Mumbai: In a significant ruling, the Bombay High Court has upheld that the Shri Saibaba Sansthan Trust in Shirdi, one of India’s most revered religious institutions, is eligible for income tax exemption on anonymous donations. This decision comes as a relief to the trust, which sees countless devotees from across the globe contributing generously to the temple.
A division bench, comprising Justices Girish Kulkarni and Somasekhar Sunderesan, dismissed the Income Tax department’s appeal against a prior ruling by the Income Tax Appellate Tribunal (ITAT) from October 2023. The ITAT had declared that since the trust operates both as a charitable and religious body, it qualifies for tax exemption on anonymous donations.
The High Court echoed this sentiment, emphasizing the dual nature of the trust’s work—religious and charitable—and confirmed that such entities deserve the benefit of tax exemptions on anonymous contributions. This ruling ensures that the trust can continue its philanthropic activities without financial strain, benefiting the thousands who rely on the Sansthan’s services.