M/s. Akhila Bharath Sri Vasavi Penugonda Trust (Regd), Bengaluru V. Income Tax Officer (Exemptions), Ward- 1, Bengaluru

ITA 1822/BANG/2019

• Counselvise Citation: [2019] 112 COUNSELVISE.COM (IT) 8694 (ITAT-BANGALORE)
• Duration Of Justice: 2 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-11-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2014-2015
• Appeal Filed On: 22-08-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: GANESH R G
• Assessee Lawyers: RAKESH C R
• Keywords: Charitable institution; Opportunity of being heard

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL SMC-B BENCH : BANGALORE BEFORE SHRI ARUN KUMAR GARODIA, ACCOUNTANT MEMBER I T A NO. 1822 /BANG/201 9 ASSESSMENT YEAR : 20 1 4 - 1 5 M/S. AKHILA BHARATH SRI VASAVI PENUGONDA TRUST (REGD), NO. 23A, VASAVI NILAYA SERPENTINE ROAD, KP WEST, BANGALORE 560 020. PAN: AABTA1746N VS. THE INCOME TAX OFFICER (EXEMPTIONS), WARD 1, BANGALORE. APPELLANT RESPONDENT ASSESSEE BY : SHRI RAKESH C.R., CA REVENUE BY : SHRI GANESH R. G., STANDING COUNSEL DATE OF HEARING : 24 . 09 .2019 DATE OF PRONOUNCEMENT : 15 . 1 1 .2019 O R D E R PER SHRI A.K. GARODIA, ACCOUNTANT MEMBER THIS APPEAL IS FILED BY THE ASSESSEE AND THE SAME IS DIRECTED AGAINST THE ORDER OF LD. CIT(A)-14, BANGALORE DATED 30.05.2019 FOR ASSESSMENT YEAR 2014-15. 2. THE GROUNDS RAISED BY THE ASSESSEE ARE AS UNDER. 1. THE LEARNED CIT (A) ERRED IN SUSTAINING AN ADDITION OF RS. 5,98,000/- BEING ANONYMOUS DONATIONS U/S 115BBC OF THE INCOME TAX ACT, 1961 ALTHOUGH FULL DETAILS OF ALL THE DONATIONS WERE FILED BEFORE THE ASSESSING OFFICER. 2. THE LEARNED CIT (A) OUGHT TO HAVE APPRECIATED THAT THE ASSESSING OFFICER DID NOT FURNISH WHICH OF THE DONATIONS WERE BEING REFERRED TO AS ANONYMOUS FROM THE LIST OF DONORS SUPPLIED TO HIM AT THE ASSESSMENT STAGE AND ALSO SHOWN TO THE CIT (A) DURING THE APPEAL PROCEEDINGS. 3. THE APPELLANT IS A TRUST HAVING THE FOLLOWING MAIN OBJECTS AND COLLECTED DONATIONS FROM VARIOUS DEVOTEES. A. TO PROMOTE LITERARY ACTIVITIES BY ESTABLISHING EDUCATIONAL INSTITUTIONS, GURUKULAS, GURU PEETA AND TO PROMOTE THE CAUSE OF EDUCATION AND SCIENTIFIC THINKING. B. TO PROMOTE SOCIAL AND CULTURAL UPLIFTMENT AND DEVELOP HARMONIOUS RELATIONSHIP OF THE SOCIETY. C. TO IMPROVE THE LIVING CONDITIONS OF PEOPLE AND TO ESTABLISH HOSPITAL, MEDICAL CENTRES, YOGA CENTERS AND FREE OLD AGE HOMES. D. TO LAUNCH NITYAANNADANA SCHEME TO PROVIDE FREE FOOD AND STAY TO NEEDY PILGRIMS. E. CO-OPERATION AND CONTRIBUTION TO OTHER TRUST-TO JOIN HANDS WITH THE TRUSTS/INSTITUTES WHICH CARRY ON SIMILAR ACTIVITIES AND RECOGNISED PUBLIC CHARITABLE TRUSTS UNDER THE INCOME TAX ACT 1961. 4. THE CIT (A) FAILED TO APPRECIATE THAT IN THE EARLIER YEAR THE ITA NO. 1822/BANG/2019 PAGE 2 OF 2 DISALLOWED ANONYMOUS DONATIONS WERE ALLOWED BY CIT (A) HAVING REGARD TO THE NAMES, ADDRESSES AND RELEVANT BILLS FURNISHED. 3. THE LD. AR OF ASSESSEE POINTED OUT THAT IN PARA NO. 2.2 OF HIS ORDER, IT IS NOTED BY LD. CIT(A) THAT ALTHOUGH THE ASSESSEE HAS STATED BEFORE HIM THAT ASSESSEE HAS FURNISHED LIST OF DONORS ALONG WITH THEIR ADDRESSES BUT AO HAS STATED THAT THE ASSESSEE HAS NOT FURNISHED THE ADDRESSES IN CASE OF CERTAIN DONORS. HE DRAWN OUR ATTENTION TO PAGES 1 TO 71 OF THE PAPER BOOK CONTAINING THE LIST OF DONORS ALONG WITH ADDRESS AND POINTED OUT THAT THIS LIST CONTAINS THE DETAILS OF 1366 DONORS FROM WHOM THE ASSESSEE HAS RECEIVED AN AMOUNT OF RS. 1,16,52,128/- AS DONATIONS AND ADDRESS OF ALL THE DONORS IS AVAILABLE IN THIS LIST. THE LD. DR OF REVENUE SUPPORTED THE ORDER OF LD. CIT(A). 4. I HAVE CONSIDERED THE RIVAL SUBMISSIONS. I FIND THAT IN PARA 6 OF THE ASSESSMENT ORDER, THE AO HAS STATED THAT THE ASSESSEE COULD NOT FURNISH THE VERIFIABLE ADDRESS / PROOF IN FEW CASES AND IT IS ALSO STATED THAT A SEPARATE LIST HAS BEEN MADE IN RESPECT OF DONATIONS WHERE IT CANNOT BE VERIFIED. HE HAS ALSO STATED THAT THE DONORS MENTIONED IN THE LIST WERE NOT HAVING THE ADDRESS AND ACCORDINGLY THE DONATIONS RECEIVED CANNOT BE TREATED AS REQUIRED IN SECTION 11 OF THE IT ACT AND THE TOTAL OF SUCH DONATIONS WORKS OUT TO RS. 11,74,979/-. THE LIST OF SUCH DONORS FOR WHICH THE ADDRESS IS NOT AVAILABLE AS PER AO AND WHOSE TOTAL AMOUNT IS RS. 11,74,979/- IS NOT AVAILABLE IN THE ASSESSMENT ORDER OR BY WAY OF ANNEXURE TO THE ASSESSMENT ORDER AND IN THE ORDER OF LD. CIT(A) ALSO, SUCH LIST IS NOT AVAILABLE WHEREAS AS PER THE LIST AVAILABLE IN THE PAPER BOOK, IT IS SEEN THAT THE ADDRESS IS GIVEN AGAINST THE NAME OF EACH OF THE DONORS. CONSIDERING ALL THESE FACTS, I FEEL IT PROPER TO RESTORE BACK THE MATTER TO THE FILE OF LD. CIT(A) FOR A FRESH DECISION BY WAY OF A SPEAKING AND REASONED ORDER AS TO FOR WHICH DONOR THE ADDRESS IS NOT PROVIDED BY THE ASSESSEE. NEEDLESS TO SAY, LD. CIT(A) SHOULD PROVIDE ADEQUATE OPPORTUNITY OF BEING HEARD TO BOTH SIDES. IN VIEW OF THIS DECISION, NO ADJUDICATION ON MERIT IS CALLED FOR AT THE PRESENT STAGE. 5. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON THE DATE MENTIONED ON THE CAPTION PAGE. SD/- (ARUN KUMAR GARODIA) ACCOUNTANT MEMBER BANGALORE, DATED, THE 15 TH NOVEMBER, 2019. /MS/ COPY TO: 1. APPELLANT 4. CIT(A) 2. RESPONDENT 5. DR, ITAT, BANGALORE 3. CIT 6. GUARD FILE BY ORDER ASSISTANT REGISTRAR, INCOME TAX APPELLATE TRIBUNAL, BANGALORE.