Case Law Details
Brief Facts of the case: Assessee was running a charitable educational trust and received anonymous donations amounting to Rs 1,66,30,000/-. Assessee had considered the same anonymous donations in its income and the same were applied for charitable purpose by the assessee.AO was of the opinion that that the above donations were uncounted money which has been routed through the charitable trust.
Assessee had produced the documents as required u/s 115BBC to be maintained by the assessee before the AO, but the AO did not consider the same on the basis that asseesee had not proved the creditworthiness of the donor ,he had just produced before him the identity of the donors So Ao had considered anonymous donations as unexplained cash credits u/s 68 .
Ld. CIT(A) considered the fact by taking into light the judgment of Humble high court in case of DIT(E) vs Keshav Social and charitable Foundation ,278 ITR 152 (Delhi) and may other that if the income had been taken into the income & expenditure account of the trust then the same cannot be treated as the unexplained cash credit and no addition can be made u/s 68 because the same was no more unexplained as the same has been take into account. So CIT(A) deleted the additions made by the AO
Contention of The Assessee/Respondent: Assessee was of the view by considering the judgment of CIT vs Uttranchal welfare society ,42 taxman.com 361,that the AO has disallowed the donation received from various persons and made addition u/s 68 considering the same to be unaccounted money ignoring the fact that all the receipts had already been taken to its income and the same was applied for charitable purposes.
Assessee had produced before the Ao the PAN card copy, their ITR’s,Copy of Bank statement ,financial statements ,their confirmations etc. Therefore the provisions of sec 115BC cannot be invoked .
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