Quick Summary
In a significant ruling, the Bombay High Court on Tuesday upheld the exemption granted to Shree Sai Baba Sansthan Trust, Shirdi, for anonymous donations received under the Income Tax Act. The court confirmed that the Trust qualifies as a religious and charitable organization, making it eligible for tax exemptions on such contributions. The Trust received total donations of ₹228 crores in the assessment year 2015-16, out of which ₹159 crores were anonymous. The Assessing Officer had taxed thes
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FAQ :
The Bombay High Court upheld the tax exemption for anonymous donations received by the Shree Sai Baba Sansthan Trust, Shirdi.
The Trust was deemed eligible because it qualifies as a religious and charitable organisation, and the court found it serves dual religious and charitable purposes.
In the assessment year 2015-16, the Trust received ₹159 crores in anonymous donations out of a total of ₹228 crores.
The Assessing Officer had initially taxed these anonymous donations, arguing that the Trust fell under Section 80G and certain exemptions under Section 115BBC(1) did not apply to religious trusts.
The central issue revolved around whether anonymous donations received in the Trust's Hundi were liable to be taxed under Section 115BBC(1) of the Income Tax Act.
The court emphasised that a trust can serve both religious and charitable purposes, and its nature should be determined by examining the trust deed and bylaws.
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