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TMI Blog2022 (3) TMI 424X X X X Extracts X X X X X X X X Extracts X X X X ..... s not allowed to get the benefit of sec. 80G. 2. The Ld. CIT (A) has erred on facts and in law in deleting the addition of Rs. 18,36,05,498/- u/s 115BBC of the Income Tax Act, 1961. 3. The Ld. CIT (A) has erred on facts and in law in ignoring the fact that the amount of Rs. 8,79,20,100/- out of corpus donations and Rs. 10,97,53,280/- out of other donations were anonymous donation within the meaning of section 115BBC of the Income Tax Act, 1961. 4. Whether the Ld. CIT (A) has erred in allowing the appeal of assessee by ignoring the fact that assessee society like charitable or religious institutions are governed by almost the separate or independent provisions of Section 11, 12, 12A, 12AA & 13 and these provisions are independent code in itself in Chapter III of the Income Tax Act, 1961 and claim of depreciation u/s 32 comes under Chapter IV of the Act under the head 'D' Profit and Gains of Business or Profession and depreciation is allowed when capital assets are used for the purpose of business? 5. Whether ld. CIT (A) has erred in allowing the appeal of the assessee by ignoring the facts that the assessee is not eligible for any type of deprecation as the entire expend ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... us donations remained unverified due to incomplete addresses, non-confirmations by the donors and non-submissions of details by the assessee which was tabulated by him in the following manner :- Particulars Amount (Rs.) Remarks Incomplete addresses / No address cases (donors) above Rs. 10,000/- 62,95,571 As per details filed by the assessee, these figures have been worked out from Page no.1-81 of list filed on 25.03.2015 (276 persons) Unverifiable donors as per 133(6) 19,72,000 As mentioned in above para Donors below Rs. 10,000/- no details provided 7,96,52,529 As mentioned in above para Total 8,79,20,100 5. Thus, AO held that assessee could not substantiate the corpus donation of Rs. 8,79,20,100/-. He again called for the details of voluntary donation amounting to Rs. 11,99,62,848/- and found that there are donations less than Rs. 1,000/- for more than Rs. 10 crores and more than Rs. 1,000/- was Rs. 1.13 crores. However, no details of general donation of less than Rs. 1,000/- was given by the assessee. Accordingly, he disallowed voluntary donation of Rs. 10,97,53,280/-in the following manner :- "After consideration of the details filed, the foll ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n. 4.1.4 From a plain reading of the provisions of section 115BBC and also Circular No. 14/2006 dated 28.12.2006 it is clear that these provisions will not apply in a case where anonymous donations are received by a trust institution created for religious purposes. In case of partially religious and partially charitable organizations, anonymous donations received shall be subjected to tax it the donations have been received with the specific direction that such donation is for a university, education situation or hospital or medical institution run by such trusts or institutions. 4.1.5 Looking to the case of the assessee, some of the objectives of the assessee trust as per the trust deed, a copy of which was filed during the appellate proceedings, are as follows: 1. To create of sense of brotherhood, communal & social harmony, cooperation, love and affection amongst general public at large through spiritual advancement for the attainment of national unity and global peace. 2. To organize/arrange spiritual discourses, sadhna camps, meditation camps/centres and also to establish or open/run and manage yoga, Meditation centre and spiritual retreats, Ashrams, Institutes and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... looking to the aims & objects of the assessee, ld. CIT (A) held that assessee is engaged in religious and charitable activities which are in the nature of socialspiritual in nature. He also observed that in subsequent assessment year 2013-14 and 2014-15, Department itself has held that the assessee is carrying out socio-spiritual in nature and enormous donations have been accepted. Accordingly, Ld. CIT(A) held that assessee's activities being spiritual in nature is religious in nature and also charitable in nature and would be qualified under the exception of section 115BBC(2)(b), therefore, AO was not justified in invoking the provisions of section 115BBC. 9. As regards disallowance of depreciation as application of income, he relied upon the decision of Hon'ble Delhi High Court in the case of DIT (E) vs. Indraprastha Cancer Society (2015) 53 taxmann.com 463 (Delhi) wherein the assessee has been held to be allowed for depreciation for religious institution also. He further noted that this issue has been led at rest by the Finance Act, 2014 w.e.f. assessment year 2015-16 and subsequent years. Therefore, this amendment could not be applicable for the AY 2012-13. 10. Before us, ld ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... CIT (A) and also submitted that assessee's case has been under scrutiny for various past and subsequent years u/s 143(3) wherein not only the assessee has been accepted religious and charitable institution but also carrying out social activities and all petty small donations have been allowed. In support, he also filed copies of various assessment orders. 12. We have carefully considered the submissions and gone through the impugned order as well as material placed on record. The case of the AO was that though assessee is a charitable institution carrying out the charitable activities, however has disallowed donations made for the corpus fund and voluntary donation on the ground that the same could not be verified by the assessee and accordingly he has taxed the donations under the provisions of section 115BBC(1)(i). First of all, from the perusal of the aims & objects as incorporated by the ld CIT (A) in para 4.1.5 as incorporated (supra), we find that the assessee's activities are mixed of religious, charitable and social activities. The religious activities have to be given a wide treatment and cannot be interpreted narrowly because in the concept of Hinduism there is no line o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... created for charitable purpose, therefore, in assessee's case this exception is not available as assessee is carrying out activities which are mainly socio-economic activities. Sub-section (2) of section 115BBC reads as under :- "(2) The provisions of sub-section (1) shall not apply to any anonymous donation received by- (a) any trust or institution created or established wholly for religious purposes; (b) any trust or institution created or established wholly for religious and charitable purposes other than any anonymous donation made with a specific direction that such donation is for any university or other educational institution or any hospital or other medical institution run by such trust or institution." 15. Thus, section 115BBC does not apply to any institution or trust created or established wholly for religious purposes. CBDT vide its Circular No.14/2006 dated 28.12.2006 has categorically clarified that anonymous donations made to wholly charitable and religious institutions, i.e. mixed purpose institution, shall be taxed only if it is having university or other educational institution or any hospital or other medical institution run by them. The assessee also, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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