JADSTONE TRADING PRIVATE LIMITED, MUMBAI V. ITO 10(2)(1), MUMBAI

ITA 6628/MUM/2018

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 1747 (ITAT-MUMBAI)
• Duration Of Justice: 6 month(s) 20 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-06-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2014-2015
• Appeal Filed On: 22-11-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: CHAITANYA ANJARIA
• Assessee Lawyers: UMANG SHAH
• Keywords: Charitable institution; Set aside
• Section: 132

Judgement Text

T HE INCOME TAX APPELLATE TRIBUNAL SMC BENCH, MUMBAI BEFORE SHRI SHAMIM YAHYA ( A M) I.T.A. NO. 7143 /MUM/ 201 8 (ASSESSMENT YEAR 20 13 - 14 ) I.T.A. NO. 6628/MUM/2018 (ASSESSMENT YEAR 2014 - 15) JADSTONE TRADING PVT. LTD. 302, 3 RD FLOOR VAASTU DARSHAN AZAD ROAD, ANDHERI EAST, MUMBAI - 400069. PAN : AACCJ0024C V S . ITO 10(2)(1) MUMBAI. ( APPELLANT ) ( RESPONDENT ) ASSESSEE BY SHRI UMANG SHAH DEPARTMENT BY SHRI CHAITANYA ANJARIA DATE OF HEARING 10.6 . 201 9 DATE OF PRONOUNCEMENT 12 . 6 . 201 9 O R D E R THESE ARE APPEALS BY THE ASSESSEE AGAINST RESPECTIVE ORDERS OF LEARNED COMMISSIONER OF INCOME TAX APPEALS FOR ASSESSMENT YEARS 2013 - 14 AND 2014 - 15 RESPECTIVELY WHEREIN IN LEARNED COMMISSIONER OF INCOME TAX HAS SUSTAINED THE ADDITION OF RS. 500,000 E ACH, BEING DONATION SAID TO BE BOGUS . 2. BRIEF FACTS OF THE CASE ARE THAT THERE WAS A SURVEY ACTION UNDER SECTION 132 OF THE INCOME TAX ACT ON NAUJEEVAN C HARITABLE T RUST ON 27/10/2014. IN THE SEARCH ACTION IT WAS FOUND THAT THE SAID TRUST WAS BOO KING BOGU S EXPENDITURE. ONE OF THE TRUSTEES HAS ALSO ACCEPTED THE SAME. ASSESSEE WAS FOUND TO HAVE GIVEN DONATION TO THE SAID TRUST. UPON THIS INFORMATION THE ASSESSING OFFICER REOPENED THE ASSESSMENT OF THE ASSESSEE . I T WAS HELD THAT ASSESSEE HAS GIVEN DONATION TO THE SAID CONCERN WHICH WAS NOT GENUINE. INITIALLY ONE OF THE DIRECTOR S OF THE FIRM ACCEPTED THE SAME TO BE BOGUS. HOWEVER LATER ON THE SAME WAS RETRACTED. HOWEVER THE ASSESSING OFFICER RELYING UPON THE FINDING OF THE INVESTIGATION WING IN THE CASE OF T HE SAID CHARITABLE TRUST MA DE THE IMPUGNED ADDITION OF RS. 500,000 EACH WHICH WAS CLAIMED BY 2 THE ASSESSEE AS DONATION. UP ON ASSESSEES APPEAL LEARNED CIT - A CONFIRMED THE ADDITION. 3. AGAINST THIS ORDER ASSESSEE IS IN APPEAL BEFORE THE ITAT. 4. I HAVE HEA RD BOTH THE COUNSEL AND PERUSED THE RECORDS. ASSESSEE HAS CHALLENGED THE ADDITION ON VARIOUS GROUNDS. HOWEVER THE MAIN ISSUE REMAINS THAT THE CHALLENGE TO THE ADDITION OF RS.500,000 BEING GIVEN TO CHARITABLE TRUST AS DONATION ON THE GROUND THAT ON THE SEA RCH OF THE SAID CHARITABLE TRUST IT HAS BEEN FOUND THAT IT HAS BEEN INCURRING ONLY BOGUS EXPENDITU RE. THIS LED TO THE PRESUMPTION OF THE ASSESSING OFFICER THAT THE SAID SUM OF RS.500,000 HAS ACTUALLY COME TO THE ASSESS EE CLANDESTINELY . IN MY CONSIDERED O PINION IT IS UNDISPUTED THAT ASSESSEE HAS SUBMITTED THE RECEIPT FOR THE DONATION. THE SAME HAS BEEN PAID BY BANKING CHANNEL. THERE IS NO EVIDENCE ON RECORD THAT THE SAME AMOUNT HAS BEEN RECEIVED BACK BY THE ASSESSEE FROM THE SAID CHARITABLE TRUST. IN THESE CIRCUMSTANCES IN MY CONSIDERED OPINION THIS ADDITION IS SOLELY BASED ON SURMISE AND CONJECTURE AND NOT SUSTAINABLE IN LAW. ACCORDINGLY I SET ASIDE THE ORDERS OF AUTHORITIES BELOW AND DELETE THE ADDITION. 5. IN THE RESULT, THE ASSESSEES APPEAL STANDS AL LOWED ORDER HAS BE EN PRONOUNCED IN THE COURT ON 12 . 6 . 201 9 . SD/ - (SH A MIM YAHYA ) ACCOUNTANT MEMBER MUMBAI ; DATED : 12 / 6 / 20 1 9 COPY OF THE ORDER FORWARDED TO : 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT(A) 4. CIT 5. DR, ITAT, MUMBAI 3 6. GUARD FILE. BY ORDER, //TRUE COPY// ( ASSISTANT REGISTRAR ) PS ITAT, MUMBAI