DHARAM FOUNDATION EDUCATIONAL TRUST,FATEHGARH SAHIB V. .INCOME TAX OFFICER, SIRHIND

ITA 566/CHANDI/2024

AI Insights

The case involves the Dharam Foundation Educational Trust, which appealed against the order of the Ld. CIT(A) pertaining to the Assessment Year 2017-18. The primary issue was the assessment order under section 147 r.w.s 144B of the Income Tax Act, which treated a substantial amount of cash deposits (Rs. 4,37,14,809) as unexplained cash credit under section 68 r.w.s 115BBE of the Act. The trust, which operates several educational institutions, failed to provide sufficient documentation to substantiate the source of these deposits during the assessment proceedings. The Ld. CIT(A) upheld the assessment order due to non-compliance by the trust in the appellate proceedings. The Income Tax Appellate Tribunal (ITAT) decided to set aside the matter back to the CIT(A) for a fresh decision, providing the trust another opportunity to substantiate its claims.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 107624 (ITAT-CHANDIGARH)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-12-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2017-2018
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ROHIT SHARMA
• Keywords: Set aside; Unexplained cash credit
• Section: 147; 68

Judgement Text

"आयकर अपीलीय अिधकरण,चǷीगढ़ Ɋायपीठ “ए” , चǷीगढ़ IN THE INCOME TAX APPELLATE TRIBUNAL, CHANDIGARH BENCH “A”, CHANDIGARH HEARING THROUGH: HYBRID MODE ŵी िवŢम िसंह यादव, लेखा सद˟ एवं ŵी परेश म. जोशी, Ɋाियक सद˟ BEFORE: SHRI. VIKRAM SINGH YADAV, AM &SHRI. PARESH M. JOSHI, JM आयकर अपील सं./ ITA NO. 566/Chd/2024 िनधाŊरण वषŊ Assessment Year : 2017-18 Dharam Foundation Educational Trust Sirhind, Sirhind S.O. Shirhind(R),Fatehgarh Sahib- Punjab – 140406 बनाम The ITO Ward, Sirhind ˕ायी लेखा सं./PAN NO: AAATD5373M अपीलाथŎ/Appellant ŮȑथŎ/Respondent िनधाŊįरती की ओर से /Assessee by : None राजˢ की ओर से / Revenue by : Shri Rohit Sharma, CIT DR सुनवाई की तारीख /Date of Hearing : 09/12/2024 सुनवाई की तारीख /Date of Pronouncement : 17/12/2024 आदेश/Order PER VIKRAM SINGH YADAV, A.M. : This is an appeal filed by the Assessee against the order of the Ld. CIT(A) / NFAC dt. 12/03/2024 pertaining to Assessment Year 2017-18. 2. Briefly the facts of the case are that the assessment in this case was completed under section 147 r.w.s 144B of the Act vide order dt. 28/03/2022. As per AO, the assessee trust is formed for providing education to the general public and is created for imparting quality education to the common man. Under the ambit of the trust, three institutes are run from the same premises at Sirhind District Fategarh Sahib Punjab namely Lincoln College of Law, Lincoln College of Education, Greenfield Public School. 3. The AO further noted that in response to the various notices and the show cause notice issued to the assessee to explain the source of cash deposits during the year amounting to Rs. 4,37,14,809/-, the assessee has simply 2 submitted bank statements and three years comparative chart regarding deposit of cash in bank account and stated that source of cash deposit is fees/other charges, however, the same is not sufficient to explain the source of cash deposit during the year. The assessee has neither provided any details nor any proof to substantiate its claim of such cash deposit. No relevant cash book or other documents are submitted and therefore in absence of supporting documents explaining the source of cash deposits, the amount of Rs. 4,37,14,809/- was brought to tax as unexplained cash credit under section 68 r.w.s 115BBE of the Act. 4. Being aggrieved, the assessee carried the matter in appeal before the Ld. CIT(A). During the appellate proceedings, various notices were issued on the registered email id of the assessee however there was no compliance on the part of the assessee and thereafter, the Ld.CIT(A) passed the impugned order confirming the findings of the AO stating that the assessee has not filed any proof/ evidence in support of grounds of appeal inspite of various notices being issued to the assessee on the email id available in the ITBA Portal of the Income Tax Department and it was presumed that the assessee is no longer interested in pursuing the appeal and the order of the AO was confirmed holding that the AO has passed a reasoned and speaking order considering all the facts and circumstances of the case. 5. Against the said order, the assessee is in appeal before us. However none has appeared on behalf of the assessee nor any adjournment application was filed. 6. Given that an ex-parte order has been passed by the Ld. CIT(A), it was decided that no useful purpose would be served in adjourning the matter any further and after hearing the Ld. CIT/DR who has not raised any specific objection where the matter is set aside to the file of the Ld. CIT(A) and keeping in view the principle of substantial justice, we believe that the assessee deserve 3 one more opportunity to come forward and furnish necessary explanation and supporting documentation in support of cash so found in its bank account and the matter is hereby set-aside to the file of the ld CIT(A) to decide the same afresh on merits as per law after providing reasonable opportunity to the assessee. 7. Needless to say, the assessee is hereby directed to attend to the appellate proceedings and shall file requisite information/documentation as so directed and/or as advised, and in an event, where the conduct of the assessee remain non-cooperative/non-compliant, the appellate authority is at liberty to decide the matter as per law. 8. In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced in the open Court on 17/12/2024. Sd/- Sd/- परेश म. जोशी िवŢम िसंह यादव (PARESH M. JOSHI) ( VIKRAM SINGH YADAV) Ɋाियक सद˟ / JUDICIAL MEMBER लेखासद˟/ ACCOUNTANT MEMBER AG आदेश की Ůितिलिप अŤेिषत / Copy of the order forwarded to : 1. अपीलाथŎ/ The Appellant 2. ŮȑथŎ/ The Respondent 3. आयकरआयुƅ/ CIT 4. िवभागीय Ůितिनिध, आयकरअपीलीयआिधकरण, चǷीगढ़/ DR, ITAT, CHANDIGARH 5. गाडŊफाईल/ Guard File आदेशानुसार/ By order, सहायक पंजीकार/ Assistant Registrar "