Indian Kanoon - Search engine for Indian Law

4. So far as regards Ground No.1, the AO observed the assessee to have received an amount of ` 18,65,000/- as donation duly credited in the books of account of the assessee. The assessee was asked to furnish the names and addresses of the donors. The assessee complied. The AO observed that apart from a few donations, the rest were all received in cash only. Observing that the assessee could not furnish confirmations for the same, the AO treated the amount of ` 18,65,000/- as anonymous donation u/s 115 BBC of the Act.

5. The ld. CIT(A) confirmed the above action of the CIT(A).

6. Before us, the learned counsel for the assessee has contended that the action of the ld. CIT(A) in confirming the addition is not sustainable in law, since the assessee had furnished all the evidence in support of the donations, as required u/s 115 BBC of the Act. Attention has been invited to the provisions of section 115 BBC(3) of the Act. This section reads as follows:-

"115 BBC(3) :- For the purposes of this section, "anonymous donation" means any voluntary contribution referred to in sub-clause (iia) of clause (24) of section 2, 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."

7. The learned counsel for the assessee has contended that as such, the assessee was required to maintain reference of the identity, indicating the name and address of the person making such contribution and such other particulars as may be prescribed; and that no other particulars have been prescribed in this matter. Attention has been invited to pages 18 to 21 of the Assessee's Paper Book ('APB' for short), which is a copy of the details of donations received by the assessee society during the year. It has been pointed out that column 3 of these details gives the name of the donor and column 4 thereof states the address of the donor. Reliance has been sought to be placed on "Hans raj Samarak Society v. ADIT(E)" [2011] 16 Taxmann.com 103(Delhi), to state that no other words can be read in section 115 BBC(3) other than the words finding place therein. It has been stated that the assessee had duly complied with the provisions of section 115 BBC of the Act and had maintained due record of the identity indicating the name and address of the person making the contribution. It has been contended that as such, the ld. CIT(A) has gone wrong in observing that the assessee should have maintained anything beyond the requirements of section 115 BBC(3) of the Act.

13. The above observations in "Hans Raj Samarak Society" (supra), squarely support our foregoing observations to the effect that the assessee had duly complied with the provisions of section 115 BBC(3) of the Act. It remains undisputed that the facts inter se the assessee's case and those in "Hans Raj Samarak Society" (supra), are mutatis mutandis .

14. As such, the assessee's grievance by way of Ground No.1 is justified and is accepted, as such. Accordingly, the addition of ` 18,65,000/- is hereby deleted.