Sai Baba Sansthan Trust (Shirdi) Vs DCIT (ITAT Mumbai)
ITAT Mumbai held that Sai Baba Sansthan Trust being both charitable and religious trust falls within exceptions provided under section 115BBC(2) and hence anonymous donations received is not liable to be taxed under section 115BBC of the Income Tax Act.
Facts- The assessee is having a temple complex in the town of Shirdi consisting of Samadhi of a popular Saint fondly called as “Shri Sai Baba” and also other deities. Revenue has preferred the present appeals mainly contesting that whether CIT(A) was justified in holding that the anonymous donations received by the assessee by way of Hundi collections/Charity box collections are not taxable under 115BBC of the Act, accepting the claim of the assessee that it is a trust existing both for charitable and religious purposes.
Conclusion- Held that the AO has entertained the belief on the basis of view taken by him in AY.2015-16 and the same has been held by the Hon‟ble Bombay High Court as the opinion of the AO on legal provisions, i.e., the same cannot be considered as a tangible material warranting reopening of assessment of earlier years. We noticed that the revenue has recognized the assessee trust as both charitable and religious in nature in terms of registration/approval granted to the assessee under various provisions of the Act. Hence, the assessee would be covered by the exceptions prescribed in sec. 1 15BBC(2) of the Act and hence, the anonymous donations received by the assessee are not liable to be taxed u/s 1 15BBC of the Act. Hence, it cannot be held that the AO has formed a legally valid belief and accordingly, we hold that the reopening of assessment of the year under consideration is not valid.
