TMI Blog2012 (6) TMI 542X X X X Extracts X X X X X X X X Extracts X X X X ..... and the credit amount of ₹ 61,52,545/- did not explain the corpus donation of ₹ 88,32,845/- and also did not explain the source of payment for the purchase of land and the expenses incurred towards professional payment AND considering the bank statement of M/s CGS Mani Charitable Trust depicts that they did not have sufficient funds and an amount of ₹ 49,39,926/- was received by way of pay order dated 2.7.2002 and an amount of ₹ 49,00,000/- was allegedly paid as donation to the assessee on the same date - Findings recorded by the Tribunal in the impugned order are partly factually incorrect and cannot be sustained - the order of the tribunal is bereft of reasoning, consideration and is cryptic - in favour of the appe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 20.3.2006 made addition of Rs. 88,32,845/- under Section 68 of the Act after noticing that the assessee had allegedly received donation of Rs. 49,00,000/- from CGS Maini Charitable Trust and another amount of Rs. 7,17,145/- from Mrs. Larissa Mani, a Non-Resident Indian. 5. The aforesaid addition was affirmed by CIT(Appeals), but has been deleted by the tribunal. To consider the contentions raised, we reproduce the factual findings, recorded by the Assessing Officer, which read: - "During the year under consideration, the assessee claimed to have received corpus donation of Rs.39,27,845/- as per the copy of the balance sheet as on 31-3-2003. The audited balance sheet of the earlier Assessment Year (2002-03) available in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 18-1-2006. The assessee appeared on 27-1-2006 furnished copy of Bank statement copy of instrument through which the property was acquired, but no information/confirmation/ details furnished in respect of addition of Rs. 88,32,845/- in the corpus fund. The assessee was again asked to furnish the details of corpus donation with evidence and the case was adjourned for 13-2-2006. None appeared on that date, nor any application was moved for adjournment. Notices u/s 143(2) 142(1) were issued asking the assessee to furnish the following information :- 1. Details of addition to corpus fund during the year, giving the Name, complete address, amount, mode of payment of receipt etc. 2. Confirmation giving PAN, Ward No.etc. in resp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... st was offered as income as is evident form (sic.) the income and expenditure account of the trust. It was by virtue of section 2(24)(iia) of the Act and, therefore, adding the same amount again as income from undisclosed sources is not justified and that too stating that the assessee had not explained the sources for the acquisition of property. The source of the acquisition of the property is the corpus donation which has been offered by the assessee as income u/s 2(24)(iia) of the Act and which has also been assessed to tax. In these circumstances, in our opinion, section 68 has no application and the addition is to be deleted. The case of the assessee also seems to be covered by the decision of the Hon'ble Delhi High Court in the case o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... [2005] 278 ITR 152/146 Taxman 569 (Delhi) is only one aspect which the Tribunal has to keep in mind. Several other aspects, which have been referred to by the Assessing Officer, have not been examined by the Tribunal. We may also record that the Revenue has filed before us copy of the income-expenditure account as on 31.3.2003, which read as under: - "Expenditure Amount Income Amount To Bank Charges 650 By Income 0 By Excess of Expenditure Over Income 650 650 650 " The balance sheet of the respondent as on 31.3.2003 filed before the Assessing Officer was as under: - "Liab ..... X X X X Extracts X X X X X X X X Extracts X X X X
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