TaxTMI 
TaxTMI 
2025 (2) TMI 1345
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....e raised is whether CIT(A) was justified in confirming order of the AO holding that Rs. 1,43,61,000/- was enormous donations. 3. Brief facts of the case are as follows:- The assessee is a trust engaged in providing training for preparation of police services free of cost to poor and rural students, who aspire to be recruited in police services. For the assessment year 2018-19, return of income was filed on 02.11.2018 declaring Nil income after claiming exemption u/s.11 of the Act. The assessment was selected for scrutiny and notice u/s.143(2) was issued. During the course of assessment proceedings, the AO noticed that assessee had disclosed voluntary contribution other than corpus amounting to Rs. 1,43,61,000/-. The AO held that for t....
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....the instant case, the source of cash donation is not established by the appellant and also in absence of supporting documents. It is the duty of the appellant and onus on the appellant to establish and prove the genuineness and capacity of the donor to donate the donation. The appellant has failed to prove the genuineness and capacity of the donors." 6. Aggrieved by the order of CIT(A), assessee has filed present appeal before the Tribunal. The assessee has filed two sets of paper book, one enclosing case laws relied on. In the other set of paper book, the assessee has enclosed, the list of donors, their address, telephone number, the amounts of donation, written submissions filed before the CIT(A) etc. The Ld.AR submitted that AO and CI....
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....s necessarily the donee has to prove identity, genuineness and capacity of the donor donating sum exceeding sum of Rs. 50,000/-. 8. We have heard rival submissions and perused material on record. The solitary issue is whether the cash donations totalling to Rs. 1,43,61,000 received by the assessee trust, which is registered u/s 12AA and 80G, is anonymous in terms of Section 115BBC(3) r.w.s 13(7) of the Act. Sub section 13(7) read as under: "(7) Nothing contained in section 11 or section 12 shall operate so as to exclude from the total income of the previous year of the person in receipt thereof, any anonymous donation referred to in section 115BBC on which tax is payable in accordance with the provisions of that section." 9. ....
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....he genuineness and capacity of donors. Section 115BBC(3) does not require a trust to establish the source of the cash donations and genuineness of the transaction and capacity of the donors. This sub-section requires only identity of the donors are to be indicated and in the instant case neither the AO nor the CIT(A) have given a finding that the assessee trust has not maintained records indicating the identity of the donors. The Hon'ble Delhi High Court in the case of Director of Income Tax (Exemption) Vs. Keshav Social and Charitable Foundation [2005] 278 ITR 152(Del) has held that rigor of section 68 of the Act has no application in the case of trust. The relevant finding of the Hon'ble High Court read as follows:- "The assessee....