M/S SANT BABA BHAG SINGH MEMORIAL CHARITABLE SOCIETY,JALANDHAR vs. D.C.I.T, CIRCLE - 1 (EXEMPTION), CHANDIGARH

ITA 432/ASR/2017Status: DisposedITAT Amritsar27 February 2019AY 2014-1521 pages
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What did the Tribunal hold?

The Tribunal held that the donations from DSBBS were not genuine and were liable to be taxed under Section 115BBC and Section 115BBE. However, the unsecured loan of Rs. 15 lacs from DSBBS was found to be genuine and its addition was deleted.

What were the facts?

The assessee, a charitable society, received substantial voluntary contributions, including from Dera Sant Baba Bhag Singh (DSBBS). The Revenue treated a significant portion of these donations from DSBBS as anonymous and taxable under Section 115BBC and Section 115BBE, also taxing an unsecured loan from DSBBS.

What were the issues?

Whether donations from DSBBS were genuine and whether the unsecured loan was a valid transaction, and the applicability of Sections 115BBC and 115BBE to such receipts.

Which sections of the Income-tax Act were involved?

Section 115BBC,Section 115BBE,Section 68,Section 143(3),Section 12AA

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Income Tax Appellate Tribunal, AMRITSAR BENCH, AMRITSAR.

Before: SH. SANJAY ARORA & SH. N. K. CHOUDHRY

Hearing: 12.12.2018Pronounced: 27.02.2019

Per Sanjay Arora, AM: This is an Appeal by the Assessee directed against the Order by the Commissioner of Income Tax (Appeals)-2, Jalandhar ‘(CITA)’ for short) dated 10.04.2017, dismissing the assessee’s appeal contesting its’ assessment under section 143(3) of the Income Tax Act, 1961 (‘the Act’ hereinafter) dated 25.11.2016 for Assessment Year (A.Y.) 2014-15. 2. The assessee-society, registered u/s. 12AA of the Act, is engaged in charitable activity by way of running various educational and medical institutions, the names of seven of which are listed at pg. 15 of the assessment order. Its’ accounts for the relevant year revealed a receipt by way of

The order continues below.

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