2025 (7) TMI 1564

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....d the order passed by the Ld. CIT(A)Karnal, for completeness. 2. The case was listed for hearing on 29/5/2025, when the matter was called, there was no appearance from the side of the assessee. It is noted from the record that earlier Mr. Tej Mohan, Advocate, was appearing on behalf of the assessee. However, no adjournment request or explanation for non-appearance has been filed. The conduct of the assessee indicates a lack of interest in prosecuting the appeal. However, considering nonappearance on behalf of the assessee on many earlier occasions and the nature of the issues involved, we proceed to decide the appeal on merits as well. 3. During the appellate proceedings before the CIT(A), the assessee filed an application under Rule ....

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....nd the genuineness of the transactions. 7.6 The remand report of the AO was provided to the appellant. In response, the appellant submitted a rejoinder wherein he reiterated the submissions made earlier and asserted that the deposits were either out of his agriculture income or were loans received from relatives and friends. However, except for affidavits and copies of certain documents, no bank statements or PAN details of the depositors were furnished. 7.7 In view of the above, the explanation furnished by the assessee cannot be accepted in the absence of corroborative evidence such as the financial capacity of the depositors, confirmation with bank details, and any reliable supporting material. Mere affidavits or self-s....

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.... lenders. According to settled law, the onus under Section 68 lies with the assessee to provide a satisfactory explanation regarding the nature and source of any credit found in its books. It is settled that mere furnishing of confirmation or general explanations without credible supporting evidence is not sufficient to discharge the burden. 7. In respect of corpus donations, we note that the assessee has not submitted proper documentation evidencing the identity of the donors. In terms of section 115BBC of the Act, anonymous donations received by a charitable or religious trust are chargeable to tax at the rate of 30%. Even if such donations are styled as "corpus donations", the assessee must still establish the identity of donors unles....

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.... and (ii) such other particulars as may be prescribed. 8. In this case, the failure to provide PAN details, bank statements, or any form of verifiable documentation means the donation qualifies as anonymous under section 115BBC, and the addition is rightly sustained. 9. Regarding unsecured loans, the law requires the assessee to prove the identity of the lender, their creditworthiness, and the genuineness of the transaction. This three-fold requirement under section 68 was not satisfied. The affidavits and confirmations produced lacked bank statements or financial records of the lenders. Therefore, we concur with the Ld. CIT(A) in holding that the loans are unexplained and liable to be added under section 68. 10. Accordingly, we fi....