DCIT, Exemption- Circle, Ghaziabad V. Jai Maa Savitri Educational Society, Ghaziabad

ITA 4256/DEL/2017

• Counselvise Citation: [2021] 109 COUNSELVISE.COM (IT) 6901 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 7 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-01-2021
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: D
• Assessment Year: 2010-2011
• Appeal Filed On: 27-06-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SHAILESH KUMAR SENIOR
• Assessee Lawyers: RAGHAV GOEL
• Keywords: Charitable institution; Additional evidence; Set aside

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH D : NEW DELHI) BEFORE SHRI ANIL CHATURVEDI, ACCOUNTANT MEMBER AND SHRI KULDIP SINGH, JUDICIAL MEMBER (THROUGH VIDEO CONFERENCE) ITA NO.4256/DEL./2017 (ASSESSMENT YEAR : 2010-11) DCIT, EXEMPTION CIRCLE, VS. JAI MAA SAVITRI EDUCAT IONAL SOCIETY, GHAZIABAD. KJ 28, KAVI NAGAR, GHAZIABAD (UTTAR PRADESH) (PAN : AABTJ0711E) (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI RAGHAV GOEL, CA REVENUE BY : SHRI SHAILESH KUMAR, SENIOR DR DATE OF HEARING : 18.01.2021 DATE OF ORDER : 29.01.2021 O R D E R PER KULDIP SINGH, JUDICIAL MEMBER : APPELLANT, DCIT, EXEMPTION CIRCLE, GHAZIABAD (HERE INAFTER REFERRED TO AS THE REVENUE) BY FILING THE PRESENT APPEAL SOUGHT TO SET ASIDE THE IMPUGNED ORDER DATED 30.03.2017 PASSE D BY THE COMMISSIONER OF INCOME-TAX (APPEALS), MUZAFFARNAGAR QUA THE ASSESSMENT YEAR 2010-11 ON THE GROUNDS THAT :- 1. THE LD. COMMISSIONER OF INCOME TAX (APPEAL) HAS ERRED IN LAW AND ON FACTS IN ADDITION OF RS.3,94,80 ,000/- ON ACCOUNT OF ANONYMS DONATION U/S 115BBC. ITA NO.4256/DEL./2017 2 2. THE ORDER OF THE LD. COMMISSIONER OF INCOME TAX (APPEAL) BE CANCELLED AND THE ORDER OF THE AO BE RE STORED. 2. BRIEFLY STATED THE FACTS NECESSARY FOR ADJUDICAT ION OF THE CONTROVERSY AT HAND ARE : ASSESSEE IS A SOCIETY REG ISTERED WITH AN OBJECT TO OPEN, RUN AND MANAGE SCHOOLS, COLLEGES AN D INSTITUTIONS FOR ALL TYPES OF EDUCATION FOR ALL SECTIONS OF THE SOCIETIES AND IN THE RURAL AREAS, TO CARRY OUT ACTIVITIES FOR THE EXTENS ION OF KNOWLEDGE IN THE FIELD OF MEDICAL SCIENCE, DENTAL SCIENCE, COMPU TER SCIENCE, ENGINEERING/INFORMATION TECHNOLOGIES, PHARMACIES, P ARA-MEDICAL SCIENCES, ORAL CANCER AND ITS AWARENESS, PLANTATION , AGRICULTURAL EDUCATION, PREVENTION AND TREATMENT OF OTHER DISEAS ES ETC. FOR EVERY SECTION OF THE SOCIETY AND IN THE RURAL AREAS, TO O PEN, RUN AND MANAGE MEDICAL CLINICS, MEDICAL CAMPS AND HOSPITALS FOR WEAKER SECTION OF THE SOCIETY ON CHARITABLE BASIS. TO ACH IEVE THESE OBJECTIVES, THE SOCIETY STARTED TO SET UP AN ENGINE ERING COLLEGE IN VILLAGE RAMPUR, HAPUR FOR ENGINEERING, MANAGEMENT, ARCHITECTURE, BBA AND BCA COURSES. WHILE PERUSING THE AUDITED BA LANCE SHEET FILED BY THE ASSESSEE, AO NOTICED THAT THE ASSESSEE HAS INTRODUCED HUGE CORPUS FUND AMOUNTING TO RS.10,86,05,000/- DUR ING THE YEAR UNDER ASSESSMENT AND OUT OF THE DONATIONS OF RS.2,5 6,28,000/- AMOUNT OF RS.2,53,29,000/- HAS BEEN TREATED AS ANON YMOUS DONATION UNDER SECTION 115BBC OF THE INCOME-TAX ACT , 1961 (FOR ITA NO.4256/DEL./2017 3 SHORT THE ACT) AND MADE ADDITION THEREOF TO THE TOTAL INCOME OF THE ASSESSEE. 3. ASSESSEE CARRIED THE MATTER BEFORE THE LD. CIT ( A) BY WAY OF FILING THE APPEAL WHO HAS DELETED THE ADDITIONS BY ACCEPTING THE APPEAL. FEELING AGGRIEVED BY THE ORDER PASSED BY T HE LD. CIT (A), THE REVENUE HAS COME UP BEFORE THE TRIBUNAL BY WAY OF FILING THE PRESENT APPEAL. 4. WE HAVE HEARD THE LD. AUTHORIZED REPRESENTATIVES OF THE PARTIES TO THE APPEAL, GONE THROUGH THE DOCUMENTS R ELIED UPON AND ORDERS PASSED BY THE REVENUE AUTHORITIES BELOW IN T HE LIGHT OF THE FACTS AND CIRCUMSTANCES OF THE CASE. 5. LD. DR FOR THE REVENUE CHALLENGING THE IMPUGNED ORDER RELIED UPON THE REMAND REPORT SUBMITTED BY THE AO D ISCUSSED BY THE LD. CIT (A) IN PARA 7 AT PAGE 45 OF THE IMPUGNE D ORDER WHEREIN AO HAS REACHED THE CONCLUSION THAT ADDITION OF RS.3 ,94,80,000/- UNDER THE HEAD ANONYMOUS DONATION U/S 115BBC OF T HE ACT HAS BEEN RIGHTLY MADE BUT LOST SIGHT OF THE REJOINDER F ILED BY THE ASSESSEE AND REPLY FILED THERETO BY THE AO IN PARA 11 AT PAGE 53 OF THE IMPUGNED ORDER. 6. HOWEVER, ON THE OTHER HAND, LD. AR FOR THE ASSES SEE IN ORDER TO REPEL THE ARGUMENTS ADDRESSED BY THE LD. DR FOR THE REVENUE CONTENDED THAT DURING APPELLATE PROCEEDINGS, THE RE MAND REPORT WAS ITA NO.4256/DEL./2017 4 CALLED TO WHICH REJOINDER WAS FILED BY THE ASSESSEE AND THEREAFTER REPLY TO THE REJOINDER WAS FILED AND AO HAS VERIFIE D THE ENTIRE DONATIONS FLAGGED IN THIS CASE AND NOTHING ADVERSE WAS FOUND AND RELIED UPON THE IMPUGNED ORDER PASSED BY THE LD. CI T (A). NO DOUBT, IN THE INITIAL REMAND REPORT DATED 26.02.201 6, AO REITERATED THE ADDITION MADE UNDER THE HEAD ANONYMOUS DONATIO N U/S 115BBC OF THE ACT BUT, IN THE REJOINDER TO THE REMA ND REPORT DATED 20.03.2017, AO VERIFIED THE ENTIRE DISPUTED DONATIO NS FLAGGED AS ANONYMOUS DONATIONS BY SUBMITTING FOLLOWING REPLY : - SUB: REJOINDER TO THE REMAND REPORT U/S 250(4) OF THE INCOME TAX ACT, 1961 IN THE CASE OF M/S JAI MAA SAVITRI EDUCATIONAL SOCIETY KJ-28 KAVI NAGAR, GHAZIABAD FOR AY 2010-11 REG. KINDLY REFER TO THE YOUR GOOD OFFICER F NO. CIT(A)- MZR/2016- 17/1134 DATED 16.08.2016 ON THE ABOVE MENTIONED SUB JECT. IN THIS CONNECTION IT IS HEREBY STATED THAT IN RESP ONSE TO THE LETTER FROM YOUR GOOD OFFICE FOR SENDING REPORT, TH IS OFFICE VIDES LETTERS DT. 24.01.2017 INADVERTENTLY REPLIED THAT T HE REMAND REPORT DATED 26.02.2016 HAS ALREADY BEEN SENT TO YO UR OFFICE. LATER ON IT WAS NOTED THAT A SECOND REMAND REPORT W AS TO BE SUBMITTED IN RESPECT OF VERIFICATION OF ORIGINAL DO CUMENTS INCLUDING ADDITIONAL EVIDENCE RELATING TO DONATIONS RECEIVED BY THE ASSESSEE IN RESPECT OF DONATION AGGREGATING TO RS.3,94,80,000/-. THE ASSESSEE WAS DIRECTED TO PRODUCE THE ORIGINAL D OCUMENTS INCLUDING ADDITIONAL EVIDENCE FILLED BEFORE YOUR GO OD SELF IN SUPPORT OF FOLLOWING DONATION AGGREGATING TO RS. 3, 94,80,000/- WHICH WERE PRODUCED BY THE ASSESSEE BEFORE ME ON 06 .02.2017. 1. ASHU MITTAL RS.1,50,000/- 2. M/S. BSL SCALFFORDING LTD. RS.10,00,000/- 3. M/S. LINEMAN HALFCO (INDIA) LTD. RS.10,00,000/- 4. M/S. S. TECH INFO PVT. LTD. RS.25,00,000/- 5. M/S. HCL PERIPHERALS LTD. RS.30,00,000/- 6. M/S. VIC ENTERPRISES PVT. LTD. RS.50,00,000/- ITA NO.4256/DEL./2017 5 7. MATHUSHI FATAMABAI KARIM MISTRI CHARITABLE TRUST RS.10,00,000/- 8. SMT. NEERA BHATNAGAR RS.1,00,000/- 9. MR. DEEPAK KUMAR JAIN RS. 50,000/- 10. MR. SHOBIT GUPTA RS. 30,000/- 11. MR. VIJAY KUMAR BANSAL RS. 25,000/- 12. SH. BIMAL DUTT SHARMA RS. 25,000/- 13. RAM KUMAR AGARWAL CHARITABLE TRUST RS.11,00,000/- 14. MR. ISANT SHARMA RS.30,00,000/- 15. MR. DEEPAK J. PAREKH RS.23,00,000/- 16. SMT. BANDANA MISHRA RS.175,00,000/- 17. INSTITUTE OF BUSINESS STUDIES & RESEARCH RS.15,00,0 00/- 18. SH. PAWAN KUMAR SINGHAL RS.2,00,000/- THE ORIGINAL DOCUMENTS AND COPIES OF OTHER DOCUMENT S INCLUDING ADDITIONAL EVIDENCE SUCH AS CONFIRMATION LETTERS, INCOME TAX RETURNS, BANK STATEMENT AND OTHER RELEVA NT DOCUMENTS IN RESPECT OF ABOVE DONATION WERE VERIFIE D ON TEST BASIC AND COPIES OF SOME OF THE DOCUMENTS WERE OBTA INED FROM THE ASSESSEE WHICH IS PLACED ON RECORD. SUBMITTED FOR KIND PERUSAL. 7. CONSEQUENTLY, LD. CIT (A) EXAMINED BOTH THE REMA ND REPORTS SUBMITTED BY THE AO IN THE LIGHT OF THE FACTS AND C IRCUMSTANCE OF THE CASE AND GROUNDS RAISED BY THE ASSESSEE AND RET URNED THE FOLLOWING FINDINGS :- ON GOING THE FACTS OF THE CASE, SUBMISSIONS OF THE AR, REMAND REPORT OF THE AO AND REJOINDER OF THE APPELLANT HAVE BEEN CONSIDERED. IT IS NOTED THAT TH E APPELLANT HAS RECEIVED CORPUS DONATIONS OF RS. 3.94 CRORE WHICH HAVE BEEN TREATED BY THE AO AS ANONYMOUS. THE DETAILS OF SUCH CORPUS DONATIONS ALONG WITH DOCUMENTARY EVIDENCE FURNISHED IN THEIR SUPPORT HAVE BEEN GONE THROUGH WITH THE DETAILS AS UNDER :- NAME & ADDRESS OF THE DONOR (M/S./ SH. SMT.) AMOUNT (IN RS.) EXPLANATION/ DOCUMENTS FILED BEFORE THE AO/APPELLATE PROCEEDINGS ASHU MITTAL 150000/- CONFIRMATION, PAN PARTICULARS, ADDRESS, COPY OF ITR, COPY OF BANK ITA NO.4256/DEL./2017 6 STATEMENT BSL SCAFFOLDING LTD. 10,00,000/- CONFIRMATION, PAN PARTICULARS, ADDRESS, COPY OF ITR, COPY OF BANK STATEMENT LINEMAN HAIFCO (INDIA) LTD. 1,00,000/- CONFIRMATION, COPY OF ITR, BALANCE SHEET, PROFIT & LOSS ACCOUNT, PAN PARTICULARS, ADDRESS PARTICULARS S. TECH. INFO(P) LTD. 25,00,000/- CONFIRMATION, PAN PARTICULARS, BANK STATEMENTS, ADDRESS, RESOLUTION OF THE PROFIT & LOSS ACCOUNT, COPY OF ITR. HCL PERIPHERALS LTD. 30,00,000/- CONFIRMATION, PAN PARTICULARS ADDRESS, COPY OF ITR, BALANCE SHEET, PROFIT & LOSS ACCOUNT VIC ENTERPRISES P. LTD. 50,00,000/- CONFIRMATION, PAN PARTICULARS , COPY OF ITR, BALANCE SHEET, PROFIT & LOSS ACCOUNT MTHUSHI FATMBAI KARIM MISTARI CHART TRUST 10,00,000/- CONFIRMATION,PANPARTICUL ARS,BANK STATEMENT, COPY OF ITR,ADDRESS NEERA BAHADUR 1,00,000/- CONFIRMATION, PAN PARTICULARS, COPY OF ITR DEEPAK KUMAR 50,000/- CONFIRMATION, PAN PARTICULARS ADDRESS, COPY OF ITR , COPY OF BANK STATEMENT SHOBHIT GUPTA 30,000/- CONFIRMATION, PAN PARTICULARS ADDRESS, BANK DETAILS VIJAY KUMAR BANSAL 25,000/- CONFIRMATION, PAN PARTICULARS, ADDRESS, BANK DETAILS BIMAL DUTTA SHARMA 25,000/- CONFIRMATION, PAN PARTICULARS ADDRESS, COPY OF ITR , COPY OF BANK STATEMENT RAM KUMAR AGRAWAL CHARITABLE TRUST 11,00,000/- CONFIRMATION, COPY OF BANK STATEMENT, COPY OF BALANCE SHEET/ INCOME & EXPENDITURE STATEMENT COPY OF ITR ISHANT SHARMA 30,00,000/- CONFIRMATION, COPY OF BA NK STATEMENT, COPY OF BALANCE SHEET/PROFIT & LOSS ACCOUNT, ITA NO.4256/DEL./2017 7 COPY OF ITR DEEPAK J. PAREKH 23,00,000/- CONFIRMATION, PAN PARTICULARS ADDRESS, COPY OF ITR, BALANCE SHEET, COPY OF CAPITAL ACCOUNT, COPY OF BANK STATEMENT BANDANA MISHRA 175,00,000/- CONFIRMATION, PAN PARTICULARS ADDRESS, COPY OF ITR , COPY OF BANK STATEMENT INSTITUTE OF BUSINESS STUDIES & RESEARCH 15,00,000/- CONFIRMATION, PAN PARTICULAR, COPY OF BANK STATEMENT, COPY OF ITR ALONG WITH ANNEXURES PAWAN KUMAR SINGHAL 200000/- CONFIRMATION, PAN PARTICULARS ADDRESS, COPY OF ITR , COPY OF BANK STATEMENT TOTAL 3,94,80,000/- THE AO IN THE REMAND REPORT VIDE LETTER NO. 2943 D ATED 20.03.2017 HAS STATED THAT SHE HAS GONE THROUGH AND VERIFIED THE EVIDENCES FILED BY THE APPELLANT FOR CORPUS DONATIO N OF RS. 3.94 CRORE AS ABOVE. SHE HAS NOT MADE ANY ADVERSE COMMEN TS ON THE GENUINENESS OF THE EVIDENCES FURNISHED BY THE APPEL LANT IN SUPPORT OF THE CORPUS DONATION. IT IS PROVIDED U/S 115BBC OF THE ACT THAT ANONYMOUS DONATIONS MEANS ANY VOLUNTARY CONTRIBUTION IN RESPECT OF WHICH RECORD HAVING IDEN TITY (NAME & ADDRESS OF THE DONOR ALONG WITH OTHER PARTICULARS A S PRESCRIBED) HAS NOT BEEN MAINTAINED. IN THIS CASE, ON THE FACTU AL MATRIX IT IS NOTED THAT THE APPELLANT HAS MAINTAINED COMPLETE RE CORD GIVING IDENTITY OF THE DONORS (NAME & ADDRESS) ALONG WITH PARTICULARS OF THE CORPUS DONATIONS RECEIVED- AMOUNT, DATE, MOD E OF PAYMENT. UNDER THE FACTS IT IS NOTED THAT THE PROVI SION OF SECTION 115 BBC OF THE ACT ARE NOT ATTRACTED IN THIS CASE. THE FACTS OF THIS CASE ARE COVERED BY THE RATIO OF CASE LAWS REL IED BY THE AR(SUPRA). ACCORDINGLY, IN VIEW THE DISCUSSION MADE AS ABOVE, IT IS HELD THAT THE AO WAS NOT JUSTIFIED IN MAKING ADDITION OF RS.3.94 CRORE U/S 115BBC OF THE ACT AND THE SAME IS HEREBY DELETED. GROUND OF APPEAL NO. 1 IS ALLOWED. GROUND OF APPEAL NO. 2 & 4 ARE NOT SEPARATELY ADJUDICATED AS THEY HA VE LOST THEIR RELEVANCE IN VIEW OF THE DISCUSSION MADE ABOVE WHIL E DECIDING GROUND OF APPEAL NO. 1. 8. PERUSAL OF THE AFORESAID EXTRACTED PORTION OF TH E IMPUGNED ORDER APPARENTLY GOES TO PROVE THAT ALL THE DONATIO NS INITIALLY FLAGGED BY THE AO AS ANONYMOUS DONATION HAVE BEEN DULY ITA NO.4256/DEL./2017 8 VERIFIED BY WAY OF CONFIRMATION, PAN NUMBERS, COPIE S OF ITR, COPY OF BANK STATEMENT OF THE DONOR AND FOUND CORRE CT BOTH BY THE AO AS WELL AS LD. CIT (A). SO, WE FIND NO GROUND T O INTERFERE WITH THE IMPUGNED FINDINGS DELETING THE ADDITION IN QUES TION BY THE LD. CIT (A) BY ACCEPTING THE APPEAL FILED BY THE ASSESS EE. CONSEQUENTLY, THE APPEAL FILED BY THE REVENUE IS DI SMISSED. 9. HOWEVER, BEFORE PARTING WITH THIS ORDER, IT IS E XPEDIENT TO BRING ON RECORD THE FACT THAT SUCH LIKE APPEAL ARE INVARIABLY FILED JUST TO GENERATE THE UNNECESSARY LITIGATION AND THE CBDT MAY TAKE NOTE OF THIS FUTILE EXERCISE IN FILING SUCH APPEAL TO SAVE TIME, ENERGY AND MONEY OF THE STATE EXCHEQUER. ORDER PRONOUNCED IN OPEN COURT ON THIS 29 TH DAY OF JANUARY , 2021. SD/- SD/- (ANIL CHATURVEDI) (KULDIP SINGH) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED THE 29 TH DAY OF JANUARY, 2021 TS COPY FORWARDED TO: 1.APPELLANT 2.RESPONDENT 3.CIT 4.CIT(A), MUZAFFARNAGAR. 5.CIT(ITAT), NEW DELHI. AR, ITAT NEW DELHI.