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Facts
The assessee, a charitable trust registered under Section 12A, received a ₹20.00 lakh donation. The AO reopened the assessment based on a survey, stating the donation was not genuine and an accommodation entry. However, the trustee offered the amount to tax under the Income Declaration Scheme (IDS) 2016 and paid the due tax, but the AO still added the amount to the assessee's income, disallowing exemption under Section 11(1)(d).
Held
The tribunal noted that the trustee had already declared the amount under IDS and paid the applicable tax. Citing the principle that income cannot be assessed twice, the tribunal held that the addition made by the AO and upheld by the CIT(A) was unsustainable. Consequently, the tribunal directed the Ld. AO to delete the addition.
Key Issues
Whether a donation already taxed in the hands of the trustee under the Income Declaration Scheme can be subsequently added to the income of the assessee trust, considering the principle against double taxation.
Sections Cited
143(1), 147, 148, 133A, 12A, 11(1)(d), 143(3), 183 of Finance Act, 2016
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Income Tax Appellate Tribunal, “D” BENCH, KOLKATA
Before: SHRI RAJESH KUMAR, AM & SHRIPRADIP KUMAR CHOUBEY, JM
O R D E R Per Rajesh Kumar, AM:
This is an appeal preferred by the assessee against the order of the National Faceless Appeal Centre, Delhi (hereinafter referred to as the “Ld. CIT(A)”] dated 30.04.2025 for the AY 2011-12.
The only issue raised by the assessee is against the order of ld. CIT (A) upholding the order of the ld. AO thereby confirming the addition of ₹20.00 lacs received by the assessee as donation from Herbicure Health Care Bio-Harbal Research Foundation despite the fact that the trustee offered to tax the said amount under IDS scheme.
The facts in brief are that the assessee filed the return of income on 30.09.2011, declaring total income at ₹ nil. The return was
In the appellate proceedings, the ld. CIT (A) dismissed the appeal when the assessee failed to appear on the various dates/ opportunities granted by the ld. Commissioner of Income-tax (Appeals).
In the result, the appeal of the assessee is allowed.
Order pronounced in the open court on 15.09.2025.