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| The Tax Publishers2020 TaxPub(DT) 0594 (Chen-Trib) : (2020) 203 TTJ 0785 : (2020) 078 ITR (Trib) 0138 INCOME TAX ACT, 1961
Section 11
Where donations, which were claimed as voluntary by assessee, were treated as anonymous by AO on the ground that the assessee failed to establish the identity of donors; however, the assessee claimed that the necessary materials were filed before the AO to establish the identity of the donors along with confirmation letters, therefore, the matter was remanded to the AO for re-examining the same.
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Charitable trust - Exemption under section 11 - Anonymous donations allegedly received by charitable trust -
Assessee-educational trust established several institutions such as Medical College, Engineering College, various schools, etc. and was engaged in managing them. During course of search proceedings, AO found receipt of various donations from various individuals. Even though the assessee claimed that it were in the nature of voluntary donations but it could not establish the individual identity of persons from whom the said donations were received. Further, the AO alleged that the seized material gave an impression that the said donations were collected from the students at the time of admission. Accordingly, the AO treated such donations as anonymous and brought the same for taxation. Held: Even though there is no prohibition for receiving voluntary donations from the general public, but collecting capitation fee for admission of the students in any educational institution is prohibited and it is a punishable offence under the State enactment. However, the assessee claimed that the necessary materials were filed before the AO to establish the identity of the donors along with confirmation letters; therefore, the matter was remanded to the AO for re-examining the same.
REFERRED :
FAVOUR : In assessee's favour by way of remand
A.Y. : 2011-12 to 2015-16
INCOME TAX ACT, 1961
Section 271(1)(c)
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