TaxTMI 
TaxTMI 
2026 (6) TMI 1276
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....ax, Bhopal, (applicable from A.Y. 2019-20). (ii) The assessee trust filed its return of income for A.Y. 2017-18 on 31.03.2018, declaring total income at Rs. 2,01,080/-. The case was selected through CASS for complete scrutiny mainly to examine the issue of cash deposit during the demonetization period and large deduction claimed u/s 57 of the Act. Statutory notices u/s 143(2) and 142(1) of the Act were issued and served upon the assessee, calling for certain details in respect of the nature and source of huge cash deposits in bank. Assessee submitted the required details. The assessing officer noted that a cash of Rs. 43,00,000/- was deposited on 13.11.2016 in assessee's Central Bank of India A/C no. 1489004580 and Rs 47,00,000/- was deposited on 12.11.2016 in assessee's Sardar Singh Nagrik Sahkari Bank Mydt, A/C no. 178, Tikamgarh in demonetized notes. Assessee explained the source of cash deposits as donations received by the trust from various donors, further stating that during the year under consideration, cash donation of Rs. 34,21,000/- under 'ABHISHEK DONATION INCOME' and of Rs. 41,25,000/- under 'INDRA INDRANI DONATION INCOME' (aggregated donation of Rs. 75,46,000/-) wa....
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....ion u/s 12AA of the Act was granted on 26.11.2018 for the religious activities (applicable from A.Y. 2019-20). The grant of registration dated 26.11.2018 was prior to the passing of the assessment order dated 29.12.2019 as well as the impugned order dated 05.08.2025. The assessee is entitled for the claimed relief in view of the proviso to section 12A(2) of the Act, in respect of the income derived from the donations received with regard to the activities of the trust, also for the earlier years. Ld AR has referred the following case law in support of his arguments - Prem Prakash Mandal Sewa Trust vs. ITO (Exemption) Raipur, [2021] 132 taxmann. com 269 (Raipur-Trib), Sree Sree Ramkrishna Samity vs. DCIT(Cir-2), Siliguri, [2015] 64 taxmann.com 330 (Kolkata-Trib), SNDP Yogam vs. ADIT (Exemption), [2016] 68 taxmann.com 152 (Cochin-Trib) and Badhte Kadam v. DCIT [2025] 170 taxmann.com 117, (Raipur-Trib). Ld AR further submits that the appellant is a public trust being century's old centre of faith, worship and culture consisting of 108 Jain temples containing centuries old idols, having immense religious, historical and spiritual significance. The cash donation of Rs. 34,21,000/- and R....
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....sment year preceding the aforesaid assessment year, for which assessment proceedings are pending before the assessing officer as on the date of such registration and the objects and activities of such trust or institution remain the same for such preceding assessment year." 11. CBDT, vide circular No. 1/2015 [F. No. 142/13/2014-TPL] dated 21.01.2015 has further clarified the position in respect of the applicability of the above said newly inserted proviso to section 12A(2). The CBDT Circular No. 1/2015 reads as under:- "Applicability of the registration granted to a trust or institution to earlier years 8.1 The provisions of section 12A of the Income-tax Act, before amendment by the Act, provided that a trust or an institution can claim exemption under sections 11 and 12 only after registration under section 12AA of the said Act has been granted. In case of trusts or institutions which apply for registration after 1st June, 2007, the registration shall be effective only prospectively. 8.2 Non-application of registration for the period prior to the year of registration caused genuine hardship to charitable organisations. Due to absence of registration, ....
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....sing officer or before the ld CIT(A). In the instant case, the assessment proceedings were pending and the assessment was passed on 29.12.2019, whereas, the registration of the trust had already been granted u/s 12AA of the Act, vide regn no. CIT Exemption Bhopal/12AA/2018-19/A/10218 dated 26.11.2018. The assessee is accordingly entitled to claim exemption u/s 11 & 12 of the Act on the basis of said registration u/s 12AA dated 26.11.2018. The similar view has been taken by the coordinate benches of this tribunal in Prem Prakash Mandal Sewa Trust (supra), Sree Sree Ramkrishna Samity (supra), SNDP Yogem (supra) and Badhte Kadam (supra). The aforesaid first point is accordingly determined in positive in favour of the assessee. 13. The second point under appeal is as to whether the impugned order, confirming the addition of Rs. 75,46,000/- received in the form of donation for religious activities of assessee's trust, is unsustainable? 14. It is evident from the paper book filed by the ld AR that assessee is a religious trust. The addition was made u/s 68 of the Act, which was already disclosed in the return of income of the assessee trust in the nature of donation. The amount of ....