M/s. Harish Chand Ram Kali Charitable Trust, Ghaziabad V. Addl. CIT, Ghaziabad

ITA 3077/DEL/2015

• Counselvise Citation: [2016] 131 COUNSELVISE.COM (IT) 7256 (ITAT-DELHI)
• Duration Of Justice: 1 year(s) 3 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-09-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC 3
• Next Hearing Date: 27-07-2016
• Assessment Year: 2010-2011
• Appeal Filed On: 15-05-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: S AGARWAL
• Keywords: Charitable institution
• Section: 68

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCHES : SMC-3 : NEW DELHI BEFORE SHRI J. SUDHAKAR REDDY, ACCOUNTANT MEMBER ITA NO.3077/DEL/2015 ASSESSMENT YEAR : 2010-11 HARISH CHAND RAM KALI CHARITABLE TRUST, KF-91, KAVI NAGAR, GHAZIABAD. PAN: AAATH3018B VS. ADDL.CIT, RANGE-1, GHAZIABAD. (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI S. AGARWAL, FCA DEPARTMENT BY : SHRI RAJESH KUMAR, SR. DR DATE OF HEARING : 27.07.2016 DATE OF PRONOUNCEMENT : 08.09.2016 ORDER THIS APPEAL FILED BY THE ASSESSEE FOR THE ASSESSME NT YEAR 2010-11 IS DIRECTED AGAINST THE ORDER OF THE CIT(A) DATED 3 0.3.2015. 2. THE ASSESSEE IS A TRUST AND IS IMPARTING EDUCATI ON IN THE FIELDS OF ENGINEERING, PHARMACY, BUSINESS ADMINISTRATION AND HOTEL MANAGEMENT. ITA NO.3077/DEL/2015 2 THE ISSUE BEFORE ME IS WHETHER THE AO WAS RIGHT IN MAKING AN ADDITION OF DONATIONS OF RS.30 LACS U/S 115BBC OF THE ACT. THE AO HELD THAT THERE IS NO DOUBT THAT THE ASSESSEE IS NOT IN A POS ITION TO EXPLAIN THE CREDIT ENTRIES OF RS.30 LACS SHOWN IN THE BOOKS OF ACCOUNT AS DONATIONS FROM M/S ELLORA BUILDTECH PVT. LTD., DELHI AND M/S VISIT INDIA VOYAGES PVT. LTD., DELHI. HE HELD THAT BOGUS ENTRIES WERE SHOWN AS DONATIONS. HE FURTHER HELD THAT THE DONORS WERE NOT FOUND EXIS TING ON THE ADDRESSES GIVEN BY THE ASSESSEE. HE RECORDS THAT THERE WAS N O OPTION LEFT FOR THE AUTHORIZED REPRESENTATIVE OF THE ASSESSEE, BUT, TO AGREE FOR THIS SURRENDER OF RS.30 LACS WITH THE REQUEST THAT NO PENAL ACTION WOULD BE TAKEN AGAINST HIM. ON APPEAL, THE FIRST APPELLATE AUTHOR ITY HELD THAT THE ADDITION CANNOT BE MADE U/S 68 OF THE ACT AS HE TRE ATED THE DONATIONS AS ANONYMOUS AS THE IDENTITY OF THE DONORS WERE NOT PR OVED AND HELD THAT THE PROVISIONS OF SECTION 115BBC ARE ATTRACTED. AG GRIEVED, THE ASSESSEE IS BEFORE ME. 3. THE LD. COUNSEL FOR THE ASSESSEE SUBMITTED THAT SECTION 115BBC IS NOT APPLICABLE AS THE DONATIONS RECEIVED WAS FROM T WO COMPANIES AND ITA NO.3077/DEL/2015 3 CANNOT BE HELD AS ANONYMOUS. HE RELIED ON THE DECI SION OF DELHI BENCH G OF THE ITAT IN THE CASE SUNDER DEEP EDUCATIONAL SOCIETY VS. ADDL.CIT, ITA NO.2428/DEL/2011, AY 2007-08, ORDER DATED 6.12.2013. 4. THE LD. DR, ON THE OTHER HAND, SUBMITTED THAT TH E ASSESSEE COULD NOT PROVE THE IDENTITY OF THE DONOR. HE POINTED OU T THAT BOTH THESE COMPANIES WERE FICTITIOUS COMPANIES AND, HENCE, THE LD.CIT(A) WAS RIGHT IN HOLDING THAT SECTION 115BBC APPLIES. ON A QUERY FROM THE BENCH, THE LD. COUNSEL FOR THE ASSESSEE SUBMITTED T HAT THE ISSUE MAY BE SET ASIDE TO THE FILE OF THE AO TO ENABLE HIM TO DE MONSTRATE THAT THE DONATIONS ARE NOT ANONYMOUS DONATIONS AND THAT BOTH THESE COMPANIES WHICH HAVE DONATED RS.15 LAC EACH ARE IN EXISTENCE. 5. AFTER CONSIDERING THE RIVAL CONTENTIONS, I AM OF THE CONSIDERED VIEW THAT ONE MORE OPPORTUNITY MAY BE GIVEN TO THE ASSESSEE TO DEMONSTRATE THAT THE DONATIONS IN QUESTION ARE NOT ANONYMOUS DONATIONS. IN CASE THE ASSESSEE FAILS TO DO SO, THE AO WILL BE AT LIBERTY TO MAKE THE ADDITION IN ACCORDANCE WITH THE LAW. ITA NO.3077/DEL/2015 4 6. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALL OWED FOR STATISTICAL PURPOSES. THE ORDER PRONOUNCED IN THE OPEN COURT ON 08.09.2 016. SD/- [J. SUDHAKAR REDDY] ACCOUNTANT MEMBER DATED, 08 TH SEPTEMBER, 2016. DK COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT (A) 5. DR, ITAT AR, ITAT, NEW DELHI.