FARIDI FOUNDATION,ARRAH vs. CIT (EXEMPTION), PATNA

PDF · subscribers
ITA 223/PAT/2023Status: DisposedITAT Patna30 January 2025AY 2023-2414 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the CIT(Exemptions) erred in rejecting the application without properly considering the evidence submitted by the assessee. The Tribunal noted that the assessee provided photographic and documentary evidence, and that for a religious trust, anonymous donations are not taxable under Section 115BBC.

What were the facts?

The assessee, Faridi Foundation, applied for regular registration under Section 12A(1)(ac)(iii) of the Income Tax Act. The CIT(Exemptions) rejected the application, citing issues with the genuineness of activities and lack of proper documentation for expenditures and beneficiaries.

What were the issues?

Whether the CIT(Exemptions) properly assessed the genuineness of the trust's activities and the nature of its receipts before rejecting the registration application.

Which sections of the Income-tax Act were involved?

Section 12A(1)(ac)(iii),Section 12AB(1)(b),Section 115BBC

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, PATNA BENCH AT KOLKATA

Before: SHRI SONJOY SARMA & SHRI RAKESH MISHRA

order

: January 30th, 2025 ORDER

PER RAKESH MISHRA, ACCOUNTANT MEMBER:

1.

This appeal filed by the assessee is against the order of the Ld. Commissioner of Income Tax (Exemptions)-Patna [hereinafter referred to as the “Ld. CIT (Exemption)”] passed in respect of registration u/s 12A(1)(ac)(iii) of the Income Tax Act, 1961 (hereinafter referred to as “the Act”) for AY 2023-24 dated 26.05.2023.

2.

The assessee is in appeal before the Tribunal raising the following grounds of appeal:

1. That the Ld. CIT(Exemptions) has erred in law and on facts by not following the procedure for registration laid out in section 12AB(1)(b) of the g) To substantiate our claim, we have prepared a detail wherein the following particulars appear in the serial order as under: - 1) The screenshot of bank statement depicting the credit in the bank account of the Trust from the teachers. 2) The detail of donors from whom the amount of general donation is received via door-to-door campaign or other spiritual campaigns. 3) The screenshot of UPI app is attached evidencing that the said amount was transferred via UPI of the teacher collecting the donation. (Refer Attachment No. 2.3 for the copy of substantiation prepared of donations received) h) From the above-mentioned attachment it is clear that the donations were first received by teacher during their spiritual campaign and door-to-door campaign. The teacher on receipt of donation first records the details of the donor in the mobile app of the Trust. Thereafter, on conclusion of the spiritual campaign the teacher either deposit the said amount in bank account of the Trust in cash or transfer the said amount via UPI due non-availability of bank branch or if another connecting tour of the teacher is scheduled. i) As explained above only "when there are no availability of Axis bank Branches in these rural part of the state, the Teacher, through it's UPI or through direct bank transfer, remit the donation which he has received in cash from the donor to the Axis Bank of the Trust. Further it can be seen that in various scenarios the donation collected by the Teachers are deposited in "Cash" directly in bank account of the Trust. 1) The trust is recording the said transaction in "Cash" as the amount has been collected in Cash only by the Trust from the donor through its Teacher,

More judgments on Section 12A(1)(ac)(iii)

All 1,616 judgments and leading authorities on Section 12A(1)(ac)(iii) →

Recent GST High Court judgments

Search GST case law →