TMI Blog2011 (10) TMI 466X X X X Extracts X X X X X X X X Extracts X X X X ..... sclosed or used for personal use of trustees or their relatives”. - Held that:- the mere fact that the quantum additions have been confirmed per se does not imply that this explanation cannot be treated as acceptable for the penalty purposes either. Thus penalty was not levied. Tax effect does not exceed CBDT instructions - Revenue authorities not justified to appeal - ITA No. 6792 and 6793 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt year 1990-91. 2. The assessee before us is an educational society, registered as a trust with the Charity Commissioner and also as a charitable institution under section 12A of the Act. The assessee runs certain schools recognized by the Government of Maharashtra and is affiliated to the Maharashtra State of Secondary and Higher Secondary Education, Pune. So far as assessment year 1989-90 is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... spect of the unexplained payment of Rs 5,65,000 to one Balan. The explanation of the assessee was materially the same and it was rejected by the Assessing Officer. Aggrieved, assessee carried the matter in appeal before the CIT(A). In appeal, the CIT(A) noted that the disclosure was duly given in respect of the donation, and that, so far as the unexplained expenditure is concerned, the assessee ha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , the Managing Trustee, it is seen that it is practice of the assessee to collect donations. Out of this, only 60% are shown as income and 40% not disclosed. This undisclosed income is utilized either for giving advances to builders which is also undisclosed or used for personal use of trustees or their relatives . In this view of the matter, there cannot be any infirmity in such an explanation of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... also, challenge to CIT(A) s findings for the assessment year 1990-91 is devoid of any legal merits. In view of these discussions, as also bearing in mind entirety of the case, we approve the conclusions arrived at by the CIT(A) and decline to interfere in the matter. 5. In the result, the appeals are dismissed. Pronounced in the open court today on 21st day of October, 2011. - - TaxTMI - TMI ..... X X X X Extracts X X X X X X X X Extracts X X X X
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