INCOME TAX ACT, 1961

Section 143(3)

Assessment - Additions to income - AO alleged that in books of trust, fixed assets and capital fund was made merely by a book entry -

Assessee-trust was formed to create awareness among farmers in rural areas about agricultural activities including water conservation, land conservation and pollution free environment. AO made addition on allegation that in books of trust, fixed assets as well as its disclosure as introduction of capital fund was made merely by a book entry. Held: In instant case, donors were identified, assets were identified, as it were received by assessee trust. Only issue was as regards verification of valuation of such assets. Before AO, donors confirmed by way of an affidavit that they donated their identified land and building as well as plant and machinery to assessee trust. AO despite having above information could not show that, donors were not existing or the assets were not existing. It was merely a case of donation of assets to assessee trust where assets and donors both were identified. AO could have verified land documents whether it stood in name of donors or not and whether same was donated by them to trust or not. Thus, issue was remanded back to AO with a direction to assessee to show existence of land in name of donors and same was used by trust for its activities.

REFERRED :

FAVOUR : Matter remanded

A.Y. : 2013-14

INCOME TAX ACT, 1961

Section 115BBC

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