SARAJUDDIN KHAN, NEW DELHI V. ITO, WARD- 61(5), NEW DELHI

ITA 5865/DEL/2017

• Counselvise Citation: [2018] 126 COUNSELVISE.COM (IT) 2790 (ITAT-DELHI)
• Duration Of Justice: 6 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-03-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2009-2010
• Appeal Filed On: 14-09-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: V K TIWARI
• Keywords: Charitable institution
• Section: 132

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCHES : SMC : NEW DELHI BEFORE SHRI R.S. SYAL, VICE PRESIDENT AND MS SUCHITRA KAMBLE, JUDICIAL MEMBER ITA NO.5865/DEL/2017 ASSESSMENT YEAR : 2009-10 SARAJUDDIN KHAN, 249A, WZ BLOCK, TIHAR VILLAGE, NEW DELHI. PAN: AHZPK0549G VS. ITO, WARD-61(5), NEW DELHI. (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI SUBHASH SINGHAL, CA DEPARTMENT BY : SHRI V.K. TIWARI, SR. DR DATE OF HEARING : 21.03.2018 DATE OF PRONOUNCEMENT : 22 .03.2018 ORDER PER R.S. SYAL, VP: THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAI NST THE ORDER PASSED BY THE CIT(A) ON 28.08.2017 IN RELATION TO THE ASSE SSMENT YEAR 2009-10. ITA NO.5865/DEL/2017 2 2. BRIEFLY STATED, THE FACTS OF THE CASE ARE THAT T HE ASSESSING OFFICER INITIATED RE-ASSESSMENT PROCEEDINGS PURSUANT TO INF ORMATION RECEIVED FROM ACIT, CENTRAL CIRCLE, BAREILLY, THAT A SEARCH AND S EIZURE OPERATION U/S 132 OF THE ACT WAS UNDERTAKEN ON 18.09.2014 ON ROHILKHA ND MEDICAL COLLEGE UNDER THEIR TRUST I.E., M/S ROHILKHAND EDUCATIONAL CHARITABLE TRUST, DIVULGED PAYMENT OF RS.5,50,000/- IN CASH BY THE AS SESSEE AS DONATION/CAPITATION FEE. DURING THE COURSE OF THE ASSESSMENT PROCEEDINGS, THE ASSESSEE SUBMITTED THAT NO CASH PAYMENT OF RS.5 ,50,000/- WAS MADE AS ALLEGED IN THE REASONS. RATHER, THE AMOUNT WAS CLA IMED TO HAVE BEEN PAID THROUGH BANKING CHANNEL. THE ASSESSEE STATED THE S OURCE OF THE AMOUNT PAID AS INCLUSIVE OF LOAN OF RS.2,40,000/- FROM LIC , THREE LOANS OF RS.50,000/-, 50,000/- AND RS.40,000/- FROM DR. RAJ KUMAR CHOBEY, SHRI ASUTOSH KUMAR RAI AND SHRI VIRENDER SINGH MALHOTRA AND THE REMAINING AMOUNT OUT OF HIS REGULAR INCOME/PAST SAVINGS. THE ASSESSING OFFICER RECORDED STATEMENTS OF THE THREE PERSONS, FROM WHOM THE ASSESSEE CLAIMED TO HAVE RECEIVED LOANS. NONE OF THEM DENIED HAVING ADVANCED LOAN TO THE ASSESSEE. STILL NOT CONVINCED, THE ASSESSING OFFICE R MADE AN ADDITION OF ITA NO.5865/DEL/2017 3 RS.5,50,000/-. THE LD. CIT(A) ECHOED THE ASSESSMEN T ORDER, AGAINST WHICH THE ASSESSEE HAS COME UP IN APPEAL BEFORE THE TRIBU NAL. 3. HAVING HEARD BOTH THE SIDES AND PERUSED THE RELE VANT MATERIAL ON RECORD, WE FIND THAT THE ASSESSEE PAID A SUM OF RS. 5,50,000/- TO THE ROHILKHAND EDUCATIONAL CHARITABLE TRUST ON ACCOUNT OF ADMISSION OF HIS WARD TO MBBS COURSE. PAGE 9 OF THE PAPER BOOK CLEA RLY EVIDENCES THAT THE PAYMENT WAS MADE THROUGH BANKING CHANNEL AND NOT IN CASH AS ALLEGED BY THE ASSESSING OFFICER IN THE REASONS RECORDED BEFOR E ISSUING NOTICE U/S 148. AS REGARDS THE SOURCE OF SUCH PAYMENT, THE ASSESSEE RECEIVED A LOAN OF RS.2,40,000/- FROM LIC OF INDIA AGAINST HIS POLICY OF RS.5 LAC. THE ASSESSEE ALSO RECEIVED THREE LOANS OF RS.50,000/-, 50,000/- AND RS.40,000/- FROM HIS ACQUAINTANCES, ALL OF WHOM APPEARED BEFORE THE ASSESSING OFFICER AND DID NOT DENY THE FACT OF HAVING ADVANCED LOANS TO THE ASSESSEE. THUS, IT IS EVIDENT THAT THE SPECIFIC SOURCE OF RS.3,80,000/ - HAS BEEN ADDUCED BY THE ASSESSEE WHICH IS GENUINE AND BONA FIDE AND THE SAME COULD NOT BE CONTROVERTED. CONSIDERING THE FACT THAT THE ASSESS EE HIMSELF IS A DOCTOR, IT IS NOT UNREASONABLE TO PRESUME THE AVAILABILITY OF RS. 1,70,000/- OUT OF HIS SAVINGS/CURRENT INCOME. CONSIDERING THE ENTIRETY O F THE FACTS AND ITA NO.5865/DEL/2017 4 CIRCUMSTANCES OF THE INSTANT CASE, WE ARE SATISFIED THAT THE ASSESSEE SUCCESSFULLY DISCHARGED THE ONUS CAST UPON HIM WITH REFERENCE TO THE SUM OF RS.5,50,000/- PAID BY HIM TO THE ROHILKHAND EDUCATI ONAL CHARITABLE TRUST. 4. IN THE RESULT, THE APPEAL IS ALLOWED. THE ORDER PRONOUNCED IN THE OPEN COURT ON 22.03.201 8. SD/- SD/ [SUCHITRA KAMBLE] [R.S. SYAL] JUDICIAL MEMBER VICE PRESIDENT DATED, 22 ND MARCH, 2018. DK COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT (A) 5. DR, ITAT AR, ITAT, NEW DELHI.