DAWAT E ISLAMI HIND,MUMBAI MAHARASHTRA vs. COMMISSIONER OF INCOME TAX, EXEMPTION

The present appeal filed before us is delayed by 182 days. In this appeal, the impugned order dated 16/03/2021, was received by the assessee on 18/03/2021. Thus, as per the provisions of section 253(3) of the Act, the assessee was required the filed the appeal within 60 days from the received

In this appeal, the assessee has raised the following grounds:

The only grievance of the assessee is against the revision order passed by the learned CIT under section 263 of the Act.

The brief facts of the case as emanating from the record are: The assessee is a charitable trust registered under section 12A of the Act. The Page | 2

Subsequently, vide notice dated 09/02/2021, issued under section 263 of the Act revision proceedings were initiated in the case of the assessee on the basis that out of the total corpus donation of Rs.1,32,22,089, received during the year, the assessee submitted details of only 14 donors, donation of which sums up to Rs.6,60,110. However, regarding the balance corpus donation of Rs.1,25,61,979, there is no information available on record to show that a specific direction was given by the donor to make the donation part of the corpus. Thus, in the absence of the details of corpus donation, the learned CIT alleged that the assessment order passed by the AO is erroneous and prejudicial to the interest of the Revenue. In response thereto, the assessee objected to the initiation of revision proceedings and submitted a list of corpus donations.

Vide impugned order dated 16/03/2021, the learned CIT rejected the submissions of the assessee and held that the AO has completed the assessment without any basic verification of the issues mentioned in the show cause notice issued under section 263 of the Act. The learned CIT further held Page | 3

We have considered the rival submissions and perused the material available on record. Vide notice dated 09/02/2021, issued under section 263 of the Act, the learned CIT on verification and careful examination of the assessment records for the year under consideration observed that during the year, the assessee has shown gross receipts of Rs.4,42,62,636, out of which corpus donation is shown at Rs.1,32,22,089, and an anonymous donation of Rs.7,51,216. The learned CIT further on perusal of bank statements observed that the cash deposits exceeded Rs.10,000, in a day in various bank accounts is to the tune of 2,64,39,849, which works out to approximately 60% of the gross receipts. It was also observed on verification of the income and expenditure account that the assessee has shown donation receipts of Rs.3,01,26,431, excluding anonymous donations. In respect of the corpus donations of Rs.1,32,22,089, received during the year, the learned CIT noted that the assessee has submitted details only regarding 14 donors who have given a specific direction to make the donation part of the corpus and the Dawat E Islami Hind ITA no.2077/Mum./2021 donation given by such donors total to Rs.6,60,110. The learned CIT after considering the provisions of section 11(1)(d) of the Act held that donation can be treated as corpus donation, only when the donor makes a specific direction to make it part of the corpus. However, with respect to the balance donation of Rs.1,25,61,979, in absence of specific direction from the donor to treat the same as part of the corpus donation, the learned CIT alleged the same to be an anonymous corpus donation chargeable to tax under section 115BBC of the Act. In its reply to the show cause notice issued under section 263 of the Act, the assessee submitted a list of corpus donations.

As per the learned AR, vide notice dated 26/09/2017, issued under section 142(1) of the Act, the AO specifically sought the details of corpus and non-corpus donations received during the year, which were duly provided by the assessee. The learned AR further submitted that after consideration of all the details submitted by the assessee, the AO passed the assessment order under section 143(3) of the Act, and thus the assessment order cannot be said to have been passed without making proper verification/examination. However, during the hearing, upon being asked regarding the submission filed by the assessee furnishing the details sought by the AO, the learned AR, apart from referring to the list of donors forming part of the paper book alleged to have been filed before the learned CIT in response to show cause notice under section 263 of the Act, could not bring any submission on record which was filed before the AO, during the assessment proceedings, furnishing aforesaid details regarding corpus and non-corpus donation received during the year. Thus, in the present case, even though upon perusal of notice issued under Dawat E Islami Hind ITA no.2077/Mum./2021 section 142(1) of the Act it can be said that the details of corpus and non- corpus donation received by the assessee during the year were sought by the AO, however, in absence of any material on record that such details were also provided by the assessee, it cannot be presumed that the AO has conducted basic verification of the issues and examined the details as highlighted in the order passed under section 263 of the Act. Accordingly, we find no infirmity in the impugned order passed by the learned CIT under section 263 of the Act and the same is upheld. As a result, grounds raised by the assessee are dismissed.

In the result, the appeal by the assessee is dismissed. Order pronounced in the open Court on 31/01/2023