MS RANA AYYUB SHAIKH ,NAVI MUMBAI vs. DCIT (CENTRAL CIRCLE) 6(2), MUMBAI

ITA 2281/MUM/2023Status: DisposedITAT Mumbai29 April 2025AY 2021-22Bench: SHRI SAKTIJIT DEY, HON'BLE (Vice President), SHRI NARENDRA KUMAR BILLAIYA, HON'BLE ACCOUNTANT MEMBER I.T.A. No. 2281 & 2282/Mum/2023 Assessment Year: 2021-22 Ms. Rana Ayyub Shaikh 705, Sea Queen Avenue B Wing, Sector 14 Koparkhairane Navi Mumbai - 400709 [PAN: BMEPS7947H] अपीलार्थी/ (Appellant) Vs Deputy Commissioner of Income Tax (Central Circle) – 6(2), Mumbai प्रत्यर्थी/ (Respondent) Ms. Rana Ayyub Shaikh 705, Sea Queen Avenue B Wing, Sector 14 Koparkhairane Navi Mumbai - 400709 अपीलार्थ1 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that the donations received by the assessee were taxable under Section 56(2)(x) of the Income Tax Act as they were not utilized for the intended charitable purpose and were parked in personal accounts. The Tribunal also noted violations of the Foreign Contribution Regulation Act.

What were the facts?

The assessee, a journalist, raised substantial donations through online campaigns for Covid relief. The Assessing Officer (AO) found that a significant portion of these funds were not utilized for the stated purpose, were diverted to personal accounts, and even invested in fixed deposits.

What were the issues?

Whether donations received for charitable purposes, but diverted for personal use and investment, are taxable as income? Whether the assessee violated the Foreign Contribution Regulation Act by receiving foreign donations?

Which sections of the Income-tax Act were involved?

Section 56(2)(x),Section 175

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Income Tax Appellate Tribunal, “D” BENCH, MUMBAI

Before: SHRI SAKTIJIT DEY, HON’BLE & SHRI NARENDRA KUMAR BILLAIYA, HON’BLE

For Appellant: Shri P.J. Pardiwala & Ms. Ritu Punjabi, A/Rs
Hearing: 29/04/2025Pronounced: 02/05/2025

PER NARENDRA KUMAR BILLAIYA, AM: I.T.A. No. 2281 & I.T.A. No. 2282/Mum/2023 & I.T.A. No. 2283/Mum/2023 are three separate appeals by the assessee preferred against the order of the ld. CIT(A) - 54, Mumbai dated

I.T.A. No

The order continues below.

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