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2016 (4) TMI 160 - AT - Income TaxDonations in golaks - AO proposed to tax the anonymous donations in accordance with the provisions of Section 115BBC(1), as against the assessee’s version that the same being cash received through golak, did not partake the character of the anonymous donations covered u/s 115BBC(2) of the Act - CIT(A) has erred in law in deleting the addition made by the AO by invoking the provisions of section 115BBC(1)(i) - Held that:- The objects of the Trust exhibited the dual tenor of religious and charitable purpose and activities. Section 115BC of the Act was inserted in the Income Tax Act by Finance Act, 2006 and sub clauses (i) & (ii) of sub-section (1) were substituted w.e.f. 01.04.2010. The object of bringing this law in the Statute Book w.e.f. 01.04.2006 is well explained in the Memorandum explaining the provisions of the Finance Bill, 2006. From the above, it is clear that the object was to catch the ‘unaccounted money’ which was brought in as Tax Free Income in the hands of the Charitable Trusts and this law was never meant for taxing the Petty Charities. The Legislature intended to tax the unaccounted money or black money which was brought in the books of charitable trusts in bulk and this law was not meant for taxing the small and general charities collected by the Genuine Charitable Trusts. As contended, the concept and importance of charity, against the backdrop of the Indian Society, has been in existence from time memorial in all religions, without exception. The assessee, in this regard, has cited Zakaat from Islam, Dasvand from Sikhisim and the recognition of this concept from Manu-Samriti, the original magnum opus on the Indian social system. That this concept has continued to be accepted and practiced in India all along down the ages, and thus it is firmly entrenched in our society, cannot be questioned. . Accordingly, we hold that the ld. CIT(A) has correctly deleted the addition for both the assessment years under consideration. - Decided in favour of assessee
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