RAMADEVI MEMORIAL CHARITABLE TRUST, Jaipur V. ACIT, Jaipur

ITA 1023/JPR/2016

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 5968 (ITAT-JAIPUR)
• Duration Of Justice: 3 year(s) 2 month(s) 16 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-02-2020
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2012-2013
• Appeal Filed On: 21-11-2016
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: ROONIPAL
• Keywords: Charitable institution; Maximum Marginal Rate
• Section: 143(3); 12; 11

Judgement Text

VK;DJ VIHYH; VF/KDJ.K] T;IQJ U;K;IHB] T;IQJ IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHE S,B JAIPUR JH FOT; IKY JKO] U;KF;D LNL; ,OA JH FOE FLAG ;KNO] YS[KK LNL; DS LE{K BEFORE: SHRI VIJAY PAL RAO, JM & SHRI VIKRAM SINGH YADAV, AM VK;DJ VIHY LA-@ ITA. NO. 1023/JP/2016 FU/KZKJ.K O'K Z@ ASSESSMENT YEARS : 2012-13 M/S RAMADEVI MEMORIAL CHARITABLE TRUST, ROAD NO. 2, MAN NAGAR, JHUNJHUNU CUKE VS. THE ACIT(E), JAIPUR. LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN/GIR NO.: AAATR7440 M VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT FU/KZKFJRH DH VKSJ L S@ ASSESSEE BY : NONE JKTLO DH VKSJ LS @ REVENUE BY : SHRI ROONIPAL (JCIT) LQUOKBZ DH RKJH[ K@ DATE OF HEARING : 06/02/2020 MN?KKS'K.KK DH RKJH[ K@ DATE OF PRONOUNCEMENT : 07/02/2020 VKNS'K@ ORDER PER: VIKRAM SINGH YADAV, A.M. THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST TH E ORDER OF LD. CIT(A)-III, JAIPUR DATED 30.09.2016 FOR THE ASSESSM ENT YEARS 2012-13 WHEREIN THE ASSESSEE HAS TAKEN THE FOLLOWING GROUND S OF APPEAL:- 1. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CA SE AND IN LAW THE LEARNED CIT (A)-III, JAIPUR HAS ERRED IN CONFIR MING THE ORDER PASSED BY LD. AO U/S 143(3) WITHOUT CONSIDERING THE SUBMISSION ITA NO. 1023 /JP/2016 M/S RAMADEVI MEMORIAL CHARITABLE TRUST VS. ACIT(E) 2 MADE BY ASSESSEE AND THEREBY WITHDRAWING EXEMPTION U/S 11 OF THE INCOME TAX ACT, 1961 ARBITRARILY. 2. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CAS E, LD. CIT(A) ERRED IN CONFIRMING THE ACTION OF LD. AO IN TREATIN G THE DONATION OF RS.89,25,000/- AS 'ANONYMOUS DONATION, ON MERE C ONJECTURES & SURMISES & BY GROSSLY IGNORING THE FACT THAT ASSE SSEE HAD PRODUCED ALL RECEIPTS IN RESPECT OF DONATIONS RECEI VED BY IT CONTAINING COMPLETE NAMES & ADDRESSES OF THE DONORS , THUS APPELLANT PRAYS DONATIONS SHOULD NOT BE TREATED AS 'ANONYMOUS' AND CLAIM OF ASSESSEE BE ALLOWED. 3. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CAS E THE LEARNED CIT(A) ERRED IN UPHOLDING THE ACTION OF LD. AO IGNO RING THE FACT THAT NEITHER IDENTITY NOR CREDITWORTHINESS OF DONOR S WAS DOUBTED RATHER DISALLOWANCE WAS MADE MERELY FOR THE NON PRO DUCTION OF COMPLETE ADDRESS OF DONORS WHICH IN FACT WAS ALREAD Y FILED, THUS APPELLANT PRAYS CLAIM OF ASSESSEE MAY PLEASE BE ACC EPTED. 2. AT THE OUTSET, IT IS NOTED THAT THE MATTER WAS O RIGINALLY LISTED FOR HEARING ON 17.01.2017, THEREAFTER THE MATTER HAS BE EN LISTED FOR HEARING ON NUMBER OF OCCASIONS AND HAS BEEN ADJOURN ED FROM TIME TO TIME AT THE REQUEST OF THE ASSESSEE/AR. THE MATTER WAS LAST LISTED FOR HEARING ON 06.01.2020 WHEREIN SHRI MANISH AGARWAL ( CA) APPEARED AND SUBMITTED A LETTER DATED 06.01.2010 STATING THAT TH EY ARE UNABLE TO REPRESENT THE ASSESSEE BEFORE THE TRIBUNAL AND WITH DRAWING THEIR POWER OF ATTORNEY AND THE MATTER MAY BE DECIDED BY ISSUE OF NOTICE DIRECTLY TO THE ASSESSEE. THEREAFTER, THE MATTER WAS ADJOURNED AND SCHEDULED FOR ITA NO. 1023 /JP/2016 M/S RAMADEVI MEMORIAL CHARITABLE TRUST VS. ACIT(E) 3 HEARING FOR TODAY I.E. 06.02.2020 AND NOTICE WHICH WAS ISSUED TO THE ASSESSEE-TRUST DULY DISPATCH BY THE REGISTRY ON 08. 01.2020 THROUGH RPAD. NONE APPEARED ON BEHALF OF THE ASSESSEE NOR A NY WRITTEN REPRESENTATION WAS FILED BY THE ASSESSEE TRUTS. THE REFORE, IT WAS DECIDED TO HEAR THE MATTER EX-PARTE QUA THE ASSESSEE AFTER HEARING THE LD. DR AND BASED ON MATERIAL AVAILABLE ON RECORD. 3. DURING THE COURSE OF HEARING, THE LD. DR TOOK US THROUGH THE FINDINGS OF THE ASSESSING OFFICER WHILE PASSING THE ASSESSMENT ORDER U/S 143(3) OF THE ACT DATED 29.03.2015. IT WAS SUBMITTE D THAT DURING THE COURSE OF ASSESSMENT PROCEEDINGS, THE ASSESSING OFF ICER OBSERVED THAT IN THE CORPUS ACCOUNT, THE ASSESSEE HAS SHOWN DONAT ION OF RS. 1,22,66,069/- AND TO VERIFY THE SAME, A SHOW CAUSE WAS ISSUED TO THE ASSESSEE DATED 19.03.2015. IN RESPONSE, THE ASSESSE E FILED ITS SUBMISSIONS VIDE LETTER DATED 23.03.2015. BASIS TH E SUBMISSIONS FILED BY THE ASSESSEE, DONATION OF RS. 25,00,000/- RECEIV ED FROM SMT. NIDHI PUNIA AND DONATION OF RS. 8,41,069/- RECEIVED IN KIND WAS ACCEPTED AS DECLARED. HOWEVER, IN RESPECT OF THE REMAINING DONA TION AMOUNTING TO RS. 89,25,000/-, THE EXPLANATION SUBMITTED BY THE A SSESSEE WAS NOT ACCEPTED BY THE ASSESSING OFFICER AND RELEVANT FIN DINGS OF THE ASSESSING OFFICER AT PAGE 4 READS AS UNDER:- IN VIEW OF THE ABOVE DISCUSSION MADE IN PRECEDING PARAS, THE ASSESSEEE COULD FURNISH JUSTIFICATION AND EVIDENCES IN SUPPORT OF THE DONATION RECEIVED OF RS. 33,41,069/- AND FOR RE MAINING DONATIONS THE ASSESSEE HAS FURNISHED A LIST OF INNU MERABLE NUMBER OF PEOPLE FROM WHOM THE DONATION OF RS. 5,00 0/- EACH ITA NO. 1023 /JP/2016 M/S RAMADEVI MEMORIAL CHARITABLE TRUST VS. ACIT(E) 4 HAS BEEN STATED TO HAVE BEEN RECEIVED IN CASH ON VA RIOUS DATES. THE ASSESSEE COULD NOT FURNISH COMPLETE POSTAL ADDR ESS OR IDENTITY OF THE PERSONS FROM WHOM THE DONATIONS HAV E BEEN RECEIVED. FURTHERMORE THE RECEIPT BOOKS PRODUCED AR E ALSO APPEARS TO BE FABRICATED AND ISSUED IN ONE OR TWO S ITTING WITHOUT ANY ADDRESS OF THE PERSONS FROM WHOM DONATIONS STAT ED TO HAVE BEEN RECEIVED. DESPITE PROVIDING A NUMBER OF OPPORT UNITIES THE ASSESSEE HAS NOT FURNISHED POSTAL ADDRESS AND IDENT IFICATION OF THE PERSON CONCERNED AS WELL AS PURPOSE OF THE DONA TIONS AND WHEREABOUTS OF THE DONORS. PRIMA FACIE THE LIST FUR NISHED APPEARS TO HAVE BEEN PREPARED ON THE BASIS OF VOTER LIST OR ANY OTHER RECORDS OF THE CENSUS DEPARTMENT. THE LIST ITSELF G IVE AN IMPRESSION THAT COMPLETE NAME OF THE PERSON IS NOT MENTIONED AND NO DETAILS ABOUT THEIR FATHER OR MOTHER AND FUR THERMORE THE ADDRESS ARE ALSO MENTIONED OF NEARBY VILLAGE OF THE ASSESSE'S PLACE. IN VIEW OF THE AFOREMENTIONED DISCUSSION THE DONATION OF RS. 89,25,000/- IS TREATED AS ANONYMOUS DONATIONS F OR WHICH THE ASSESSEE HAS NOT BEEN ABLE TO JUSTIFY ITS IDENTITY AND GENUINENESS. IN VIEW OF THESE DISCUSSION PROVISIONS OF SECTION 13(7) WHICH DEALS THE ISSUE ARE REPRODUCED HEREIN B ELOW:- 7 [SECTION 11 NOT TO APPLY IN CERTAIN CASES. 13. (1) NOTHING CONTAINED IN SECTION 11 9 [OR SECTION 12] SHALL OPERATE SO AS TO EXCLUDE FROM THE TOTAL INCOME OF T HE PREVIOUS YEAR OF THE PERSON IN RECEIPT THEREOF (A) -- ITA NO. 1023 /JP/2016 M/S RAMADEVI MEMORIAL CHARITABLE TRUST VS. ACIT(E) 5 [(7) NOTHING CONTAINED IN SECTION 11 OR SECTION 12 SHALL OPERATE SO AS TO EXCLUDE FROM THE TOTAL INCOME OF THE PREVIOUS YE AR OF THE PERSON IN RECEIPT THEREOF, ANY ANONYMOUS DONATION REFERRED TO INSECTION 115BBC ON WHICH TAX IS PAYABLE IN ACCORDANCE WITH THE PROV ISIONS OF THAT SECTION.] IN VIEW OF THE DISCUSSION MADE IN THE PRECEDING PAR AS PROVISIONS OF SECTION 13(7) ARE INVOKED AND THE ANONYMOUS DONA TIONS OF RS. 89,25,000/- IS BROUGHT TO TAX AS PER PROVISIONS OF SECTION 115BBC OF THE ACT AT THE MAXIMUM MARGINAL RATE (MMR) AS PE R PROVISIONS OF SEC. 115BBC OF THE ACT. 4. THE LD. DR FURTHER SUBMITTED THAT EVEN DURING TH E APPELLATE PROCEEDING BEFORE THE LD. CIT(A), THE ASSESSEE HAS NOT FILED ANY EVIDENCE TO CONTROVERT THE FINDING OF THE AO. HE HA S NOT EVEN FILED A LIST OF DONORS WITH FULL ADDRESS AND ALL THESE FACTS SHO W THAT THE DONATIONS RECEIVED WERE ANONYMOUS DONATION AND THEREFORE, THE ACTION OF THE AO IN TREATING THE SAME AS ANONYMOUS BY APPLYING SECTI ON 115BBC OF THE ACT. IT WAS ACCORDINGLY SUBMITTED THAT THERE IS NO INFIRMITY IN THE ORDER OF THE LOWER AUTHORITIES AND THEREFORE, THE SAME SH OULD BE CONFIRMED. 5. WE HAVE HEARD THE LD. DR AND PERUSED THE MATERIA L AVAILABLE ON RECORD. FIRSTLY, IT IS NOTICED THAT DUE SHOW CAUSE WAS ISSUED BY THE ASSESSING OFFICER TO THE ASSESSEE-TRUST TO FURNISH NECESSARY DETAILS AND DOCUMENTATION IN SUPPORT OF THE VARIOUS DONATION RE CEIVED BY THE ASSESSEE-TRUST. IN ITS SUBMISSIONS, THE ASSESSEE-TR UST HAS STATED THAT ALL THE DONORS ARE THE VILLAGERS WHO HAVE DONATED FOR T HE CAUSE OF ITA NO. 1023 /JP/2016 M/S RAMADEVI MEMORIAL CHARITABLE TRUST VS. ACIT(E) 6 DEVELOPMENT OF EDUCATION AMONGST VILLAGERS AND SPRE AD OF SPIRIT OF WOMAN EDUCATION AND SUCH DONATIONS ARE PAID BY THE VILLAGERS OF THE NEARBY AREA AMOUNTING TO RS. 5,000/-AND BELOW AMOUN T AND ARE VOLUNTARILY RECEIVED BY THE ASSESSEE-TRUST. IT WAS FURTHER SUBMITTED THAT ALL THE RECEIPTS CARRY NAME AND ADDRESS OF THE DONO RS AND SUCH DONORS CAN BE PHYSICALLY FOUND, IF REQUIRED TO BE VERIFIED . ON PERUSAL OF THE SAME, THE ASSESSING OFFICER HAS RECORDED A FINDING THAT THE ASSESSEE COULD NOT FURNISHED COMPLETE ADDRESS OR IDENTIFY TH E PERSONS FROM WHOM THE DONATIONS HAVE BEEN RECEIVED, THE RECEIPT BOOKS APPEARS TO BE FABRICATED WITHOUT ANY ADDRESS OF THE PERSONS FR OM WHOM THE DONATIONS HAVE BEEN RECEIVED AND NUMBER OF OPPORTUN ITIES HAVE BEEN PROVIDED TO THE ASSESSEE-TRUST TO FURNISH POSTAL AD DRESS AND IDENTIFICATION OF THE PERSONS AS WELL AS THE PURPOS E OF THE DONATION AND PRIMA FACIE THE LIST APPEARS TO HAVE BEEN PREPARED ON THE BASIS OF VOTER LIST OR ANY OTHER RECORDS OF THE CENSUS DEPARTMENT. EVEN THE COMPLETE NAME OF THE DONORS IS NOT MENTIONED NOR THE DETAILS ABOUT THEIR FATHER AND THE ADDRESS WHERE THEY WERE RESIDING WERE FURNI SHED. IT WAS FURTHER OBSERVED BY THE AO THAT ALL THESE DONATIONS HAVE BEEN RECEIVED OF SAME AMOUNT I.E. RS. 5,000/- FROM INNUMERABLE PE OPLE WHICH WE FIND PRACTICALLY IMPROBABLE THAT EACH OF THE DONORS HAVE DONATED EQUIVALENT AMOUNT NOT A RUPEE MORE NOR A RUPEE LESS. WE THER EFORE FIND THAT THE ASSESSEE TRUST HAS FAILED TO SUBSTANTIATE THE DONAT ION SO RECEIVED THROUGH ANY CREDIBLE AND VERIFIABLE EVIDENCE IN TER MS OF COMPLETE NAME AND ADDRESS OF THE DONORS AND PURPOSE OF THE DONATI ON AND THEREFORE, THE PROVISIONS OF SECTION 13(7) R/W 115BBC HAVE BEE N RIGHTLY INVOKED BY THE ASSESSING OFFICER AND CONFIRMED BY THE LD. C IT(A). IN THE RESULT, ITA NO. 1023 /JP/2016 M/S RAMADEVI MEMORIAL CHARITABLE TRUST VS. ACIT(E) 7 WE DO NOT FIND ANY MERIT AND JUSTIFICATION IN THE G ROUNDS OF APPEAL SO TAKEN BY THE ASSESSEE-TRUST. IN THE RESULT, THE APPEAL OF THE ASSESSEE-TRUST IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 07/02/2020. SD/- SD/- FOT; IKY JKO FOE FLAG ;KNO (VIJAY PAL RAO) (VIKRAM SINGH YADAV) U;KF;D LNL;@ JUDICIAL MEMBER YS[KK LNL;@ ACCOUNTANT MEMBER TK;IQJ@ JAIPUR FNUKAD@ DATED:- 07/02/2020. * SANTOSH VKNS'K DH IZFRFYFI VXZSFKR@ COPY OF THE ORDER FORWARDED TO: 1. VIHYKFKHZ@ THE APPELLANT- M/S RAMADEVI MEMORIAL CHARITABLE TRU ST, JHUNKJNU. 2. IZR;FKHZ@ THE RESPONDENT- ACIT(EXEMPTION) JAIPUR. 3. VK;DJ VK;QDR@ CIT 4. VK;DJ VK;QDR@ CIT(A) 5. FOHKKXH; IZFRFUF/K] VK;DJ VIHYH; VF/KDJ.K] T;IQJ@ DR, ITAT, JAIPUR. 6. XKMZ QKBZY@ GUARD FILE { ITA NO. 1023/JP/2016} VKNS'KKUQLKJ@ BY ORDER, LGK;D IATHDKJ@ ASST. REGISTRAR.