Sri Manob Aditya, Kolkata V. ACIT,CIR-50, kolkata, Kolkata

ITA 1448/KOL/2012

• Counselvise Citation: [2014] 140 COUNSELVISE.COM (IT) 83198 (ITAT-KOLKATA)
• Duration Of Justice: 2 year(s) 1 month(s) 16 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-11-2014
• Appeal Filed By: Assessee
• Bench Allotted: SMC
• Next Hearing Date: 01-08-2014
• Assessment Year: 2005-2006
• Appeal Filed On: 10-10-2012
• Court: TRIBUNAL
• Department Lawyers: K K TRIPATHI
• Assessee Lawyers: A K BANERJEE
• Keywords: Charitable institution
• Section: 143(3); 133A

Judgement Text

, SM C , IN THE INCOME TAX APPELLATE TRIBUNAL SMC BENCH: KOLKATA ( ) BEFORE , ) [BEFORE SHRI MAHAVIR SINGH, JM] / I.T.A NO. 1 448 /KOL/20 1 2 / ASSESSMENT YEAR : 20 0 5 - 0 6 SHRI MANAB ADITYA VS. ASSISTANT COMMISSIONER OF INCOME - TAX, (PAN: ACJPA1821A) CIRCLE - 50, KOLKATA. ( /APPELLANT ) ( / RESPONDENT ) DATE OF HEARING: 2 4 . 11 .201 4 DATE OF PRONOUNCEMENT: 26 . 1 1 .201 4 FOR THE APPELLANT : SHRI A. K. BANERJEE, ADVOCATE FOR THE RESPONDENT : SHRI K. K. TRIPATHI , JCIT, SR. DR / ORDER THIS APPEAL BY ASSESSEE IS ARI SING OUT OF ORDER OF CIT(A) - X XXI I , KOLKATA IN APPEAL NO. 82 3/CIT(A) - XX XI I / 11 - 12/CIR - 50/KOL DATED 2 6 . 0 7 .2012. ASSESSMENT WAS FRAMED BY ACIT, CIRCLE - 50, KOLKATA U/S. 143(3) /147/254 OF THE INCOME - TAX ACT, 1961 (HEREINAFTER REFERRED TO AS THE ACT ) FOR ASSESSMENT YEAR 200 5 - 0 6 VIDE HIS ORDER DATED 09 . 08 .20 11 . 2. THE ONLY ISSUE IN THIS APPEAL OF ASSESSEE IS AGAINST THE ORDER OF CIT(A) CONFIRMING THE ADDITION OF RS.1,37,885/ - BEING UNDISCLOSED RECEIPTS ON MISCONCEPTION. FOR THIS, ASSESSEE HAS RAISED FOLLOWING THREE GROUNDS: 1 . FOR THAT THE LD. CIT(A) WAS NOT JUSTI FIED IN CONFIRMING THE ADDITION OF RS.1,37,885/ - TO TOTAL INCOME IN THE IMPUGNED ASSESSMENT ORDER ON MISCONCEPTION OF FACTS AS WELL AS LAW WITHOUT TAKING INTO CONSIDERATION OF THE RELEVANT DOCUMENTS AND ARGUMENTS PLACED BEFORE HIM BY THE APPELLANT. 2 . FO R THAT IN VIEW OF THE FACTS THAT A PUBLIC CHARITABLE TRUST UNDER THE NAME AND STYLE OF AWARENESS MISSION TRUST WAS CREATED BY THE AUTHORS LIKE LOCAL INHABITANTS ON APRIL 4, 2004 WITH REASONABLE CERTAINTY BY WORDS AND ACTS WHICH WAS REDUCED TO WRITING BY AN INSTRUMENT DATED APRIL 20, 2005, THE LD. CIT(A) WAS WRONG IN HOLDING THAT THE TRANSACTIONS MADE BY THE TRUST IN ITS EDUCATIONAL ACTIVITIES WERE NOT RELIABLE AS SUCH ACTIVITIES OR PERFORMANCE RELATED TO THE SAID TRUST AND THAT HE WAS WRONG TO CONFINE HIM SELF TO THE TRUST DEED ONLY. 3 . FOR THAT HAVING REGARD TO THE FACTS THAT ALL THE EVIDENCE ADDUCED BY THE APPELLANT IN THE SUPPORT OF THE CONTENTION THAT THE NETAJI PUBLIC SCHOOL WAS CONDUCTED BY THE SAID TRUST AND MONEY RECEIVED FOR ADMISSION OF THE STUD ENTS AND 2 ITA NO.1 448 /K/2012 SHRI MANAB ADITYA , AY 200 5 - 0 6 TUITION FEES BY THE SAID SCHOOL REMAINED AS THE INCOME OF THE SAID TRUST, THE LD. CIT(A) AND THE LD. AO ERRED IN LAW IN HOLDING THAT SUCH INCOME WAS ASSESSABLE IN THE HANDS OF THE APPELLANT. 3. I HAVE HEARD THE SUBMISSIONS OF BOTH THE REPRESENTA TIVES AND GONE THROUGH FACTS AND CIRCUMSTANCES OF THE CASE. I FIND THAT THE ASSESSEE IS RUNNING ONE ENGLISH MEDIUM SCHOOL UNDER THE NAME AND STYLE OF ADITYA PUBLIC SCHOOL. IN THE SAME PREMISES, THE ASSESSEE IS RUNNING A CHARITABLE TRUST UNDER THE NAME AN D STYLE OF AWARENESS MISSION TRUST WITH THE MAIN OBJECT TO ESTABLISH AND RUN EDUCATIONAL INSTITUTIONS. DURING SURVEY U/S. 133A OF THE ACT, THE AO FOUND FROM THE BOOKS OF ACCOUNT THAT THE ASSESSEE THAT HE HAS RECORDED A SUM OF RS.4,48,195/ - IN ITS BOOKS OF ACCOUNT I.E. THE REGISTER REFLECTING THE RECEIPTS UP TO THE DATE OF 25.02.2005 I.E. THE DATE OF SURVEY. HOWEVER, AS PER P&L ACCOUNT OF THE ADITYA PUBLIC SCHOOL THE TOTAL RECEIPT DISCLOSED WAS RS.3,60,000/ - ONLY. THE AO ADDED THE DIFFERENTIAL AMOUNT OF R S.1,38,855/ - TO THE RETURNED INCOME OF THE ASSESSEE. AGGRIEVED, ASSESSEE PREFERRED APPEAL BEFORE CIT(A), WHO CONFIRMED THE ACTION OF AO. HENCE, ASSESSEE IS NOW IN APPEAL BEFORE TRIBUNAL. I FIND FROM THE DOCUMENTS THAT THE ASSESSEE HAS FILED A COPY OF TR UST DEED OF AWARENESS MISSION TRUST WHICH RUNS NETAJI PUBLIC SCHOOL AND THESE RECEIPTS OF RS.1,39,855/ - PERTAINS TO THE SAME. THE ASSESSEE S CONTENTION WAS THAT THIS IS COMMON REGISTER FOR RECEIPT AND IT COULD NOT BE DISCLOSED SEPARATELY. I FIND THAT THI S ISSUE HAS BEEN DEALT BY THE CIT(A) AS UNDER: BEING AGGRIEVED WITH THE FINDING OF THE AO THE APPELLANT FILED AN APPEAL AGAINST THE AFORESAID ADDITION OF RS.1,39,855/ - TO TOTAL INCOME ON ESTIMATE AS INCOME FROM THE SCHOOL NAMELY, NETAJI PUBLIC SCHOOL. D URING THE APPELLATE PROCEEDINGS THE AR OF THE APPELLANT FILED WRITTEN SUBMISSIONS ALONG WITH A COPY OF DEED OF A CHARITABLE TRUST DATED 20.04.2005, NAMELY AWARENESS MISSION TRUST . IN THIS DEED IT WAS SHOWN THAT THE NETAJI PUBLIC SCHOOL WAS OWNED AND ES TABLISHED BY THAT AWARENESS MISSION TRUST AND THE APPELLANT IS ONLY A TRUSTEE MEMBER OF THIS TRUST. THE APPELLANT ALSO CLAIMED THAT HE WAS NOT THE OWNER OF THE SAID SCHOOL NOR HAS HE DERIVED OR ENJOYED ANY BENEFIT OF THE SAID SCHOOL. THEREFORE, THE INCOME OF THE SCHOOL CANNOT BE TREATED AS HIS INCOME. I HAVE CAREFULLY PERUSED THE SUBMISSIONS OF THE APPELLANT AND ASSESSMENT ORDER OF THE AO. THE AO MADE AN ADDITION ON THE BASIS OF RECEIPT BOOKS AAPS - 5 IMPOUNDED DURING SCRUTINY PROCEEDINGS BUT IN THAT BOOK THERE WAS NO MENTION OF DONATION IN THE NAME OF NETAJI PUBLIC SCHOOL. MOREOVER, THE DEEDS OF A CHARITABLE TRUST IN THE NAME OF AWARENESS MISSION TRUST PRODUCED BY THE APPELLANT, WHICH WAS REGISTERED ON 20/04/2005. THE TRUST CAME TO EXISTENCE ON OR AFT ER 20/04/2005, WHICH PERTAIN TO A.YR. 2006 - 07. THE PLEA OF THE APPELLANT IS THAT THIS AMOUNT OF ADDITION IS RELATED TO AWARENESS MISSION TRUST IS NOT RELIABLE BECAUSE BEFORE THE EXISTENCE OF ANY ASSESSEE HOW THE TRANSACTION WAS GENERATED. THEREFORE, IN MY OPINION, THE A.O IS JUSTIFIED IN ADDING THE AMOUNT OF RS.1,39,885/ - . HENCE, I CONFIRM THE ADDITION OF RS.1,39,885/ - MADE BY THE AO. THESE GROUNDS OF APPEAL ARE NOT ALLOWED. 3 ITA NO.1 448 /K/2012 SHRI MANAB ADITYA , AY 200 5 - 0 6 4. I FIND FROM THE ABOVE THAT EVEN NOW THE ASSESSEE COULD NOT CONTROVERT TH AT THE RECEIPTS ARE DISCLOSED IN A SEPARATE REGISTER WHICH PERTAINS TO AWARENESS MISSION TRUST WHICH RUNS THIS , SO CALLED NETAJI PUBLIC SCHOOL. AS THE ASSESSEE IS UNABLE TO PROVE, I FIND NO REASON TO INTERFERE IN THE ORDER OF CIT(A) AND THE SAME IS HEREBY UPHELD. APPEAL OF ASSESSEE IS DISMISSED. 5 . IN THE RESULT, APPEAL OF ASSESSEE IS DISMISSED. 6 . ORDER IS PRONOUNCED IN THE OPEN COURT ON 2 6 . 1 1 . 2 0 1 4 S D / - , (MAHAVIR SINGH) JUDICIAL MEMBER DATED : 2 6 T H NOVEMBER , 201 4 JD.(SR.P.S.) - COPY OF THE ORDER FORWARDED TO: 1 . / A PPELLANT SHRI MANAB ADITYA, AMARPALLY, 182, JESSORE ROAD, KOLKATA - 700 074. 2 / RESPONDENT ACIT, CIRCLE - 50, KOLKATA . 3 . ( )/ THE CIT(A), KOLKATA 4. 5. / A CIT KOLKATA / DR, KOLKATA BENCHES, KOLKATA / TRUE COPY, / BY ORDER, /ASSTT. REGISTRAR .