Case Law Details
DCIT Vs Shree Sai Baba Sansthan Trust (ITAT Mumbai)
Registration u/s 80G doesn’t automatically mean that Trust cannot avail benefit u/s 115BBC(2)(b)
ITAT Mumbai held that merely because an assessee is registered u/s 80G of the Act will not automatically mean that such Trust cannot have any religious purpose and therefore cannot avail benefit of Section 115BBC(2)(b) of the Income Tax Act.
Facts- The assessee is a public trust which was constituted in 1953 under the name and style of ‘ShirdiSansthan of Shri Sai Baba’, registered under the Bombay Public Trust Act.
The case of the assessee was selected for regular scrutiny and accordingly, notices u/s 143(2) and 142(1) of the Act was issued. AO noted that, during the year the assessee Trust had received aggregate donations of Rs.228.25 crores, out of which Rs. 159.12 crores was by way of hundi collections (anonymous donations). According to the AO, the assessee was a charitable trust and since the anonymous donations exceeded 5% of the total donations, the same was taxable u/s 115BBC(1) of the Act. AO sought to tax the anonymous donations of Rs. 159.12 crores u/s 115BBC of the Act.
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