerned, we set aside the matter back to AO for verification with a direction that if interest so claimed by the assessee pertains to corpus fund, then the same has to be allowed as accretion to corpus fund, otherwise it will be deemed to be the income of the assessee subject to the benefits available in section 12A. In the result, this ground of assessee is allowed for statistical purposes. 8. The assessee is running a temple of L....