By C. N. Vaze
Shailesh Kamdar
Jagdish T. Punjabi
Bhadresh Doshi Chartered Accountants
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Section 115BBC – Where assessee established for charitable and religious purposes receives anonymous donation without any specific direction that such donation is for any university or other educational institutions or any hospital or other medical institutions run by the assessee, then such donation cannot be taxed by invoking provisions of section 115BBC(1).
Facts
The assessee was a religious and charitable trust registered u/s. 12AA and its income was exempt u/s.11. The assessee was running Satyug Darshan Sangeet Kala Kendra and also running a school under the name and style of Satyug Darshan Vidhyalaya.
The AO noticed certain sum under the head ‘Donation Golak’. The explanation of the assessee that the said amount was less than 5 per cent of the total receipt was not accepted by the AO and the AO invoking the provisions of section 115BBC(1) taxed the said sum as the income of the assessee.
On appeal, the CIT(A) deleted the addition holding that the assessee was a charitable and religious trust and provisions of section 115BC would not be applicable to it. Aggrieved, the revenue preferred an appeal before the Tribunal.
Held
The AO while framing the original assessment had categorically stated that the activities of the assessee are charitable within the meaning of section 2(15) and there was no change in the aims and objects of the assessee as compared to the earlier years.
The provisions of section 115BBC(1) are applicable for the anonymous donations received by any university or other educational institution or any hospital or any trust or institution referred to in sub-clauses (iiiad) or (vi) or (iiiae) or (via) or (iv) or (v) of clause (23C) of section 10. However, sub-section (2) of section 115BBC carves out exceptions to provisions of section 115BBC(1).
In the present case, the assessee is established for religious and charitable purposes and the anonymous donation was received without any specific direction that such donation is for any university or other educational institution or any hospital or other medical institution run by the assessee trust and therefore, the ld. CIT(A) had rightly deleted the said addition in view of the provisions of section 115BBC(2)(b) of the Act.
In the result, the appeal filed by the department is dismissed.
