https://www.taxtmi.com/css/info/rss_sitemap/rss_feed.css?v=1746094055 https://www.taxtmi.com Business/Tax/Law/GST/India/Taxation/Policies/Legal/Corporate Tax/Personal Tax/Vat Law/Legal Information/Tax Information/Legal Services/Tax Services Tax Management India. Com / MS Knowledge Processing Pvt. Ltd. All rights reserved. One stop solution for Direct Taxes and Indirect Taxes https://www.taxtmi.com/caselaws?id=759947 https://www.taxtmi.com/caselaws?id=759947 Tax liability u/s 115BBC (1) for Anonymous donations received in the Hundi - Such donations were sought to be taxed primarily on the ground that the respondent is a charitable institution falling within the purview of Section 80G -assessee is a public trust which was initially constituted in the year 1953 when it was registered as the Shirdi Sansthan of Shri Sai Baba trust under the Bombay Public Trusts Act, 1950 - ITAT considering the trust deed as also the Act of the State Legislature, the Sai Baba Trust Act , confirmed the findings of the CIT(A) that the assessee was a charitable and religious trust Whether the assessee is a charitable and religious trust, so as to fall within the exceptions to Section 115BBC carved out under sub-section (2) (b) of the said provisions notwithstanding the assessee being registered under Section 80G? - HELD THAT:- The entire thrust of the submissions on behalf of the Revenue is referring to the provisions of Section 80G, as applied by the Assessing Officer to contend that once the respondent / assesssee is registered under Section 80G, it would only be a charitable institution and would fall outside the provision of sub-section 2 (b) of Section 115BBC. We are afraid to accept such contentions in as much as, the provisions of Section 80G cannot be intermixed, from what is provided by Section 115BBC (2) (b). Both the provisions stand compartmentalized and are independent of each other. The very foundation of the operation and effect of Section 115BBC (2) (b) is a conclusive ascertainment, and a factual determination of a trust being religious and charitable as ascertained from the contents of the trust deed. Once such requirement is satisfied, any anonymous donation received by such trust would be eligible / entitled to the benefit of an exemption from tax, by the applicability of sub-section 2(b) of Section 115BBC. On the other hand, Section 80G certainly lays down quantum test that is the amounts spent for its purposes to ascertain whether the charitable trust is eligible for registration or not, which is clear from the provisions of Section 80G (5B) of the Act as noted hereinabove. From a cumulative reading of the objects of the assessee, read with the provisions of the Sai Baba Trust Act which is a special legislation promulgated by the State Legislature reflecting the objects and activities of the assessee, as also, considering the provisions of the Bombay Public Trusts Act, we are of the clear opinion that the assessee certainly is a religious and charitable trust, hence, the assessee rightly and legitimately claimed an entitlement under sub-section 2 (b) of Section 115BBC of the Act. Such entitlement of the assessee is rightly recognized by the CIT (A) and the Tribunal. In the light of the above discussion, we find that the view taken by the CIT (A) and as confirmed by the Tribunal, is correct in law and facts - Decided against revenue. Case-Laws Income Tax Tue, 08 Oct 2024 00:00:00 +0530