Lala Sher Singh Memorial Jeevan Vigyan Trust Society Vs DCIT (ITAT Delhi)
Delhi ITAT: Donations from Identified Donors Cannot Be Taxed as Anonymous Donations Under Section 115BBC
The Delhi ITAT held that corpus and voluntary donations received from identified donors cannot be treated as anonymous donations under section 115BBC merely because some donors did not respond to notices under section 133(6) or the Assessing Officer questioned the genuineness of the donations.
The assessee, a charitable trust, filed its return declaring nil income. During scrutiny, the Assessing Officer treated ₹2.29 crore (comprising ₹1.02 crore of corpus donations and ₹1.27 crore of voluntary donations) as anonymous donations under section 115BBC and also made an addition of ₹57 lakh under section 68 towards unsecured loans. While the CIT(A) deleted the addition under section 68, it sustained the addition relating to donations.
Before the Tribunal, the assessee demonstrated that it had maintained complete particulars of the donors, including names, PANs, addresses, income-tax returns, confirmations, audited financial statements and, in the case of corpus donations, specific letters directing that the contributions formed part of the corpus of the trust.
The Tribunal observed that the Assessing Officer’s remand report did not dispute the identity of the donors. It held that non-compliance by some donors with notices issued under section 133(6), or the absence of further independent verification, does not convert an identified donation into an anonymous donation within the meaning of section 115BBC.
Relying on the Delhi ITAT’s earlier decision in Hans Raj Samarak Society, affirmed by the Delhi High Court, the Tribunal reiterated that where the trust maintains records containing the names and addresses of donors, the donations cannot be regarded as anonymous, and section 115BBC has no application.
Accordingly, the ITAT deleted the additions of ₹1.27 crore towards voluntary donations and ₹1.02 crore towards corpus donations, holding that both categories of donations were duly supported by donor particulars and documentary evidence. The assessee’s appeal was partly allowed.
Cases Discussed
- Falahe Darain Education Society vs. DCIT, ITA No. 2111/Ahd/2025
- DIT vs. Hans Raj Samarak Society (Delhi HC), 217 Taxman 114
- Hans Raj Samarak Society vs. DIT (ITAT Delhi), ITA No. 1041/Del/2012
- Madhavi Raksha Sankalp Nirmal Niketan vs. DDIT (Exemption), 165 ITD 627 (Mum)
- Hans Raj Samarak Society vs. ADIT (Exemption), 133 ITD 530 (Del)
FULL TEXT OF THE ORDER OF ITAT DELHI
The appeal filed by the Appellant/Assessee is against order dated 30.08.2025 of Ld. Commissioner of Income Tax(Appeals)-30, New Delhi (hereinafter referred to as ‘the CIT(A)’) u/s 250 of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) arising out of assessment order dated 31.12.2019 of Ld. Assessing Officer / DCIT, Circle Exempt-1(1), Delhi (hereinafter referred to as ‘the AO’) u/s 143(3) of the Act for Assessment Year 2017-18.
