Rajinder Singh Makkar, New Delhi V. ITO ward-45(1), New Delhi

ITA 7140/DEL/2019

• Counselvise Citation: [2021] 107 COUNSELVISE.COM (IT) 6089 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-09-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2011-2012
• Appeal Filed On: 29-08-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Charitable institution; Opportunity of being heard
• Section: 144

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH SMC, NEW DELHI BEFORE SH. N. K. BILLAIYA, ACCOUNTANT MEMBER (THROUGH VIDEO CONFERENCING) ITA NO.7140/DEL/2019 ASSESSMENT YEAR: 2011-12 GURUDWARA SHRI SINGH SABHA, F-106, BALI NAGAR, RAJA GARDEN, NEW DELHI PAN NO. AAAAG8272H VS ITO WARD 45 (1) NEW DELHI (APPELLANT) (RESPONDENT) APPELLANT BY SHRI GURJEET SINGH, CA RESPONDENT BY SHRI. R. K. GUPTA, SR. DR DATE OF HEARING: 14/09/2021 DATE OF PRONOUNCEMENT: 14/09/2021 ORDER PER N. K. BILLAIYA, AM: THIS APPEAL BY THE ASSESSEE IS PREFERRED AGAINST T HE ORDER OF THE CIT(A)-15, DELHI DATED 07.06.2019 PERTAINING TO A.Y. 2011-12. 2. THE GRIEVANCE OF THE ASSESSEE READ AS UNDER :- 1. THE LEARNED ASSESSING OFFICER HAS ERRED TO PASS ORD ER IN HURRY ON 04/12/2018 ITSELF THOUGH THE CASE IS TIME BARRED ON 31/12/2018 2. THE LEARNED ASSESSING OFFICER HAS ERRED TO CONSIDER THE 2 INCOME TAX RETURN FILED BY THE ASSESSEE ON 16/11/20 18, WHILE PASSING ORDERS UNDER SECTION 144 OF THE INCOM E TAX ACT, 1961 3. THE LEARNED ASSESSING OFFICER HAS ERRED IN ORDER, T HOUGH HE HAS FULL KNOWLEDGE OF THE FACT ABOUT THE NATURE OF ACTIVITIES OF THE ASSESSEE GURUDWARA, AS HE HAD ALREADY MENTIONED ABOUT THE SAME IN SERIAL NO. 4.2 OF THE ORDER THAT THE ASSESSEE IS A RELIGIOUS INSTITUTION/PLACE AND ACTED AS A GURUDWARA IN BALI NAGAR, NEW DELHI-110015 AND THE A MOUNT RECEIVED AS CHARITY & DONATIONS FROM THE DEVOTEES. IT MEANS HE HAS FULL KNOWLEDGE OF THE ACTIVITIES OF THE ASSE SSEE GURUDWARA, WHERE DEVOTEES PAY IN CASH THROUGH RECEI PT(S) AND/OR GULLAKS/DONATION BOXES SITUATED/KEPT AT VARI OUS PLACES IN THE GURUDWARAS AND AMOUNT COLLECTED FROM THE SAME WAS DEPOSITED IN BANK FROM TIME TO TIME. 4. THE LEARNED ASSESSING OFFICER HAS ERRED TO PASS ORD ER WITHOUT CONSIDERING THE PROVISIONS OF SECTION 23BBA OF THE INCOME TAX ACT,1961 INCOME ARISING TO ANY BODY OR AUTHORITY ESTABLISHED, CONSTITUTED OR APPOINTED UNDER ANY ENA CTMENT FOR THE ADMINISTRATION OF PUBLIC, RELIGIOUS OR CHAR ITABLE TRUSTS OR ENDOWMENTS OR SOCIETIES FOR RELIGIOUS OR CHARITA BLE PURPOSES 5. THE LEARNED ASSESSING OFFICER HAS ERRED TO INCLUDE THE WHOLE AMOUNT OF CASH AS WELL AS CHEQUE(S) OF RS. 13,29, 9 96.00 AS INCOME OF THE ASSESSEE AT THE TIME OF ASSESSMENT 6. THE LEARNED ASSESSING OFFICER HAS ERRED FOR NOT ALL OWING THE 3 INTRA HEAD ADJUSTMENT(S) OF VARIOUS HEADS OF INCOME UNDER SECTION 70 OF THE INCOME TAX ACT, 1961 3. BRIEFLY STATED THE FACTS OF THE CASE ARE THAT TH E APPELLANT IS A RELIGIOUS INSTITUTION/ PLACE AND ACTED AS A GURUDWA RA, BALI, NEW DELHI. 4. THE RETURN FOR THE YEAR UNDER CONSIDERATION WAS SELECTED FOR SCRUTINY ASSESSMENT. DURING THE COURSE OF THE SCRUT INY ASSESSMENT PROCEEDINGS THE AO NOTICED THAT CERTAIN CASH DEPOSITS IN THE BANK ACCOUNTS. THE ASSESSEE WAS ASKED TO EX PLAIN THE SOURCE OF THE CASH DEPOSITED IN THE BANK. ON RECEI VING NO PLAUSIBLE REPLY THE AO MADE THE ADDITION ON ACCOUNT OF UNEXPLAINED MONEY DEPOSITED IN THE BANK ACCOUNT. T HE AO FURTHER MADE ADDITION ON ACCOUNT OF UNDISCLOSED INT EREST INCOME. 5. ASSESSEE AGITATED THE MATTER BEFORE THE CIT(A) B UT FOR SOME REASON THE APPELLATE PROCEEDINGS WERE NOT ATTENDED AND THE CIT(A) FRAMED AN EXPARTE APPELLATE ORDER DRAWING SU PPORT FROM THE DECISION OF THE HONBLE MADHYA PRADESH HIGH COU RT IN THE CASE OF ESTATE OF LATE TUKOJIRAO HOLKAR 223 ITR 480 . THE CIT(A) FURTHER OBSERVED THAT THE ASSESSEE HAS NOTHING TO E XPLAIN AND IS NOT SERIOUS ENOUGH IN PURSUING THE APPEAL. THE CIT (A) CONFIRMED THE ADDITION MADE BY THE AO. 4 6. BEFORE ME THE COUNSEL STATED THAT FOR SOME REASO NS THE ASSESSEE COULD NOT ATTEND THE APPELLATE PROCEEDINGS . IT IS THE SAY OF THE COUNSEL THAT THE ASSESSEE HAS COMPLETE THE D ETAILS EXPLAINING THE SOURCE OF CASH DEPOSITED IN THE BANK AND PRAYED FOR ONE MORE OPPORTUNITY TO EXPLAIN THE CASE. 7. THE DR DID NOT RAISE ANY OBJECTION TO THIS. 8. I HAVE CAREFULLY CONSIDERED THE ORDERS OF THE AU THORITIES BELOW. IT IS TRUE THAT THE ASSESSEE IS A RELIGIOUS INSTITUTION ACTING AS A GURUDWARA. SECTION 23 BBA OF THE ACT PROVIDES THAT INCOME ARISING TO ANY BODY OR AUTHORITY ESTABLISHED, CONST ITUTED OR APPOINTED UNDER ANY ENACTMENT FOR THE ADMINISTRATIO N OF PUBLIC, RELIGIOUS OR CHARITABLE TRUSTS OR ENDOWMENTS OR SOC IETIES FOR RELIGIOUS PURPOSES. IN THE LIGHT OF THIS PROVISION AND IN THE INTEREST OF JUSTICE I RESTORE THE APPEAL TO THE FIL ES OF THE CIT(A). THE ASSESSEE IS DIRECTED TO SUBMIT ALL THE RELEVANT / NECESSARY DOCUMENTS IN SUPPORT OF ITS CLAIM AND THE CIT(A) IS DIRECTED TO DECIDE THE ISSUES FRESH AFTER GIVING A REASONABLE A ND SUFFICIENT OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. 9. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSE. 5 10. DECISION ANNOUNCED IN THE OPEN COURT IN THE PRE SENCE OF BOTH THE REPRESENTATIVES ON 14.09.2021. SD/- (N. K. BILLAIYA) ACCOUNTANT MEMBER *NEHA* DATE:-14.09.2021 COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT ASSISTANT REGI STRAR ITAT NEW DELHI DATE OF DICTATION 14.09.2021 DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER 14.09.2021 DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE OTHER MEMBER 14.09.2021 DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR.PS/PS 14.09.2021 DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE DICTATING MEMBER FOR PRONOUNCEMENT 14.09.2021 DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR. PS/ PS 14.09.2021 DATE ON WHICH THE FINAL ORDER IS UPLOADED ON THE WEBSITE OF ITAT 14.09.2021 DATE ON WHICH THE FILE GOES TO THE BENCH CLERK 14.09.2021 DATE ON WHICH FILE GOES TO THE HEAD CLERK. THE DATE ON WHICH FIL E GOES TO THE ASSISTANT REGISTRAR FOR SIGNATURE ON THE ORDER DATE OF DISPATCH OF THE ORDER