TaxTMI 
TaxTMI 
2024 (7) TMI 836
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....sessee trust is existing solely for the purpose of education, even though the AO brought on record that the assessee trust is having many objects other than that of education. 3. The appellant craves to leave, to add, alter, amend or delete any of the above Grounds of Appeal." 3. Facts in Brief:- The assessee is a registered Public Charitable Trust formed on 07/12/1991, under the Bombay Trust Act, 1950. It is also registered under section 12A of the Income Tax Act, 1961 ("the Act"). The main activities of the assessee Trust are working for religious and educational purpose for minority Buddhist communities. The main objectives of the Trust are as follows:- "i) For educational development, establishment of Balak Mandir, Convent, Primary, High School, College, Music School, Engineering, Agriculture Schools, Farming Schools, Medical College, Computer Training Classes, Adult Education Classes, Ashram Schools, Public Libraries, Hostels and all types of Vocational, Technical Educational branches (like degree colleges, M.B.A, Law College, M.B.B.S, B.A.M.S, Engineering Colleges, DMLT, D.Ed., B.Ed., M.P.Ed., B.P.Ed., B.Com., B.A., D.F.M., Science, Commerce, Arts, Techni....
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....er section 115BBC of the Act and taxed accordingly. The order passed by the Assessing Officer was challenged by the assessee before the first appellate authority. 5. Before the learned CIT(A), the assessee filed all the details in respect of each donor numbering 23,135, and such details filed were considered by the learned CIT(A) and the same were verified on 06/03/2017 and called the remand report from the Assessing Officer and referred to the details to the Assessing Officer for verification on 29/06/2017. The Assessing Officer submitted remand report and the same was reproduced by the learned CIT(A) as under:- "Kindly refer to your letter in F.No. CIT(A)-4/Ngp/Rem. Rep/DGCT/Remand Report/2016-17 dated 06.03.2017 in the above matter. 2. In the above mentioned case, assessment for A. Y. 2014-15 was completed u/s 143(3) on 26.12.2016. During the course of assessment proceedings, it was noticed that the assessee had failed to maintain required particulars such as name, address and PAN of the donors. Further, the assessee had also failed to submit the particulars of all the donors during the course of assessment proceedings. Resultantly, the income of the assesse....
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....ons have given sufficient documents with respect to genuineness but in rest of 53 cases, copy of only PAN Card / Aadhar Card has been furnished. It is pertinent to mention here that all the written submissions of these 76 persons are neatly typed and identical except the reasons given for non-attendance on the date of hearing. It indicates that these persons are also closely connected with the assessee Trust in spite of the fact that they are all living in different places. 5. It is worth mentioning here that in the assessment order the A.O. has noted that the assessee has neither maintained complete list of donors with their address nor it has provided the same before her for verification thereby failing to discharge the initial onus of providing the same as required under the Income Tax Act. In this regard, the Authorised Representative of the assessee was given the opportunity to produce the individual donors for establishing their existence, credit-worthiness and the genuineness of transaction. The Authorised Representative was asked to produce donors with (i) Identification proof of donor such as PAN card, Aadhar card etc., (ii) Copy of R.O.I, 26AS (if any) to verify ....
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....d for charitable purposes. ii. The assessee has filed PAN details, copy of ITRs and computation of income, copy of bank statement, confirmation in affidavit, from whom donation was received in order to establish the identity of persons. iii. There is no dispute that the entire voluntary donations has been disclosed by the assessee trust as income in the Income and Expenditure account. iv. The income so disclosed has been applied for charitable purposes as provided u/s. 11(1) of the Act, hence cannot be included in total income of the assessee trust. v. The donation was fully disclosed for the purpose of charitable and the registration under section 12A is continuing and valid, therefore there is no question of denial of exemption. vi. The donation received by assessee was not anonymous donation because receipts were issued by assessee from time to time & the assessee has submitted list of persons with donation received, name, address, PAN no. & Aadhaar no. etc. vii. The addition made u/s. 68 was not applicable in case of the assessee trust, since the assessee trust has duly discharges its onus by proving the identity and capacity of the ....
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.... 7. The learned CIT(A), after considering the remand report and explanation given by the assessee, deleted the addition made by the Assessing Officer. Para-6 to 6.4 of the learned CIT(A)'s order is reproduced below:- "6.0 Appellant's submission alongwith assessment order have been considered carefully, Assessment records of the AO have also been perused. The appellant has filed return claiming exemption u/s. 10(23C)(iiiab) of the I.T. Act being an educational institution existing solely for educational purposes and not for purposes of profit and being wholly or substantially financed by the Government. During the entire course of assessment as well as remand proceedings, AO has not brought on record even a single piece of documentary evidence to show that the appellant does not fulfil these criteria or that it has violated any of the prescribed conditions for claiming the said exemption. AO has not at all controverted these submissions of the appellant as made in assessment or appeal and which have been sent to him also. These undisputed facts are found duly reflected in the audit report also. Further, the appellant is also found to be duly registered u/s 12A along with 80....
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....n, as referred in section 2(24)(iia), does not maintain a record of the identity indicating name and address of the donors. First of all, these donations have been received by an educational institution which is claiming exemption u/s 10(23C)(iiiab). However, Section 2(24)(iia) nowhere mentions such institutions as falling u/s. 10(23C)(iiab). Further, these donations are not found to be anonymous donations. The appellant has given complete details, albeit in appeal proceedings indicating name, address, PAN/Adhar No. of all 23136 donors. AO himself has submitted in the remand report that to test check the veracity of appellant's submissions, summons have been issued to 205 randomly selected persons out of these 23136 donors entries. Statement of as Many as 89 persons have been recorded by the AO in remand proceedings whereas 76 persons have submitted their confirmations. Out of these, only 3 persons have denied to making any donation to the appellant society. However, this fact alone does not make the entire donations received to be called as anonymous donation, as has been held by the AO. Even in respect of these donors, who have denied of making any donation, the appellant has not....
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....n a single defect or deficiency therein either by him or the auditor. I tis not the AO's case either that the appellant is trying to introduce unaccounted money by way of donation receipts whether in the nature of corpus or other voluntary contributions. Thus, neither section 68 nor section 115 BBC of the IT Act is found applicable in case of the appellant society as the appellant has duly maintained and submitted record of the identity indicating the name and address of each of the person making the said contribution. The onus to prove that the apparent is not the real is one the party who claims it to be so, which, in the instant case, has not been discharged by the AO while rejecting appellant's submissions. The fact that the appellant has not produced copy of bank account statement, income tax return filed/26AS of each of the donor cannot lead one to the conclusion of ‗anonymous' donations keeping in view the fact of number of persons and amount involved in each case where the recipient of donation is not required to call for and maintain these details. Though, most of the donors, examined by the AO, have submitted these details also in remand proceedings. IN any case, it....
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....nted out that out of 23,136 donors, the Assessing Officer selected 205 persons randomly and out of 205 persons, 89 persons attended the office of the Assessing Officer and their statements were recorded, but 76 persons did not attend the office of the Assessing Officer who submitted written reply; 22 persons neither attended nor submitted any written reply; in case of 12 persons, summons were returned back to the office of the Assessing Officer by the Postal Department with remark "unserved". The learned D.R. further submitted that the assessee even during the course of remand proceedings not able to discharge the burden on it. The learned D.R. submitted that out of 8 donors who appeared before the Assessing Officer, 2 persons denied the payment of donation and, therefore, the assessee failed to discharge the burden cast upon the it. The learned D.R. strongly supported the order passed by the Assessing Officer. 9. On the other hand, the learned Counsel for the assessee submitted that with regard to donor numbering 23,136, the assessee has already submitted all the details before the Assessing Officer during the remand proceedings, complete details of donors from whom the assesse....
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....bmitted all the details before the Assessing Officer during the remand proceedings, complete details of donors from whom the assessee trust has received the donation along with, complete address, PAN Card details of the donors, Aadhar Card of the donors with respect of identification proof of the donors, but the Assessing Officer was not satisfied with these details. The Assessing Officer, therefore, by invoking provisions of section 115BBC of the Act, the entire donation received by the assessee was taxed as income of the assessee. 14. The assessee has filed complete details of the donors before the learned CIT(A). The learned CIT(A) called for the remand report from the Assessing Officer by sending all the details filed by the assessee. The Assessing Officer, after examining all the details of the donors filed by the assessee, sent the remand report to the learned CIT(A). We find that out of 23,136 donors, the Assessing Officer selected 205 donors randomly and out of 205 donors, 89 donors attended the office of the Assessing Officer and their statements were recorded, but 76 persons did not attend the office of the Assessing Officer, but confirmations were filed; 22 persons ne....
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....essing Officer, however, neither these donors attended office of the Assessing Officer nor any confirmation of having paid donation to the assessee were filed and hence the Assessing Officer doubted the entire donations. Regarding the donors who have neither appeared before the Assessing Officer nor filed any confirmation before the Assessing Officer, under these circumstances, the Assessing Officer ought to have asked the assessee to produce them before the Assessing Officer. However, the Assessing Officer, without adopting such process, has simply doubted the donations received by the assessee. 17. Insofar as 12 donors are concerned, the Assessing Officer issued summons to these donors, but these summons were returned back to the Assessing Officer with remark "unserved". The assessee has filed all the details in respect of these donors before the Assessing Officer. The reason for unserved summons to the donors may be due to the reason that the donors have left the address or the donors must have changed their address. However, it was the duty of the Assessing Officer to call the assessee to find out the whereabouts of the donors but the Assessing Officer failed to do so. Once ....
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....mous donation, the income-tax payable shall be the aggregate of- (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:- (A) five per cent of the total donations received by the assessee; or (B) one lakh rupees, and (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 in excess of the amount referred to in sub-clause (A) or sub-clause (B) of clause (i), as the case may be. (2) The provisions of sub-section (1) shall not apply to any anonymous donation received by- (a) any trust or institution created or established wholly for religious purposes; (b) any trust or institution created or established wholly for religious and charitable purposes other than any anonymous donation made with a specific direction that such donation is for any university or other educational institution or any hospital or other medical institution run by such trust or institution. (3) For the purposes of this sectio....