Brief: -Finance Act 2006 has inserted a new section 115BBC which provides that anonymous donations received by assessee on behalf of any university or other educations institution or hospital or institution referred to in 10(23C) or trust or institution referred to in section 11 be included in total income and chargeable @30% subject to amount mentioned in sub-clause (I) .

Anonymous donations received by any trust or institution established wholly for religious purposes or those established wholly for religious and charitable purpose provided such donations are not for any university or educational institution or hospital or medical institution run by them are outside scope of provisions of section 115BBC.

Anonymous donations refer to any voluntary donations referred to in section 2(24) (iia) where the person receiving the contribution does not maintain a record of the identity indicating name and address of the person making such contribution and such other particulars as may be prescribed.

Voluntary contributions made either for general purpose or with a specific direction that it would be part of corpus of the recipient. When a contribution was made with a specific direction as to usage for a particular purpose (referred to as Corpus Donations) is not an income derived from property held under trust or legal obligation.

Section 11 excludes any income derived from any property held under a trust or legal obligation from total income provided at least 85% of it’s income is applied for its objects. Section 11(1)(d) provides that corpus donations are not part of total income of trust or legal obligation registered U/S 12A/12AA.

From above it is evident that corpus donations are not part of total income of trust or other legal obligation for the purpose of section 11. However, section 115BBC has not excluded corpus donations from it’s purview as it has reference to contributions mentioned in section 2(24)(iia) which has not made any differentiation as to nature of contributions (i.e general or corpus).

Issue: - Whether it would be sufficient compliance U/S 115BBC if a trust or institution receiving contributions from different persons maintain the details of donors or donor’s identity has to be established whenever called for?

The above issue was raised in Asst.CIT Vs Gurudatta Shikshan Sanstha

Facts of the Case: - The assessee is an educational trust having registered U/S 10(23C) (V) and Section 12A. It has received donations of Rs. 1,03,59,525 from 565 persons in AY 2010-11 and Rs. 64,68,820/-from 367 persons in AY 2011-12. The individual donations are below Rs. 20,000/-The AO has investigated into identity of the donors. Some of the donors have denied having given any donations.

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Brief: -Finance Act 2006 has inserted a new section 115BBC which provides that anonymous donations received by assessee on behalf of any university or other educations institution or hospital or institution referred to in 10(23C) or trust or institution referred to in section 11 be included in total income and chargeable @30% subject to amount mentioned in sub-clause (I) .

Anonymous donations received by any trust or institution established wholly for religious purposes or those established wholly for religious and charitable purpose provided such donations are not for any university or educational institution or hospital or medical institution run by them are outside scope of provisions of section 115BBC.

Anonymous donations refer to any voluntary donations referred to in section 2(24) (iia) where the person receiving the contribution does not maintain a record of the identity indicating name and address of the person making such contribution and such other particulars as may be prescribed.

Voluntary contributions made either for general purpose or with a specific direction that it would be part of corpus of the recipient. When a contribution was made with a specific direction as to usage for a particular purpose (referred to as Corpus Donations) is not an income derived from property held under trust or legal obligation.

Section 11 excludes any income derived from any property held under a trust or legal obligation from total income provided at least 85% of it’s income is applied for its objects. Section 11(1)(d) provides that corpus donations are not part of total income of trust or legal obligation registered U/S 12A/12AA.

From above it is evident that corpus donations are not part of total income of trust or other legal obligation for the purpose of section 11. However, section 115BBC has not excluded corpus donations from it’s purview as it has reference to contributions mentioned in section 2(24)(iia) which has not made any differentiation as to nature of contributions (i.e general or corpus).

Issue: - Whether it would be sufficient compliance U/S 115BBC if a trust or institution receiving contributions from different persons maintain the details of donors or donor’s identity has to be established whenever called for?

The above issue was raised in Asst.CIT Vs Gurudatta Shikshan Sanstha

Facts of the Case: - The assessee is an educational trust having registered U/S 10(23C) (V) and Section 12A. It has received donations of Rs. 1,03,59,525 from 565 persons in AY 2010-11 and Rs. 64,68,820/-from 367 persons in AY 2011-12. The individual donations are below Rs. 20,000/-The AO has investigated