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Issues Involved: Appeal against CIT(A)'s order directing exclusion of anonymous donations from Sec. 115BBC provisions.
Issue 1: Exclusion of Anonymous Donations The appellant, a Charitable Trust, filed its income return declaring total income as NIL. The AO determined total income at &8377; 79.83 Lakhs. During assessment, collections were noted, and certain amounts were added to the total income. The FAA held that the trust's activities were charitable, and provisions of Sec. 115BBC were misapplied by the AO. The FAA emphasized that the purpose of Sec. 115BBC was to prevent misuse of anonymous donations by charitable institutions. The FAA deleted the addition made by the AO based on these grounds. Issue 2: Applicability of Sec. 115BBC The ITAT, Mumbai, in a previous order, highlighted that Sec. 115BBC aims to curb unaccounted money through anonymous donations to educational and religious trusts, not small donations like those collected in donation boxes. The trust in question runs a veterinary hospital for animals and birds, serving a public good for 176 years. The ITAT emphasized the trust's sincere intentions and public service, noting that known donations were duly accounted for. Referring to decisions of the Bombay and Gujarat High Courts, the ITAT upheld the FAA's decision, dismissing the department's appeal and affirming the exclusion of anonymous donations under Sec. 115BBC. In conclusion, the ITAT upheld the FAA's decision to exclude anonymous donations from the provisions of Sec. 115BBC, emphasizing the trust's longstanding public service and the genuine nature of the donations received. The appeal filed by the department was dismissed, and the order of the FAA was upheld, resulting in the dismissal of the appeal filed by the Revenue.
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