TMI Blog2015 (7) TMI 989X X X X Extracts X X X X X X X X Extracts X X X X ..... he case of the assessee as we have observed above, it is generally not only difficult but also not possible to maintain such type of record. A perusal of the entire section 115BBC shows that the provisions of said section are not applicable to the institutions like that of assessee trust as the same are meant to check the inflow of unaccounted/black money into the system with a modus operandi to make out as a part of the accounts of the institutions like university, medical institutions where the problem relating to the receipt of capitation fees, etc. is generally highlighted. Under such circumstances, we do not find any justification on the part of the Ld. CIT(A) in taxing the offerings received in the hundis/donation boxes as income of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion of gratitude, respect and reverence and are not income at all and are not in the nature of voluntary contributions or anonymous donations as contemplated under section 115BBC. The Appellant, therefore, prays that taxing the amount of ₹ 28,25,536/- invoking the provisions of section 115BBC is not at all justified and hence, the same may be deleted. 3. Without prejudice to the above, the Ld. CIT(A) failed to appreciate that having taxed the amount of ₹ 28,25,536/-, the amount required to be spent on the objects of the trust in terms of Explanation 2 to section 11(1) in the subsequent year ought to be recomputed. 4. The Ld. CIT(A) erred in confirming the levy of interest under Section 234B, section 234C and section 234D ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Shrine of Swami Muktanand of ₹ 9,62,089/-. ii) Offering in the Nityanand Dhyan Mandir of ₹ 17,23,952/- iii) Offering in Kind (Gold and Silver Articles) of ₹ 1,39,495/- The Ld. CIT(A), therefore, held that as per the provisions of section 115BBC anonymous donations as detailed above were liable to be taxed at the rate of 30%. Aggrieved by the order of the Ld. CIT(A), the assessee has come in appeal before us. 4. We have heard the rival contentions and have also gone through the records. The lower authorities have taxed the assessee in relation to the offerings received in the donations boxes at Samadhi Shrine of Swami Muktanand and Bhagwan Nityanand Mandir. To get proper conclusion of the matter, we have to deli ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... me been reduced by the aggregate of anonymous donations received in excess of the amount referred to in subclause (A) or sub-clause (B) of clause (i), as the case may be.] ___________________ (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. (3) For the purposes of this section, anonymous ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n provided that the record of the donor along with name and address etc. should be maintained. Sub section (2) specifically excludes anonymous donations received by an institution which are other than any anonymous donations made with a direction that such donation is for university, medical institution etc. When we read clause (a) and clause (b) of sub section (2) in harmony and in conscience with each other then it becomes clear that the provisions of sub section (1) will not apply to the donations like that has been received by the assessee in donation boxes from numerous devotees who have offered the offerings on account of respect, esteem, regard, reference and their prayer for the deity/siddha peeth. Such type of offerings are made/pu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nder such circumstances, we do not find any justification on the part of the Ld. CIT(A) in taxing the offerings received in the hundis/donation boxes as income of the assessee under section 115BBC. 6. In view of our above observations and subject to taxability of the income under any other provision of the Act as the case may be, the appeal of the assessee is allowed. ITA No.3467/M/2012 for A.Y. 2008-09 7. Since this appeal is identical in nature to the appeal of the assessee i.e. ITA No.3466/M/2012 for A.Y.2007-08, hence this appeal is also decided in favour of the assessee, in view of the discussion made above. 8. In the result, both the appeals of the assessee are hereby allowed. Order pronounced in the open court on 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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