Sahanubhuti, Berhampur V. ACIT, Berhampur

ITA 490/CTK/2013

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 96863 (ITAT-CUTTACK)
• Duration Of Justice: 1 year(s) 11 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-11-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 26-10-2015
• Assessment Year: 2010-2011
• Appeal Filed On: 11-11-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SUVENDU DUTTA
• Assessee Lawyers: P K MISHRA
• Keywords: Charitable institution

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL CUTTACK BENCH, CUTTACK . , & , BEFORE S/SHRI B. RAMAKOTAIAH, ACCOUNTA NT MEMBER & PARTHA SARATHI CHAUDHURY, JUDICIAL MEMBER ! ./ ITA NO.490/CTK/2013 ( ' ' ' ' #$ #$ #$ #$ / ASSESSMENT YEAR :2010-2011) SAHANUBHUTI, AT/PO: BAMUNIGAON, DIST: KANDHAMAL. VS. ACIT, BERHAMPUR ! ./ %& ! ./PAN/GIR NO. AABAS 6475 M ( ' /APPELLANT ) .. ( ()' / RESPONDENT ) '+ - - - - /ASSESSEE BY : SHRI P.K.MISHRA %# - - - - /REVENUE BY : SHRI SUVENDU DUTTA '#. + / DATE OF HEARING : 5 TH NOV. 2015 /$ + /DATE OF PRONOUNCEMENT 6 TH NOV. 2015 0 0 0 0 / O R D E R PER PARTHA SARATHI CHAUDHURY, JM THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAIN ST THE ORDER OF THE LD CIT(A)- BERHAMPUR DATED 13.8.2013, WHEREBY HE CONFIRMED T HE ADDITION TO THE EXTENT OF RS.2,03,023/- OUT OF RS.2,45,023/- MADE BY THE ASSE SSING OFFICER. THE ASSESSEE HAS FILED CONCISE GROUNDS OF APPEAL, WHICH ARE AS UNDER : THAT, THE LEARNED A.O. AS WELL AS THE LEARNED C.I. T(A) HAVE COMMITTED GROSS ERROR OF LAW IN HOLDING THAT, THE DONATIONS R ECEIVED FROM SHAKTI SUGAR PVT LTD., AND FROM GENERAL PUBLIC AS ANONYMOUS DONA TION, PARTICULARLY WHEN, THE SAID DONATIONS ARE NOT ANONYMOUS AND YOUR ASSESSEE HAS PRODUCED THE DETAILS AS PER THE REQUIREMENT OF LAW. THAT, THE LEARNED A.O. AS WELL AS THE LEARNED C.I.T (A) SHOULD NOT HAVE TREATED THE DONATIONS RECEIVED FROM SHAKTI SUGAR PV T LTD., AND FROM THE GENERAL PUBLIC AS ANONYMOUS, PARTICULARLY WHEN, YOU R ASSESSEE HAS PRODUCED THE IDENTITY INDICATING THE NAME AND ADDRE SS OF THE RESPECTIVE DONORS. ITA NO. 490/CTK/2013 ASSESSMENT YEAR :2010-2011 2 THAT, WHEN YOUR ASSESSEE PRODUCED THE DETAIL NAME A ND ADDRESS OF EACH OF THE DONATIONS AND THEN THERE IS NO DISPUTE ON THE F ACT THAT, THE ASSESSEE HAS APPLIED THE ENTIRE DONATION TOWARDS THE CHARITA BLE PURPOSE, THE AUTHORITIES BELOW SHOULD NOT HAVE EXCEEDED THEIR JU RISDICTION VIOLATING SUB- SECTION 3 OF SECTION 115BBC TO TREAT THE DONATION O F SHAKTI SUGAR PVT LTD., AND GENERAL PUBLIC AS ANONYMOUS DONATION. THAT, THE AUTHORITIES BELOW HAS APPLIED SECTION 115 BBC OF THE ACT TO TREAT THE DONATION AS ANONYMOUS DONATION, PARTICULARLY WH EN, THE SAID DONATIONS ARE NOT COMING UNDER THE AMBIT OF THE DEFINITION OF THE ANONYMOUS OF DONATION, AS SUCH THE IMPUGNED ADDITION IS NOT SUST AINABLE IN THE EYE OF LAW. 2. BRIEFLY STATED THE RELEVANT MATERIAL FACTS ARE L IKE THIS. DURING THE COURSE OF ASSESSMENT PROCEEDINGS, THE ASSESSING OFFICER NOTIC ED THAT THE ASSESSEE IS A TRUST ENGAGED IN CHARITABLE ACTIVITIES AND ENJOYS REGISTR ATION U/S.12A. THE ASSESSEE HAS SHOWN DONATION OF RS.2,45,023/- RECEIVED AS CASH AS UNDER: I) RS.1,13,023/- FROM GENERAL PUBLIC II) RS. 42,000/- FROM CATHOLIC CHARITY, JATNI. III) RS. 90,000/- FROM SHAKTI SUGAR PVT LTD., DHEN KANAL. SINCE BEFORE THE AO, THE ASSESSEE COULD NOT FURNISH DETAILS REGARDING THE DONATIONS, HE TREATED THE ENTIRE AMOUNT OF RS.2,45,023/- AS DONAT ION FROM ANONYMOUS SOURCES AND BROUGHT THE SAME TO TAX U/S.115BBC OF THE ACT. AGG RIEVED, THE ASSESSEE CARRIED THE MATTER IN APPEAL BEFORE THE LD CIT(A). 3. BEFORE THE LD CIT(A), THE ASSESSEE COULD FURNISH THE CONFIRMATION LETTER FROM CATHOLIC CHARITY, JATNAI OF DONATING RS.42,000/- TO THE TRUST. IN VIEW OF THIS, THE LD CIT(A) DELETED AN AMOUNT OF RS.42,000/- BEING THE D ONATION RECEIVED FROM CATHOLIC CHARITY AND UPHELD THE BALANCE ADDITION OF RS.2,03, 023/- FOR WANT OF EVIDENCE. HENCE, THE ASSESSEE IS IN FURTHER APPEAL BEFORE US. ITA NO. 490/CTK/2013 ASSESSMENT YEAR :2010-2011 3 4. AT THE TIME OF HEARING, LD COUNSEL FOR THE ASSES SEE SUBMITTED THAT THE DONATION OF RS.90,000/- HAS BEEN RECEIVED FROM SHAKTI SUGAR PVT LTD., WHICH IS RECORDED IN INCOME AND EXPENDITURE ACCOUNT FOR THE PERIOD ENDIN G 31.3.2010, COPY OF WHICH IS PLACED ON RECORD BEFORE US. HE ALSO FURNISHED A C ONFIRMATION LETTER FROM SAKTHI SUGARS LIMITED DATED 3.2.2010 OF DONATING RS.90,000/-. HE ALSO SUBMITTED THAT THE DONATION FROM GENERAL ACCOUNT OF RS.1,13,023/- HAS BEEN RECE IVED AND RECORDED IN INCOME & EXPENDITURE ACCOUNT AS IS EVIDENT FROM THE AUDIT RE PORT. HE SUBMITTED THAT THE NAME AND ADDRESS OF THE GENERAL PUBLIC ARE RECORDED IN T HE BOOKS OF ACCOUNT, COPY OF WHICH IS PLACED ON RECORD IN VIEW OF THIS, LD COUNSEL FO R THE ASSESSEE PRAYED BEFORE US THAT THE ADDITION CONFIRMED BY LD CIT(A) BE DELETED. IN SUPPORT OF HIS PROPOSITION, LD COUNSEL RELIED ON THE FOLLOWING JUDICIAL PRONOUNCEM ENTS: I) ITO VS. SARASWATI EDUCATIONAL CHARITABLE TRUST (ITA NO.776/LKW/2014; II) DCI VS. VAISHNAVI EDUCATIONAL SOCIETY (ITA NO. 1209/HYD/2014) III) ITO VS KALINGA RELIEF AND CHARITABLE TRUS(ITA NO.172 & 173/CTK/2012) IV) GUGAN SOLANKI MEMORIAL EDUCATIONAL SOCIETY VS A DIT (ITA NO.1495/DEL/2011) 5. ON THE OTHER HAND, LD D.R. SUPPORTED THE ORDER O F THE LD CIT(A). 6. WE HAVE CONSIDERED THE RIVAL CONTENTIONS AND PER USED THE RECORD OF THE CASE. SO FAR AS DONATIONS RECEIVED BY THE ASSESSEE, THE P ROVISIONS OF SECTION 115BBC REQUIRES THAT NAMES AND ADDRESSES OF THE DONORS ARE TO BE RE CORDED. ON PERUSAL OF INCOME AND EXPENDITURE ACCOUNTS, WHICH IS DULY AUDITED, WE FIN D THAT THE ASSESSEE HAS RECORDED THE NAME AND ADDRESS OF THE DONORS AND SAME WAS FUR NISHED BEFORE THE AUTHORITIES BELOW. BEFORE US ALSO THE CONFIRMATION LETTER RECE IVED FROM SHAKTI SUGARS PVT LTD., FOR AN AMOUNT OF RS.90,000/- HAS BEEN FURNISHED, FOR WH ICH, IT IS CLEAR THAT THEY HAVE DONATED THE ABOVE SAID AMOUNT TO THE ASSESSEE. FRO M THE ABOVE, WE INFER THAT THE ASSESSEE HAS FILED DOCUMENTS TO PROVE THE IDENTITY OF THE DONORS, AMOUNT OF DONATIONS, ITA NO. 490/CTK/2013 ASSESSMENT YEAR :2010-2011 4 HENCE IT CANNOT BE CALLED TO BE ANONYMOUS. IN VIEW OF THIS, WE DELETE THE BALANCE ADDITION OF RS.2,03,023/- SUSTAINED BY THE LD CIT( A). 5. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED . ORDER PRONOUNCED IN THE OPEN COURT ON 6/11/20 15 SD/- SD/- . ,/B.RAMAKOTAIAH , PARTHA SARATHI CHAUDHURY /ACCOUNTANT MEMBER / JUDICIAL MEMBER CUTTACK; '! DATED 6 /11 /2015 B.K.PARIDA, SPS 0 0 0 0 (+ (+ (+ (+ 3$+ 3$+ 3$+ 3$+ / COPY OF THE ORDER FORWARDED TO : 0' 0' 0' 0' / BY ORDER, SR. PRIVATE SECRETARY, , / ITAT, CUTTACK 1. THE APPELLANT : SAHANUBHUTI, AT/PO: BAMUNIGAON, DIST: KANDHAMAL. 2. ()' / THE RESPONDENT. ACIT, BERHAMPUR 3. 4 ( ) / THE CIT(A), BERHAMPUR 4. 4 / CIT , BHUBANESWAR 5. #5 (+' , / DR, ITAT, CUTTACK 6. 7 8. / GUARD FILE. )+ (+ //TRUE COPY//