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Facts
The appellant, a registered society, declared 'NIL' income for AY 2022-23. The case was selected for scrutiny due to provisional registration under Section 80G and voluntary contributions. The appellant claimed anonymous donations received should not be treated as a violation of Section 115BBC, asserting it is a mixed-purpose trust for religious and charitable activities.
Held
The Tribunal held that the Assessing Officer and CIT(Appeals) failed to consider the Amended Deed dated 07.05.2014, which established the Trust's creation for both religious and charitable purposes. Consequently, the assessee is eligible for benefits under Section 115BBC.
Key Issues
Whether anonymous donations received by a Trust registered for charitable purposes can be considered for exemption under Section 115BBC if the Trust's objects are also religious in nature, as evidenced by an amended deed.
Sections Cited
80G, 143(2), 142(1), 115BBC
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Income Tax Appellate Tribunal, ‘SMC’ BENCH, KOLKATA
Before: Shri Duvvuru RL Reddy, Vice-(KZ)
Assessment Year: 2022-2023 Nir Ideal Home For Mentally Retarded And Associated Disability,………………..……Appellant Vill. Pilkhana, Haroa, North 24-Parganas-743425, West Bengal [PAN:AAAAN3642G] -Vs.- Income Tax Officer,……………………………....Respondent Ward-1(1), Exemption, Kolkata, (Assessment Unit, Income Tax Department), Income Tax Building, 10B, Middleton Row, Kolkata-700071 Appearances by: Shri Arvind Agrawal, A.R., appeared on behalf of the assessee Shri Mrinmay Basak, Sr. D.R., appeared on behalf of the Revenue Date of concluding the hearing: August 28, 2025 Date of pronouncing the order: October 30, 2025 O R D E R
The present appeal is directed at the instance of assessee against the order of Id. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi dated 13.06.2025 passed for Assessment Year 2022-2023.
(A.Y. 2022-2023) Nir Ideal Home For Mentally Retarded And Associated Disability 2. Brief facts of the case are that the appellant-assessee is a Registered Society registered under the West Bengal Society Registration Act, 1961. The date of formation of the Society is on 09.12.2002. The appellant-assessee is a Trust and filed its return of income for the AY 2022-23 declaring income at ‘NIL’. The case of the appellant was selected for the scrutiny under the CASS for the reason “provisional registration obtained under section 80G and large voluntary contributions received”. Though the activities stated in its Memorandum of Association are for charitable purpose. Various clauses as per its MOU establishes the fact that the Society is operating as a mixed nature, i.e. of a charitable cum religious nature. Notices under section 143(2) and 142(1) of the Act were issued to the appellant during the course of assessment proceedings for which the appellant furnished submissions. The appellant furnished its reply along with Memorandum of Association, audited financials and computation of income for the AY 2022-23. The appellant claimed that the anonymous donation received during the year under consideration of Rs.17,65,436/- should not be treated as violation of section 115BBC as the Trust comes under the exceptional category of it. The appellant vide its reply self-proclaimed itself as a mixed purpose Trust, i.e. the Trust objects should be for both religious and charitable purposes. The ld. Assessing Officer noticed from the Memorandum of Association that the Trust carries activities only for disabled persons i.e. for charitable purposes only and there is no mention of religious purposes. The appellant-Trust should have been both a religious and charitable Trust to claim such exemption, but in the Memorandum of Association, there is no such object of ‘religious’ (A.Y. 2022-2023) Nir Ideal Home For Mentally Retarded And Associated Disability nature to claim such exception and hence, the ld. Assessing Officer brought the anonymous donations of Rs.17,65,436/- received during the year under consideration to tax as per the provisions of section 115BBC of the Act for the AY 2022-23. On being aggrieved, the appellant-assessee preferred an appeal before the ld. CIT(Appeals).
The ld. CIT(Appeals) dismissed the appeal of the assessee saying that “on perusal of clause (2)(b) of Section 115BBC, it clearly mentions that any anonymous donation received by the Trust for charitable purposes does not come under the exception categories of Section 115BBC. Therefore, the AO has rightly brought the anonymous donation received of Rs.17,65,436/- to tax. Hence, the addition made by the AO in the assessment order is sustained and accordingly the grounds raised by the appellant in this regard are dismissed”.
Dissatisfied with the order of ld. CIT(Appeals), the assessee- Trust preferred an appeal before the Tribunal. It was the submission of the ld. Counsel for the assessee that the ld. CIT(Appeals) erred in upholding the addition of Rs.17,65,436/- made by the ld. Assessing Officer and treated the genuine donation received as anonymous donation, on alleged contravention to the provision of section 115BBC sub-section (1) of the Income Tax Act, which is grossly unjustified, erroneous and unsustainable. The ld. Counsel for the assessee also pleaded to set aside the order of ld. CIT(Appeals).
(A.Y. 2022-2023) Nir Ideal Home For Mentally Retarded And Associated Disability 5. On the other hand, it was the submission of the ld. Departmental Representative that the assessee-Trust carries activities only for disabled persons, which is clearly for the purposes of charitable purposes only. There is no mention of activities which are religious in nature. However, the appellant claimed that it is a mixed purpose Trust, i.e. for both religious and charitable purposes. In this connection, Section 115BBC(2)(b) clearly mentions that the provisions of sub-section (1) shall not apply to any anonymous donation received by 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. Ld. D.R., therefore, pleaded to confirm the order passed by the ld. CIT(Appeals).
I have heard both the sides and perused the material available on record. From the record, I find that Md. Abul Kalam Azad, Secretary of Nir Ideal Home for Mentally Retarded and Associated Disability filed Form IV regarding filing of alteration of the Memorandum of the Regulations by a Society addressed to the Registrar of Firms, Societies and Non-Trading Corporation, West Bengal dated 07.05.2014 under the West Bengal Societies Registration Act, 1961. From the order of the ld. Assessing Officer and ld. CIT(Appeals), I find that the Trust carries activities only for disabled persons i.e. for charitable purposes only and there is no mention of religious purposes. The appellant-Trust should have been both a religious and charitable Trust to claim such (A.Y. 2022-2023) Nir Ideal Home For Mentally Retarded And Associated Disability exemption, but in the Memorandum of Association, there is no such object of ‘religious’ nature to claim such exception, but the contention of the assessee is that the assessee-Trust filed a copy of Amended Deed by way of paper book in page no. 68, which clearly establishes that the Trust was created for both religious and charitable purposes. Therefore, I am of the view that the ld. Assessing Officer as well as ld. CIT(Appeals) have not considered the copy of Amended Deed dated 07.05.2014. Hence the assessee is eligible for benefits under section 115BBC. Hence, the grounds raised by the assessee are allowed.
In the result, the appeal of the assessee is allowed. Order pronounced in the open Court on 30/10/2025.