Appeal details
Counselvise Citation
[2016] 133 COUNSELVISE.COM (IT) 0571 (ITAT-AMRITSAR)
Assessee PAN
Bench
Appeal Number
Duration Of Justice
3 month(s) 3 day(s)
Appellant
Respondent
Appeal Type
Income Tax Appeal
Pronouncement Date
11-07-2016
Appeal Filed By
Assessee
Order Result
Allowed
Bench Allotted
SMC
Assessment Year
2010-2011
Appeal Filed On
07-04-2016
Judgement Text
ITA NO.192(ASR)/2016 A.Y. 2010-11 2 II) CIT (EXEMPTIONS) VS. BHAGWAN SHREE LAXMI NARAINDHAM TRUST, 94 CCH 7 (DEL.) 2. THE FACTS OF THE CASE ARE THAT THE ASSESSEE TRUS T EARNS INCOME BY WAY OF DONATIONS AND RENTAL INCOME BY GIVING A HALL OWNED BY IT ON RENT TO THE GENERAL PUBLIC. IT FILED ITS RETURN OF INCOM E AT NIL AFTER CLAIMING ITS ENTIRE INCOME AS EXEMPT U/SS 11/12 OF THE ACT. HOWE VER, THE AO COMPLETED THE ASSESSMENT OF THE ASSESSEE TRUST AT R S.2,02,054/-, WHICH WAS TO BE TAXED @ 30% AS PER THE PROVISIONS OF SEC TION 158BBC OF THE ACT. THE AO BROUGHT TO TAX THE ANONYMOUS DONATION O F RS.2,02,054/- BY INVOKING THE PROVISIONS OF SECTION 158BBC OF THE AC T FOR FAILURE ON THE PART OF THE ASSESSEE TRUST TO KEEP COMPLETE DETAILS OF THE DONORS, WHICH DETAILS WERE REQUIRED TO BE MAINTAINED BY IT FOR C LAIMING ITS ENTIRE INCOME AS EXEMPT U/SS 11/12 OF THE ACT. 3. ON APPEAL, THE LD. CIT(A) CONFIRMED THE AOS ACT ION. 4. THE LD. COUNSEL FOR THE ASSESSEE HAS SUBMITTED T HAT THE CHARITABLE ACTIVITIES UNDERTAKEN BY THE ASSESSEE STAND ACCEPTE D, THERE BEING NO DISPUTED RAISED BY THE AO ON THE SAME. HE FURTHER SUBMITTED THAT RELIGIOUS ACTIVITIES HAVE NOT BEEN DEFINED IN THE A CT AND THEREFORE, IT CANNOT BE OUTRIGHTLY SAID THAT THE ASSESSEES CHARI TABLE ACTIVITIES, MOTIVATED BY RELIGIOUS SENTIMENTS AND FLAVOUR, WOUL D NOT ENTITLE IT TO THE EXCEPTION CARVED OUT IN CLAUSE B) TO SUB-SECTION 2 OF SECTION 115BBC. THE ATTENTION OF LD. CIT(A) WAS DRAWN TO THE FOLLOW ING CASE LAWS: ITA NO.192(ASR)/2016 A.Y. 2010-11 4 RENOWNED SAINTS AND PREACHERS ARE ORGANIZED ON DIFF ERENT OCCASIONS. SOME GOLAKS/CHESTS ARE PLACED INSIDE THE HALL, IN W HICH CASH DONATIONS ARE DROPPED BY VISITORS, PROMPTED BY DIVINE FEELING S. THE FUNDS THUS COLLECTED ARE THE ANONYMOUS DONATIONS IN CASH, BUT SMALL PART OF THE TRUST WHICH ARE USED TO FULFIL THE OBJECTS OF THE T RUST, PRIMARILY, PROVIDING HELP TO THE GENERAL PUBLIC/POOR PEOPLE WITHOUT ANY CAST, CREED OR RELIGION. THE SUBSTANTIAL PART OF THE DONATIONS IS RECEIVED FROM IDENTIFIABLE PERSONS, AGAINST PROPER RECEIPT. THE TRUST STANDS REGISTERED UNDER SECTION 80G OF THE ACT. IN THE YEAR UNDER CON SIDERATION, THE AO OBSERVED THAT SINCE COMPLETE ADDRESSES AND COMPLET E IDENTITY OF THE DONORS WERE NOT MAINTAINED, THEY WERE TO BE PLACED IN THE CATEGORY OF ANONYMOUS DONATIONS U/S 115BBC OF THE ACT. 7. THE NECESSARY DEDUCTION OF RS. 1 LAC WAS GIVEN A ND BALANCE OF RS.2,02,054/- WAS BROUGHT TO TAX @ 30%. THE AO OBSE RVED THAT THE EXCEPTION WAS CARVED OUT ONLY FOR RELIGIOUS TRUST. REMARKABLY, THERE WAS NO ALLEGATION OF ANY BLACK MONEY HAVING BEEN CHANNE LISED/PLOUGHED BACK. THE LD. CIT(A) MERELY ECHOED THE AOS ORDER, REJECTING ALL THE CONTENTIONS RAISED BY THE ASSESSEE. 8. SECTION 115BC OF THE ACT, READS AS UNDER: 115BBC. (1) WHERE THE TOTAL INCOME OF AN ASSESSEE, BEING A PERSON IN RECEIPT OF INCOME ON BEHALF OF ANY UNIVER SITY OR OTHER EDUCATIONAL INSTITUTION REFERRED TO IN SUB-CLAUSE ( IIIAD) OR SUB- CLAUSE (VI) OR ANY HOSPITAL OR OTHER INSTITUTION RE FERRED TO IN SUB- CLAUSE (IIIAE) OR SUB-CLAUSE (VIA) OR ANY FUND OR I NSTITUTION REFERRED ITA NO.192(ASR)/2016 A.Y. 2010-11 6 115BBC, BEING WITH A VIEW TO PREVENT CHANALIZATION OF UNACCOUNTED MONEY. 10. IN THE FACTS DISCUSSED HEREINABOVE, THE ASSESSE E-TRUST, THOUGH NOT A WHOLLY RELIGIOUS TRUST, WAS ESTABLISHED WITH MIX ED OBJECTS OF CHARITY AND RELIGION. THE SUBMISSIONS MADE ON ITS BEHALF TH AT ALL ITS ROOMS AND HALL AS WELL AS ASSETS ARE GIVEN TO THE GENERAL PUB LIC WITHOUT CHARGING ANYTHING WHATSOEVER, ARE PATENT AND UNREBUTTED. 10. THE DONATIONS RECEIVED ARE NOT CHANNELISED/PLOU GHED BACK AMOUNTS OF THE ASSESSEES OWN MONEY OR THE MONEY O F THE PERSON CONCERNED WITH THE TRUST. THE MATTER IS SQUARELY CO VERED IN FAVOUR OF THE ASSESSEE BY THE DECISION OF THE AMRITSAR BENCH OF T HE TRIBUNAL IN THE CASE DCIT , CIRCLE-IV, AMRITSAR VS. ALL INDIA PING ALWARA CHARITABLE SOCIETY, IN ITA NOS.212 & 431(ASR)/2014 FOR ASSE SSMENT YEARS 2010-11 & 2011-12, VIDE ORDER DATED 25.02.2016, WHEREIN, IT HAS BEEN HELD TO THE EFFECT THAT CHARITABLE DONATIONS RECEIVED ANONYMOUS LY IN THE GOLAKS OF THE PINGALWARA CANNOT BE SAID TO BE BLACK MONEY. 11. RELIANCE BY THE ASSESSEE ON ITO (EXEMPTIONS) V S. SATYUG DARSHAN TRUST, 156 ITD 524 (DELHI) IS ALSO APPROPRIATE. 12. IN VIEW OF THE ABOVE, WE HOLD THAT THE PROVISIO NS OF SECTION 115BBC(1) OF THE ACT WERE WRONGLY INVOKED BY THE AO TO MAKE THE ADDITION AND THE LD. CIT(A) ILLEGALLY SUSTAINED THE SAME. THEREFORE, THE
