M/s Koutuv Technological Foundation, Bhubaneswar V. ITO, Bhubaneswar

ITA 99/CTK/2013

• Counselvise Citation: [2014] 140 COUNSELVISE.COM (IT) 81446 (ITAT-CUTTACK)
• Duration Of Justice: 1 year(s) 8 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-10-2014
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 14-10-2014
• Assessment Year: 2008-2009
• Appeal Filed On: 14-02-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S C MOHANTY
• Keywords: Unexplained cash credit; Charitable institution
• Section: 12A; 27

Judgement Text

1 I .T.A. NO.99/CTK/2013 ASSESSMENT YEAR: 2008-2009 IN THE INCOME TAX APPELLATE TRIBUNAL, CUTTACK BENCH , CUTTACK BEFORE S/SHRI S.V.MEHROTRA (AM) AND GEORGE MATHAN (JM) I.T.A. NO.99/CTK/2013 ASSESSMENT YEAR: 2008-2009 M/S. KOUSTUV TECHNOLOGICAL FOUNDATION, PLOT NO.N2/17, IRC VILLAGE, NAYAPALLI, BHUBANESWAR-751 015 PA NO.AABTK 2576J VS ITO, WARD - 2(1), BHUBANESWAR. APPELLANT RESPONDENT FOR THE APPELLANT: NONE FOR THE RESPONDENT: SHRI S.C.MOHANTY DATE OF HEARING: 14/10/.2014 DATE OF PRONOUNCEMENT: 16 /10/2014 ORDER PER S.V.MEHROTRA, AM THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAIN ST ORDER DATED 15.11.2012 OF LD CIT(A), CUTTACK FOR THE ASSESSMENT YEAR 2008-09. 2. THE ASSESSEE IS AGGRIEVED BY THE CONFIRMATION OF PENALTY OF RS.20,154/- MADE UNDER SECTION 271(1)(C) OF THE ACT. 3. NONE APPEARED ON BEHALF OF THE ASSESSEE. HOWEVE R, ASSESSEE HAS FILED AN ADJOURNMENT APPLICATION DATED 13.10.2014, WHICH IS REJECTED. W E, ACCORDINGLY, PROCEED TO DECIDE THE APPEAL OF THE ASSESSEE EXPARTE QUA ASSESSEE AFTER HEARING LD D.R. 4. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE, A PUBLIC CHARITABLE TRUST IS DULY REGISTERED UNDER SECTION 12A OF THE ACT. IT RUNS EDUCATIONAL INSTITUTION AND IMPARTS COMPUTER AND MANAGEMENT COURSE TO THE STUDENTS. ASSESSEE HAD FI LED RETURN OF INCOME DECLARING TOTAL INCOME AT NIL. THE AO COMPLETED THE ASSESSMENT AT A TOTAL INCOME OF RS.2,28,794/-. THE AO ALSO INITIATED PENALTY PROCEEDINGS UNDER SECTION 27 1(1)(C) OF THE ACT ON THE GROUND THAT RECEIPTS 2 I .T.A. NO.99/CTK/2013 ASSESSMENT YEAR: 2008-2009 PERTAINING TO THE DONATIONS RECEIVED FROM THE PERSO NS MENTIONED AT SL.NO.16,17,63 TO 67, 111 TO 113, 206 TO 209, 334, 379, 398, 510 TO 519 WERE NOT PRODUCED BY THE ASSESSEE FOR VERIFICATION ON THE GROUND THAT RECEIPTS WERE MISSI NG. THEREFORE, AO TREATED THESE DONATIONS AS UNEXPLAINED CASH CREDITS. AO LEVIED PENALTY OF RS. 20,154/- ON THIS ACCOUNT. LD CIT(A) DISMISSED THE ASSESSEES APPEAL. BEING AGGRIEVED, ASSESSEE IS IN APPEAL BEFORE US. 5. WE HAVE CONSIDERED THE SUBMISSIONS OF LD D.R. AN D PERUSED THE RECORD OF THE CASE. THE ADDITION HAD BEEN CONFIRMED BECAUSE NECESSARY EVIDE NCE OF DONATIONS WERE NOT AVAILABLE AND CERTAIN COUNTER FOLIOS OF RECEIPTS WERE MISSED WHIC H COULD NOT BE LOCATED READILY FOR PRODUCTION BEFORE THE AO BUT THAT WOULD NOT BE SUFFICIENT FOR LEVYING PENALTY. IT IS NOT A CASE WHERE ENTIRE AMOUNT HAS BEEN ADDED BUT ONLY CERTAIN AMOUNTS I.E. RS.2,40,000/- OUT OF TOTAL AMOUNT OF CORPUS DONATION OF RS.51,49,385/-. ASSESSEE HAD SU BSTANTIATED THE PROOF OF IDENTITY OF DONORS BUT ONLY COULD NOT PRODUCE RECEIPTS OF DONATIONS. UNDER SUCH CIRCUMSTANCES, THE BONAFIDE OF ASSESSEES CLAIM CANNOT BE DOUBTED. IT IS SETTLED POSITION THAT MERELY BECAUSE THE ADDITION HAS BEEN MADE, IT CANNOT AUTOMATICALLY LEAD TO LEVY OF PENALTY. WE ACCORDINGLY DELETE THE PENALTY OF RS.20,154/- MADE UNDER SECTION 271(1)(C) OF TH E ACT. 6. IN THE RESULT, APPEAL FILED BY THE ASSESSEE IS A LLOWED. SD/- SD/- ( GEORGE MATHAN) (S.V.MEHROTRA) JUDICIAL MEMBER ACCOU NTANT MEMBER DATED, CUTTACK 16 /10/2014 B.K.PARIDA, SR. PS COPY OF THE ORDER FORWARDED TO: 1. THE APPELLANT: M/S. KOUSTUV TECHNOLOGICAL FOUNDAT ION,PLOT NO.N2/17, IRC VILLAGE, NAYAPALLI, BHUBANESWAR-751 015 2. THE RESPONDENT: ITO, WARD-2(1),BHUBANESWAR 3. THE CIT, BHUBANESWAR 4. THE CIT(A), BHUBANESWAR 5. DR, CUTTACK BENCH 6. GUARD FILE. TRUE COPY// BY ORDER ASST. REGISTRAR, ITAT, CUTTACK 3 I .T.A. NO.99/CTK/2013 ASSESSMENT YEAR: 2008-2009