ACIT CC-2(3) AHMEDABAD, AHMEDABAD V. ALL INDIA SOCIAL EDUCATION CHARITABLE TRUST, AHMEDABAD

ITSSA 28/AHD/2024

AI Insights

The case involves the All India Social Education Charitable Trust, which was subjected to a search under section 132 of the Income Tax Act, 1961, leading to the discovery of undisclosed receipts and unexplained money. The Assessing Officer added these amounts to the Trust's income, which was contested. The Commissioner of Income Tax (Appeals) confirmed the addition of undisclosed receipts but deleted the protective addition of unexplained money, citing double taxation as the same amount was added to the income of Shri Tribhavan Ojha. The Revenue appealed against this decision, which was dismissed by the Tribunal.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 474798 (ITAT-AHMEDABAD)
• Appeal Type: Income Tax (Search & Seizure) Appeal
• Pronouncement Date: 25-02-2025
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2021-2022
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Unexplained cash credit; Charitable institution; Bogus
• Section: 143(3); 132; 153A; 68; 69A

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD “B” BENCH Before: Shri T.R. Senthil Kumar, Judicial Member And Shri Makarant Vasant Mahadeokar, Accountant Member The ACIT, CC-2(3), Ahmedabad (Appellant) Vs All India Social Education Charitable Trust A2, Gokul Appartment, Opp. Gokulanth Mandir, Near Mira Road, Ahmedabad, Gujarat PAN: AACTA1516D (Respondent) Revenue Represented: Shri Arvind Kumar, CIT-DR Assessee Represented: None (Written submission filed) Date of hearing : 19-02-2025 Date of pronouncement : 25-02-2025 आदेश/ORDER PER : T.R. SENTHIL KUMAR, JUDICIAL MEMBER:- This appeal is filed by the Revenue as against the appellate order dated 05.01.2024 passed by the Commissioner of Income Tax (Appeals)-12, Ahmedabad arising out of the assessment order passed under section 143(3) r.w.s. 153A of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) relating to the Assessment Year 2021-22. IT(SS)A No: 28/Ahd/2024 Assessment Year: 2021-22 I.T.(SS)A No. 28/Ahd/2024 A.Y. 2021-22 Page No ACIT Vs. All India Social Education Charitable Trust 2 2. Brief facts of the case is that the assessee is a Public Charitable Trust established on 03-05-2005 having its registered office at Ahmedabad and Shri Ram Bhavan Ojha is the Settler and his brother Shri Tribhavan Ramkalp Ojha is the Trustee. There was a search action under section 132 of the Act on 02-02-2021 on the assessee and other political parties and charitable organizations. For the Asst. Year 2021-22, the assessee filed its belated return on 20-01-2022 declaring Nil Income. 3. On enquiries made by Investigation Wing, it came to knowledge that few of the unrecognized political parties registered with Election Commission of India, without carrying out any kind of political activity, were actively engaged through its key persons in aiding and abetting other persons to evade taxes, by returning the amount received as donation, back to the original donors in cash or through bank who claimed such amount as deduction u/s. 80GGB (for non-individuals) and u/s. 80GGC (for individuals) of the Act in the return of income, whereas the key persons earned commission in the process. 3.1. The assessee being a charitable organization is also involved in such bogus donations scam. Hence search action carried out in the premises of the assessee. The Settler of the assessee categorically admitted in his statement u/s. 132(4) of the Act that the assessee Trust is involved in providing accommodation entry and no actual activities are carried out by it. Therefore the entire receipts made in the bank accounts of Rs. 47,79,55,611/- being treated as undisclosed receipts and added to the total income of the assessee. I.T.(SS)A No. 28/Ahd/2024 A.Y. 2021-22 Page No ACIT Vs. All India Social Education Charitable Trust 3 3.2. Further during the course of search, unexplained money of Rs.94,32,409/- was found in the bank accounts and the same was seized. The assessee explained this money is payable to Shri Tribhavan Ojha and does not belong to the assessee party. Hence the Assessing Officer made a protective addition in the hands of the assessee of Rs.94,32,409/- u/s. 69A r.w.s. 115BBE of the Act. 4. Aggrieved against the additions, assessee filed an appeal before Ld. CIT(A) who has confirmed the additions of Rs. 47,79,55,611/- as the assessee is not eligible for exemption and all the receipts deposited in bank accounts are taxable in its entirety. As far as the protective addition of Rs. 94,32,409/-, the Ld. CIT(A) held that this amount is part of the total deposit in the Cosmos Co.op. Bank account which has already been brought to tax in the hands of the assessee. Therefore without prejudice to the addition made in the hand of Shri Tribhavan Ojha of this amount, addition again in the hands of the assessee Trust is not justifiable, as it amounts to double taxation of the same receipt and therefore directed to delete the addition. Thus Ld. CIT(A) partly allowed the assessee appeal. 5. Aggrieved against the appellate order, the Revenue is in appeal before us raising the solitary ground: 1. Whether in the facts and on the circumstances of the case and in law, the Ld. CIT(A) is correct in deleting the addition made of Rs. 94,32,409/- on account of unexplained money u/s. 69A r.w.s. 115BBE on Protective basis, without considering the facts that, the substantive addition was not accepted by Shri Tribhavan Ojha? I.T.(SS)A No. 28/Ahd/2024 A.Y. 2021-22 Page No ACIT Vs. All India Social Education Charitable Trust 4 6. The solitary ground taken by the Revenue is the deletion of addition of Rs. 94,32,409/- made on protective basis. Ld. Sr. D.R. submitted that Shri Tribhavan Ojha has not accepted the substantive addition made in his hands, therefore Ld. CIT(A) is not correct in deleting the above protective addition in the hands of the assessee. 7. None appeared on behalf of the assessee but a written submission was filed. We have gone through the submissions of both parties and considered the order passed by Ld. CIT(A). The findings of Ld. CIT(A) are as follows: “9. I find that in the AY 2021-22, the AO has made an addition-of Rs. 94>32,409/- on protective basis in the hands of the appellant as unexplained cash credit u/s 69A r/w 115BBE. Corresponding substantive addition was made in the hands of Shri Tribhawan Ojha. This corresponds to the amount found deposited in the Cosmos Cooperative Bank A/c no. 560501029023 held in the name of the appellant in Maninagar Branch, Bharavnath Rd. Pushpkunj. Maninagar, Ahmedabad on 24/03/2023 and seized. The AO noted that the appellant has submitted that this amount is to be remitted to Shri Tribhawan Ojha and does not Belong to the appellant This explanation was rejected by the AO as if the said amount belonged to Shri Tribhawan Ojha, he ought to have declared it in his return of income filed for AY 2021-22. But this was not done. However, I find that this amount is part of the total deposit in the Cosmos Cooperative Bank which has already been brought to tax in the hands of the: appellant u/s. 68 r.w.s. 115BBE of the Act. Sr/ No FY/AY Amount received in the bank accounts as donations (in Rs.) Total of the year (in Rs.) BOB A/c No. 16550200000432 Bandhan Bank A/c No. 50150084555137 Cosmos Bank A/c No. 0560501029023 1. 2016-17 0 10,56,34,370 0 10,56,34.370 2. 2017-18 0 17,52,14,802 0 17,52,14,802 3. 2018-19 0 49,33,96,099 2,54,47,359 51,88,43,458 4. 2019-20 41,55,32,170 1954,97,483 42,17,31,791 103,27,61,444 5. 2020-21 17,69:97,207 5,01,85,190 76,31,15,632 99,02,98.029 I.T.(SS)A No. 28/Ahd/2024 A.Y. 2021-22 Page No ACIT Vs. All India Social Education Charitable Trust 5 6. 2021-22 71,25,050 2,02,54,442 45,05,76,119 47,79,55,611 7. Total 59,96,54,427 1,04,01,82,386 166,08,70,901 3,30,07,07.714 9.2. Without prejudice to the addition made in the hands of Shri Tribhawan Ojha of this amount, addition of this amount again in the hands of AISECT is not justifiable as it is double taxation of same receipt. Hence addition of Rs.94,32,409/- is directed to be deleted. The part of the ground has already been discussed in ground of appeal 2 and not acceptable. Ground of appeal 4 is partly allowed.” 8. The Ld. CIT(A) deleted the above addition since the above amount of Rs. 94,32,409/- is part of the total deposit in the Cosmos Co-operative Bank account which has already brought to tax in the hands of the assessee. Further this amount is being substantially added in the hands of Shri Tribhavan Ojha and therefore addition of this amount again in the hands of the assessee will amount to double taxation, therefore directed the Ld. A.O. to delete the above addition. We do not find any infirmity in the direction given by Ld. CIT(A). Thus Ld. CIT(A) has rightly held that there was double addition of the amount of Rs. 94,32,409/-. The Revenue was unable to contravent this findings of Ld. CIT(A). Therefore we do not find any merit in the ground raised by the Revenue. Therefore the findings arrived by ld. CIT(A) does not require any interference. 9. In the result, the appeal filed by the Revenue is deserves to be dismissed. Order pronounced in the open court on 25-02-2025 Sd/- Sd/- (MAKARAND VASANT MAHADEOKAR) (T.R. SENTHIL KUMAR) ACCOUNTANT MEMBER JUDICIAL MEMBER Ahmedabad : Dated 25/02/2025 I.T.(SS)A No. 28/Ahd/2024 A.Y. 2021-22 Page No ACIT Vs. All India Social Education Charitable Trust 6 आदेश कȧ ĤǓतͧलͪप अĒेͪषत / Copy of Order Forwarded to:- 1. Assessee 2. Revenue 3. Concerned CIT 4. CIT (A) 5. DR, ITAT, Ahmedabad 6. Guard file. By order/आदेश से, उप/सहायक पंजीकार आयकर अपीलȣय अͬधकरण, अहमदाबाद "