M/s P.D. Memorial Religious & Educational Association, Haryana V. ACIT, Faridabad

ITA 2199/DEL/2013

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 8292 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 11 month(s) 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-04-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: F
• Next Hearing Date: 02-03-2016
• Assessment Year: 2007-2008
• Appeal Filed On: 15-04-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: P K MISHRA CAS; R K GUPTA SH NEERAJ JAIN
• Keywords: Search and seizure; Document seized; Charitable institution; Retrospective amendment; Additional evidence; Difference of opinion; Cancellation of registration; Documents seized; Change of opinion
• Section: 143(3); 133A; 12A; 12AA; 147; 148; 263; 132; 154

Judgement Text

1 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH F , NEW DELHI BEFORE SHRI J. SUDHAKAR REDDY, ACCOUNTANT MEMBER AND MS . SUCHITRA KAMBLE , JUDICIAL MEMBER ITA NO. 986 /DEL/20 09 A.Y. : .. PRABHU DAYAL MEMORIAL RELIGIOUS & VS. CIT(CENTRAL) EDUCATIONAL ASSOCIATION LUDHIANA VILLAGE SARAI AURANGABAD TEHSIL BAHADURGAR DIST. JHAJJAR HARYANA PAN: AAATP 3857 G ITA NO. 4340 /DEL/201 1 A.Y. 200 5 - 06 DY.CIT, CENTRAL CIRCLE II VS. P.D.MEMORIAL RELIGIOUS AND FARIDABAD EDUCATIONAL ASSOCIATION BAHADURGAR, HARYANA ITA NO. 3054/ DEL/201 3 A.Y. 200 5 - 06 P.D.MEMORIAL RELIGIOUS AND VS. CIT (CENTRAL) EDUCATIONAL ASSOCIATION GURGAON HARYANA ITA NO. 3642 /DEL/201 0 A.Y. 200 6 - 07 ACIT, CENTRAL CIRCLE II VS. P.D.MEORIAL RELIGIOUS & EDUCATIONAL FARIDABAD ASSOCIATION BAHADURGARH 2 ITA NO. 2199 /DEL/201 3 A.Y. 200 7 - 08 P.D.MEMORIAL RELIGIOUS AND VS. ACIT, CENTRAL CIRCLE II EDUCATIONAL ASSOCIATION FARIDABAD HARYANA ITA NO. 4341 /DEL/201 1 A.Y. 200 6 - 07 DY.CIT, CENTRAL CIRCLE II VS. P.D.MEMORIAL RELIGIOUS AND FARIDABAD EDUCATIONAL ASSOCIATION HARYANA (APPELLANT) (RESPONDENT) APPELLANT BY : SH. R.K. GUPTA, SH. NEERAJ JAIN AND SH. PK MISHRA, C.AS. RESPONDENT BY : MS.SWATI JOSHI, CIT, D.R. ORDER PER J. SUDHAKAR REDDY, ACCOUNTANT MEMBER ALL THESE APPEALS ARISE OUT OF DIFFERENT ORDERS OF THE LD.CIT ( CENTRAL ), LUDHIANA AS WELL AS THE LD.CIT(A) - I, LUDHIANA. AS THE ISSUES ARISING IN ALL THESE APPEALS ARE COMMON AND BELONGING TO THE SAME ASSESSEE, FOR THE SAKE OF CONVENIENCE THEY ARE HEARD TOGETHER AND DISPOSED OF BY WAY OF THIS COMMON ORDER . 2. FACTS IN BRIEF : - THE ASSESSEE IS A SOCIETY CONSTITUTED ON 21 ST MARCH, 1995. THE MAIN OBJECTS ARE OF RUNNING EDUCATIONAL INSTITUTIONS. THE ASSESSEE HAD APPLIED FOR REGISTRATION U/S 12A OF THE INCOME TAX ACT, 1961 (THE ACT) IN THE PRESCRIBED PROFORMA ON 13 TH DECEMBER, 2 010. THE LD.CIT, ROHTAK 3 CONDONED THE DELAY IN FILING THE APPLICATION AND GRANTED REGISTRATION U/S 12AA OF THE ACT ON 16 TH JANUARY, 2011. 2.1 . A SEARCH AND SEIZURE OPERATION U/S 132 OF THE ACT WAS CONDUCTED AT THE RESIDENTIAL PREMISES OF SHRI VIJENDER SIN GH LAKHAN, THE TREASURER OF THE ASSESSEE TRUST, ON 4.8.2005. ON THE VERY SAME DATE, SURVEY U/S 133A WAS ALSO CONDUCTED AT THE PREMISES OF THE ASSESSEE TRUST. DURING THE COURSE OF SEARCH, CASH OF RS.1,86,71,150/ - AND JEWELLERY OF RS.6,15,000/ - WAS FOUND AT THE RESIDENTIAL PREMISES OF SHRI VIJENDER. IT WAS ALSO ALLEGED THAT A NUMBER OF INCRIMINATING DOCUMENTS, RELATING TO THE ACTIVITIES OF THE TRUST , AS WELL AS ITS MEMBERS WERE FOUND. THE LD.CIT ( CENTRAL ), LUDHIANA PASSED AN ORDER U/S 12AA(3) OF THE ACT D T. 29.1.2008 CANCELLING THE REGISTRATION OF THE TRUST. LATER ON 9.4.2008, A CORRIGENDUM TO ORDER U/S 12AA ( 3) OF THE ACT WAS PASSED BY THE LD.CIT ( CENTRAL ) , LUDHIANA STATING THAT THE CANCELLATION OF REGISTRATION WOULD BE EFFECTIVE FROM 1.10.2004. 2.2 . LATE R T HE LD.CIT ( CENTRAL ) , LUDHIANA VIDE ORDER DT. 13.6.2008 GRANTED REGISTRATION TO THE ASSESSEE SOCIETY U/S 12AA OF THE ACT. THE ASSESSEE SOCIETY HAD FILED A FRESH APPLICATION U/S 12A(A) OF THE ACT IN THE PRESCRIBED PROFORMA ON 20.5.2004. IN AN ORDER THE LD.CIT ( CENTRAL ) , LUDHIANA STATES THAT THE REGISTRATION SHALL HAVE EFFECT FROM THE A.Y. 2008 - 09 ONWARDS. THUS THE REGISTRATION FOR THE SOCIETY BETWEEN THE PERIOD 1.1 0.2004 AND UP TO THE A.Y. 2008 - 09 WAS WITHDRAWN BY THE REVENUE VIDE ORDER DT. 29.1.2008. REGISTRATION U/S 12AA WAS GRANTED TO THE ASSESSEE FOR THE REST OF THE ASSESSMENT YEARS. 2.3 . THE ASSESSEE CARRIED THE MATTER IN APPEAL. THE ITAT CHANDIGARH B BENCH IN ITA 396/CH./2008 ORDER DT. 4.7.2008 RESTORED THE ISSUE TO THE FILE OF THE LD.CIT FOR FRESH CONSIDERATION, IN THE LIGHT OF CERTAIN SUBSEQUENT DEVELOPMENTS. 4 2.4. THEREAFTER THE LD.CIT ( CENTRAL ) , LUDHIANA ONCE AGAIN CANCELLED THE REGISTRATION GRANTED UNDER S.12AA OF THE ACT VIDE THE IMPUGNED ORDER DT. 28.5.2009. THE GROUNDS OF C ANCELLATION ARE AS FOLLOWS. ( I ) THE AO IN THE ASSESS MENT ORDER HAS MADE SUBSTANTIVE ADDITIONS LIKE UNRECORDED CAPITATION FEE AMOUNTING TO RS.2478150 ETC. ( II ) THE AO IN THE ASSESSMENT ORDER FOR THE AY 2000 - 2001 TO 2006 - 07 U/S 143(3)/264 OF THE ACT DT. 27.3.2008 H AS CLEARLY BROUGHT OUT THAT THE FUNDS AVAILABLE WITH THE TRUST WERE BEING USED FOR PURPOSES WHICH DO NOT RELATE TO CHARITY, AS DEFINED IN TERMS OF S.2(15) OF THE ACT. ( III ) THERE IS NO MATERIAL ON RECORD TO PROVE THAT THE ASSESSEE IS NOT ENGAGED IN GENUINE CHA RITABLE ACTIVITIES FOR THE PERIOD FOR WHICH REGISTRATION HAD BEEN FRESHLY APPLIED FOR I.E. FOR THE AY 2009 - 10 ONWARDS AND HENCE THE GRANT OF FRESH REGISTRATION DOES NOT PREJUDICE THE CANCELLATION OF THE EARLIER REGISTRATION GRANTED. 3. AGGRIEVED THE ASSE SSEE IS IN APPEAL BEFORE US ON THE FOLLOWING GROUNDS. 1. THAT THE LD.CIT(CENTRAL) WAS NOT JUSTIFIED IN UPHOLDING HIS EARLIER ORDER U/S 12AA DATED 29.1.2008, FOR CANCELLATION OF THE REGISTRATION OF THE TRUST ON THE GROUND THAT ACTIVITIES OF THE TRUST ARE NOT GENUINE. 2. THAT THE CONCLUSIONS ARRIVED AT BY THE LD.CIT(CENTRAL) ABOUT THE GENUINENESS OF THE ACTIVITIES ARE DE - HORS THE MATERIAL ON RECORD AND HENCE NEEDS TO BE SET ASIDE. 3. THE APPELLANT PRAYS FOR GRANTING ANY CONSEQUENTIAL RELIEF AND OR LEGAL CLA IM ARISING OUT OF THIS APPEAL BEFORE THE DISPOSAL OF THE SAME. 4. THE APPELLANT PRAYS FOR ANY ADDITION, DELETION, AMENDMENT, MODIFICATION, ALTERATION AND RECTIFICATION I THE GROUNDS OF APPEAL BEFORE THE DISPOSAL OF THE SAME. 5 4 . WE HAVE HEARD SHRI R.K.GUPTA, THE LD.COUNSEL FOR THE ASSESSEE AND MS.SWATI JOSHI , LD. CIT, D.R. ON BEHALF OF THE REVENUE. 5 . ON A CAREFUL CONSIDERATION OF THE FACTS AND CIRCUMSTANCES OF THE CASE, ON A PERUSAL OF ORDERS OF LOWER AUTHORITIES, MATERIAL PLACED ON RECORD AND CASE LAWS CITED, WE HOLD AS FOLLOWS. 6. ITA 986/DEL/2009 : THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST THE ORDER OF THE LD.CIT(CENTRAL), LUDHIANA U/S 12AA(3) OF THE ACT. AT THE OUTSET WE FIND THAT THE LD.CIT ( CENTRAL ) , LUDHIANA VIDE HIS ORDER DT. 18.5. 2009 CANCELLED THE REGISTRATION OF THE ASSESSEE W.E.F. 1.10.2004. THE ISSUE IS WHETHER THE LD.CIT ( CENTRAL ) , LUDHIANA HAS THE POWER U/S 12AA(3) OF THE ACT TO WITHDRAW THE REGISTRATION OF THE ASSESSEE WITH RETROSPECTIVE EFFECT. 6.1 . THIS ISSUE IS NO MORE RES INTEGRA. (A) THE HON BLE DELHI HIGH COURT IN THE CASE OF DIT(E) VS. MOOL CHAND KHAIRATI RAM TRUST (2011) REPORTED IN 339 ITR 622 (DELHI), HELD AS FOLLOWS . HELD: POWER OF CANCELLATION OF REGISTRATION OBTAINED U/S 12A CAME TO BE INCORPORATED BY WAY OF AMENDMENT INTRODUCED U/S 12AA(3) BY THE FINANCE ACT, 2010 WEF 1 ST JUNE,2010; DIRECTOR OF IT WAS NOT THEREFORE JUSTIFIED IN CANCELLING THE REGISTRATION U/S 12AA(3) WEF DEC.2002 - 03 VIDE HIS ORDER DT. 30 TH JUNE,2009. (B) IN THE CASE OF KAPOOR EDUCATION AL SOCIETY VS. CIT (2010) REPORTED IN 134 TTJ 250 IT WAS HELD AS FOLLOWS. HELD: AMENDMENT OF S.12AA(3) BY THE FINANCE ACT, 2010 W.E.F. 1 ST JUNE,2010 IS PROSPECTIVE IN NATURE AND IF ANY TRUST/INSTITUTION HAS BEEN REGISTERED PRIOR TO 1 ST OCT.2004, EITHER U /S 12A OR 12AA, CIT HAS NO POWER TO CANCEL THE REGISTRATION U/S 12AA(3). 6 .2 . IN THE ABOVE CASE, THE LUCKNOW B BENCH OF THE TRIBUNAL HELD THAT, AMENDMENT TO S.12AA(3) BY THE FINANCE ACT, 2010 W.E.F. 1 ST JUNE, 2010 IS 6 PROSPECTIVE IN NATURE AND IF A NY TRUST IS REGISTERED UNDER SECTION 12AA OR UNDER SECTION 12A, THE LD.CIT HAS NO POWER TO CANCEL THE REGISTRATION UNDER SECTION 12AA(3). 6 .3 . AT PARAS 8 AND 9 OF THE ORDER, THE TRIBUNAL HELD AS UNDER: 8. IN THE CASE OF OXFORD ACADEMY FOR CAREER DEVELOPMENT (SUPRA), A DISPUTE AROSE WHETHER S.12AA(3) HAS RETROSPECTIVE EFFECT AND WHETHER THE CIT COULD CANCEL THE REGISTRATION GRANTED TO A TRUST/INSTITUTION PRIOR TO 1 ST OCT.2004. THE HON BLE JURISDICTIONAL HIGH COURT LUCKNOW BENCH IN THE CASE OF OXFORD ACADEMY FOR CAREER DEVELOPMENT(SUPRA) AT HEADNOTES HELD AS UNDER: THE ORDER CANCELLING THE REGISTRATION GRANTED TO A TRUST OR INSTITUTION U/S 12AA BEING A QUASI JUDICIAL ORDER DOES NOT FALL WITHIN THE CATEGORY OF ORDERS MENTIONED U/S 21 OF THE G ENERAL CLAUSES ACT, 1897, WHICH PROVIDES THAT THE POWER CONFERRED ON AN AUTHORITY TO ISSUE ORDERS INCLUDES THE POWER CONFERRED ON AN AUTHORITY TO ISSUE ORDERS INCLUDE THE POWER TO RESCIND SUCH ORDERS, AND THE CIT EARLIER GRANTING THE REGISTRATION TO A TRUS T OR INSTITUTION. S.12AA(3) WAS INCORPORATED WEF 1 ST OCT.2004, TO EMPOWER THE CIT TO CANCEL THE REGISTRATION GRANTED TO A TRUST OR INSTITUTION. THE OBJECT OF THIS PROVISION IS NOT CLARIFICATORY OR EXPLANATORY. SO PRIOR TO THAT DATE, THE AUTHORITIES GRAN TING REGISTRATION HAD NO INHERENT POWER TO WITHDRAW OR REVOKE THE REGISTRATION ALREADY GRANTED. (EMPHASIS OURS). 9. IN THE ABOVE DECISION, THE HON BLE HIGH COURT HAS CLEARLY HELD THAT S.12AA(3) HAS NO RETROSPECTIVE EFFECT AS IT IS NEITHER EXPLANATORY NO R CLAJRIFICATORY IN NATURE AND THE CIT HAS NO POWER TO RESCIND THE ORDER PASSED BY THE CIT PRIOR TO 1 ST OCT.2004. NOW THERE IS AN AMENDMENT TO S.12AA(3) BY THE FINANCE ACT, 2010, WHICH HAS INSERTED THE PHRASE OR HAS OBTAINED REGISTRATION AT ANY TIME U/S 12A AFTER THE WORDS SUB - S.(1) AS APPEARING IN S.12AA(3). THIS AMENDMENT HAS BEEN MADE APPLICABLE AND EFFECTIVE FROM 1 ST JUNE,2010. KEEPING IN VIEW THE RATIO LAID DOWN BY THE HON BLE HIGH COURT IN THE CASE OF OXFORD ACADEMY FOR CAREER DEVELOPMENT (SU PRA) AND ALSO THE AMENDMENT OF S.12AA(3) BY THE FINANCE ACT, 2010 WEF 1 ST JUNE,2010, IT IS AMPLY CLEAR THAT S.12AA(3) IS PROSPECTIVE IN NATURE AND IF ANY TRUST/INSTITUTION HAS BEEN REGISTERED PRIOR TO 1 ST OCT.2004 EITHER U/S 12A OR 12AA, THE CIT HAS NO POWER TO CANCEL THE REGISTRATION U/S 12AA(3). IN THE INSTANT CASE, REGISTRATION TO THE ASSESSEE SOCIETY WAS GRANTED ON 1 ST MARCH, 1999 I.E. MUCH PRIOR TO 1 ST OCT.2004 WHEN S.12AA(3) WAS INTRODUCED AND MADE EFFECTIVE FROM 1 ST OCT.2004 AND THE CIT HAD NO 7 JURISDICTION TO CANCEL THE REGISTRATION GRANTED TO THE ASSESSEE SOCIETY U/S 12A AND THAT THE ORDER PASSED BY THE CIT U/S 12AA(3) IS WITHOUT JURISDICTION, BAD IN LAW AND LIABLE TO BE QUASHED. WE ACCORDINGLY Q UASH THE IMPUGNED ORDER OF THE LD.CIT CANCELLING THE REGISTRATION GRANTED TO THE ASSESSEE SOCIETY U/S 12A OF THE ACT ON 1 ST MARCH,1999. THE APPEAL OF THE ASSESSEE STANDS ALLOWED. (EMPHASIS OURS) (C ) THE HON BLE ALLAHABAD HIGH COURT IN THE CASE OF OXFORD ACADEMY FOR CAREER DEVELOPMENT VS. CHIEF CIT, REPORTED IN 315 ITR 382 (2009), HELD AS FOLLOWS: S.12AA(3) WAS INCORPORATED IN THE ACT WEF 1 ST OCT.2004 AND NOT APPLICABLE RETROSPECTIVELY, REGISTRATION GRANTED TO ASSESSEE ON 1 ST APRIL,1999 COULD NOT THEREFORE BE CANCELLED BY CIT BY INVOKING POWERS U/S 12AA(3), EVEN ASSUMING, THE CIT HAS POWER TO RESCIND THE ORDER OF REGISTRATION ON THE GROUND THAT THE REGISTRATION HAD BEEN OBTAINED BY PRACTICING FRAUD OR FORGERY, THERE WAS NOTHIN G IN THE SHOW CAUSE NOTICE OR IN THE IMPUGNED ORDER, ALLEGING THAT THE PETITIONER HAD OBTAINED THE REGISTRATION BY PRACTICING FRAUD OR FORGERY. (D) SIMILARLY IN THE CASE OF M/S AJIT EDUCATION TRUST VS. CIT(2010) 46 DTR 482 (ITAT AHD), IT WAS HELD THAT AMENDMENT OF SUB S.(3) OF S.12AA WEF 1 ST JUNE,2010 SHOULD NOT BE APPLICABLE RETROSPECTIVELY AND ITS OPERATION HAS TO BE EFFECTIVE FROM THE DATE IT WAS INTRODUCED AND ONWARDS AND THEREFORE CIT WAS NOT JUSTIFIED IN CANCELLING, SAYING THERE WAS NOTHING TO SHOW CAUSE NOTICE IN THE IMPUGNED ORDER ALLEGING THAT THE PETITIONER HAD OBTAINED THE REGISTRATION BY PRACTICING FRAUD OR FORGERY. (E) SIMILAR IS THE PROPOSITION IN THE CASE OF DIT VS. NH KAPADIA EDUCATION TRUST, ITAT AHMEDABAD BENCH REPORTED IN 136 I TD 111 (AHMD.) 6.4. APPLYING THE PROPOSITIONS LAID DOWN IN THESE CASE LAWS TO THE FACTS OF THIS CASE WE HOLD THAT THE ACTION OF THE LD.CIT IN CANCELLING THE REGISTRATION GRANTED TO THE ASSESSEE U/S 12AA OF THE ACT, WITH RETROSPECTIVE EFFECT FROM 1.10.2004 VIDE ORDER DT. 28.5.2009 IS BAD IN LAW. 8 6. 5 . EVEN OTHERWISE THE HON BLE MADRAS HIGH COURT IN THE CASE OF CIT VS. SRI GURU GORAKH NATH CHARITABLE EDUCATIONAL SOCIETY REPORTED IN 378 ITR 685 (P&H): HAD HELD THAT THE PROVISIONS OF S.12AA ALSO GIVE THE POWER UNDER SUB SECTION (3) TO CANCEL THE REGISTRATION OF THE TRUST IF IT IS NOT CARRIED OUT IN ACCORDANCE WITH THE OBJECTS OF THE COMMISSIONER HAS TO KEEP IN MIND THAT HE IS NOT TO ACT AS AN ASSESSING AUTHORITY WHILE DECIDING THE APPLICATION U/S 12AA AND THE E NQUIRY REGARDING GENUINENESS OF THE ACTIVITIES WITH A CHARITABLE PURPOSE IS TO BE KEPT IN MIND. THE OBJECTS OF THE TRUST, THUS, HAVE TO BE TAKEN INTO CONSIDERATION. 6. 6 . THE HON BLE KARNATAKA HIGH COURT IN THE CASE OF CIT VS. ISLAMIC ACADEMY OF EDUCATIO N (2015) 54 TAXMANN.COM 255 (KARNATAKA) HELD THAT S.12A READ WITH S.80G OF THE INCOME TAX ACT, 1961 CHARITABLE OR RELIGIOUS TRUST REGISTRATION OF (CANCELLATION OF REGISTRATION ) WHETHER, WHERE ASSESSEE TRUST WAS FULFILLING ITS MAIN OBJECT OF IMPARTING EDUCATION BY ESTABLISHING EDUCATIONAL INSTITUTION AND TAKING ADMISSION OF STUDENTS EVERY YEAR, ONLY ON BASIS THAT TRUSTEES WERE MISAPPROPRIATING FUNDS OF SAID TRUST, REGISTRATION OF TRUST COULD NOT BE CANCELLED HELD, YES IN FAVOUR OF THE ASSESSEE. 6. 7 . U /S 12AA(3) OF THE ACT, THE LD.CIT, CENTRAL, LUDHIANA CAN CANCEL THE REGISTRATION EARLIER GRANTED TO THE ASSESSEE ONLY IF TWO CONDITIONS ARE FULFILLED. THESE ARE (A) THE ACTIVITIES OF THE TRUST OR INSTITUTION ARE NOT GENUINE, OR (B) THE ACTIVITIES A RE NOT BEING CARRIED OUT IN ACC ORDANCE WITH THE OBJECTS OF THE TRUST OR INSTITUTION. 6. 8 . THE LD.CIT, CENTRAL, LUDHIANA IN HIS ORDER HAS NOT MADE ANY ALLEGATION THAT THE ACTIVITIES OF THE TRUST ARE NOT GENUINE. IN FACT A PERUSAL OF THE ASSESSMENT ORDERS REVEAL THAT THE A.O. HAS ACCEPTED THAT THE ACTIVITIES OF THE TRUST IS EDUCATION. IT IS ALSO NOT THE CASE OF THE LD.CIT THAT , THE ASSESSEE IS NOT CARRYING OUT ACTIVITIES IN ACCORDANCE WITH THE OBJECTS. ON THE SAME OBJECTS AND ACTIVITIES, A FRESH RE GISTRATION WAS GRANTED U/S 12AA OF THE ACT TO 9 THE ASSESSEE VIDE ORDER DT. 13.6.2008 WITH EFFECT FROM 2009 - 10. THUS THE CANCELLATION OF REGISTRATION IS BAD IN LAW. 6. 9 . FURTHER WE OBSERVE THAT IN THE ASSESSMENT ORDERS FOR THE A.Y. 2005 - 06 AND 2006 - 07 THE RE IS NO ADDITION MADE BY THE A.O. ON THE GROUND THAT CAPITATION FEE OF RS.24,78,150/ - WAS COLLECTED BY THE ASSESSEE . THUS THE GROUND ON WHICH THE CANCELLATION WAS DONE IS FACTUALLY INCORRECT. THE OTHER FINDING OF THE LD.CIT WAS THAT THE FUNDS AVAILABLE WITH THE TRUST WERE USED FOR THE PURPOSES NOT RELATING TO CHARITY. THE LD.CIT HAS NOT SUBSTANTIATED HIS CONCLUSION AND HAS ONLY MADE A BALD STATEMENT . ON THE OTHER HAND THE A.O. FOR THE A.Y. 2005 - 06 AS WELL AS FOR THE A.Y. 2006 - 07 ACCEPTED THE RETURN OF INCOME FILED BY THE ASSESSEE. EXCEPT FOR MINOR ADJUSTMENTS, THERE IS NO FINDING OF USING THE FUNDS FOR PURPOSES OTHER THAN EDUCATION/CHARITY. HENCE THIS FINDING OF THE LD.CIT IS ALSO FACTUALLY INCORRECT. 6. 10 . IN ANY EVENT THIS IS NOT A GROUND ON W HICH THE REGISTRATION CAN BE CANCELLED U/S 12AA(3) OF THE ACT. RECEIVING CAPITATION FEES CANNOT BE A GROUND FOR CANCELLATION. THE HON BLE KARNATAKA HIGH COURT IN THE CASE OF CIT VS. ISLAMIC ACADEMY OF EDUCATION (SUPRA) HELD THAT REGISTRATION CANNOT BE CA NCELLED ON THE BASIS THAT THE TRUSTEES WERE MISAPPROPRIATING THE FUNDS OF THE TRUST. SIMILAR ARE THE OTHER DECISIONS OF THE OTHER HIGH COURTS WHICH ARE REFERRED TO ABOVE. 6.1 1 . THE ONLY ADVERSE FINDING IN THE ASSESSMENT ORDER WAS IN RESPECT OF CASH OF R S.1.53 CRORES FOUND FROM THE TREASURER OF THE TRUST FOR THE A.Y. 2006 - 07. THE LD.CIT(A) IN THE QUANTUM APPEALS VIDE ORDER DT. 17.5.2010 DELETED THE ENTIRE ADDITION FOR THE REASONS GIVEN IN HIS ORDER . THUS THIS CIRCUMSTANCE ALSO DOES NOT SURVIVE. 6.1 2 . HENCE FOR ALL THESE REASONS, IN OUR CONSIDERED OPINION, HE HAS EXCEEDED HIS JURISDICTION IN CANCELLING THE REGISTRATION GRANTED DT. 16.1.2001, U/S 12AA 10 OF THE ACT. HENCE THIS ORDER DATED 28.5.2009, PASSED U/S 12AA(3) IS HEREBY QUASHED. 7. IN THE RESU LT THIS APPEAL OF THE ASSESSEE IS ALLOWED. 8. ITA NO. 4340 /DEL/2011 A.Y. 2005 - 06 : - THIS IS AN APPEAL FILED BY THE REVENUE DIRECTED AGAINST THE ORDER OF THE LD.CIT(A) - I, LUDHIANA DT. 13.7.2011 PERTAINING TO THE A.Y. 2005 - 06 ON THE FOLLOWING GROUNDS. I) WHETHER ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, THE LD. CIT (A) WAS RIGHT IN HOLDING THE ASSESSMENT COMPLETED U/S 147 OF THE I. T. ACT TO BE ERRONEOUS BY RELYING ON THE ISSUE OF CHANGE OF OPINION - NOT ALLOWED FOR REOPENING THE ASSESSMENT AND IGN ORING THE FACT THAT WRONG APPLICATION OF LAW CANNOT BE PERMISSIBLE VIEW TAKEN BY THE AO AT THE TIME OF ASSESSMENT AND CAN BE CHANGED FOR APPRECIATING THE LAW. II) WHETHER ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, THE LD. CIT(A) HAS ERRED BOTH IN LAW AND ON FACTS IN DELETING THE ADDITION OF RS. 1,16,60,000/ - MADE BY THE AO U/S 2(24)(IIA) OF THE INCOME TAX ACT, 1961. C) BY GIVING CONTRADICTORY FINDINGS IN HIS ORDER BY ENDORSING THE STAND OF THE ASSESSING OFFICER ON THE APPLICABILITY OF SECTION 2(2 4)(IIA) OF THE INCOME TAX ACT ON THE ONE HAND AND DELETING THE ADDITION OF RS. 1,16,60,000/ - ON THE OTHER HAND, WITHOUT REMANDING THE SUBMISSION OF THE ASSESSEE TO THE ASSESSING OFFICER FOR HIS VIEWS. D) RELYING ON THE ADDITIONAL EVIDENCE PRODUCED BY THE ASSESSEE BEFORE LD. CIT(A) EVEN THOUGH THERE IS NO DOCUMENTARY EVIDENCE PRODUCED BY THE ASSESSEE BEFORE THE AO DURING THE COURSE OF ASSESSMENT PROCEEDINGS TO ESTABLISH THAT THE DONATION RECEIVED BY THE ASSESSEE WAS SPECIFICALLY MEANT FOR CORPUS. 8.1. AF TER HEARING RIVAL CONTENTIONS WE FIND THAT THE ORDER OF THE A.O. CANNOT BE SUSTAINED, CONSEQUENT TO OUR FINDING THAT THE LD.CIT, WAS WRONG IN 11 CANCELLING THE REGISTRATION OF THE ASSESSEE , BY INVOKING HIS POWERS U/S 12AA(3) OF THE ACT. THE ASSESSMENT WAS FRAMED CONSEQUENT TO C ANCELLATION OF THE REGISTRATION GRANTED TO THE ASSESSEE U/S 12AA OF THE ACT. 8.2 . ON THE ISSUE OF REOPENING WE UPHOLD THE FOLLOWING FINDING OF THE LD.CIT(A). I AGRE E WITH THE ARGUMENT OF THE AR THAT THE AO AS FULLY AWARE OF THE FACT 'OF CANCELLATION OF REGISTRATION VIDE CIT(C) ORDER DATED 29.01.2008 AND IT ON THIS BASIS THE ASSESSMENT HAD BEEN F RAMED ON THE BASIS OF SEIZED DOCUMENTS AT AN INCOME OF RS.28,30,541/ - . T HE FACTS REGARDING CO RPUS DONATION OF RS.1,16,60,000/ - HAD BEEN INQUIRED INTO AND NO ADDITION ON THE SAME WAS FOUND TO BE CALLED FOR. THE SUBSEQUENT CANCELLATION OF REGISTRATION AFTER THE SETTING . ASIDE BY THE HON'BLE ITA T HAD NO IMPACT ON THE FACTS OF T HE CASE AS ON THE DATE OF PASSING ORDER U/S 143(3)/264 THE REGISTRATION OF THE TRUST STOOD CANCELLED ALREADY. IT THEREFORE BECOMES CLEAR THAT THE AO HAD PROCEEDED TO REOPEN THE ASSESSMENT FRAMED U/S 143(3)/264 WITHOUT BRINING ON RECORD ANY NEW FACT THAT WA S NOT AVAILABLE TO THE AO AT THE TIME OF ORIGINAL ASSESSMENT. THIS MEANS THAT IT IS ONLY AN ATTEMPT TO RECTIFY THE PERCEIVED MISTAKE IN THE ORDER BY RESORTING TO THE PROVISIONS OF SEC .148 WHICH AMOUNTS TO REVIEW OF HIS OWN ORDER. THERE ARE CATENA OF JUDGE MENTS BY VARIOUS HIGH COURTS THAT ASSESSMENT FRAMED U/S 143(3) CANNOT BE REOPENED ON THE BASIS OF CHANGE OF OPINION AND AO DID NOT HAVE THE POWER OF REVIEW OF HIS OWN ORDER U/S 148. IF THE AO OF THE VIEW THAT HIS ASSESSMENT ORDER SUFFERS FROM ANY INFIRMITY /MISTAKE WHICH IS PREJUDICIAL TO THE INTEREST OF REVENUE, THEN THE SAME COULD BE PROPOSED FOR REVIEW U/S 263. THE ANALYSIS OF FOLLOWING JUDICIAL PRONOUNCEMENTS MAKES IT AMPLY CLEAR THAT REVIEW OF THE ASSESSMENT ORDER BY INVOKING PROVISIONS OF SECTION 148 I S NOT PERMITTED. 8.3. AS WE HAVE UPHELD THE FINDING O F THE FIRST APPELLATE AUTHORITY THAT THE REOPENING IS BAD IN LAW, AND AS WE HAVE ALSO HELD THAT THE VERY BASIS O N WHICH ASSESSMENT WAS MADE SEIZED TO EXIST IN VIEW OF OUR ORDER IN ITA 986 /DEL/2009 , WE DI S MISS THIS APPEAL BY THE REVENUE. 12 9. ITA NO. 3054 /DEL/2013 A.Y. 2005 - 06 : - THIS IS AN APPEAL FILED BY THE ASSESSEE DIRECTED AGAINST THE ORDER OF THE LD.CIT (CENTRAL), GURGAON D T. 26.3. 201 3 PERTAINING TO THE A.Y. 2005 - 06 ON THE FOLLOWING GROUNDS. 1. THAT THE ORDER OF LEARNED COMMISSIONER OF INCOME TAX (CENTRAL), GURGAON PASSED UNDER SECTION 263 IS BAD IN LAW AND ON FACTS AND IN THE CIRCUMSTANCES OF THE CASE. 2. THAT THE LEARNED COMMISSIONER OF INCOME TAX (CENTRAL) HAS ERRED IN NOT GIVING A FINDING IN ORDER UNDER SECTION 263 THAT THE ORDER PASSED BY THE ASSESSING OFFICER IS ERRONEOUS 'AND PREJUDICIAL TO THE INTEREST OF REVENUE. 3. THAT THE ORDER OF LEARNED COMMISSIONER OF INCOME TAX (CENTRAL), GURGAON HAS ERRED IN GIVING A FINDING THAT 'CONSEQUENT TO WITHDRAWAL OF APPROVAL U/S L2AA OF THE ACT, THE TRUST PARTAKES THE CHARACTER OF AN ORGANIZATION WHICH IS NOW NOT APPROVED TO BE CHARIT ABLE. THE ORGANIZATION WHICH IS NOT APPROVED AS CHARITABLE IS D IFFERENT FROM THE ORGANIZATION WHICH IS APPROVED EVEN IF THERE IS NO CHANGE IN LEGAL STATUS OF THE ASSESSEE OTHERWISE.' 4. THAT THE ORDER OF LEARNED COMMISSIONER OF INCOME TAX (CENTRAL), GURG AON HAS ERRED IN GIVING A FINDING THAT ON WITHDRAWAL OF APPROVAL U/ S 12AA 'THERE IS TRANSI T ION OF ASSETS HELD BY IT , PREVIOUS ORGANIZATION (APPROVED U/S L2AA(2) OF INCOME TAX ACT) TO A NON - APPROVED ENTITY AND THE SAME BECOMES TAXABLE SIMPLY, ON, THE GROU ND THA T T THE INCOME TAX ACT PERMITS EXEMPTION ON ,THE ASSUMPTION THAT THE ASSETS MUST BE DEPLOYED FOR CHARITA BLE PURPOSE. 5. THAT THE LD.CIT(CENTRAL), GURGAON HAS ERRED IN DIRECTING THE AO: A) TO TAX ACCUMULATION OF INCOME ALLOWED TO ASSESSEE U/S 11(2 ) OF THE INCOME TAX ACT, 1961 UPTO 31.10.2004 TO TAX IN A.Y. 2005 - 06 BY VIRTUE OF S.11(3) OF THE ACT SINCE THE ASSESSEE HAS LOST REGISTRATION. B ) TO TAX NET ASSETS (TOTAL ASSETS MINUS TOTAL LIABILIT IES) IN A. Y 2005 - 06 IN VIEW OF THE CONDITION IN ORIGINA L GRANT OF REGISTRATION THAT THE ASSESSEE ON DISCONTINUANCE IS PERMITTED TO TRANSFER ASSETS ONLY TO ANOTHER CHARITABLE TRUST. HOWEVER, IN THE CASE OF THE ASSESSEE THE ASSETS HAVE BEEN TRANSITIONED FROM APPROVED CHARITABLE TRUST TO AN AOP. 6. THE ABOVE GR OUNDS OF APPEAL ARE WITHOUT PREJUDICE TO EACH OTHER. 9.1. THE ASSESSMENT ORDER PASSED BY THE A.O. U/S 143(3) R.W.S. 147 OF THE ACT ON31.12.2010 WAS REVISED BY THE LD.CIT U/S 263 OF THE ACT ON THE GROUND THAT THIS ORDER WAS ERRONEOUS AND PREJUDICIAL TO T HE INTEREST OF REVENUE. IN VIEW OF 13 OUR DECISION IN ITA NO.986 THIS ORDER U/S 263 OF THE ACT HAS TO BE QUASHED . EVEN OTHERWISE, WHEN THE AO HAS MADE OF ADDITION OF CORPUS DONATION OF RS.1,16,00,600/ - AND WHEN THIS ISSUE WAS THE SUBJECT MATTER OF APPEAL BEFORE THE LD.CIT(A), THE CONCLUSION OF THE LD.CIT, CENTRAL GURGAON THAT THERE IS AN ERROR IN THE ORDER OF THE AO DT. 31.12.2010, WHICH IS PREJUDICIAL TO THE INTEREST OF REV ENUE IS WRONG AND HENCE CANNOT BE SUSTAINED. THE REASON FOR REOPENING OF THE ASSESSMENT WAS CANCELLATION OF REGISTRATION U/S 12AA OF THE ACT. CONSEQUENTLY ASSESSMENTS WERE FRAMED OF THE LD.CIT INVOKES POWERS U/S 263 OF THE ACT FOR THE VERY SAME REASON WITHOUT TAKING INTO ACCOUNT THE ASSESSMENT PROCEEDINGS. THUS THIS ORDER OF THE LD.CIT IS CANCELLED AND THE APPEAL OF THE ASSESSEE IS ALLOWED. 10. ITA 3642 /DEL/2010 A.Y.: 2006 - 07 THIS IS AN APPEAL FILED BY THE REVENUE DIRECTED AGAINST THE ORDER OF THE L D.CIT(A) - I, LUDHIANA DT. 17.5.2010 PERTAINING TO THE A.Y. 2006 - 07 ON THE FOLLOWING GROUNDS. 1 . THE LD.CIT(A) HAS ERRED BOTH IN LAW AND ON FACTS OF THE CASE IN DELETING AN ADDITION OFRS.L,86,7],1501 - MADE BY THE A.O. U/S 69A OF THE ACT ON ACCOUNT OF UNEXPLA INED MONEY/CASH FOUND DURING SEARCH ON 04.08.2005 WITHOUT APPRECIATING THAT 011 THE DATE OF SEARCH I.E. 04:08.2005, BOOKS OF ACCOUNTS OF THE EDUCATIONAL INSTITUTES OF THE ASSESSEE TRUST WERE ONLY WRITTEN UPTO THE THIRD AND/OR LAST WEEK OF THE FEBRUARY, 20 05 AND THE ASSESSEE TRUST FAILED TO EXPLAIN WHY BOOKS OF ACCOUNTS WERE NOT COMPLETED AND THE SOURCE OF SAID CASH. 2: THE LD. CIT(A) HAS ERRED BOTH IN LAW AND ON FACTS OF THE CASE IN DELETING AN ADDITION OF RS. 1,86,71,150/ - MADE BY THE AO, U/S 69A OF THE ACT ON ACCOUNT OF UNEXPLAINED MONEY/CASH FOUND DURING SEARCH ON 04.08.2005 WITHOUT APPRECIATING THAT ON THE DATE OF SEARCH LE., 04.08.2005 BOOKS OF ACCOUNTS OF THE EDUCATIONAL INSTITUTE OF THE ASSESSEE TRUST WERE ONLY WRITTEN UPTO THE THIRD AND/OR LAST WEEK OF THE FEBRUARY, 2005 AND ALSO NOT TAKING COGNIZANCE OF THE FACTS THAT WHY THE ASSESSEE TRUST HAS KEPT THE HUGE CASH FOR A PERIOD OF FIVE MONTHS I.E. FROM THE END OF THE FEBRUARY, 14 2005 TO THE DATE OF SEARCH WITH IT AND NOT DEPOSITED THE SAME WITH TH E BANK. 3. THE LD, CIT(A) HAS ERRED BOTH IN LAW AND 011 FACTS OF THE CASE IN DELETING AN ADDITION OF RS, 1,86,71, 150/ - MADE BY THE A.O. U/S 69A OF THE ACT ON ACCOUNT OF UNEXPLAINED MONEY/CASH FOUND DURING SEARCH ON 04.08.2005 WITHOUT FULLY APPRECIATIN G THE STATEMENT OF ONE SH. RAM NIWAS, SUPERINTENDENT OF PDM COLLEGE OF ENGG. (AN EMPLOYEE OF ONE OF THE INSTITUTION OF THE ASSESEE TRUST ) THAT WHENEVER THE FEE IS RECEIVED FROM THE STUDENTS, IT IS DEPOSITED IN THE BANK ACCOUNT OF THE INSTITUTE ON THE SA ME DAY OR AT THE MOST NEXT DAY AND THAT ON TODAY I.E. 04.08.2005 (THE DATE OF SEARCH), THERE IS NO CASH BALANCE WITH THE INSTITUTE AND AS SUCH WHEN THERE WAS NO CASH WITH THE INSTITUTE FOR DEPOSIT IN THE BANK ON THE DAY OF SEARCH, THEN FROM WHERE THE CAS H SO FOUND WITH THE TRUST CAME IN. 4. THE LD, CIT(A) HAS ERRED BOTH IN LAW AND ON FACTS OF THE CASE IN DELETING AN ADDITION OF RS.L,86,71,150/ - MADE BY THE A/O. U/S69A OF THE ACT ON ACCOUNT OF UNEXPLAINED MONEY/CASH FOUND DURING SEARCH ON .04.08.2.005 HEAVILY RELYING ON THE STATEMENT OF SHRI B.S. LATHER,TREASURER OF THE ASSESSEE TRUST WITHOUT TAKING COGNIZANCE OF THE DOCUMENTS FOUND AND SEIZED DURING SEARCH (MARKED AS D - 19, D - 20, D - 21 AND D - 29) WHICH PROVE THAT TRUST PDMRA HAS BEEN ACCEPTING CAPITATION FEE OVER AND ABOVE THE NORMAL FEE, LEA DING TO CONCLUDE THAT THE CASH SO FOUND DURING SEARCH WAS THE CAPITATION FEE RECEIVED BY THE ASSESSEE TRUST OVER AND ABOVE THE NORMAL PRESCRIBED FEES AND THUS RIGHTLY ADDED TO THE RETURNED INCOME BY THE ASSESSING OFFICER. 5. THE LD. CIT(A) HAS ERRED BOT H IN LAW AND ON FACTS OF THE CASE IN DELETING AN ADDITION OF RS.L.86,71, 150/ - MADE BY THE A.O. U/S 69A OF THE ACT ON ACCOUNT OF UNEXPLAINED MONEY/CASH FOUND DURING SEARCH ON 04.08.2005 BY GIVING UNDUE WEIGHTAGE TO THE STATEMENT OF TREASURER . SH. B.S. LAT HER RECORDED U/S 132(4) AND OUT RIGHTLY REJECTING THE STATEMENT OF .SUPERINTENDENT SH. RAM NIWAS WHEN THE STATEMENT OF SH.RAM NIWAS, SUPERINTENDENT WAS ALSO RECORDED U/S 132(4}OF THE ACT AND ALSO WITHOUT REFERRING TO SPECIFIC MATERIAL WHICH MADE HIS {CIT(A )} MIND TO TAKE PRECEDENCE OVER THE STATEMENT MADE BY SH. RAM NIWAS. 6. WHILE DELETING THE ADDITION FOR RS.I ,86,71,150/ - MADE U/S 69A OF THE ACT, THE OBSERVATIONS OF THE LD, CIT(A) THAT CASH BOOKS OF VARIOUS INSTITUTIONS OR THE COMPUTERS WHEREIN THESE WERE MAINTAINED, WERE NOT SEIZED/IMPOUNDED BY THE DEPARTMENT ON 04.08.200 5 IS NOT CORRECT . INFACT, ON THE DATE OF SURVEY, THE DOCUMENTS/BOOKS AT S.N.O. D - 37 WERE IMPOUNDED U/S 133A AND LATER ON OPERATED ON 21.09.1005 AND 15 23.09.2005 IN THE PRESENCE OF THE AUTHORIZED REPRESENTATIVE OF THE ASSESSEE TRUST AND EXTRACTS TAKEN THERE FROM. HENCE, ANY ENTRY MADE IN THE BOOKS OF ACCOUNTS BY THE INSTITUTES UNDER PDMREA TILL THE DATE OF SEARCH LE. 04.08.2005 HAVE NOT BEEN EXAMINED BY THE LD. CIT(A) AND THEREFORE, HIS ORDER SUFFERS FROM INFIRMITY ON THIS ACCOUNT. 7. THE APPELLANT CRAVES L EAVE TO ADD OR AMEND THE GROUNDS OF APPEAL ON OR BEFORE THE APPEAL IS HEARD AND DISPOSED OFF. 8. IT . IS PRAYED THAT THE ORDER OF THE COMMISSIONER. OF INCOME - TAX(APPEALS) BE SET - ASIDE AND THAT OF THE A.O, BE RESTORED. 10.1 . FACTS IN BRIEF : - DURING THE COURSE OF SEARCH AND SEIZURE AT THE RESIDENCE OF SHRI BS MATHUR, THE TREASURER OF THE ASSESSEE SOCIETY AND MRS. BIMLA SINGH ON 4.8.2005, THE FOLLOWING CASH WAS FOUND AND SEIZED . 1 . SHRI B.S. MATHUR : CASH FOUND: RS.1,53,17,400/ - CASH SEIZED: RS.1,52 ,00,000 2 . SMT.BIMLA SINGH : CASH FOUND: RS.33,53,750/ - CASH SEIZED: RS.33,00,000/ - 10.2. SHRI BS MATHUR WAS EXAMINED ON OATH ON 4.8.2005 . H E SUBMITTED THAT OUT OF THE TOTAL CASH, APPROXIMATELY RS.8 LAKHS BELONGS TO HIM AND THAT THE REMAINING BELONGS TO D IFFERENT INSTITUTIONS OF THE ASSESSEE SOCIETY , OF WHICH HE IS THE TREASURER. ON THE AMOUNT OF RS.33 LAKHS FOUND IN THE POSSESSION OF THE CHAIR PERSON, HE SUBMITTED THAT THIS WAS KEPT WITH HER FOR EMERGENCY PURPOSES AND THAT THE CASH ALSO BELONGS TO THE C OLLEGES OF THE SOCIETY. HE FURTHER EXPLAINED THAT THE BOOKS OF ACCOUNTS WERE NOT UP TO DATE AND HENCE WOULD NOT BE IN A POSITION TO GIVE THE CASH BALANCE AS PER THE BOOKS. 10.3 . ONE SHRI RAM NI W AS THE SUPERINTENDENT OF THE ASSESSEE SOCIETY WAS ALSO EXAMINED ON OATH ON 4.8.2005. IN REPLY TO QUESTIONS MR.RAM NI W AS SUBMITTED THAT NO CASH AMOUNT IS KEPT IN THE ACCOUNTS BRANCH OF THE COLLEGE AND THAT ALL THE FEE RECEIVED IS DEPOSITED IN THE BANK ACCOUNT EITHER ON THE SAME DAY OR AT THE MAXIMUM , THE NEXT DAY. HE CLARIFIED THAT HE RECEIVES FEE 16 ONLY IN RESPECT OF ENGINEERING COLLEGE AND NOT IN RESPECT OF OTHER COLLEGES I.E. PHARMACY, POLYTECHNICAL AND PUBLIC SCHOOL. THE A.O. MADE AN ADDITION. ON APPEAL THE LD.CIT(A) DELETED THE SAME. 10.4. AGGRIEVED THE REVENUE IS IN APPEAL. 10.5 . AFTER CONSIDERING RIVAL SUBMISSIONS WE FIND THAT THE ASSESSEE HAS UPDATED ITS INCOMPLETE BOOKS OF ACCOUNTS. WHILE DOING SO ALL THESE CASH RECEIPTS WERE RECORDED AND CASH BALANCE AVAILABLE AS PER THE CASH BOOK OF VARIOUS COLLE GES CAME TO RS.1,77,05,365/ - . THESE BOOKS HAVE BEEN AUDITED AND THE AO DURING THE COURSE OF ASSESSMENT PROCEEDINGS DID NOT REJECT THESE BOOKS. THE ASSESSMENTS HAVE BEEN FRAMED ON THE BASIS OF THESE BOOKS. IN FACT THE AO IN ORDER PASSED U/S 154 OF THE A CT ON 10.10.2008 ALLOWED THE LOSS AS PER THE BOOKS. NOWHERE IN THE IMPUGNED ASSESSMENT ORDER PASSED U/S 143(3) R.W.S. 264 OF THE ACT THE AO HAS RECORDED A FINDING THAT THE BOOKS OF ACCOUNTS HAVE BEEN REJECTED. WHEN THE CASH FOUND IS AS PER THE BOOK BALAN CES, NO FURTHER ADDITION CAN BE MADE. RELIANCE WAS PLACED ON THE STATEMENT OF MR.RAM NI W AS BY THE AO IS ERRONEOUS, FOR THE REASON THAT, HE WAS TALKING ONLY ABOUT THE ENGINEERING COLLEGE. ONCE THE CASH FOUND IS AS PER BALANCE AVAILABLE IN THE BOOKS AND W HEN THE ASSESSMENTS ARE FRAMED BASED ON THESE BOOKS, WITHOUT REJECTING THE SAME, THEN THE ADDITION MADE OF CASH FOUND, WOULD BE DOUBLE ADDITION. THUS WE AGREE WITH THE FINDING GIVEN BY THE LD.CIT AT PAGES 10 AND 11 OF HIS ORDER. IN THE RESULT THIS APPEAL OF THE REVENUE IS DISMISSED. 11. ITA 4341 /DEL/2011 A.Y. 2006 - 07 : THIS IS REVENUE S APPEAL. BOTH PARTIES SUBMITTED THAT THE ISSUES AS WELL AS THE FINDINGS OF THE A.O. AND THAT OF THE LD.CIT ARE IDENTICAL WITH THE FACTS IN ITA 4340 /DEL/11 FOR THE A.Y. 2005 - 06. BOTH PARTIES ADOPTED THE ARGUMENTS ADVANCED BY THEM IN THAT APPEAL, FOR THIS APPEAL ALSO. 17 11.1 . CONSISTENT WITH THE VIEW TAKEN IN ITA 4340 /DEL/11 FOR THE A.Y. 2005 - 06, WE UPHOLD THE ORDER OF THE LD.CIT(A) AND DISMISS THIS APPEAL OF THE REVENUE. 12. ITA 1299 /DEL/13 A.Y. 2007 - 08 : THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST THE ORDER OF THE LD.CIT(CENTRAL), GURGAON DATED 25.2.2013 PERTAINING TO THE A.Y. 2007 - 08. 12.1. AFTER HEARING RIVAL CONTENTIONS WE HAVE TO ALLOW THIS APPEAL OF THE ASSESSEE IN VIEW OF OUR DECISION IN ITA 986/DEL/2011, WHEREIN WE QUASHED THE ORDER OF THE LD.CIT(A) DT. 28.5.2009, CANCELLING THE REGISTRATION GRANTED U/S 12AA OF THE ACT. 12.2 . IN THE RESULT THE APPEAL OF THE ASSESSEE IS ALLOWED. 13 . IN THE RESULT ALL THE REVENUE APPEALS IN ITA NOS. 3642 /D EL/2010 FOR THE A.Y. 2006 - 07, ITA 4340/DEL/11 FOR THE A.Y. 2005 - 06, ITA 4341/DEL/11 FOR THE A.Y. 2006 - 07 3L/12 ARE DISMISSED. ALL THE ASSESSEE S APPEALS IN ITA 2199/DEL/13 FOR THE A.Y. 2007 - 08, ITA 986/DEL/2009 AND ITA 3054/DEL/13 FOR THE A.Y. 2005 - 06 ARE ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 07 TH APRIL, 2016. SD/ - SD/ - (SU CHITRA KAMBLE ) (J. SUDHAKAR REDDY) JUDICIAL MEMBER ACCO UNTANT MEMBER DATED: THE 07 TH APRIL , 2016 MANGA 18 COPY FORWARDED TO: - 1 . APPELLANT 2 . RESPONDENT 3 . CIT 4 . CIT(A) 5 . DR, ITAT - TRUE COPY - BY ORDER, ASSISTANT REGISTRAR