Case Details: Krishna Janmashtmi Mahotsav Samiti vs. Income-tax Officer, Exemption [2025] 181 taxmann.com 879 (Delhi - Trib.)
Judiciary and Counsel Details
- Anubhav Sharma, Judicial Member.
- Manish Agarwal, Accountant Member.
- Nitin Gulati, Adv. & Yashu Goel, CA for the Appellant.
- Jitender Singh, CIT DR for the Respondent.
Facts of the Case
The assessee, Krishna Janmashtmi Mahotsav Samiti, a public charitable trust registered under section 12A and approved under section 80G, was engaged in organising religious and cultural activities, including Janmashtami Mahotsav, conducting religious discourses, arranging free meals (bhandaras), establishing ashrams, and constructing dharamshalas. For A.Y. 2014-15, the assessee filed a nil return claiming exemption under sections 11 and 12.
During assessment proceedings under section 143(3), the Assessing Officer noted that the assessee had received donations during the Janmashtami Mahotsav. Based on replies received from certain donors under section 133(6) stating that donations were given for publicity or advertisement, the Assessing Officer treated such receipts as business promotion or advertisement income and made an addition by denying exemption under section 11. The Commissioner (Appeals) upheld the addition.
On appeal, the Tribunal observed that the objects of the assessee-trust were purely religious and cultural and not covered under “advancement of any other object of general public utility”. It was further noted that the Revenue did not dispute that the donations were utilised for organising religious events, providing free meals, conducting discourses, and for the construction of religious infrastructure, all of which were in furtherance of the trust’s declared objects.
Tribunal Held
The Tribunal held that the mere display of donor names on banners, posters, or event sites was only an acknowledgement of their contributions and did not confer any commercial benefit on the donors. In the absence of any profit motive, such receipts could not be treated as business promotion or advertisement income.
Accordingly, the Tribunal held that the Assessing Officer was not justified in treating the donations as business promotion receipts and in denying exemption under sections 11 and 12. The addition was deleted, and the assessee’s appeal was allowed.
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