Kille Panhala Gad Shikshan Sanstha, Kolhapur V. Assistant Commissioner of Income-Tax, Central Circle, Kolhapur

ITSSA 44/PUN/2022

AI Insights

The case involves Kille Panhala Gad Shikshan Sanstha, a society incorporated under the Maharashtra Societies Act, which was subjected to search and seizure operations under section 132 of the Income Tax Act on August 25-26, 2011. Incriminating documents found during these operations led to the issuance of a notice under section 142(1) on August 2, 2013, requiring the appellant to file a return of income. The appellant filed a return declaring nil income after claiming exemption under section 11 of the Act. However, the Assessing Officer added Rs.10,00,000 to the income based on the documents, which was later enhanced to Rs.56,07,900 by the CIT(A) due to non-responsiveness of the appellant to further notices. The Tribunal dismissed the appeal, agreeing with the CIT(A)'s findings on unexplained expenditures.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 137110 (ITAT-PUNE)
• Duration Of Justice: 7 month(s) 3 day(s)
• Appeal Type: Income Tax (Search & Seizure) Appeal
• Pronouncement Date: 18-01-2023
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 09-01-2023
• Assessment Year: 2012-2013
• Appeal Filed On: 14-06-2022
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Keywords: Search and seizure
• Section: 132; 11; 143(3); 142(1); 153C

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH “A”, PUNE BEFORE SHRI INTURI RAMA RAO, ACCOUNTANT MEMBER AND SHRI S. S. VISWANETHRA RAVI, JUDICIAL MEMBER आयकर अपील सं. / IT(SS)A No.44/PUN/2022 िनधाᭅरण वषᭅ / Assessment Year : 2012-13 Kille Panhala Gad Shikshan Sanstha, 17-E, Shiv Parvati, Nagala Park, Kolhapur- 416003. PAN : AAATK5838L Vs. ACIT, Central Circle, Kolahpur. Appellant Respondent आदेश / ORDER PER INTURI RAMA RAO, AM: This is an appeal filed by the assessee directed against the order of ld. Commissioner of Income Tax (Appeals)- 11, Pune [‘the CIT(A)’] dated 09.03.2022 for the assessment year 2012-13. 2. Briefly, the facts of the case are that the appellant is a society incorporated under the provisions of Maharashtra Societies Act. It was formed for the purpose of imparting the education. The search and seizure operations were conducted u/s 132 on 25.08.2011 and 26.08.2011 in the residential as well as business premises of one Assessee by : Adjournment Application (Rejected) Revenue by : Shri Keyur Patel Date of hearing : 10.01.2023 Date of pronouncement : 19.01.2023 IT(SS)A No.44/PUN/2022 2 Shri Ramchandra Maruti Mohite. During the course of such search and seizure operations, certain incriminating documents pertaining to the appellant were stated to have been found and based on these incriminating materials, a notice u/s 142(1) dated 02.08.2013 was issued calling upon the appellant to file the return of income. In response to the said notice, the appellant filed the return of income on 27.03.2014 declaring Rs.Nil income after claiming exemption of income u/s 11 of the Act. Against the said return of income, the assessment was completed by the Asstt. Commissioner of Income Tax, (Central) Circle, Kolhapur (‘the Assessing Officer’) vide order dated 28.03.2014 passed u/s 143(3) r.w.s. 153C of the Income Tax Act, 1961 (‘the Act’) at total income of Rs.10,00,000/- based on the material found in the premises of said Shri Ramchandra Maruti Mohite pertaining to the appellant. It is stated that the certain loose papers related to the miscellaneous expenses decoded details to the project, building, four international schools, which indicated the incurring of expenditure outside the books of account remain unexplained. Accordingly, the Assessing Officer made addition of Rs.10,00,000/-. 3. Being aggrieved by the above addition, an appeal was filed before the ld. CIT(A), who vide impugned order enhanced the IT(SS)A No.44/PUN/2022 3 addition of Rs.56,07,900/- on the ground that despite several opportunities given to the appellant, the appellant had failed to respond to such notices. In the circumstances, the ld. CIT(A) while confirming the assessment order enhanced addition by Rs.56,07,900/-. 4. Being aggrieved, the appellant is in appeal before us in the present appeal. 5. When the matter was called on, none appeared on behalf of the appellant-assessee despite due service of notice of hearing. Therefore, we proceed to decide the issue in appeal after hearing the ld. CIT-DR. 6. We have carefully gone through the order passed by the ld. CIT(A). We find that the ld. CIT(A) had analyzed the notings found in the loose sheets during the course of search and seizure operations in the premises of said Shri Ramchandra Maruti Mohite and gave a finding that the assessee had incurred unexplained expenditure on the construction of building belonging to the appellant, in absence of any plausible explanation from the assessee, the ld. CIT(A) confirmed the addition of Rs.66,07,900/-. Thus, we find that the order of the ld. CIT(A) is just, proper and reasonable IT(SS)A No.44/PUN/2022 4 and does not warrant any interference by us. Accordingly, we do not find any merit in the ground of appeal filed by the assessee. 7. In the result, the appeal filed by the assessee stands dismissed. Order pronounced on this 19 th day of January, 2023. Sd/- Sd/- (S. S. VISWANETHRA RAVI) (INTURI RAMA RAO) JUDICIAL MEMBER ACCOUNTANT MEMBER पुणे / Pune; ᳰदनांक / Dated : 19 th January, 2023. Sujeet आदेश कᳱ ᮧितिलिप अᮕेिषत / Copy of the Order forwarded to : 1. अपीलाथᱮ / The Appellant. 2. ᮧ᭜यथᱮ / The Respondent. 3. The CIT(A)-11, Pune. 4. The Pr. CIT (Central), Pune. 5. िवभागीय ᮧितिनिध, आयकर अपीलीय अिधकरण, “A” बᱶच, पुणे / DR, ITAT, “A” Bench, Pune. 6. गाडᭅ फ़ाइल / Guard File. आदेशानुसार / BY ORDER, // True Copy // Senior Private Secretary आयकर अपीलीय अिधकरण, पुणे / ITAT, Pune.