Maa Vaishno Educational Society, Yamunanagar V. CIT(E), Chandigarh

ITA 1086/CHANDI/2018

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 6523 (ITAT-CHANDIGARH)
• Duration Of Justice: 11 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 01-08-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 30-07-2019
• Assessment Year: misc
• Appeal Filed On: 23-08-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: DR G S PHANI KISHORE CIT DR
• Keywords: Charitable institution; Opportunity of being heard; TDS; Set aside
• Section: 12A; 12AA; 12; 10; 2

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL, CHANDIGARH BEN CH B, CHANDIGARH .., ! '# #$ %, & '( BEFORE: SHRI. N.K.SAINI, VP & SHRI , SANJAY GARG, JM ITA NO. 1086/CHD/2018 ASSESSMENT YEAR: UNDER SECTION 12AA MAA VAISHNO EDUCATIONAL SOCIETY C/O SH. TEJMOHAN SINGH, ADVOCATE # 527, SECTOR-10D, CHANDIGARH CIT(E) EXEMPTIONS CHANDIGARH PAN NO: AADAM0304K APPELLANT RESPONDENT !' ASSESSEE BY : SHRI TEJ MOHAN SINGH, ADVOCATE #!' REVENUE BY : DR. G.S. PHANI KISHORE, CIT DR $ %! & DATE OF HEARING : 30/07/2019 '()*! & DATE OF PRONOUNCEMENT : 01/08/2019 ')/ ORDER PER N.K. SAINI, VICE PRESIDENT THIS IS AN APPEAL BY THE ASSESSEE AGAINST THE ORDER DT. 30/06/2018 OF THE LD. CIT(E), CHANDIGARH. 2. FOLLOWING GROUNDS HAVE BEEN RAISED IN THIS APPEA L: 1. THAT THE LD. COMMISSIONER OF INCOME TAX HAS ERRED I N LAW AS WELL AS ON FACTS IN REJECTING REGISTRATION UNDER SECTION 12AA OF THE AC T WHICH IS ARBITRARY & UNJUSTIFIED. 2. THAT THE REGISTRATION HAS BEEN REFUSED ONLY ON THE BASIS OF SUSPICION, CONJECTURES AND SURMISES AS IS EVIDENT FROM THE VAR IOUS UNFOUNDED FINDINGS AS ENUMERATED IN THE BODY OF THE ORDER WHICH IS NOT PE RMITTED UNDER THE LAW AND AS SUCH THE ORDER REFUSING REGISTRATION IS ILLEGAL, ARBITRARY AND UNJUSTIFIED. 3. THAT THE LD COMMISSIONER OF INCOME TAX HAS FURTHER ERRED IN PASSING THE ORDER REFUSING REGISTRATION WITHOUT CONSIDERING THE REPLI ES FILED BY THE ASSESSEE IN THE CORRECT PERSPECTIVE 4. THAT THE ORDER OF THE LD. COMMISSIONER OF INCOME TA X IS ERRONEOUS, ARBITRARY, OPPOSED TO LAW AND FACTS OF THE CASE AND IS, THUS, UNTENABLE. FROM THE AFORESAID GROUNDS, IT IS GATHERED THAT THE ONLY GRIEVANCE OF THE ASSESSEE RELATES TO THE REJECTION OF APPLICATION MO VED BY THE ASSESSEE FOR REGISTRATION UNDER SECTION 12AA OF THE INCOME TAX A CT, 1961 (HEREINAFTER REFERRED TO AS ACT). 3. FACTS OF THE CASE IN BRIEF ARE THAT THE ASSESSEE MOVED AN APPLICATION IN FORM NO. 10A BEFORE THE LD. CIT(E),CHANDIGARH FOR S EEKING REGISTRATION UNDER 2 SECTION 12AA OF THE ACT. THE LD. CIT(E) VIDE LETTER DT. 25/04/2018 ASKED THE ASSESSEE TO FURNISH THE FOLLOWING DETAILS: (I) A CERTIFIED LEGIBLE COPY OF BYE-LAWS/ MEMORAND UM OF ASSOCIATION OF SOCIETY/TRUST ALONGWITH SUPPLEMENTARY/ AMENDED DEED IN ENGLISH MAY BE FURNISHED. (II) DETAILS OF NAMES AND ADDRESS OF SETTLER, TRUS TEES AND MEMBERS OF THE SOCIETY/TRUST ALONG WITH THE PANS & EMAIL ADDRESS, RELATIONSHIP AMONGST THEM AND THEIR PROFESSION, BE FURNISHED. (III) PLEASE FURNISH THE COPIES OF THE AUDITED B ALANCE SHEETS, INCOME & EXPENDITURE ACCOUNT ALONG WITH COMPLETE ANNEXURE FO R THE LAST 03 YEARS OR SINCE THE BEGINNING OF THE TRUST. RECEIPTS AND PAYMENT AC COUNTS FOR THE RELEVANT YEARS MAY ALSO BE FURNISHED. PLEASE NOTE THAT THE FINANCI AL STATEMENTS RELATED TO INDIVIDUAL INSTITUTE AND ALSO THE CONSOLIDATED IN R ESPECT OF SOCIETY/TRUST MAY BE SUBMITTED. (IV) A COMPREHENSIVE NOTES ON ACTIVITIES SPECIFYIN G THE SECTION 2(15) OF I.T ACT UNDER WHICH THE OBJECTS OF THE TRUST GET COVERED AN D QUALIFY FOR BEING CONSIDERED CHARITABLE MAY BE FURNISHED. YOU ARE ALS O REQUESTED TO FURNISH THE DETAILS HOW THE ACTIVITIES PROJECTED BY YOU ARE CHARITABLE IN NATURE. THE SPECIFIC LIMB PURSUED U/S 2(15) MAY BE BROUGHT ON RECORD CLE ARLY PARTICULARLY AFTER THE GRANT OF12AA REGISTRATION. (V) DETAILS OF VOLUNTARY CONTRIBUTIONS RECEIVED BY THE TRUST/SOCIETY AS ENVISAGED U / S 12 OF I.T. ACT AND WHETHER ANY SPECIFIC DIRECTION HAD BEEN RECEIVED BY THE PERSONS MAKING VOLUNTARY CONTRIBUTI ONS. (VI) PROVIDE THE DETAILS OF LAND & BUILDING PURCHA SED DURING LAST THREE YEARS ALONGWITH THE COPIES OF REGISTRATION OF THE SAME IN THE NAME OF SOCIETY/TRUST. (VII) PROOF OF THE OWNERSHIP OF LAND/BUILDING/FIXE D ASSETS IN CASE THE SAME WAS OWNED BY THE SOCIETY/TRUST. (VIII) DETAILS OF DONATIONS RECEIVED ALONGWITH DOC UMENTARY EVIDENCE DURING THE LAST THREE YEARS IF APPLICABLE. HOW MUCH OF THE DONATIONS HAVE BEEN ROUTED THROUGH THE BANKING CHANNELS. (IX) COPIES OF I.T. RETURNS ALONGWITH COMPUTATION OF INCOME (IF ANY), MAY BE FILED FOR THE LAST 03 YEARS. (X) PROVIDE THE COPY OF RECEIPTS AND PAYMENT ACCOUN TS OF THE ENTITY FOR THE LAST THREE YEARS IN CASE CLAIMS IN THE PAST HAVE BE EN MADE U/S 10(23C)(IIIAD). THE SAME MUST BE CORROBORATED THROUGH BANK ENTRIES. (XI) COPY OF AFFILIATION LETTER DULY CERTIFIED BY T HE MEMBER/TRUSTEE OF THE SOCIETY/TRUST IN CASE OF RUNNING OF EDUCATIONAL INS TITUTE ALONG WITH THE NAME AND ADDRESS OF THE INSTITUTES. (XII) COPIES OF THE STATEMENTS OF ALL BANK ACCOUNTS MAINTAINED BY THE TRUST OR BY TRUSTEE/MEMBERS FOR THE LAST 03 YEARS OR SINCE T HE INCEPTION OF THE SOCIETY/TRUST. (XIII) COPIES OF ALL THE BANK STATEMENT FROM 08.11. 2016 TO 31.12.2016 HIGHLIGHTING THE CASH DEPOSITS ALONGWITH THE SOURCE AND DOCUMENT ARY EVIDENCE. (XIV) AFFIDAVIT GIVING THE DETAILS OF ALL THE BANK ACCOUNTS MAINTAINED BY THE SOCIETY BE FURNISHED AND NO SOCIETY IS NOT MAINTAINING ANY OTHER BANK ACCOUNT EXCEPT THOSE DISCLOSED BEFORE DEPARTMENT. XV) WHETHER ANY REGISTRATION UNDER FCRA HAD BEEN GRANTED TO TRUST. (XVI) WHETHER THE APPLICATIONS FOR REGISTRATION HAS BEEN FILED FOR THE FIRST TIME. THE FATE OF THE EARLIER APPLICATION IF ANY ALONG WI TH COPY OF THE ORDER. 3 (XVII) DETAILS WHETHER ANY SEARCH OR SEIZURE OR SU RVEY U/S 133-A HAD BEEN CARRIED OUT IN YOUR CASE. (XVIII) PROVIDE DOCUMENTARY EVIDENCE AS REGARDS DO NATIONS RECEIVED ALONGWITH CORROBORATION OF THE SAME WITH THE BANK ACCOUNT, (XIX) PROVIDE THE TOTAL OF CREDITS OF THE SOCIETY/ TRUST IN DIFFERENT BANKS. (XX) DETAILS OF NUMBER OF INSTITUTES WITH COMPLETE ADDRESS, INSTITUTE-WISE NUMBER OF STUDENTS AND CLASS-WISE/COURSE-WISE FEE S TRUCTURE, COURSE OFFERED ALONGWITH THE COMPLETE DETAILS OF THE STAFF EMPLOYE D TO WHOM SALARY IS BEING PAID, BE PROVIDED. THE DETAILS OF FEE SHOULD BE PRO VIDED MONTH-WISE. (XXI) PLEASE FURNISH THE DETAILS OF TAX DEDUCTED A T SOURCE AND COPY OF TDS RETURN FOR THE LAST TWO YEARS. (XXII) PLEASE PROVIDE STATUS OF EXEMPTION CLAIMED W HILE FILING INCOME TAX RETURNS IN THE PREVIOUS YEARS ALONGWITH THE DOCUMEN TARY EVIDENCE. (XXIII) PLEASE EXPLAIN THE STATUS OF EXEMPTION CLAI MED WHILE FILING THE ITRS IN THE PREVIOUS YEAR. DOCUMENTARY EVIDENCE IN THIS RESPECT MAY BE FURNISHED. (XXIV) THE DOCUMENTARY EVIDENCE WITH REGARD TO THE CHARITABLE ACTIVITIES CLAIMED TO HAVE BEEN CARRIED OUT, MAY BE FURNISHED. 4. THE AFORESAID LETTER WAS RECEIVED UNDELIVERED IN THE OFFICE OF THE LD. CIT(E). HE AGAIN ASKED THE ASSESSEE ON 22/06/2018 T O FURNISH THE FOLLOWING: (I) PROVIDE EVIDENCE OF RUNNING THE SCHOOL AND REC EIPTS EMANATING FROM THE SCHOOL. (II) IN THE ABSENCE OF ANY LAND/BUILDING WHAT IS TH E ACCRETION IN FIXED ASSETS ALL ABOUT? HOW IS THE SAME ACCOUNTED FOR? (III) PROVIDE EVIDENCE OF UNSECURED LOAN, THEIR SO URCE, THE CORRESPONDING BANK ENTRIES, CREDIT WORTHINESS & IT DETAILS OF THE LOAN GIVER. (IV) SINCE CLAIMS PREVIOUSLY HAVE BEEN MADE U/S 10 (23C)(IIIAD) HOW AND IN WHICH YEAR HAVE THE UNSECURED LOANS BEEN TAKEN AS A PART OF' AGGREGATE RECEIPTS' (V) THE CLOSING BALANCE OF CASH/BANK IN F.Y. 2015- 16 IS 7.96 LAKHS AND F.Y 2016-17 IS 78.89 LAKHS. GIVEN THAT SURPLUS DURING F .Y. 2016-17 IS ONLY 4.28 LAKHS HOW IS THE ACCRETION OF NEARLY 62 LAKHS IN BANKS EXPLAI NED. (VI) WHAT IS THE FEE STRUCTURE OF THE SCHOOL? IS T HE FEE STRUCTURE APPROVED BY ANY REGULATING AGENCY? IF YES, NECESSARY EVIDENCE I N RESPECT OF SCHOOL MAY BE FURNISHED. (VII) PROVIDE DETAILS OF 'BUILDING' AND 'BUILDING UNDER CONSTRUCTION' FOR THE LAST 03 YEARS INCLUDING 'ADDITIONS' AND 'DEDUCTIONS'. WH AT IS THE 'DEDUCTION' UNDER THE HEAD' BUILDING UNDER CONSTRUCTION'. (VIII) RECEIPTS FROM INDIVIDUALS HAVE BEEN USED IN TERCHANGEABLY SOMETIMES AS DONATIONS AND SOMETIMES AS UNSECURED LOANS. WHY? PROVIDE EXPLANATION TO THIS ALONGWITH EVIDENCE AS TO HOW IS IT BEING TREAT ED AND WHY IT SHOULD BE ACCEPTED AS SUCH. (IX) WHAT IS THE PROPERTY THAT VESTS IN THE TRUST AND IS DIVISIBLE IN THE EVENT OF DISSOLUTION ? 4.1. IN RESPONSE, THE ASSESSEE FURNISHED THE REPLY ON 28/06/2018. THE LD. CIT(E) HOWEVER REJECTED THE APPLICATION BY OBSERVING IN PA RA 7 & 8 OF THE IMPUGNED ORDER AS UNDER: 4 (I) AS REGARD TO HOW AND IN WHICH YEAR UNSECURE D LOANS HAVE BEEN TAKEN AS PART OF 'AGGREGATE RECEIPTS' THE APPLICANT PROVID ED THE RECEIPT AND PAYMENT ACCOUNT FOR THE LAST THREE YEARS. PERUSAL OF THE SA ME REVEALS THAT APPLICANT HAS NOT INCLUDED THE RECEIPTS ON ACCOUNT OF UNSECURED L OAN IN THE F.Y. 2015-16 . VIS-A- VIS THE NON INCLUSION OF UNSECURED LOANS THE APPLIC ANT CONTENDED THAT RECEIPTS ON ACCOUNT OF UNSECURED LOANS CANNOT BE TAKEN FOR T HE PURPOSE OF CLAIMING EXEMPTION U/S 10(23C)(IIIAD). THIS CONTENTION OF TH E APPLICANT IS CERTAINLY NOT ACCEPTABLE IN CASE OF THE ENTITIES THAT CLAIM THEMS ELVES TO BE COVERED AND CLAIM EXEMPTION U/S 10(23C) AS THE RELEVANT CONSIDE RATION IS 'AGGREGATE RECEIPTS' WHICH INVARIABLY INCLUDE ALL RECEIPTS. IN CASE OF E NTITIES CLAIMING TO BE CHARITABLE ALL RECEIPTS AND THE UTILIZATION THEREOF NEEDS TO B E EXAMINED. IT CANNOT BE THE CASE THAT RECEIPTS IN THE SHAPE OF UNSECURED LOANS CAN BE UTILIZED FOR NON- CHARITABLE PURPOSES. IT ALSO ASSUMES RELEVANCE WHEN IT IS SEEN (AS DETAILED BELOW) THAT THE APPLICANT HAS INTERCHANGEABLY USED THE REC EIPTS SOMETIMES AS DONATION AND SOMETIMES AS UNSECURED LOAN. (II) FURTHER IN RESPONSE TO THE QUERY WHY RECEIPTS FROM INDIVIDUAL HAVE BEEN SHOWN INTERCHANGEABLY SOMETIMES AS DONATIONS AND SO METIMES AS UNSECURED LOAN, THE APPLICANT FAILED TO PROVIDE ANY COGENT REPLY IN THIS REGARD. IT MERELY STATED THAT DONORS ARE ALL THE ME MBERS OF THE SOCIETY AND WHATEVER DONATION WAS RECEIVED IT WAS WITH CLEAR IN TENTION THAT DONATION WAS USED AS CORPUS OF THE SOCIETY. THIS CONTENTION IS CERTAINLY NOT ACCEPTABLE AS IT IS VERY MUCH CLEAR THAT FOR CLAIMI NG ANY DONATIONS AS CORPUS IT MUST BE ACCOMPANIED BY SPECIFIC INSTRUCTI ONS TO THAT EFFECT. CORPUS DONATIONS CAN NEVER BE USED OR DIMINISH. WHE REAS THERE IS NO SUCH RESTRICTION ON MEMBERS FUND. BOTH UNSECURED LOAN AN D CORPUS DONATIONS ARE ENTIRELY DIFFERENT THINGS AND IN ANY CASE CAN'T BE KEPT AND TREATED IN THE SAME BRACKET. (III) FURTHER AS REGARD THE EVIDENCE OF UNSECURED L OANS, THEIR SOURCES AND CORRESPONDING BANK ENTRIES THE APPLICANT PROVIDED D ETAILS. PERUSAL OF THE SAME REVEALS THAT AS PER THE BALANCE SHEET HAS SHOW N UNSECURED LOANS OF RS. 1,49,03,000/- AS ON 31.03.2017 WHICH HAS BEEN R ECEIVED FROM THE FOLLOWING PERSONS:- (I) BELA VINAYAK AS PER BALANCE SHEET 12,93,000/ (II) CHIRAG VINAYAK AS PER BALANCE SHEET 18,25,000/ - (III) K.R. RAGVAN AS PER BALANCE SHEET RS. 25,00,00 0/- (IV) TCV ENTERPRISES AS PER BALANCE SHEET RS. 80,00 ,000/- (V) TILAK RAJ VINAYAK AS PER BALANCE SHEET RS. 12,8 5,000/- HOWEVER THE DETAILS WHICH HAVE BEEN PROVIDED BY THE APPLICANT IN SHAPE OF EVIDENCE REVEALS THAT ONLY THE FOLLOWING AMOUNT HAS BEEN RECEIVED AS UNSECURED LOAN:- (I) BELA VINAYAK AS PER REPLY RS. 4,25,000/- (II) CHIRAG VINAYAK AS PER REPLY RS. 5,35,000/- (III) K.R. RAGVAN AS PER REPLY - (IV) TCV ENTERPRISES AS PER REPLY RS. 80,00,000/- (V) TILAK RAJ VINAYAK AS PER REPLY RS. 2,85,000/- IT IS FURTHER PERTINENT TO MENTION THAT THE AMOUNT THAT HAS BEEN GIVEN BY THE TCV ENTERPRISES HAS NOT BEEN DIRECTLY DEPOSITED TO APPLICANT ACCOUNT. THE SAME IS FIRSTLY TRANSFERRED TO THE ACCOUNTS OF THE ABOVE NOTED PERSONS AND THEREAFTER THE SAME HAVE BEEN AGAIN TRANSFERRED BY THEM TO THE 5 ACCOUNT OF THE APPLICANT. THIS ARRANGEMENT CLEARLY LEADS TO THE CONCLUSION THAT AMOUNT SHOWN AS UNSECURED LOAN FROM TCV ENTERP RISES IS WRONG. THE ISSUE IS FURTHER EXACERBATED BY THE FACT THAT A PPLICANT FAILED TO CORROBORATE THE AMOUNT SHOWN AS UNSECURED LOANS WIT H THE EVIDENCES THAT HAVE BEEN PROVIDED. EVEN OUT OF THE ABOVE NOTE PERS ON THREE ARE THE MANAGING TRUSTEES AND TAKING OF ANY AMOUNT FIRSTLY IN THEIR PERSONAL ACCOUNT AND THEN TRANSFERRING TO THE SOCIETY ACCOUN T AND CLAIMING AS LIABILITY IS CERTAINLY NOT ACCEPTABLE. (IV) MOREOVER, THE SCHOOL IS BEING RUN ON COMMERCIA L PRINCIPALS AS IT IS EVIDENCED CHARGING A LARGE FEE AMOUNTING TO RS. 170 0 FROM THE STUDENTS UPTO PRIMARY STANDARD. AS REGARDS THE QUERY ABOUT T HE REGULATING AUTHORITY THE APPLICANT ITSELF CONFESSED THAT THERE IS NO REGULATING AUTHORITY. THIS REPLY CLEARLY LEADS TO THE CONCLUSI ON THAT BOTH THE SCHOOL'S OPERATIONS AND THE FEE STRUCTURES ARE BEYOND ANY RE GULATION AND APPLICANT IS FREE TO CHARGE ANY FEE FROM THE STUDENTS. SUCH F REEDOM CLEARLY BRINGS THE APPLICANT INTO THE REALM OF COMMERCE AND NOT AL TRUISM IN ANY SENSE (V) FURTHER IN RESPONSE TO THE QUERY AS TO WHAT PRO PERTY VESTS IN THE SOCIETJ AND WAS DIVISIBLE IN THE EVENT OF DISSOLUTION THE A PPLICANT JUST REITERATED THE DISSOLUTION CLAUSE ACCORDING TO WHICH 'IN EVENT OF DISSOLUTION OF SOCIETY WHATSOEVER SHALL REMAIN AFTER SATISFACTION OF ALL I TS DEBTS AND LIABILITIES AND PROPERTIES THE SAME SHALL NOT BE DISTRIBUTED AMONG THE MEMBER OF THE SOCIETY BUT SHALL BE GIVEN TO SOME OTHER SOCIETY WITH SIMIL AR AIMS' THIS REITERATION OF DISSOLUTION CLAUSE IN NO SENSE CLARIFIES ABOUT THE PROPERTY THAT VESTS WITH THE SOCIETY. NO DETAILS OF PROPERTY VESTING IN THE SOCI ETY HAS BEEN FURNISHED. IT IS UNCLEAR WHAT PROPERTY THE SOCIETY IS ADMINISTERING AND MANAGING. THIS ASSUMES SIGNIFICANCE IN LIGHT OF SUBSTANTIAL ACCRETIONS BEI NG MADE ON LAND TAKEN ON LEASE FROM A CONNECTED ENTITY. SUCH UNREGULATED ENTERPRIS ES CHARGING HEFTY FEES FROM STUDENTS ARE PURELY COMMERCIAL VENTURES NOT QUALIFY ING FOR THE CHARITABLE TAG. TO THAT EXTENT IT IS SAFE TO CONCLUDE THAT APPLICANT F AILED TO CLARIFY THE PROPERTY INCOME FROM WHICH IS SOUGHT TO BE EXEMPTED. (VI) AS REGARD TO THE EVIDENCE OF UNSECURED LOAN, T HEIR SOURCE AND CORRESPONDING BANK ENTRIES APPLICANT FAILED TO PROV IDE THE COMPLETE DETAILS. TO THAT EXTENT THE DETAILS FILED ARE NOT A MENABLE TO ANY EXAMINATION AND HENCE NOT ACCEPTABLE. 8. IN THE INSTANT CASE, GIVEN ALL OF THE ABOVE SAT ISFACTION ABOUT GENUINENESS OF ACTIVITIES CANNOT BE RECORDED AND THE APPLICATIO N UNDER SECTION 12A FOR GRANT OF REGISTRATION IS REJECTED. 5. NOW THE ASSESSEE IS IN APPEAL. 6. THE LD. COUNSEL FOR THE ASSESSEE SUBMITTED THAT REPLY TO THE QUERIES RAISED BY THE LD. CIT(E) WAS GIVEN ON 28/06/2018, HOWEVER THE LD. CIT(E) WITHOUT APPRECIATING THE SAME IN RIGHT PERSPECTIVE, WRONGLY CONCLUDED THAT SATISFACTION ABOUT GENUINENESS OF THE ACTIVITY COULD NOT BE RECO RDED. 7. IN HIS RIVAL SUBMISSION THE LD. CIT DR SUPPORTED THE IMPUGNED ORDER PASSED BY THE LD. CIT(E). 8. WE HAVE CONSIDERED THE SUBMISSIONS OF BOTH THE P ARTIES AND PERUSED THE MATERIAL AVAILABLE ON THE RECORD. IN THE PRESENT CA SE IT IS NOTICED THAT THE LD. CIT(E) ALTHOUGH MENTIONED IN PARA 7 OF THE IMPUGNED ORDER THAT THE REPLY TO THE QUERIES RAISED BY HIM WAS RECEIVED ON 28/06/2018, H OWEVER, THE CONTENTS OF THE 6 SAID REPLY ARE NOT INCORPORATED IN THE IMPUGNED ORD ER, SO IT IS NOT POSSIBLE TO DETERMINE AS TO WHETHER THE LD. CIT(E) CAME TO RIGH T CONCLUSION. IT IS ALSO NOT CLEAR AS TO WHETHER THE LD. CIT(E) ASKED THE ASSESS EE TO FURNISH EVIDENCE OF UNSECURED LOANS OR SOURCES ETC AS MENTIONED IN PARA 7(VI) OF THE IMPUGNED ORDER. SO IN THE ABSENCE OF CLEAR FACTS ON RECORD W E DEEM IT APPROPRIATE TO SET ASIDE THIS CASE BACK TO THE FILE OF LD. CIT(E) TO B E ADJUDICATED AFRESH IN ACCORDANCE WITH LAW AFTER PROVIDING DUE AND REASONA BLE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. 9. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. (ORDER PRONOUNCED IN THE OPEN COURT ON 01/08/2019 ) SD/- SD/- #$ % .., (SANJAY GARG ) ( N.K. SAI NI) & '(/ JUDICIAL MEMBER ! / VICE PRESIDENT AG DATE: 01/08/2019 (+! ,-.- COPY OF THE ORDER FORWARDED TO : 1. THE APPELLANT 2. THE RESPONDENT 3. $ / CIT 4. $ / 01 THE CIT(A) 5. -2 45&456789 DR, ITAT, CHANDIGARH 6. 8:% GUARD FILE (+ $ BY ORDER, ; # ASSISTANT REGISTRAR