Case Law Details
ITO Vs Aishwarya Foundation (ITAT Patna)
ITAT Patna held that as assessee duly complied with the requirement of maintaining the records of the donors in the form of their names and addresses the same cannot be held as anonymous donations and accordingly provisions of section 115BBC of the Income Tax Act are not attracted.
Facts- The assessee trust is a charitable organization registered u/s. 12AA of the Act. It filed its return of income for the year under consideration declaring total income at ‘Nil’. Case of the assessee was selected for scrutiny through CASS followed by the issuance of notice u/s. 143(2) & 142(1) of the Act. During the course of assessment proceedings, AO noted from the income & expenditure account that the assessee had shown income at Rs.2,61,72,000/- which was received as a donation and incurred expenses to the tune of Rs.2,22,47,910/- which resulted in income over expenditure at Rs.39,25,443/-.
AO asked the assessee to submit relevant details in respect of the genuineness of the donations, to which compliance was made by the assessee and a list containing name of 1371 persons was furnished who had made the donations. AO noticed that none of the donations exceeded Rs.20,000.
AO issued letters/summons to 109 persons seeking confirmation of donation to the assessee, however, the same remained unserved or persons denied to have known or given donation to the assessee. Resultantly, AO held the claim of the assessee of having received the amount of Rs.2,61,72,000/- as donation, as baseless and bogus and treated the same as anonymous donation u/s. 115BBC of the Act and assessed the income of the assessee at Rs.2,87,88,843/-
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