Kalol Seva Sarvjanik Trust, Mehsana V. ITO (Exemption), Palanpur

ITA 2295/AHD/2017

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 8030 (ITAT-AHMEDABAD)
• Duration Of Justice: 1 year(s) 6 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-04-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2013-2014
• Appeal Filed On: 13-10-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: T C MEENA
• Keywords: Charitable institution
• Section: 144

Judgement Text

, - IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD BENCH C BEFORE SHRI RAJPAL YADAV, JUDICIAL MEMBER AND SHRI WASEEM AHMED, ACCOUNTANT MEMBER ./ ITA NO. 2295/AHD/2017 / ASSESSMENT YEAR: 2013-2014 KALOL SEVA SARVJANIK TRUST 01, ASHRA SOCIETY OPP: AYOJANAGAR KALOL, DADI HIGHWAY KALOL, DIST. MEHSANA. PAN : AABTK 5425 E VS ITO, (EXEMPTION) PALANPUR. / (APPELLANT) / (RESPONDENT) ASSESSEE BY : SHRI VIPUL KHANDHAR REVENUE BY : SHRI T.C.MEENA, SR.DR / DATE OF HEARING : 27/03/2019 /DATE OF PRONOUNCEMENT : 18/ 04/2019 O R D E R PER RAJPAL YADAV, JUDICIAL MEMBER : ASSESSEE IS IN APPEAL AGAINST ORDER OF THE LD.CIT(A), GANDHINAGAR DATED 8 .9.2017 PASSED FOR THE ASSTT.YEAR 2013-14. 2. THE ASSESSEE HAS TAKEN THREE GROUNDS OF APPEAL. IT IS PLEADED THAT THE LD.CIT(A) HAS ERRED IN CONFIRMING ADDITION OF R S.35,59,620/- WHICH WAS ADDED BY THE AO IN AN EX PARTE ASSESSMENT ORDER PASSED UNDER SECTION 144 R.W.S. 143 (3) OF THE INCOME TAX ACT WI TH THE AID OF SECTION 68. ITA NO.2295/AHD/2017 - 2 - 3. WITH THE ASSISTANCE OF THE LD.REPRESENTATIVES, W E HAVE GONE THROUGH THE RECORD CAREFULLY. IT EMERGES OUT FROM THE RECORD THAT THE ASSESSEE IS A CHARITABLE TRUST. IT HAS FILED RETUR N OF INCOME ON 31.3.2015 ELECTRONICALLY DECLARING TOTAL INCOME AT RS.79,470/ -. THE CASE OF THE ASSESSEE WAS SELECTED FOR SCRUTINY ASSESSMENT. THE AO RECEIVED AIR INFORMATION SHOWING THAT THE ASSESSEE HAS MADE DEPO SITS IN CASH IN ITS BANK ACCOUNTS. HENCE, THE AO SOUGHT ITS EXPLANATI ON ABOUT THE SOURCE OF SUCH DEPOSITS. THE ASSESSEE DID NOT RESPOND TO SUCH SHOW CAUSE NOTICE, AND UNDER COMPELLING CIRCUMSTANCES, THE LD. AO HAS PASSED THE EX PARTE ORDER. HE TREATED SUCH DEPOSITS AS UNEXPLAINED CA SH CREDIT. APPEAL TO THE LD.CIT(A) DID NOT BRING ANY RELIEF TO THE ASSESSEE. 4. BEFORE US, THE LD.COUNSEL FOR THE ASSESSEE CONTE NDED THAT TAX CONSULTANT OF THE ASSESSEE TRUST DID NOT ADVISE PRO PERLY FOR THE REQUIREMENT TO FURNISH ALL THESE DETAILS. HE FILED PAPER BOOK CONTAINING 123 PAGES, WHEREIN HE HAS ANNEXED PROFIT & LOSS ACC OUNT, BALANCE SHEET, LEDGER ACCOUNT, DONATION REGISTER, SALARY REGISTER ETC. THE LD.COUNSEL FOR THE ASSESSEE SUBMITTED THAT ON ACCOUNT OF COMMUNICA TION GAP BETWEEN THE ASSESSEE-TRUST AND ERSTWHILE TAX CONSULTANT, TH E ASSESSEE COULD NOT SUBMIT THESE DETAILS, OTHERWISE THE ASSESSEE HAS BE EN MAINTAINING ALL SUCH DETAILS. THE LD.DR CONTENDED THAT THE ASSESSE E HAS NOT ONLY FAILED TO SUBMIT BEFORE THE AO, BUT BEFORE THE LD.CIT(A) A LSO. HENCE, IT DOES NOT DESERVE TO GIVE ANY LENIENCY ON THIS COUNT. 5. ON DUE CONSIDERATION OF THE ABOVE FACTS, WE FIND THAT THE ASSESSEE IS LITTLE NEGLIGENT IN PROSECUTING ITS INCOME TAX P ROCEEDINGS BEFORE THE LD.AO. HOWEVER, PUNISHMENT IN THE SHAPE OF TAX LIA BILITY ON ADDITION OF RS.35,59,620/- IF WEIGHED AGAINST THIS NEGLIGENCE, THEN PUNISHMENT IS ITA NO.2295/AHD/2017 - 3 - DISPROPORTIONATE TO THE NEGLIGENCE. IT IS ALSO PER TINENT TO NOTE THAT THE ASSESSEE IS A CHARITABLE TRUST. IT WOULD NOT HAVE ANY TAXABLE INCOME, IF EVERYTHING COULD HAVE BEEN EXPLAINED IN A PROPER MA NNER. CONSIDERING ALL THESE FACTS, WE ARE OF THE VIEW THAT IN THE INT EREST OF JUSTICE, ONE MORE CHANCE BE GIVEN TO THE ASSESSEE FOR SUBMITTING EXPL ANATION ON THIS ISSUE BEFORE THE LD.AO. HOWEVER, WE DO NOT ABSOLVE THE C ONDUCT OF THE ASSESSEE, AND THEREFORE, IMPOSE A COST OF RS.10,000 /- (RUPEES TEN THOUSAND) ON THE ASSESSEE. THE ASSESSEE IS DIRECTE D TO SUBMIT COPY OF THIS ORDER BEFORE THE AO WITHIN ONE MONTH FROM THE RECEIPT OF ORDER AND APPEAR BEFORE HIM. IT SHALL DEPOSIT RS.10,000/- (R UPEES TEN THOUSAND) WITH THE GOVERNMENT TREASURY AND FURNISH EVIDENCE T O THE AO. THE LD.AO SHALL REEXAMINE ALL THESE ISSUES, AND RE-ADJU DICATE THEM. THE ASSESSEE WILL BE AT LIBERTY TO SUBMIT ANY DETAILS I N SUPPORT OF ITS CASE BEFORE THE AO. 6. THE OBSERVATIONS MADE BY US WILL NOT IMPAIR OR I NJURE THE CASE OF THE AO AND WILL NOT CAUSE ANY PREJUDICE TO THE DEFENCE/EXPLANATION OF THE ASSESSEE. 7. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSE. PRONOUNCED IN THE OPEN COURT ON 18 TH APRIL, 2019. SD/- SD/- (WASEEM AHMED) ACCOUNTANT MEMBER (RAJPAL YADAV) JUDICIAL MEMBER AHMEDABAD; DATED, 18/04/2019