PRABHODHANKARTHAKARE VIDYALAYA,BOISAR V. ITO EXEMPTION WARD, THANE, QUERESHI MANSION, THANE

ITA 4215/MUM/2025

AI Insights

The case involves Prabhodhankarthakare Vidyalaya, a school operated by Swami Vivekananda Society, which appealed against the order of the CIT(A) confirming an addition of Rs. 57,00,695 as unexplained investments under section 69 of the Income Tax Act. The addition was based on cash deposits found in the school's bank account, which were attributed to an erroneously allotted PAN. The Tribunal noted the procedural error in the ex-parte assessment and the need for a proper examination of the society's books, which allegedly accounted for the deposits under a different PAN.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 717268 (ITAT-MUMBAI)
• Duration Of Justice: 1 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-08-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: C
• Assessment Year: 2018-2019
• Appeal Filed On: 25-06-2025
• Laws Referred To: Income Tax Act
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: VIRABHADRA S. MAHAJAN; DR
• Assessee Lawyers: BHUPENDRA SHAH; AR
• Keywords: Opportunity of being heard; Unexplained investment; Borrowed satisfaction
• Section: 69

Judgement Text

" | आयकर अपीलीय अिधकरण ा यपीठ, मुंबई | IN THE INCOME TAX APPELLATE TRIBUNAL “C” BENCH, MUMBAI BEFORE SHRI NARENDRA KUMAR BILLAIYA, HON’BLE ACCOUNTANT MEMBER & SHRI SANDEEP SINGH KARHAIL, HON’BLE JUDICIAL MEMBER I.T.A. No. 4215/Mum/2025 Assessment Year: 2018-19 Prabhodhankarthakare Vidyalaya Awadh Nagar Navapur Road Boisar, Plaghar Thane - 401501 [PAN: AACTP2855J] Vs ITO Exemption Ward, Thane अपीला थ\u0016/ (Appellant) \u0017\u0018 यथ\u0016/ (Respondent) Assessee by : Shri Bhupendra Shah, A/R Revenue by : Mr. Virabhadra S. Mahajan, Sr. D/R सुनवाई की तारीख/Date of Hearing : 11/08/2025 घोषणा की तारीख /Date of Pronouncement: 11/08/2025 आदेश/O R D E R PER NARENDRA KUMAR BILLAIYA, AM: This appeal by the assessee is preferred against the order dated 19/06/2025 by NFAC, Delhi [hereinafter the ‘ld. CIT(A)’] pertaining to AY 2018-19. 2. The grievance of the assessee reads as under:- “1. In the facts and circumstances of the case and in law, the learned CIT[A] NFAC erred in confirming the said addition ex parte by overlooking the fact this is a case inoperative PAN wrongly allotted twice and the said cash is a part of operative PAN 2. In the facts and circumstances of the case and in law, the learned Assessing Officer erred passing ex-parte order us 144B r.w.s. 147/148A r.w.s 144 a. merely on the basis of borrowed satisfaction, b. relying upon information from Insight Portal c. No asset is found above Rs 50 lac d. By overlooking the fact that this cash deposit of fees is already offered under the PAN: AAMTS4710M of Swami Vivekanand Society which is incorporating all income and expenditure of Prabhodhankarthakare Vidyalaya under the appeal. Printed from counselvise.com I.T.A. No. 4215/Mum/2025 2 3. In the facts and circumstances of the case and in law, the learned A.©. erred in adding Rs. 57.00,695/- us 69 in respect of cash deposited in bank account maintained with TJSB thereby wrongly treating the same as unexplained investments in absence of documentary evidences and without appreciating the fact that a. Although the appellant is not liable to maintain books of accounts and therefore provisions of section 69 does not apply and b. By overlooking the fact that this cash deposit of fees is already offered under the PAN AAMTS4710M of Swami Vivekanand Society which is incorporating all income and expenditure of Prabhodhamkanhakare Vidyalaya under the appeal 4. In the facts and circumstances of the case and in law, the learned A.O. erred in levying interest us 234 & initiating penalty us 201AAC and 272A(1)(d).” 3. Briefly stated the facts of the case are that the appellant is a school operated by Swami Vivekananda Society. During the year under consideration, cash deposit of fees of Rs. 57,00,695/- was found in the bank account of the school inadvertently and due to some wrong advice, PAN was allotted to school though the society running the school already had a PAN. The bank account was erroneously opened in the name of the school and since the cash was found to be deposited in the bank account having PAN of the school, the same was added as unexplained. 4. Before us, the Chairman of Swami Vivekananda Society has filed an affidavit explaining the error in the allotment of PAN and stated that the entire cash deposit of fees has been accounted in the books of the said society. 5. We have carefully perused the order of the ld. CIT(A) and the ex- parte order of the AO. Since the assessment was framed ex-parte, the assessee could not explain the errors as mentioned above. In the interest of justice and fairplay, we deem it fit to restore the issues to the file of the Printed from counselvise.com I.T.A. No. 4215/Mum/2025 3 AO. The assessee is directed to explain the deposit of cash in the bank account by showing that the same has been entered in the regular books of accounts of the society and the AO is directed to verify the same and decide the issue afresh after affording a reasonable and adequate opportunity of being heard to the assessee. 6. In the result, appeal of the assesse is allowed for statistical purposes. Order pronounced in the Court on 11th August, 2025 at Mumbai. Sd/- Sd/- (SANDEEP SINGH KARHAIL) (NARENDRA KUMAR BILLAIYA) JUDICIAL MEMBER ACCOUNTANT MEMBER Mumbai, Dated 11/08/2025 *SC SrPs *SC SrPs *SC SrPs *SC SrPs आदेश की \u0015ितिलिप अ\u001aेिषत/Copy of the Order forwarded to : 1. अपीलाथ / The Appellant 2. \u0015 थ / The Respondent 3. संबंिधत आयकर आयु\" / Concerned Pr. CIT 4. आयकर आयु\" ) अपील ( / The CIT(A)- 5. िवभागीय \u0015ितिनिध ,आयकर अपीलीय अिधकरण, मुंबई /DR,ITAT, Mumbai, 6. गाड& फाई/ Guard file. आदेशानुसार/ BY ORDER TRUE COPY Assistant Registrar आयकर अपीलीय अिधकरण ITAT, Mumbai Printed from counselvise.com "