Section 11,12AA, 32, 68, 115BBC of Income tax Act, 1961—In the instant case, assessee challenged the action of CIT in treating the impugned donations as anonymous donation u/s 115BBC of the Act. The assessee is also challenging the action of the lower authorities in adding back the depreciation of 45,44,814/- to the income of the assessee.

Held that—In the present appeal, the assessee had not only disclosed its donations, but had also submitted a list of donors. The AO proceeded to treat the same as anonymous donations only for the reason that the notices u/s 133(6) of the Act were returned unserved and the assessee did not produce the donors when it was called upon to do so. However, since the donations were duly treated as income by the assessee, section 68 could not have been invoked in view of the judgment of the Hon’ble Delhi High Court in the case of DIT (Exemptions) vs. Keshav Social & Charitable Trust (supra). Further, the assessee’s case also does not fall in the mischief of section 115BBC because as per sub section (3), anonymous donations are those donations for which no details of the donors are maintained by the assessee. Thus, it follows that if the details are maintained, the donations cannot be called anonymous donation and provisions of section 115BBC cannot be invoked.

In the instant appeal, undisputedly, the details were maintained by the assessee but the addition was made on account of non-furnishing of confirmation letters/non-production of the donors before the AO. We are of the considered view that since the assessee has maintained the details of donors, the donations cannot be called anonymous and provisions of section 115 BBC cannot be invoked in the given facts and circumstances of the case.

If provision of section 115BBC cannot be invoked, the impugned addition cannot be sustained. Accordingly, we set aside the order of the Ld. CIT (A) on the issue and direct the AO to delete the addition.

We note that the averment of the Ld. AR is correct that depreciation has not been claimed as an application of income by the assessee and, therefore, there is no question of adding back the same to the income of the assessee.[SHANTI NIKETAN TRUST M/S. P.K. SINGHAL AND CO. VERSUS ADDL. CIT RANGE-1 GHAZIABAD] [2019] 9 ITCD Online (9) [ITAT DELHI]