Addition of Rs.1,26,453 as Anonymous Donations: ITAT Grants One More Opportunity to Furnish Complete Donor Details [Read Order]
The tribunal observed that complete donor details were maintained in the books of accounts and directed that the assessee be allowed to provide PAN, mode of payment, and other particulars
Donations
Donations
The Chennai Bench of Income Tax Appellate Tribunal ( ITAT ) granted the assessee one more opportunity to furnish complete donor details for the addition of Rs.1,26,453 treated as anonymous donations.
Shree Jain Swethambar Murti Pujak Sangh,appellant-assessee, filed its return of income for the assessment year 2019-20 declaring Rs.1,51,551/-. The case was taken up for scrutiny and a notice under section 143(2) was issued.
In the course of assessment, the assessee furnished only part of the details sought, and the Assessing Officer (AO) completed the assessment under section 143(3) read with section 144B on 27.08.2021. An addition of Rs.1,26,453/- was made as anonymous donations since details of the donors were not produced.
On appeal, the First Appellate Authority upheld the addition. It noted that though the assessee claimed that complete donor details were maintained in its books, no explanation was given for the failure to provide them during assessment. Even at the appellate stage, only a printed list of names and addresses was furnished, without certification or supporting evidence.
Referring to Central Board of Direct Taxes (CBDT) Notification No.30/2009 and judicial rulings including the Supreme Court’s decision in Subash Educational Society (2020), the Authority held that absence of PAN and mode of payment made the donations anonymous and taxable under section 115BBC.
The assessee, aggrieved by this order, carried the matter in appeal before the tribunal.
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The assessee counsel submitted that only partial details of donations had been given earlier and that complete donor information was available in the books. A request was made for another opportunity to furnish the details.
The Departmental Representative argued that sufficient opportunities had already been given at both assessment and appellate stages, and there was no violation of natural justice. It was therefore urged that the appeal be dismissed.
The two member bench comprising George George K(Vice President) and S.R.Raghunatha (Accountant Member) considered the submissions and examined the record. It observed that the assessee had only produced an unsigned and uncertified list of donor names and addresses before the First Appellate Authority, which was found unreliable.
The assessee’s counsel maintained that complete donor details were available in the books of accounts. The tribunal referred to CBDT Notification No.30/2009 requiring trusts to maintain name, address, PAN or other identification, and mode of receipt of donations.
In view of this, the appellate tribunal directed that the assessee be given one more opportunity to furnish complete particulars, including PAN and mode of payment, and allowed the appeal for statistical purposes.
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