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TMI Blog2016 (5) TMI 1034X X X X Extracts X X X X X X X X Extracts X X X X ..... ed to the donations received by the appellant trust by way of pooja and hundi collections. - Decided against revenue - ITA No. 1044/Bang/2015, Cross Objn. No. 213/Bang/2015 - - - Dated:- 11-5-2016 - Shri George George K, Judicial Member And Shri Inturi Rama Rao, Accountant Member For the Revenue : Shri Sunil Kumar Agarwala, JCIT(DR) For the Assessee : Shri Ashok A Kulkarni, Advocate ORDER Per Inturi Rama Rao, AM This is an appeal filed by the revenue directed against the order of the CIT(A)-V, Bangalore, dated 10/09/2014 for the assessment year 2010-11. 2. The revenue raised the following grounds of appeal: 1. The learned CIT(A) erred in holding that 115BBC is not attracted to the donations received by the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 15BBC of the Act. 4. Being aggrieved by this order, an appeal was filed before the the CIT(A) who vide impugned order held that the above amounts cannot be treated as anonymous donations within the meaning and ambit of the provisions of sec.115BBC of the Act, as the case of the respondent-assessee-society fell within exceptions carved out by sub-sec.(2) of the said section and granted relief. The order of the CIT(A) reads as under: 10. In case where the trust is created or established for religious and charitable purposes and/or is engaged in both religious and charitable activities as per the objects memorandum of association, for the purpose of application of section 115BBC one has to consider the exclusion provision contained in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oses, the anonymous donation received by such trust or institution shall also be excluded from taxation. It is only such anonymous donation which is made by the donor with a specific direction that such donation is for a university or for other educational institution or any hospital or other medical institution run by such trust or institution, receiving the donation, that the exemption or exclusion from taxation u/s.115BBC(1) shall not be available. The Assessing Officer's view (para 9, page 8 of the assessment order) that as per the provisions of section 115BBC(2), any contribution/donation with a specific direction shall not be treated as anonymous donations is contrary to the literal interpretation of the clause (b) of subsection ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... BC has been inserted to provide that any income of a wholly charitable trust or institution by way of anonymous donation shall be included in its total income and taxed at the rate of 30 per cent. Anonymous donation made to wholly charitable and religious trusts or institutions, i.e. mixed purpose trusts or institutions shall be taxed only if it is for any university or other educational institution or any hospital or other medical institution run by them. Anonymous donation to wholly religious trusts or institutions will not be taxed. 10.5 In the instant appeal, there is no case made out by the Assessing Officer that the Hundi collections and puja collections received by the trusts from the donors and devotees of Shri Sal Baba Templ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r the provisions of sec.115BBC have no application to Hundi collections of ₹ 1,45,26,125/-, Pooja collections of ₹ 30,02,409/- and donations of ₹ 4,17,890/-. The relevant provisions of sec.115BBC are extracted below: 115BBC. (1) Where the total income of an assessee, being a person in receipt of income on behalf of any university or other educational institution referred to in sub-clause (iiiad) or subclause (vi) or any hospital or other institution referred to in subclause (iiiae) or sub-clause (via) or any fund or institution referred to in sub-clause (iv) or any trust or institution referred to in sub-clause (v) of clause (23C) of section 10 or any trust or institution referred to in section 11, includes any income ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2/2016: 25. Taxation of anonymous donations received by wholly charitable trusts or institutions including non-profit educational or medical institutions. 25.1 Income of wholly charitable or religious trusts or institutions as well as partly charitable or religious trusts or institutions is exempt from income-tax under sections 11 and 12, subject to the fulfilment, inter alia, of certain conditions, of application of income and investment in specified modes. Similarly, income of any university or other educational institution referred to in sub-clause (iliad) or sub- clause (via) or any hospital or other medical institution referred to in sub-clause (iiiae) or sub-clause (via) or any fund or institution referred to in sub-clause ..... X X X X Extracts X X X X X X X X Extracts X X X X
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