TMI Blog2012 (3) TMI 539X X X X Extracts X X X X X X X X Extracts X X X X ..... 4. The appellant requests for leave to add or amend or alter the grounds of appeals before the appeal is heard and disposed of. 3. The Revenue has raised following grounds of appeal in ITA No.385(Asr)/2011 for the A.Y. 2009-09: 1. That on the facts and circumstances of the case, the ld. CIT(A) has erred in law in deleting the addition of ₹ 61,21,800/- made by the Assessing Officer by disallowing expenditure incurred for performance of the Akhand Path. 2. While doing so, Ld. CIT(A) has failed to appreciate that the expenditure on Akhand Path was disallowed by the Assessing Officer after examining the accounting method of the assessee and also pointed out numerous defects. 3. It is prayed that the order of the ld. CIT(A) be set aside and that of the A.O. restored. 4. The appellant requests for leave to add or amend or alter the grounds of appeals before the appeal is heard and disposed of. 4. Both the appeals are being taken by this consolidated order since the issue involved in both the appeals is on identical facts. 5. First of all, we take up appeal of the Revenue in ITA No.382(Asr)/2011 for the assessment year 2007-08. The brief facts as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... m of ₹ 27,60,300/- made by you in the return of income./ Your explanation if any should reach in the office of the undersigned on 22.12.2009 at 11.00 A.M. The perusal of the receipts reveals that the major chunk of the same gets constituted by receipts of general nature which on the face of it are in the nature of donation as the devotees have not placed any condition for performance of Akhand Path while donating the preprinted amount of ₹ 1000/- for each receipt. It gets reinforced from the fact that wherever specific performance was required to be undertaken the relevant receipt incorporate the said fact. For instance certain reply give the remarks Janamdin Ki khusi which Ardas Binti and majority of receipts do not indicate the fact of starting date of Akhand Path and Bhog along with date of the Akhand Path . In the light of the said description on the receipts I purpose to adopt a figure of receipt a sum of ₹ 49,41,695/- instead of the receipts accounted in the profit and loss account on a sum of ₹ 30,67,000/-. The said preposition of the addition of ₹ 18,74,695/- subject to explanation to be tendered by you on the stipulated date as abo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s against the paths actually performed and in case you have any material that suggest excess claim of expense the same may kindly be confronted to the assessee for a detailed reply. Now coming to your observation that receipts issued are of general nature does not hold good since on every receipt it is mentioned that it is receipt RECEIPT SHRI AKHAND PATHI SAHIB JI , thus this contention of yours does not stand and it is requested to kindly confront us with such receipts which general in nature as alleged by you. Since on all the receipts RECEIPT SHRI AKHAND PATH SAHIB JI is clearly mentioned there is no general receipt other than receipt of Akhand Path. Moreover your claim that it is a donation also does not hold true on this score since the receipt duly makes mention of AKHAND PATH at the head and bottom of each receipts. As regards remarks on the receipts the devotees at times go recorded the purposes for which the Akhand Path is to be performed and at the time of BHOG of such path special ARDAS with regards to the same is done. As regards the other receipts on which no such description is given the same are also on account of Akhand Path booked by the devotees. T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... are no general receipts as all receipts are for the performance of Akhand Path only. 6.2. I have carefully evaluated the said submissions of the assessee in the light of documentary evidence maintained in this case., part of which have also been impounded during the course of assessment proceedings. The debit on account of expenditure appeared at a sum of Rs. 27,60,300/- and the expenditure if for the receipts issued as booked as far as in the year 2003-04. Various receipts clearly reflect that the Akhand Path was performed in the year of receipt only i.e. 2003 and same was the position in the receipts issued in the year 2004. In the light of said fact assessee was duly confronted as to how its method of accounting via-a-vis booking of expenditure is acceptable when the facts incorporated on the relevant receipts are different. The general plea taken was that the expenses have been booked via-a-vis the serial number of the receipt but it is not acceptable because assessee clearly mentioned that the receipts as well as expenses are booked after the performance of the Akhand Path . There is not one instance but three are various instances in the impounded material whic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ture relatable to the said performance should not have been booked in the relevant year. Further, various receipts are not carrying any particulars remarks i.e. for what purpose the same were issued. A look at the impounded material reveals the Akhand Path was performed within a period of 3 to 4 months of the issue of receipt. In is regard, the contention of assessee that the same were performed by Pathies on out of turn basis have remained to be substantiated with any documentary evidence. Assessee failed to prove its said contention despite being given opportunity in this regard. At the same time it was not contradicted that receipt have been issued for general purpose i.e. in nature of charity to the institute and receipts were issued for specific/special requests of the devotees while getting the receipt at the dera. The relevant documentary evidence thus goes to contradict the general claim of assessee that receipts were issued only for performance of Akhand Path . It is not so as the documentary evidence in possession of Department reveals. The receipts which are shown as revenue receipts stands accepted as it is claim of assessee that expenditure relatable to said receipt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ear and no income is credited in the impugned year against the expenditure claimed. 9.1. It appears that the AO has not considered the reply of the assessee dated 22.12.2009 in the right spirit which in fact is self explanatory. The explanation of the assessee is that after the performance of the Akhand Path , the income and expenditure are accounted for in the books of account as and when they are earned/incurred. This system of accounting has been followed consistently, is not under dispute. The assessee had submitted the details of payments made to Pathies for performance of Paths which is in proportion to the receipts. The details of the Akhand Path performed during the year and in the subsequent years were also produced. The other details as mentioned in the reply were also submitted. Moreover, the CIT(A) had asked for the report from the AO which was given by the AO and the report of the AO is mainly in accordance with the explanation of the assessee. The same is available at para 5.1 of CIT(A) s order. We have perused the findings of the ld. CIT(A) that there are certain income for with which no expense has been accounted for but if such income is deleted then there will ..... X X X X Extracts X X X X X X X X Extracts X X X X
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