INCOME TAX ACT, 1961

Section 115BBC

Charitable society - Anonymous donation - Assessee provided complete details of name and address of donors giving alleged donation -

AO on examining the records observed that the assessee society was running Indore Medical College Indore and a 1200 bed facility hospital near Indore and was also conducting various medical camps. In the audit report, gross revenue was shown at Rs. 42,40,92,826 and gross expenditure at Rs. 39,63,67,098 and capital expenditure at Rs. 21,22,84,057. AO also observed that in the balance sheet under the head corpus funds a sum of Rs. 14,06,75,754 was shown to be received as donation during the year towards corpus funds. AO asked the assessee to file the details of this donation of Rs. 14,06,75,754. In reply the assessee filed a list of 27746 persons before the AO which included the date of receipt of donation, name, father/husband name, age, gender, address and amount. AO, however, insisted for complete address as in case of various donors only the name of village was mentioned and also issued summons to some donors on text check basis. The assessee filed the confirmation of various donors who accepted to have given donation to the assessee along with their identity proof. This, fact was also brought in notice before AO that the various donors were scattered across many villages who have utilized the free facility of hospital situated around 30 km from Indore and surrounded by various small villages providing free medical facilities and free medicines are provided to the people at large. It was also submitted before AO that most of the alleged donation were given by the family of patients getting medicated free of cost from this hospital and at the time of getting discharged they on their own will use to donate the amount to the hospital. AO however was not satisfied and he treated the donation of Rs. 14,06,75,754 given towards a corpus funds as anonymous donation liable to be taxed under the provisions of section 115BBC(3). Held: As far as the words 'such other particulars as may prescribed' is concerned as provided under section 115BC(3) of the Act no such other particulars have been prescribed under the Act till date. So what remains is that if a person receiving a voluntary contribution maintains the records of the identity of donor indicating name and address of the person making such contribution, then such voluntary contribution cannot be treated as anonymous donation. In the instant case, the assessee has received the alleged donation from around 27746 persons during assessment year 2013-14 and around 38625 persons during assessment year 2015-16. AO has alleged that the assessee's case falls in sub-section (3) of section 115BBC of the Act. But for so learned AO should have given a finding that the assessee has not maintained the record of name, address of the person giving such contribution. As far as the records placed shows that the assessee has prepared complete list of the donors giving voluntary contribution for the year under appeal which included providing the name, gender/father/husband name, address and the amounts received and the same are duly accounted for in books of accounts regularly maintained and audited. Sub-section (3) of section 115BBC of the Act only requires that the assessee should maintain record of the identity of the donors indicating the name and address of such persons. The assessee's accounts are duly audited and details of name and address of each and every donors has been maintained. Confirmations of many donors have also been placed on record. Looking to the totality of facts, the alleged donation cannot be held to be an 'anonymous donation' as provided under the provisions of section 115BBC(3) of the Act.

Relied:CIT (Exemption) v. Bhagwan Shri Laxim Naraindham Trust (2015) 378 ITR 222 (Del)Followed:ITO v. Gaudiya Granth Anuved Trust 2014 TaxPub(DT) 0014 (Agra-Trib): (2014) 23 ITJ 141 (Trib-Agra), ACIT v. Shri Shiv Vankeshawar Educational & Social Welfare Trust 2019 TaxPub(DT) 3962 (Del-Trib) : (2019) 106 Taxmann.com 249 (Del -- Trib) and Dy. CIT (Exemption) v. M/s. Shri Ramswaroop Charitable Trust, in ITA No. 557/LKW/ 2017, dated 8-3-2019

REFERRED :

FAVOUR : In assessee's favour.

A.Y. : 2013-14 & 2015-16

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