9911796707
TMI Blog2012 (6) TMI 542X X X X Extracts X X X X X X X X Extracts X X X X ..... l ('Tribunal', for short) had deleted the addition of Rs. 88,32,845/- made by the Assessing Officer holding, inter alia, that the aforesaid amount by virtue of Section 2(24)(iia) was already included in the income of the assessee and therefore, addition as income from undisclosed sources is not justified. 2. Having heard counsel for the parties we frame the following substantial question of law: - "Whether Income Tax Appellate Tribunal was right in deleting the addition of Rs. 88,32,845/- made by the Assessing Officer and holding that Section 68 is not applicable?" 3. As we heard counsel for the parties we will proceed to pronounce ou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Over income 310 5005000 5005000 In the balance sheet as on 31-3-2003 the assessee has shown the opening balance of corpus fund at Rs. 49,05,000/-. Bank statement of the assessee obtained from the Andhra Bank reflects no such credits of cheques amounting to Rs. 50,00,000/- as shown by the assessee in the earlier years balance sheet. When asked about the discrepancy, the assessee vide its letter stated that the previous year cheques in hand of Rs. 50 lacs has been returned back to the party in this year. It means the assessee has received corpus donation of Rs. 88,32,845/-. (sic.) during this year only. The assessee was asked to furnish the details of corpus d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dited from the opening till 31.3.2003 was Rs. 61,52,545/- including Rs. 4,00,000/-deposited in cash. He further observed that the credit amount of Rs. 61,52,545/- did not explain the corpus donation of Rs. 88,32,845/- and also did not explain the source of payment for the purchase of land and the expenses incurred towards professional payment. The Assessing Officer recorded that the bank statement of M/s CGS Mani Charitable Trust had been obtained. He observed that they did not have sufficient funds and an amount of Rs. 49,39,926/- was received by way of pay order dated 2.7.2002 and an amount of Rs. 49,00,000/- was allegedly paid as donation to the respondent-assessee on the same date. Summons under Section 131 was issued to M/s CGS Mani Ch ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... osed its donations, but had also submitted a list of donors. The fact that the complete list of donors was not filed or that the donors were not produced, does ITA No.3950/Del./2007 (A.Y.2003-04) not necessarily lead to the inference that the assessee was trying to introduce unaccounted money by way of donation receipts. This is more particularly so in the facts of the case where admittedly more than 75 per cent of the donations were applied for charitable purposes. Section 68 has no application to the facts of the case because the assessee had in fact disclosed the donations of Rs. 18,24,200 as its income and it cannot be disputed that all receipts, other than corpus donations, would be income in the hands of the assessee. There was, there ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Andhra Bank 606585 General Fund Opening Balance 310 Add: Excess of Expenditure Over income 650 960 8832845 8832845 8. The findings recorded by the Tribunal in the impugned order,which has been quoted above are therefore, partly factually incorrect and cannot be sustained. As noticed above the order of the tribunal is bereft of reasoning, consideration and is cryptic. In view of the above position we allow the present appeal and answer the aforesaid questio ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
