Case Law Details
Brief of the Case
ITAT Amritsar held in the case of DCIT vs. All India Pingalwara Charitable Society that object of section 115BBC was to catch the unaccounted money which was brought in as Tax Free Income in the hands of the Charitable Trusts and this law was never meant for taxing the Petty Charities. The Legislature intended to tax the unaccounted money or black money which was brought in the books of charitable trusts in bulk and this law was not meant for taxing the small and general charities collected by the Genuine Charitable Trusts. Moreover, the concept and importance of charity, against the backdrop of the Indian Society, has been in existence from time memorial in all religions, without exception. Hence, CIT (A) has correctly deleted the addition for both the assessment years under consideration.
Facts of the Case
The assessee is a charitable society and is registered under section 12AA. The assessee is also registered u/s 80G. The assessee is stated to have been engaged in charitable activities. The case of the assessee was selected for scrutiny under the CBDT guidelines. After examining the books of account produced and after going through the detailed list of donations in golaks for the AY 2010-11, the AO noticed that the assessee was stated to be in receipt of golak donations amounting to Rs.1,99,86,858/-.
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