TaxTMI 
TaxTMI 
2024 (7) TMI 147
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....ncome Tax Act, 1961 [hereinafter referred to as 'the Act, 1961'] and donations given to it are exempt under Section 80G with effect from 01.04.2012. The assessee Trust was established on 10.08.2007 and is predominantly engaged in the activities of medical relief and upliftment of poors. The assessee Trust was registered under Section 12AA of the Act, 1961 vide order dated 05.05.2008 and was granted exemption under Section 80G vide proceedings dated 05.07.2013. 3. The assessee has been filing regularly its return of income within due date under Section 139 (1) of the Act, 1961 claiming exemptions under Section 11 of the Act, 1961. A survey of the premises of a donor namely 'School of Human Genetics and Population Health' [for short, 'SHGP....
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....to show cause as to why registration under Section 12A/12AA of the Act may not be cancelled by invoking provisions of Section 12AA (3). The respondent assessee replied to the notice. However, the CIT (E) cancelled the registration of the respondent assessee on the ground that the respondent assessee has not received corpus donation of Rs. 1,12,00,000/-. The CIT (E) has not disputed the application of the fund by the respondent assessee towards charitable objects of the Trust. The sum of Rs. 1,12,00,000/- received by the assessee as donation towards corpus from SHGPH was treated as general donation received by the Trust and accordingly an application was filed by the respondent assessee before the Settlement Commission under Section 245C of ....
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....y and Treasurer was that nine brokers whose names have been given in Answer No. 11 by Smt. Samadrita Mukherjee Sardar, used to give donations to SHGPH, in the form of cheque/RTGS and simultaneously used to ask for return cheques in the name of certain companies/ organizations. The SHGPH would receive a commission of 7 to 8% of the donation amount. It is not in dispute before us that none of the nine brokers referred to in the statement have been examined by the revenue authorities. There is nothing incriminating so far as the assessee is concerned with regard to the gifts given by SHGPH in favour of the assessee. Based on the statements of Treasurer and Secretary of SHGPH it cannot be concluded that the assessee had paid cash to the Treasur....
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....rns belonging to trustees of the assessee trust had derived unaccounted income to the tune of Rs.10.01 crores and the same had found its way as donations to the assessee trust. There is no case made out for assessee trust paying cash to SHGPH and in turn bringing back the same by cheque/RTGS as donations from SHGPH. The charge of the revenue is that money representing the value of donation has been laundered. The question as to whose money was laundered and by whom is not spelt out in the impugned order. There is no material brought on record to come to a conclusion that the assessee was part of the scheme of money laundering and that the donation received by the assessee from SHGPH was also part of such scheme of money laundering. The asse....
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....was initially claimed as donation towards corpus. But, subsequently, it was admitted by the respondent assessee to be general donation. The Revenue has not disputed that the amount so received by the respondent assessee was general donation which was subjected to tax as per order of the Settlement Commission under Section 245C of the Act, 1961. Therefore, it is undisputed that the sum of Rs. 1,12,00,000/- was received by the assessee from SHGPH as general donation which was subjected to income tax as per scheme of the Act, 1961. 9. We have carefully perused the order of the CIT (E) and we find that the CIT (E) has not recorded any finding disbelieving the application of fund by the respondent assessee towards the object of the Trust. Det....