Shree Sanskardham Eduction Trust, Baroda V. The Income tax Officer,Ward-2(2), Baroda

ITA 1205/AHD/2008

• Counselvise Citation: [2010] 136 COUNSELVISE.COM (IT) 6647 (ITAT-AHMEDABAD)
• Duration Of Justice: 1 year(s) 11 month(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-04-2010
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: D
• Next Hearing Date: 05-04-2010
• Assessment Year: 2004-2005
• Appeal Filed On: 07-04-2008
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: C K MISHRA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL D BENCH AHMEDABAD (BEFORE S/SHRI G. D. AGARWAL, VP AND BHAVNESH SAINI , JM) ITA NO.1204 AND 1205/AHD/2008 A. Y.: 2003-04 AND 2004-05 B. SHREE SANSKARDHAN EDUCATION TRUST, 30, GAUATRI NAGAR, OPPOSITE GEB SERVICE STATION, TARSALI, BARODA PA NO. AADTS 1187M VS THE INCOME TAX OFFICER, WARD 2(2), BARODA (APPELLANT) (RESPONDENT) APPELLANT BY NONE RESPONDENT BY SHRI C. K. MISHRA, DR O R D E R PER BHAVNESH SAINI: BOTH THE APPEALS BY THE ASSESSEE ARE DIRECTED AGAINST DIFFERENT ORDERS OF THE CIT(A)-II, BARODA DATED 5 TH FEBRUARY, 2008 FOR ASSESSMENT YEARS 2003-04 AND 20 04-05. 2. THE ASSESSEE IS SERVED WITH THE NOTICE OF HEARIN G OF THE APPEALS THROUGH REGISTERED POST. A/D CARD DULY SERVED UPON THE ASSESSEE IS AVAILABLE ON RECORD. NONE APPEARED ON BEHALF OF THE ASSESSEE DESPITE SERVICE OF NOTICE. THE APPEALS OF THE ASSESSEE WERE EARLIER DISMISSED IN DEFAULT OF THE ASSESSEE. THE ORDER WAS RECALLED BY ALLOWING MISC. APPLICATIONS OF THE ASSESSEE. CONSIDERING THE ABOVE BACKGROUND THE APPEALS ARE HEARD IN THE ABSENCE OF THE ASSESSEE. 3. IN ASSESSMENT YEAR 2003-04 THE ASSESSEE CHALLENG ED THE ADDITION OF RS.3,93,235/. THE LEARNED CIT(A) NOTED THAT THE ASSESSEE FAILED TO ITA NOS. 1204 AND 1305/AHD/2008 SHREE SANSKARDHAN EDUCATION TRUST 2 ESTABLISH THE GENUINENESS OF THE EXPENDITURE. THE L EARNED CIT(A) ALSO NOTED THAT THE ASSESSEE CLAIMED PURCHASES ON ACCOUN T OF BOOKS AND STATIONERY, EQUIPMENTS ETC. BUT THE ASSESSEE FAILED TO ESTABLISHED THAT THE PURCHASES WERE MADE FOR THE PURPOSE OF THE OBJECTS OF THE ASSESSEE TRUST. ADDITION WAS ACCORDINGLY CONFIRMED ON ACCOUNT OF NO N-UTILIZATION OF INCOME OF THE TRUST FOR ITS OBJECTS. 4. IN ASSESSMENT YEAR 2004-05, THE ASSESSEE CHALLEN GED THE ORDER OF THE LEARNED CIT(A) IN CONFIRMING THE ORDER OF THE A O IN NOT GRANTING EXEMPTION U/S 10(23) (IIIAD), 11, 12 AND 13 OF THE IT ACT. THE AO ON THE BASIS OF FINDINGS GIVEN IN ASSESSMENT YEAR 2003-04 NOTED THAT THE ASSESSEE TRUST COULD NOT PROVE THE GENUINENESS OF I TS CLAIM FOR PURCHASES OF RS.3,93,235/-. SIMILARLY, THE AUTHORITIES BELOW NOTED VIOLATION OF USE OF THE FUNDS OF THE ASSESSEE TRUST FOR OTHER PURPOS ES. IT WAS, THEREFORE, NOTED THAT THERE IS SIPHONING OF THE FUNDS OF THE A SSESSEE. THE BENEFITS U/S 10(23) (IIIAD) AND 11 AND 12 OF THE IT ACT WERE DENIED TO THE ASSESSEE. THE LEARNED CIT(A) CONFIRMED THE ORDER OF THE AO, HOWEVER, THE EXPENDITURE WAS ALLOWED CONSIDERING IT TO BE NORMAL COMPUTATION BECAUSE THE EXPENSES WERE INCURRED WHOLLY AND EXCLU SIVELY FOR THE PURPOSE OF SUCH ACTIVITIES OF THE ASSESSEE. 5. CONSIDERING THE ABOVE FACTS IT IS CLEAR THAT THE ASSESSEE HAS FAILED TO REBUT THE FINDINGS OF THE AO BEFORE THE LEARNED CIT(A). THE SAME IS THE POSITION BEFORE THE TRIBUNAL BECAUSE THE ASSESSEE D ID NOT PUT IN APPEARANCE AND FAILED TO CONTRADICT THE FINDINGS OF THE AUTHORITIES BELOW. WE, THEREFORE, DO NOT FIND ANY JUSTIFICATION TO INT ERFERE WITH THE ORDERS OF THE AUTHORITIES BELOW. BOTH THE APPEALS OF THE ASSE SSEE ARE ACCORDINGLY DISMISSED. ITA NOS. 1204 AND 1305/AHD/2008 SHREE SANSKARDHAN EDUCATION TRUST 3 6. AS A RESULT, BOTH THE APPEALS OF THE ASSESSEE AR E DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 05-04-2010 SD/- SD/- (G. D. AGARWAL) VICE PRESIDENT (BHAVNESH SAINI) JUDICIAL MEMBER DATE : 05-04-2010 LAKSHMIKANT/- COPY OF THE ORDER FORWARDED TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT CONCERNED 4. THE CIT(A) CONCERNED 5. THE DR, ITAT, AHMEDABAD 6. GUARD FILE BY ORDER D Y. REGISTRAR, ITAT, AHMEDABAD