Ahilya Bahudeshiya Shikshan Prasarak Mandal, Latur V. Income Tax Officer (Exemption), Nanded, Nanded

ITA 312/PUN/2023

AI Insights

The case involves Ahilya Bahudeshiya Shikshan Prasarak Mandal, a charitable society registered under the Bombay Public Trust Act, 1950, and section 12AA of the Income Tax Act, 1961, which filed an appeal against the order of the NFAC. The dispute arose from the assessment year 2014-15, where the Income Tax Officer (Exemption), Nanded, assessed the trust's income and treated Rs.35,28,560 as anonymous donations due to insufficient evidence of the donors' genuineness. The NFAC upheld this decision after the trust failed to substantiate the donations during the remand proceedings. The Tribunal dismissed the appeal, agreeing with the lower authorities' findings.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 137628 (ITAT-PUNE)
• Duration Of Justice: 3 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-07-2023
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: SMC
• Next Hearing Date: 18-06-2023
• Assessment Year: 2014-2015
• Appeal Filed On: 16-03-2023
• Laws Referred To: Income Tax Act, 1961, Bombay Public Trust Act, 1950
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Section: 143(3); 133(6); 12AA; 250

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH “SMC”, PUNE BEFORE SHRI INTURI RAMA RAO, ACCOUNTANT MEMBER आयकर अपील सं. / ITA No.312/PUN/2023 िनधाᭅरण वषᭅ / Assessment Year : 2014-15 Ahilya Bahudeshiya Shikshan Prasarak Mandal, 1, Ahilya Niwas, Shree Nagar Barshi Road, Latur- 413512. PAN : AABTA1102C Vs. ITO (Exemptions), Nanded. Appellant Respondent आदेश / ORDER PER INTURI RAMA RAO, AM: This is an appeal filed by the assessee directed against the order of the National Faceless Appeal Centre, Delhi [‘NFAC’] dated 23.01.2023 for the assessment year 2014-15. 2. Briefly, the facts of the case are that the appellant is a charitable society duly registered under the Bombay Public Trust Assessee by : None Revenue by : Shri Rajesh Gawali Date of hearing : 19.06.2023 Date of pronouncement : 04.07.2023 ITA No.312/PUN/2023 2 Act, 1950. The appellant trust was also registered under the provisions of section 12AA of the Income Tax Act, 1961 (‘the Act’). The appellant trust was incorporated for the purpose of imparting education. The Return of Income for the assessment year 2014-15 was filed on 29.11.2015 declaring Rs.Nil income. Against the said return of income, the assessment was completed by the Income Tax Officer (Exemption), Nanded (‘the Assessing Officer’) vide order dated 29.12.2016 passed u/s 143(3) of the Act. While doing so, the Assessing Officer brought to tax as anonymous donation of Rs.35,28,560/- for failure of the assessee to establish the genuineness, identity and creditworthiness of the donors. 3. Being aggrieved by the above assessment order, an appeal was filed before the NFAC. During the proceedings before the NFAC, the appellant society had filed the details of donors from whom, the appellant was stated to have received the donations. The NFAC had called for the remand report from the Assessing Officer on the evidence filed before him. During the course of remand proceedings, the Assessing Officer had issued letters u/s 133(6) of the Act seeking the confirmation from 250 donors out of 550 donors ITA No.312/PUN/2023 3 claimed to be donors of the said amount. None of the donors have responded to the notices issued by the Assessing Officer. When this information was confronted to the assessee trust, the assessee had failed to furnish any reply or submission. In the circumstances, the NFAC concluded that the donations were not genuine, accordingly, upheld the action of the Assessing Officer. 4. Being aggrieved, the appellant is in appeal before this Tribunal in the present appeal. 5. When the appeal was called on, none appeared on behalf of the assessee despite due service of notice of haring. However, the written submissions on behalf of the assessee were filed, wherein, the assessee took a plea that there was no justification to treat the donations of Rs.35,28,560/- as anonymous donations, as they had not donations but advance. The NFAC had failed to give a reasonable opportunity to rebut the remand report of the Assessing Officer. 6. On the other hand, ld. Sr. DR relying on the orders of the lower authorities submits that no interference is called for, as the ITA No.312/PUN/2023 4 order of the NFAC is based on proper appreciation of material on record. 7. I heard the ld. Sr. DR and perused the material on record. The issue in the present appeal relates to whether or not the donations of Rs.35,28,560/- can be treated as anonymous donations under the provisions of section 115BBC of the Act. Admittedly, the appellant society had failed to discharge the onus lying upon it to prove the genuineness as well as creditworthiness of the donors by filing the details such as name, address, identity of the donors etc. It is only during the proceedings before the NFAC, the appellant society had attempted to discharge this onus by filing certain details. However, pursuant to the remand order passed by the NFAC, the Assessing Officer had made efforts to verify the genuineness of the evidence filed before the NFAC. The Assessing Officer vide remand report had reported that none of the donors have responded to notices issued u/s 133(6) of the Act. In the circumstances, the NFAC confirmed the action of the Assessing Officer. Even before me, no details were filed establishing the genuineness, identity and creditworthiness of the donors. For the first time, the appellant took ITA No.312/PUN/2023 5 a plea before this Tribunal that the impugned amount is not donation but an advance without any substantiation. The assessee society had not led any evidence before this Tribunal disproving the allegation of the Assessing Officer as confirmed by the NFAC. In the circumstances, I am of the considered opinion that no interference in the findings of the lower authorities is called for. Accordingly, I do not find any merit in the grounds of appeal filed by the assessee. 8. In the result, the appeal filed by the assessee stands dismissed. Order pronounced on this 04 th day of July, 2023. Sd/- Sd/- (S. S. VISWANETHRA RAVI) (INTURI RAMA RAO) JUDICIAL MEMBER ACCOUNTANT MEMBER पुणे / Pune; ᳰदनांक / Dated : 04 th July, 2023. Sujeet आदेश कᳱ ᮧितिलिप अᮕेिषत / Copy of the Order forwarded to : 1. अपीलाथᱮ / The Appellant. 2. ᮧ᭜यथᱮ / The Respondent. 3. The Pr. CIT concerned. 4. िवभागीय ᮧितिनिध, आयकर अपीलीय अिधकरण, “SMC” बᱶच, पुणे / DR, ITAT, “SMC” Bench, Pune. 5. गाडᭅ फ़ाइल / Guard File. आदेशानुसार / BY ORDER, // True Copy // Senior Private Secretary आयकर अपीलीय अिधकरण, पुणे / ITAT, Pune.