According to an official statement, while assessing the tax for the year 2015-16, the Income Tax Department assumed that Shri Saibaba Sansthan was not a religious trust but a charitable trust, and levied 30 percent income tax on the donations received in the donation box and issued a tax payment notice of ₹183 crore, as per PTI reports.
The trust then filed a writ petition in the Supreme Court which "ordered a stay on the tax payable till the determination of tax," it said.
The Income Tax Department finally granted it exemption from the tax levied on the donation in the donation box, accepting the Shree Saibaba Sansthan as a religious and charitable trust, PTI reported.
“Thus, Sri Saibaba Sansthan has been exempted from income tax of ₹175 crore levied in the last three years," it added.
(With PTI inputs)