TMI Blog2013 (7) TMI 484X X X X Extracts X X X X X X X X Extracts X X X X ..... es treating it to be the amount spent on constructions of building, as alleged in twelve days. Such amount can be added to the income of the directors in their individual capacity. The Commissioner of Income Tax can also on these findings give show cause notice and cancel the registration of the society granted under Section 12AA of the Income Tax Act, and withdrawn exemption - Decided against the revenue. - Income Tax Appeal No. -118 of 2011 - - - Dated:- 10-7-2013 - Hon'ble Sunil Ambwani And Hon'ble Surya Prakash Kesarwani,JJ. For the Appellant : A. N. Mahajan (S.S.C.),Shambhoo Chopra For the Respondent : Rahul Agrawal ORDER We have heard Shri Shambhu Chopra, learned counsel for the income tax department. Shri Rahul Agra ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... A) and in which expenditure of Rs.21,29,630/- was not shown to have been spent in bonafide manner. The A.O. found that the construction of the building was given to ICE Construction Co., Aligarh in which Directors of the exempt educational institution were partners. The building was shown to have been constructed within 12 days with large amount of donations. The A.O. raised doubts on the acceptance of donations by society from donors through third party. The Assessing Officer also found that land on which building is constructed is in the name of Shashi Bala Sharma, the person specified under Section 13 (2) of the Act. The constructions of the building in the name of Shashi Bala Sharma benefit her individually. The A.O. assessed the income ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion under Section 11 does not require adjudication. We find that the Tribunal has not committed any error in recording this finding that so long as exemption stands, assessment order on the basis that the petitoner could not explain expenditure could not have been framed. If the donations are questioned as doubtful and the amount advanced by the society is found to have benefitted the directors individually through bogus advances treating it to be the amount spent on constructions of building, as alleged in twelve days. Such amount can be added to the income of the directors in their individual capacity. The Commissioner of Income Tax can also on these findings give show cause notice and cancel the registration of the society granted und ..... X X X X Extracts X X X X X X X X Extracts X X X X
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