The ACIT, 3(1), Bhopal V. M/s. HERO'S EDUCATION & WELFARE SOCIETY, Bhopal

ITA 235/IND/2014

• Counselvise Citation: 23522714 RSA 2014
• Duration Of Justice: 1 year(s) 7 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-11-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2004-2005
• Appeal Filed On: 26-03-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: R A VERMA
• Assessee Lawyers: S S DESH
• Keywords: Unexplained cash credit; Depreciation; Income from undisclosed sources; Additional evidence; Corroborative evidences; Assessment record; Reassessment proceedings
• Section: 143(3); 142(1); 12A; 68; 144; 11

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, INDORE BENCH, INDORE BEFORE SHRI D.T. GARASIA, JUDICIAL MEMBER AND SHRI B.C.MEENA, ACCOUNTANT MEMBER I.T.A.NO. 235/IND/2014 A.Y. : 2004-05 ACIT, 3(1), BHOPAL M/S.HEROS EDUCATION & WELFARE SOCIETY, VS BHOPAL APPELLANT RESPONDENT PAN NO. : AAAAH1113N APPELLANT BY SHRI R. A. VERMA, DR RESPONDENT BY SHRI S. S. DESHPANDE, C. A. DATE OF HEARING : 2 4 .09.2015 DATE OF PRONOUNCEMENT : 02.11 .2015 ACIT VS. HEROS EDUCATION & WELFARE SOCIETY, BHOPAL . I.T.A.NO. 235/IND/2014 A.Y.2004-05 2 2 O R D E R PER GARASIA, J.M. THE APPEAL BY THE REVENUE IS DIRECTED AGAINST THE O RDER OF CIT(A)-II, BHOPAL, DATED 21.01.2014 FOR THE ASSE SSMENT YEAR 2004-05. 2. THE ASSESSEE HAS TAKEN FOLLOWING GROUNDS OF APPEAL :- ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, THE CIT(A) HAS ERRED IN :- 1. DELETING THE ADDITION OF RS. 3,70,000/- ON ACCOUNT OF UNEXPLAINED CASH CREDIT. 2. DELETING THE ADDITION OF RS. 4,44,000/- ON ACCOUNT OF SALARY TO MEMBERS. 3. DELETING THE ADDITION OF RS. 24,97,000/- ON ACCOUNT OF UNEXPLAINED CASH CREDIT U/S 68. 4. DELETING THE ADDITION OF RS. 2,66,181/- ON ACCOUNT OF EXCESS INCOME OVER EXPENDITURE. 3. THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE S OCIETY IS AN EDUCATIONAL INSTITUTION REGISTERED UNDER M.P. SOCIETY ACIT VS. HEROS EDUCATION & WELFARE SOCIETY, BHOPAL . I.T.A.NO. 235/IND/2014 A.Y.2004-05 3 3 REGISTRIKARAN ADHINIYAN, 1973. IT IS ALSO REGISTERE D U/S 12A OF THE IT ACT VIDE CIT BHOPAL ORDER W.E.F. 21.01.2003. AS PER RETURN FILED ON 30.06.2004, EXCESS OF INCOME OVER E XPENDITURE HAS BEEN DECLARED AT RS.2,66,181/- WHICH HAS BEEN CLAIMED AS EXEMPT U/S 11 OF THE IT ACT. ALTERNATIVELY, IT IS A LSO ENTITLED FOR EXEMPTION U/S 10(23C)(IIIAD) AS ITS GROSS RECEIPTS ARE LESS THAN RS. I CRORE DURING THE YEAR UNDER CONSIDERATION. VI DE ORDER DTD. 29.12.2006 PASSED U/S 143(3) OF THE IT ACT, IT S INCOME HAS BEEN ASSESSED AT RS.35,77,181/- BY DENYING ITS CLAIM OF EXEMPTION OF RS. 2,66,181/- & MAKING FURTHER ADDITIONS OF RS. 24,97,000/- FOR UNEXPLAINED CASH CREDIT U/S 68 RECEIVED FROM 22 PERSONS; OF RS.3,77,000/- FOR UNEXPLAINED UNSECURED LOAN IN RESPECT OF AMOUNT RECEIVED FROM SH. I.S. MOURYE AND OF RS.4,44,000/- FOR PAYMENT OF SALARY TO MEMBERS BY APPLYING PROVISIONS OF SEC.13(I)(D) OF THE IT ACT. DEPRECIAT ION CLAIMED AT RS. 1,01,865/- HAS BEEN ALLOWED IN VIEW OF DENIAL O F EXEMPTION AND COMPUTATION OF INCOME AS PER PROVISIONS OF THE I.T. ACT APPLICABLE FOR BUSINESS. ON APPEAL, THE THEN CIT(A) -II, BHOPAL VIDE ORDER DTD. 25.10.2007 HAS ALLOWED ASSESSEES A PPEAL ACIT VS. HEROS EDUCATION & WELFARE SOCIETY, BHOPAL . I.T.A.NO. 235/IND/2014 A.Y.2004-05 4 4 DELETING ALL THE ADDITIONS MADE BY THE A.O. INCLUDI NG DISALLOWANCE OF DEPRECIATION AND CLAIM OF EXEMPTION U/S 11 . ON FURTHER APPEAL BY THE DEPTT., HON'BLE ITAT, INDO RE BENCH, INDORE IN ITS ORDER DTD.05.03.2010 IN ITA NO.63/ IND/2008 HAS UPHELD CIT(A)S ORDER DELETING ADDITIONS OF RS.24,97,000/- FOR UNEXPLAINED CASH CREDITS U/S 68 AND DISALLOWANCE OF DEPRECIATION OF RS. 1,01,865/- EVEN IF EXEMPTION U/S 11 GRANTED IN VIEW OF DECISION OF HON'BLE MP HIGH COUR T IN CASE OF CIT VS RAIPUR PALLOTINE SOCIETY, (1989) 180 ITR 579 (MP). THE ISSUES OF UNEXPLAINED CASH CREDIT OF RS.3,70,000/- & OF RS.4,44,000/- FOR PAYMENT TO MEMBERS HAVE BEEN SET ASIDE TO THE FILE OF A.O. FOR READJUDICATION, VERIFICATION O F FACTS AND DECISION THEREON AFRESH AS PER LAW AFTER GIVING DUE OPPORTUNITY TO THE ASSESSEE. ACCORDINGLY, A.O. HAS INITIATED TH E PROCEEDINGS AND PASSED IMPUGNED ASSESSMENT ORDER UN DER APPEAL ASSESSING ASSESSEES INCOME AT RS.35,77,180/- I.E. ON SAME AMOUNT AS DONE IN ORIGINAL ASSESSMENT ORDER. ACIT VS. HEROS EDUCATION & WELFARE SOCIETY, BHOPAL . I.T.A.NO. 235/IND/2014 A.Y.2004-05 5 5 GROUND NO. 1 : 4. THE AO HAS MADE THE ADDITION OF RS. 3,70,000/- U/S 68 FOR UNEXPLAINED CASH CREDIT. THE ASSESSEE HAS TA KEN LOAN FROM SHRI I. S. MOURYE. DURING THE ASSESSMENT PROCE EDINGS, NO SUPPORTING EVIDENCE PROVIDING CREDITWORTHINESS OF T HE LENDERS WAS PRODUCED. THUS, CREDITWORTHINESS OF SHRI I. S. MOURYE IS NOT PROVED. THEREFORE, THE ADDITION OF RS. 3,70,000 /- WAS MADE U/S 68 OF THE INCOME-TAX ACT, 1961. 5. THE MATTER CARRIED TO THE LD. CIT(A) AND THE LD. C IT(A) HAS DELETED THE ADDITION BY OBSERVING AS UNDER :- 5.4 APPELLANT'S SUBMISSIONS ALONG WITH ASSESSMENT ORDER, REMAND REPORT, REJOINDER OF THE APPELLANT AN D ASSESSMENT RECORDS HAVE BEEN CONSIDERED CAREFULLY AND ARE FOUND ACCEPTABLE. FIRST OF ALL, THE ISSUE H AS AGAIN BEEN SET ASIDE BY H'BLE ITAT, INDORE. THUS, THERE IS NO QUESTION OF ADMISSION OF ADDITIONAL EVIDENCE AT APPEAL STAGE. RATHER, THE APPELLANT HAS BEEN DIRECTED TO SUBMIT BANK STATEMENT AND OTHER ACIT VS. HEROS EDUCATION & WELFARE SOCIETY, BHOPAL . I.T.A.NO. 235/IND/2014 A.Y.2004-05 6 6 SUPPORTING DETAILS OF SHRI I.C. MOURYE BEFORE A.O. BY H'BLE ITAT, INDORE. A.O. HAS BEEN ASKED TO EXAMINE THE ISSUE AFRESH IN VIEW OF DETAILS GIVEN BY THE APPELLANT. IT IS SEEN THAT IN THE REMAND PROCEEDING S, THE APPELLANT HAS MADE SIMILAR SUBMISSIONS AND PRODUCED SUPPORTING DETAILS, AS MENTIONED ABOVE AND AS REPRODUCED UNDER IN SUPPORT OF UNSECURED LOAN OF RS. 3,70,000/- IN NAME OF SHRI I.C. MOURYE. ' PLEASE FIND HEREWITH COPY OF ACCOUNT OF SHRI I.S. MORYE ALONG WITH COPIES OF BILLS AGAINST WHICH HE HAS MADE PAYMENT FROM TIME TO TIME OUT OF HIS CASH WITHDRAWALS FROM HIS PERSONAL BANK ACCOUNT AND HIS AVAILABLE CASH BALANCE; THE SAID AMOUNT AS PAID BY HIM HAS BEEN ACCOUNTED FOR IN THE BOOK OF ACCOUNT OF THE SCHOOL BY WAY OF JOURNAL ENTRIES AND CREDITED TO HIS ACCOUNT AS 'UNSECURED LOAN'. SINCE THE SCHOOL WAS IN ITS FIRST YEAR AND THE CASH FLOW IN THE SCHOOL WAS ONLY THROUGH THE PAYMENTS ACIT VS. HEROS EDUCATION & WELFARE SOCIETY, BHOPAL . I.T.A.NO. 235/IND/2014 A.Y.2004-05 7 7 MADE BY THE COMMITTEE MEMBERS.' 5.5 IN THE REMAND REPORT, A.O. HAS ACCEPTED THE AMOUNT OF RS. 1,40,000/- GIVEN BY CHEQUE BY SHRI I.C. MOURYE TO THE APPELLANT SOCIETY. NO COMMENT HAS BEEN MADE REGARDING REIMBURSEMENT OF BILLS OR PAYMENTS MADE BY HIM ON BEHALF OF THE APPELLANT SOCIETY IN CASH OR THROUGH CHEQUES. FURTHER, NO ADVERSE COMMENT EITHER BEEN MADE REGARDING CREDITWORTHINESS OF SHRI I.C. MOURYE ON THE BASIS O F HIS BANK STATEMENT, INCOME TAX RETURN SUBMITTED BY THE APPELLANT. A.O. HAS ALSO NOT DOUBTED THE IDENTI TY OF THE LENDER ALONG WITH GENUINENESS OF THE TRANSACTION INVOLVED, HIM BEING MEMBER OF MANAGEMENT COMMITTEE OF THE APPELLANT SOCIETY. THE ADDITION HAS BEEN MADE ON SOLE GROUND OF NON PROVING OF CREDITWORTHINESS OF SH. I.C. MORYE. THE APPELLANT HAS PRODUCED COPY OF LEDGER ACCOUNT OF SHRI I.C. MORYE IN THE BOOKS OF APPELLANT'S SOCIETY , FORM NO.16 ISSUED BY BUNNIE POI SOCIETY OF HAVING ACIT VS. HEROS EDUCATION & WELFARE SOCIETY, BHOPAL . I.T.A.NO. 235/IND/2014 A.Y.2004-05 8 8 RECEIVED SALARY OF RS.2,39,640/- DURING THE YEAR, COPY OF INCOME TAX RETURN FILED DECLARING NET INCOME OF RS. L,59,253/- AND COPY OF HIS BANK A/C NO. 4005 IN CANARA BANK IN EVIDENCE OF MAKING PAYMENT OF RS.3,70,000/- TO THE AO. A.O. HAS NOT BROUGHT ANY ADVERSE MATERIAL ON RECORD BEFORE REJECTING APPELLANT'S SUBMISSIONS. FURTHER, H'BLE ITAT ITSELF HAS ALSO MENTIONED, AS UNDER IN ITS ORDER DTD 05.03.2010 IN CASE OF THE APPELLANT SOCIETY WHILE UPHOLDING DELETION OF AMOUNT OF RS.24,97,000/- ADDED U/S 68 AS UNEXPLAINED CASH CREDIT: 'IT IS ALSO NOTE WORTHY THAT IT IS ONE OF THE INITI AL YEARS OF RUNNING OF THE EDUCATIONAL INSTITUTION BY THE SOCIETY, HENCE, IT CANNOT BE AN UNACCOUNTED INCOME OF THE SOCIETY BROUGHT IN THIS MANNER. WE ARE FURTHER OF THE VIEW THAT THE AO'S ACTION APPEARS TO BE A CASE OF SUSPICION/DOUBT ONLY. IN THIS VIEW OF THE MATTER, WE HOLD THAT THE LD. CIT (A) HAS RIGHTLY DELETED ACIT VS. HEROS EDUCATION & WELFARE SOCIETY, BHOPAL . I.T.A.NO. 235/IND/2014 A.Y.2004-05 9 9 THE ADDITION. THUS, THIS GROUND OF THE REVENUE IS DISMISSED.' 5.6 KEEPING IN VIEW ABOVE AND FACTS AND CIRCUMSTANCES OF THE CASE, ADDITION OF RS.3,70,OOO/- IS NOT FOUND SUSTAINABLE AS THE APPELLANT IS FOUND TO HAVE DULY DISCHARGED THE ONUS REQUIRED OF IT IN RESPECT OF AMOUNT OF RS.3,70,OOO/- SHOWN AS UNSECURED LOAN RECEIVED FROM SHRI L.S. MORYE. THE SAME IS, HEREBY, DELETED. 6. WE HAVE HEARD THE RIVAL CONTENTIONS OF BOTH THE PARTIES. WE FIND THAT THE MATTER WAS RESTORED BY T HE I.T.A.T., INDORE BENCH, TO EXAMINE THE ISSUE AFRESH. THE ASSE SSEE WAS DIRECTED TO PRODUCE THE DOCUMENTARY EVIDENCE IN SUP PORT OF HIS CLAIM. THE LD. CIT(A) HAS CALLED FOR THE REMAND REPORT AND BY CALLING THE REMAND REPORT, THE LD. CIT(A) HAS CO NSIDERED THAT THIS AMOUNT IS UNSECURED LOAN AND THE ASSESSEE HAS PRODUCED THE BANK STATEMENT, INCOME TAX RETURN AND IDENTITY OF THE LENDER AND GENUINENESS OF THE TRANSACTION WA S PROVED. ACIT VS. HEROS EDUCATION & WELFARE SOCIETY, BHOPAL . I.T.A.NO. 235/IND/2014 A.Y.2004-05 10 10 THEREFORE, THE LD. CIT(A) HAS DELETED THE ADDITION. OUR INTERFERENCE IS NOT CALLED FOR. GROUND NO. 1 IS RE JECTED. GROUND NO. 2: 7. THE SHORT FACTS OF THE CASE ARE THAT THE AO HAS DISALLOWED THE SALARY OF RS. 4,44,000/- PAID TO THE MEMBERS OF THE SOCIETY. THE ASSESSEE HAS NOT FURNISHED ANY JUS TIFICATION FOR THE PAYMENT TO MEMBERS. THE ASSESSEE HAS CLAIME D RS. 3,00,000/- AS DEDUCTION BUT NO DOCUMENTARY EVIDENCE WAS SUBMITTED. THEREFORE, THE SOCIETY HAS MADE PAYMENT TO SHRI I.S.MOURYE, SHRI R. C. MOURYE AND RATNA MOURYE, WHI CH WAS DISALLOWED BY THE AO. 8. THE MATTER CARRIED TO THE LD. CIT(A) AND THE LD. C IT(A) HAS DELETED THE ADDITION BY OBSERVING AS UNDER :- 4.4 APPELLANT'S SUBMISSIONS ALONG WITH ASSESSMEN T ORDER HAVE BEEN CONSIDERED CAREFULLY .ASSESSMENT RECORDS HAVE ALSO BEEN PERUSED. DURING REASSESSMENT / SET ASIDE PROCEEDINGS, FIRST NOTICE HAS BEEN ISSUED BY THE A.O. ON 07.12.2011 FIXING THE CASE FOR HEARING ON 14.12.2011 AND ORDER PASSED ON 30.12.2011. EVEN THE ACIT VS. HEROS EDUCATION & WELFARE SOCIETY, BHOPAL . I.T.A.NO. 235/IND/2014 A.Y.2004-05 11 11 QUESTIONNAIRE/ NOTICE ISSUED U/S 142(1) ON 07.12.20 11 ALONG WITH NOTICE U/S 143(2) IS FOUND TO BE GENERAL ONE HAVING NO BEARING AT ALL WITH ISSUES TO BE DECIDED AFRESH AS PER DIRECTIONS OF HON'BLE ITAT. THE SAID NOTICE HAS RETURNED UNSERVED WITH POSTAL REMARKS OF WRONG/ INCOMPLETE ADDRESS. ACCORDINGLY, NOTICES HAV E BEEN SERVED AT APPELLANT'S NEW ADDRESS - 19C INDRAPURI, MAIN ROAD, BHOPAL ON 20.12.2011 FIXING T HE CASE FOR 22.12.2011. ON 22.12.2011, NOTICE U/S 144 PROPOSING ADDITIONS TO BE MADE HAS BEEN ISSUED GIVI NG FINAL OPPORTUNITY TO THE APPELLANT FOR 27.12.2011. IN RESPONSE, APPELLANT'S AR HAS ATTENDED ON 27.12.2011 AND HAS MADE SAME SUBMISSIONS AS MADE EARLIER BEFORE A.O. AND APPELLATE AUTHORITIES. HE HAS FURTH ER SUBMITTED THAT COPY OF HON'BLE ITAT, INDORE ORDER H AS NOT BEEN RECEIVED BY IT TILL THAT DATE WHICH MAY BE PROVIDED TO IT TO MAKE FURTHER COMPLIANCE, AS DIREC TED BY HON'BLE ITAT. HOWEVER, A.O. HAS RECORDED ON ORDE R SHEET ON 27.12.2011 THAT AR HAS ATTENDED AND MADE ACIT VS. HEROS EDUCATION & WELFARE SOCIETY, BHOPAL . I.T.A.NO. 235/IND/2014 A.Y.2004-05 12 12 SUBMISSIONS WITHOUT PROOF. CASE HAS BEEN DISCUSSED AND CONSEQUENTLY ORDER PASSED ON 30.12.2011 MAKING THE IMPUGNED ADDITION. 4.5 EVEN IN THE REMAND REPORT, A.O. HAS STRONGLY OBJECTED TO ADMISSION OF ADDITIONAL EVIDENCE. THE F ACT IS THAT THE ISSUE HAS BEEN SET ASIDE BY HON'BLE ITA T, INDORE AND ACCORDINGLY A.O. HAS BEEN ASKED TO DECID E THE MATTER AFRESH AFTER GIVING DUE OPPORTUNITY TO T HE APPELLANT. IN FACT, THE APPELLANT HAS BEEN ASKED TO GIVE DETAILS OF TOTAL SALARY PAID DURING THE YEAR TO ENA BLE THE A.O. TO ARRIVE AT ADEQUACY OR OTHER WISE OF THE PAYMENT MADE TO MEMBERS OF THE SOCIETY. A.O. HAS NO T MADE ANY ADVERSE COMMENTS ON APPELLANT'S SUBMISSIONS THAT NO PAYMENT HAS BEEN MADE TO I.S. MOURYA AND RATAN MOURYA IN RESPECT OF WHICH DISALLOWANCE OF RS.1,80,000/- AND RS.1,20,000/- RESPECTIVELY MADE BY THE A.O. EVEN IN REASSESSMENT PROCEEDINGS. HENCE NO ADVERSE INFERENCE CAN BE DRAW N ACIT VS. HEROS EDUCATION & WELFARE SOCIETY, BHOPAL . I.T.A.NO. 235/IND/2014 A.Y.2004-05 13 13 AGAINST THEM IN VIEW OF SUBMISSIONS MADE AND EVIDENCE FILED IN SUPPORT THEREOF. 4.6 IN RESPECT OF PAYMENT OF RS. L,40,000/- I.E. RS.12,000/- (APPROX) TO SHRI R.C. MOURYA APPELLANT' S SUBMISSIONS MADE EARLIER AND IN THE REJOINDER, AND AS REPRODUCED ABOVE, ARE FOUND ACCEPTABLE. A.O. HAS NO T BROUGHT ANY ADVERSE MATERIAL ON RECORD DISPUTING TH E NATURE OF WORK AND SERVICES RENDERED BY SHRI R.C. MOURYE VIS-A-VIS OTHER REGULAR STAFF /EMPLOYEES OF THE SOCIETY WHO IN ANY CASE HAVE NOT WORKED FOR THE ENT IRE PERIOD UNDER CONSIDERATION OR AS COMPARED TO OTHER SIMILAR INSTITUTIONS FOR THAT MATTER. SHRI R.C. MOU RYE IS STATED TO BE ENGAGED IN THE RUNNING OF THE SOCIETY ON DAY-TO-DAY BASIS AND FOR OVERALL SUPERVISION ALSO. HIS JOB IS DIFFERENT FROM THAT OF PRINCIPAL SHRI SURAJ BAGAURA WHO HAS ALSO BEEN PAID RS. 1,41,755/- FOR A PERIOD OF LESS THAN 12 MONTH DURING THE YEAR UNDER CONSIDERATION. THE ADDITION ON THE ISSUE HAS BEEN ACIT VS. HEROS EDUCATION & WELFARE SOCIETY, BHOPAL . I.T.A.NO. 235/IND/2014 A.Y.2004-05 14 14 FOUND MADE ON IDENTICAL LINES AS ONE MADE IN THE ORIGINAL ORDER. AS PER RECORDS, THE APPELLANT HAS SUBMITTED DETAILS OF WORK DONE BY SH. R.C.MOURYE (RS.L,44,OOO/-) ALONG WITH SUPPORTING EVIDENCE JUSTIFYING THE PAYMENT MADE TO HIM. THE OTHER TWO MEMBERS HAVE, IN FACT, NOT EVEN BEEN EMPLOYED BY THE APPELL ANT SOCIETY AND NO PAYMENT MADE TO THEM DURING THE YEAR NOR CLAIMED AS DEDUCTION BY THE APPELLANT. AS PER T HEIR FORM NO.16, INCOME TAX RETURNS, THEY HAVE BEEN EMPLOYED WITH BONNIE POI SOCIETY, GOVINDPURA. APPELLANT'S SUBMISSIONS HAVE NOT BEEN ACCEPTED BY T HE A.O. WITHOUT BRINGING EVEN A SINGLE PIECE OF ADVERS E EVIDENCE ON RECORD. NEITHER THE FACT OF IMPARTING O F EDUCATIONAL ACTIVITIES OR NON-VIOLATION OF ANY OTHE R PRESCRIBED CONDITIONS OF SEC 11 BEEN DISPUTED BY TH E A.O. DISENTITLING THE APPELLANT FOR ITS CLAIM OF EX EMPTION MADE U/S 11 OF THE IT ACT. AFTER PERUSAL OF RECORDS, ADDITION OF RS. 4,44,OOO/- AND DISALLOWANCE OF CLAIM OF EXEMPTION U/S 11 ON THE IS SUE ACIT VS. HEROS EDUCATION & WELFARE SOCIETY, BHOPAL . I.T.A.NO. 235/IND/2014 A.Y.2004-05 15 15 OF PAYMENT TO MEMBERS IS NOT FOUND SUSTAINABLE AND, HEREBY, DELETED. 9. WE HAVE HEARD THE RIVAL CONTENTIONS OF BOTH THE PARTIES. WE FIND THAT DURING THE REMAND PROCEEDINGS , THE AO HAS NOT DOUBTED ABOUT THE PAYMENT MADE TO SHRI I.S. MOURYE AND RATAN MOURYE. IN RESPECT OF PAYMENT MADE TO SHR I R. C. MOURYE, THE AO HAS NOT DISPUTED ABOUT THE NATURE OF WORK AND SERVICES RENDERED BY SHRI R. C. MOURYE. SHRI R. C. MOURYE IS ENGAGED IN RUNNING THE SOCIETY ON DAY TO DAY BAS IS AND THE ACTIVITIES ARE CHARITABLE AND EXEMPTION U/S 11 OF T HE ACT WAS ALLOWED AND THE LD. CIT(A) HAS CONSIDERED THIS EVID ENCE AND ALLOWED THE CLAIM OF THE ASSESSEE. THEREFORE, OUR I NTERFERENCE IS NOT CALLED FOR. GROUND NO. 2 FAILS. GROUND NO. 3 : 10. THE AO HAS MADE ADDITION OF RS. 24,97,000/- FOR UNEXPLAINED CASH CREDIT U/S 68 RECEIVED FROM 22 PER SONS AND DISALLOWANCE OF DEPRECIATION OF RS. 1,01,865/- ON T HE GROUND THAT APPEAL TO HON'BLE M.P.HIGH COURT, JABALPUR, BE EN FILED BY ACIT VS. HEROS EDUCATION & WELFARE SOCIETY, BHOPAL . I.T.A.NO. 235/IND/2014 A.Y.2004-05 16 16 THE DEPARTMENT AGAINST HON'BLE I.T.A.T.S ORDER ON THESE ISSUES. 11. THE MATTER CARRIED TO THE LD. CIT(A) AND THE LD. C IT(A) HAS ALLOWED THE CLAIM BY OBSERVING AS UNDER :- 3. AS PER VARIOUS GROUNDS OF APPEAL, THE APPELLANT HAS OBJECTED TO PASSING OF ASSESSMENT ORDER MAKING SAME ADDITIONS, AS DONE ORIGINALLY. A.O. HAS MADE ADDITION OF RS. 24,97,000/- AND DISALLOWANCE OF DEPRECIATION OF RS. 1,01,865/- ON THE GROUND THAT APPEAL TO HON'BLE M.P.HIGH COURT, JABALPUR BEEN FILED BY THE DEPARTMENT AGAINST HON'BLE I.T.A.T.S ORDER ON THESE ISSUES. HOWEVER, RESPECTFULLY FOLLOWING HON'BLE I.T.A.T. INDORE ORDER DATED 5.3.2010, ADDITION OF RS. 24,97,000/- AND DISALLOWANCE OF DEPRECIATION AT RS. 1,01,865/- (THOUGH NO SEPARATE ADDITION TO APPELLANTS TOTAL INCOME MADE THEREFOR) ARE NOT FOUND SUSTAINABLE AND DELETED. ACIT VS. HEROS EDUCATION & WELFARE SOCIETY, BHOPAL . I.T.A.NO. 235/IND/2014 A.Y.2004-05 17 17 12. WE UPHOLD THE ACTION OF THE CIT(A). GROUND NO. 3 IS REJECTED. GROUND NO. 4 : 13. GROUND NO. 4 RELATES TO THE ADDITION OF RS. RS. 2,6 6,181/- ON ACCOUNT OF EXCESS INCOME OVER EXPENDITURE. 14. THE SHORT FACTS OF THE CASE ARE THAT THE ASSESSEE SOCIETY IS AN EDUCATIONAL INSTITUTION REGISTERED UN DER M.P.SOCIETY REGISTRIKARAN ADHINIYAN, 1973. IT IS AL SO REGISTERED U/S 12A OF THE IT ACT VIDE CIT BHOPAL OR DER W.E.F. 21.01.2003. AS PER RETURN FILED ON 30.06.2004, EXCE SS OF INCOME OVER EXPENDITURE HAS BEEN DECLARED AT RS. 2,66,181/- WHICH HAS BEEN CLAIMED AS EXEMPT U/S 11 OF THE IT A CT. ALTERNATIVELY, IT IS ALSO ENTITLED FOR EXEMPTION U/ S 10(23C)(IIIAD) AS ITS GROSS RECEIPTS ARE LESS THAN RS. 1 CRORE DUR ING THE YEAR UNDER CONSIDERATION. 15. WE HAVE HEARD THE RIVAL CONTENTIONS OF BOTH THE PARTIES. THIS GROUND HAS BEEN DEALT WITH BY THE LD. CIT(A) IN ACIT VS. HEROS EDUCATION & WELFARE SOCIETY, BHOPAL . I.T.A.NO. 235/IND/2014 A.Y.2004-05 18 18 GROUND NO. 2 ABOVE IN PARAS 8 & 9 ABOVE. WE UPHOLD THE ACTION OF THE LD. CIT(A). OUR INTERFERENCE IS NOT C ALLED FOR. GROUND NO. 4 ALSO FAILS. 16. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISMISS ED. THIS ORDER HAS BEEN PRONOUNCED IN THE OPEN COURT ON 2 ND NOVEMBER, 2015. SD/- (B. C. MEENA) ACCOUNTANT MEMBER SD/- ( D.T.GARASIA) JUDICIAL MEMBER DATED : 2 ND NOVEMBER, 2015. CPU* 613