Lions Nab Community Eyecare Centre, Miraj, Sangli V. Income-Tax Officer, Exemption, Ward, Kolhapur

ITA 259/PUN/2022

AI Insights

The case involves Lions Nab Community Eye Care Centre, a registered charitable trust under section 12A of the Income-tax Act, which appealed against the order of the CIT(A), NFAC, confirming an addition of Rs. 1,52,000 to its income for the assessment year 2017-18. The addition was initially made by the Assessing Officer (A.O) under section 68 of the Act, due to unexplained cash deposits totaling Rs. 6,02,000 in the assessee's bank account during November and December 2016. The Tribunal heard the arguments and evidence presented by both parties, including the assessee's explanation that the deposits were from patient receipts recorded in their regular books of account. The Tribunal concluded that the assessee had sufficiently explained the source of the deposits, leading to the deletion of the addition.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 137734 (ITAT-PUNE)
• Duration Of Justice: 10 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-03-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 08-03-2023
• Assessment Year: 2017-2018
• Appeal Filed On: 21-04-2022
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 68

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH, ‘A’ PUNE BEFORE SHRI R.S. SYAL, VICE PRESIDENT AND SHRI S.S. VISWANETHRA RAVI, JUDICIAL MEMBER ITA No. 259/PUN/2022 : A.Y. 2017-18 Lions Nab Community Eye Care Centre Plot No. P-39 MIDC, Miraj, Sangli 416 410 PAN: AABFL 4373 L Appellant Vs. The I.T.O. Exemption Ward, Kolhapur. : Respondent Appellant by : Shri Pramod Shingte Respondent by : Shri Ramnath Murkunde Date of hearing : 09-03-2023 Date of pronouncement : 10-03-2023 ORDER PER R.S. SYAL, VP : This appeal by the assessee is directed against the order passed by the CIT(A), NFAC dated 23-03-2022 in relation to the assessment year 2017-18. 2. The only ground raised herein is against the confirmation of addition of Rs. 1,52,000/- made by the A.O u/s 68 of the Income-tax Act, 1961 (hereinafter called ‘the Act”) towards certin cash deposits in bank account. Briefly stated the facts of the case are that the assessee is a registered charitable trust u/s 12A of the Act, which is engaged in providing eye care medical facilities from two hospitals run by it. The A.O observed during the course of assessment proceedings that the assessee deposited cash in its bank account on various dates between 19-11-2016 to 31-12-2016 totalling to Rs. 6,02,000/-. He accepted the genuineness of the source of cash deposit of sRs. 4,50,000/- and made an addition for the remaining sum of Rs. 1,52,000/- u/s 68 of the Act. No relief was allowed in the first appeal. This is how, the assessee has come up before the Tribunal. ITA No.259/PUN/2022 Lions Nab Community Eye care A.Y. 2017-18 2 3. Having heard the rival submissions and gone through the relevant material on record, it is seen that the A.O tabulated cash deposits between 19- 11-2016 to 31-12-2016 at page 2 of his order, giving bifurcation of the deposits of old currency notes and new currency notes. He made an addition in respect of cash deposits of Rs. 52,000/-, Rs. 42,000/- and Rs. 43,000/- on 28-11-2016 and Rs. 15,000/- on 31-12-2016. As per the table, only last item of Rs. 15,000/- represented the deposit of old currency notes. The assessee explained that it was maintaining regular books of account and source of deposits was the amounts received from patients. The assessee also produced cash book before the A.O showing the recording of receipts of cash from patients that the deposits made in the bank account. It is thus evident that the cash deposits in the bank were made from the regular books of accounts maintained by the assessee. In that view of the matter, there can be no question of source of such deposits in the bank account being not explained. We therefore, order todelete the addition. 4. In the result, the appeal of the assessee is allowed. Order pronounced in the Open Court on 10 th March, 2023. Sd/- sd/- (S.S. VISWANETHRA RAVI) (R.S.SYAL) JUDICIAL MEMBER VICE PRESIDENT Pune; Dated : 10 th March, 2023 Ankam Copy of the Order is forwarded to: 1. The Appellant; 2. The Respondent 3. 4. The NFAC Delhi The Pr. CIT- Pune. DR, ITAT, ‘A’ Bench, Pune 5. Guard file. BY ORDER, Senior Private Secretary ITAT, Pune /// TRUE COPY /// ITA No.259/PUN/2022 Lions Nab Community Eye care A.Y. 2017-18 3 Date 1. Draft dictated on 09-03-2023 Sr.PS 2. Draft placed before author 09-03-2023 Sr.PS 3. Draft proposed & placed before the second member JM 4. Draft discussed/approved by Second Member. JM 5. Approved Draft comes to the Sr.PS/PS Sr.PS 6. Kept for pronouncement on 10-03-2023 Sr.PS 7. Date of uploading order 10-03-2023 Sr.PS 8. File sent to the Bench Clerk 10-03-2023 Sr.PS 9. Date on which file goes to the Head Clerk 10. Date on which file goes to the A.R. 11. Date of dispatch of Order. *