AI Drafter 
TaxTMI 
TaxTMI 
2015 (7) TMI 989
X X X X Extracts X X X X
X X X X Extracts X X X X
....hence the same are taken together for disposal by this common order. For the sake of convenience the facts have been taken from the ITA No.3466/M/2012 for A.Y. 2007-08. ITA No.3466/M/2012 for A.Y. 2007-08 2. The assessee has taken the following grounds of appeal: "1. The Ld. Commissioner of Income-tax (Appeals)-I, Thane [hereinafter referred as "Ld. CIT(A)"] erred in confirming the action of the Assessing Officer in taxing the amount of Rs. 28,25,536/- being offerings at the Samadhi Shrine of Swami Muktanand and at the temple of Bhagwan Nityanand invoking the provisions of section 115BBC of the Act without appreciating the facts and circumstances of the case. 2. The Ld. CIT(A) failed to appreciate that the offerings at the Samad....
X X X X Extracts X X X X
X X X X Extracts X X X X
....04,323/- an amount of Rs. 18,99,571/- was received by cheque, demand draft etc. Record has also been maintained regarding cash receipts of Rs. 8,04,752/- and complete details of name and address of the donors was submitted to the Ld. CIT(A) upon which the Ld. CIT(A) had called remand report. After considering the remand report, the Ld. CIT(A) held that the assessee had maintained and submitted the record relating to offering of Rs. 27,04,323/- including cash receipts of Rs. 8,04,752/-. He therefore held that the said amount of Rs. 27,04,323/- did not fall in the category of anonymous donations liable to be taxed under section 115BBC of the Act. He, however, held that the assessee had not maintained the record relating to the other donations....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... anonymous donation, the income-tax payable shall be the aggregate of- [(i) the amount of income-tax calculated at the rate of thirty per cent on the aggregate of anonymous donations received in excess of the higher of the following, namely:- (A) five per cent of the total donations received by the assessee; or (B) one lakh rupees, and (ii) the amount of income-tax with which the assessee would have been chargeable had his total income been reduced by the aggregate of anonymous donations received.] _________________ The following clause (ii) shall be substituted for the existing clause (ii) of sub-section (1) of section 115BBC by the Finance (No.2) Act, 2014, w.e.f. 1- 4-2015: (....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... of the donor for any illegal purposes e.g. black money etc. The same have been excluded from the purview of sub section (1) of section 115BBC. Sub section (2) in this respect provides that the provisions of sub section (1) shall not apply to any anonymous donations received by (a) an institution established for religious purposes (b) to any trust or institution created or established for religions and charitable purposes other than any anonymous donations made with a specific direction that such donation is for any universities, educational institutions, hospital or medical institution etc. A careful reading of the entire section of 115BBC reveals that the provisions have been meant to check the inflow of black money/unaccounted money into....
X X X X Extracts X X X X
X X X X Extracts X X X X
....contributions where the person receiving such contributions does not maintain a record of the identity indicating the name and address of the person making such contribution and such other particulars as may be prescribed. In the case of a religious or charitable trust as in the case of the assessee as we have observed above, it is generally not only difficult but also not possible to maintain such type of record. A perusal of the entire section 115BBC shows that the provisions of said section are not applicable to the institutions like that of assessee trust as the same are meant to check the inflow of unaccounted/black money into the system with a modus operandi to make out as a part of the accounts of the institutions like university, me....