Income Tax Officer-(Exemptions), Lucknow V. Bhonwal Educational Trust, Lucknow

ITA 47/LKW/2016

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 0553 (ITAT-LUCKNOW)
• Duration Of Justice: 1 year(s) 9 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-12-2017
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2011-2012
• Appeal Filed On: 08-02-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: ROHIT BHALLA
• Keywords: Charitable institution
• Section: 143(3); 133(6)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL LUCKNOW BENCH B , LUCKNOW BEFORE SHRI. T.S. KAPOOR, ACCOUNTANT MEMBER AND SHRI PARTHA SARATHI CHAUDHURY, JUDICIAL MEMBER ITA NO. 47/LKW/2016 ASSESSMENT YEAR: 2011 - 12 INCOME TAX OFFICER (EXEMPTION) LUCKNOW V. BHON WAL EDUCATIONAL TRUST 2, GOKHLE MARG LUCKNOW T AN /PAN : AABTB5182D (APP ELL ANT) (RESPONDENT) APPELLANT BY: SMT. ALKA SINGH, D.R. RESPONDENT BY: SHRI ROHIT BHALLA, C.A. DATE OF HEARING: 06 12 201 7 DATE OF PRONOUNCEMENT: 07 12 201 7 O R D E R PER P AR THA SARATHI CHAUDHURY, J.M : THIS APPEAL PREFERRED BY THE REVENUE EMANATES FROM THE ORDER OF THE LD. CIT(A) - 4, LUCKNOW DATED 1/12/2015. 2 . THE BRIEF FACTS IN THIS CASE ARE THAT THE ASSESSEE FILED ITS RETURN OF INCOME DISCLOSING NIL INCOME. SUBSEQUENTLY , THE ASSESSMENT WAS COMPLETED UNDER SECTION 143(3) OF THE ACT ASSESSING THE INCOME OF THE ASSESSEE AT RS.64,20,000/ - . THE ASSESSING OFFICER ADDED RS.68 LAKHS AS ANONYMOUS DONATIONS , WHICH WERE OUT OF RS.76 LAKHS OF DONATIONS RECEIVED BY THE ASSESSEE FOR BUILDI NG FUND. 3 . AT THE TIME OF HEARING BEFORE THE LD. CIT(A), A DETAILED WRITTEN SUBMISSION WAS FILED BY THE ASSESSEE WHEREIN IT WAS STATED THAT MAJOR RECEIPTS WERE UNDER DONATIONS FOR BUILDING AT RS. 76 [ ITA NO.47/LKW/2016 ] 2 LAKHS. THESE DONATIONS WERE RECEIVED FROM EIGHT PARTIES. THE ASSESSEE WAS ASKED TO PRODUCE DETAILED LIST OF DONORS WITH THEIR PAN AND ADDRESS ALONG WITH DOCUMENTARY EVIDENCE. THE LIST OF DONORS AND PAN OF DONORS WERE PROVIDED BY THE ASSESSEE. THE ASSESSEE WAS ASKED TO FILE COPIES OF CONFIRMATORY LETTERS OF AL L THE DONORS. THE ASSESSEE FILED COPIES OF RELEVANT PORTION OF BANK ACCOUNT OF FIVE PARTIES. THE ASSESSING OFFICER HAD OBSERVED THAT THOUGH THE ASSESSEE HAS PROVIDED NAME, ADDRESS, AMOUNT AND COPIES OF BANK ACCOUNTS IN SUPPORT OF DONATIONS RECEIVED THROU GH BANKING CHANNEL, BUT THIRD PARTY CONFIRMATIONS ON NOTICE UNDER SECTION 133(6) OF THE ACT HAVE NOT BEEN RECEIVED FROM ANY DONOR EXCEPT IN ONE CASE. IN VIEW OF THE SE FACTS, THE ASSESSING OFFICER HELD THAT DONATIONS RECEIVED BY THE ASSESSEE CANNOT BE TERM ED AS VOLUNTARY CONTRIBUTION. IN THE ABSENCE OF THIRD PARTY CONFIRMATION, THE CONFIRMATORY LETTERS DO NOT APPEAR AS AUTHENTIC , ACCORDING TO THE ASSESSING OFFICER , AND ACCORDINGLY THE DONATIONS OF RS.68 LAKHS WERE TREATED AS ANONYMOUS DONATIONS AS PER PROV ISIONS OF SECTION 115BBC OF THE ACT AND ADDED TO THE TOTAL INCOME OF THE ASSESSEE. 4 . THE LD. CIT(A) , ON THIS ISSUE , WHETHER PROVISIONS OF SECTION 11BBC OF THE ACT WERE VIOLATED AND WHETHER DONATIONS OF RS.68 LAKHS RECEIVED AS ANONYMOUS DONATIONS, OBSERVED AT THE OUTSET THAT ANONYMOUS DONATIONS AS PER SECTION 2(24), SUB - CLAUSE (IIA) OF THE ACT , WHERE A PERSON RECEIVING SUCH CONTRIBUTION , DOES NOT MAINTAIN A RECORD OF THE IDENTITY INDICATING THE NAME AND ADDRESS OF THE PERSON MAKING SUCH CONTRIBUTION AND SUCH OTHER PARTICULARS AS MAY BE PRESCRIBED. TO BE EXCLUDED FROM THE DEFINITION OF ANONYMOUS DONATIONS, THE PERSON RECEIVING THE DONATION IS REQUIRED TO MAINTAIN THE RECORD OF IDENTITY INDICATING THE NAME AND ADDRESS OF THE [ ITA NO.47/LKW/2016 ] 3 CONTRIBUTOR AND SUCH OTHER PARTICUL ARS AS MAY BE PRESCRIBED. SINCE NO OTHER PARTICULARS HAVE BEEN PRESCRIBED UNDER THE PROVISIONS, THE PERSON RECEIVING THE DONATION IS UNDER OBLIGATION TO MAINTAIN THE IDENTITY OF DONORS INDICATING THE NAME AND ADDRESS. THE LD. CIT(A), ON PERUSAL OF THE DE TAILS FILED BY THE ASSESSEE, FOUND THAT ASSESSEE HAS NOT ONLY FURNISHED THE NAMES AND ADDRESSES OF THE DONORS BUT HAS ALSO FURNISHED A NUMBER OF OTHER DETAILS OF THE DONORS, SUCH AS THEIR PAN, COPIES OF BANK STATEMENTS, CONFIRMATIONS, ETC. THE LD. CIT(A), THEREFORE, HELD THAT ASSESSEE HAS ESTABLISHED THE IDENTITY OF THE DONORS AS PROVIDED UNDER SECTION 115BBC OF THE ACT AND THE DONATIONS RECEIVED CANNOT BE CATEGORIZED AS ANONYMOUS DONATIONS AND SUBJECTED TO TAX AS PER PROVISIONS OF SECTION 115BBC OF THE AC T. 5 . WE HAVE PERUSED THE CASE RECORDS, ANALYZED THE FACTS AND CIRCUMSTANCES IN THE CASE AND CONSIDERED THE JUDICIAL PRONOUNCEMENTS PLACED BEFORE US. WE FIND THAT IN THE CASE OF HANS RAJ SAMARAK SOCIETY VS. ADIT (EXEMPTIONS), 16 TAXMANN.COM 103 (DELHI), THE CO - ORDINATE ITAT DELHI BENCH HAS HELD THAT RECEIVER HAS THE OBLIGATION TO MAINTAIN IDENTITY INDICATING THE NAME AND ADDRESS ONLY AND NOTHING MORE. SIMILARLY, THE CO - ORDINATE ITAT A BENCH, LUCKNOW IN ITA NO.776/LKW/2014 IN THE CASE OF INCOME TAX OFFICER, WARD 2(3), LUCKNOW VS. M/S SARASWATI EDUCATIONAL CHARITABLE TRUST, HELD THAT THE RECEIVER IS TO FURNISH ONLY NAME AND ADDRESS OF THE DONORS TO COMPLY WITH THE PROVISIONS OF SECTION 115BBC OF THE ACT. WE FURTHER FIND THAT IN TH E PRESENT CASE , THE ASSESSEE HAS NOT ONLY FURNISHED DETAILS IN RESPECT OF DONORS, NAMELY NAMES AND ADDRESS BUT ALSO THEIR PAN NUMBERS, BANK STATEMENTS AND CONFIRMATIONS. WE ARE OF THE CONSIDERED VIEW THAT , ON THE BASIS OF THESE FACTS, THERE IS NO INFIRMITY [ ITA NO.47/LKW/2016 ] 4 IN THE FINDINGS OF THE LD. CIT(A) AND, THEREFORE, THE RELIEF GRANTED TO THE ASSESSEE ON THIS ISSUE IS SUSTAINED. 6 . IN THE RESULT, REVENUES APPEAL IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 7/12/ 201 7 . SD/ - SD/ - [ T.S. KAPOOR ] [PARTHA SARATHI CHAUDHURY ] ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 7 TH DECEMBER , 2017 JJ: 0612 COPY FORWARDED TO: 1 . APPELLANT 2 . RESPONDENT 3 . CIT(A) 4 . CIT 5 . DR ASSISTANT REGISTRAR