Shri 1008 Digambar Jain Atishay Kshetra Papoura Ji Vs ITO-Exemption (ITAT Agra)
The Income Tax Appellate Tribunal (ITAT), Agra, allowed the appeal of a religious trust for Assessment Year 2017-18, holding that the benefit of registration under Section 12AA of the Income Tax Act was available for an earlier assessment year under the proviso to Section 12A(2), since the registration had been granted before completion of the assessment and the assessment proceedings were pending. The Tribunal also deleted the addition of ₹75.46 lakh made under Section 68 in respect of donations received for religious activities and held that the special tax rate under Section 115BBE was not applicable.
The assessee, a religious and charitable trust, filed its return declaring income of ₹2,01,080. During scrutiny, the Assessing Officer (AO) examined cash deposits of ₹90 lakh made during the demonetization period. The assessee explained that the deposits represented donations of ₹75.46 lakh received from various donors for the Panchkalyanak Pratishtha Mahotsava and Mahamastikabhishek of the idol of Shri Aadinath Bhagwaan scheduled for April 2017. The AO treated the donations as fictitious and added ₹75.46 lakh under Section 68, observing that the trust was not registered under Section 12AA during the relevant assessment year. The Commissioner of Income Tax (Appeals) affirmed the assessment.
