The Income Tax Appellate Tribunal (ITAT), Delhi bench held that donations received by the assessee trust are not anonymous donations under Section 115BBC of the Income Tax Act, 1961 when complete records of donors have been maintained.
The assessee, Gian Sagar Educational and Charitable Trust received voluntary donations from various donors. During the assessment proceedings AO denied that donations received by the assessee trust are anonymous donations under Section 115BBC of the Income Tax Act due to failure to produce complete records of donors.
Aggrieved, the assessee filed appeal before the CIT(A) who dismissed the appeal. Thereafter, the assessee filed a second appeal before the tribunal.
Ravi Pratap Mall, Counsel for assesee submitted that t donations received by the appellant are not anonymous donations under Section 115BBC of the Income Tax Act as the appellant has maintained complete particulars of the donors
Gayasuddin Ansari, Counsel for Revenue argued that assessee failure to maintain proper records including names and other details of voluntary contribution received by it . Thus the AO rightly brought to tax as anonymous donation within the meaning of section 115BBC of the Income Tax Act.
The tribunal observed that the identical issues were decided in favour of assessee for A.Y. 2008-09. Also details of the names, addresses, their PAN card nos., cheque nos., dates and amounts of donation of the donors has not been proved to be wrong by the lower authorities.
After reviewing the facts and records, the two-member bench of M. Balaganesh (Accountant member) and Chandra Mohan Garg, (Judicial Member) held that provisions of Section 115BBC of the Act would not be applicable if records of Donation received by assessee Trust are completely maintained.
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