2025 (12) TMI 1350

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..../2024-25/1065116186(1) arising out of the assessment order dated 30.12.2016 passed u/s 143(3) of the Income Tax Act, 1961 (hereinafter referred to as 'the Act') by the ITO(E) Ward 2(1) New Delhi for AY: 2014-15. 2. Heard and perused the records. The appellant is a registered public charitable trust under Section 12A and has also been granted approval under Section 80G of the Income-tax Act, 1961. Its principal activities relate to organizing religious and cultural events (notably Janmashtami Mahotsav), establishment of Ashrams, and publication of spiritual and religious literature. As for AY 2014-15, the appellant filed a NIL return claiming exemption under Sections 11 and 12 of the Act. The AO framed assessment under Section 143(3) of t....

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....ction and confusion in as much as it pleaded for settlement of disputed treatment of nature of Donation. The Assessing Officer (AO), after narrating the objectives of the appellant, has clearly established the nature of donation being not charitable in nature but in the nature of publicity and advertisement i.e in the nature of business activities. I find merit in the said application or the AO in as much as it only added R. 50,00,000-after allowing exemption u/s 11 of the I.T Act. In view of above discussion I find no merit in the appellant's contention on this ground in as much as the AO is able to clearly establish the reason for addition and treating the receipts as business income hence taxable income in assessmen....

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....bmitted that donation had no nexus with the activity of assessee but were received for giving services of business promotion which is business activity only. 7. At the outset we observe that the objects of trust are admittedly, religious and cultural and not under "advancement of any other object of general public utility" covered by the proviso to Section 2(15) of the Act, which bars charitable status if a trust under "general public utility" undertakes trade. Even assuming applicability, the alleged advertisement donations form far less than 20% of total receipts well within the statutory threshold. Therefore, no disqualification arises. 8. Next question to be determined is if disputed receipts were donations towards achieving trust....