TMI Blog2017 (10) TMI 1461X X X X Extracts X X X X X X X X Extracts X X X X ..... er alleged intermediaries were not produced for cross examination inspite of specific request by the assessee. Moreover, the assessee trust is not part of the group of M/s Gobind Ram Goel Charitable Trust. Considering the factual position discussed above, we quash the order of CIT(E) and we also direct the CIT(E), to grant the registration U/s 12A - Decided in favour of assessee. - ITA No.10/Kol/2017 - - - Dated:- 18-10-2017 - Shri N.V. Vasudevan And DR. A.L.Saini, JJ. Appellantby:Shri S. M. Surana, Advocate Respondent by:Md. Usman, CIT, DR ORDER Dr. Arjun Lal Saini, The captioned appeal filed by the Assessee, is directed against an order passed by the ld. Commissioner of Income Tax (Exemptions), Kolkata under section 12AA(3) of the Income Tax Act, 1961,( Hereinafter referred to as the Act ), dated 23.12.2016. 2. The assessee has raised the following grounds of appeal: 1. For that the order of the Ld. CIT is ,arbitrary and bad in law. 2. For that the Ld. C.l.T (Exemption) erred in relying on the statement of Sri Anand Agarwal ,Trustee, of M/s Gobind Ram Goel Charitable Trust when ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d returning the same to the donors through web of financial transactions after retaining the commission; and accepting money by cash or through a web of financial transactions and giving donations after retaining the commission. It was noted by CIT ( Exemptions) that M/s. BimladeviDharamprakash JanKalyan Nidhi, in the financial years 2012-13, 2013-14 2014-15 to the relevant assessment years, 2013-14, 2014-15 2015-16, paid bogus donations amounting to ₹ 10 lakhs, ₹ 5 lakhs ₹ 4 lakhs respectively to M/s. Govind Ram Goel Charitable Trust. The Managing Trustee of M/s. Govind Ram Goel Charitable Trust, Shri Anand Agarwal accepted this fact in his sworn statement recorded u/s. 133A of the I.T. Act 1961 on 11.09.2015. In reply to Q.8 Q.9, the managing Trustee clearly stated the fact that he had given a pre-arranged accommodation entry in the form of bogus corpus donation. The Managing Trustee also admitted the fact that they paid to the accommodation entry operators in cash which was returned to them, through a web of financial transactions, through cheque. It was exposed that by giving bogus donations, M/s. BimladeviDharamprakash Jan-Kalyan Nidhi is in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d by the rules of evidence and is the creation of Court. It is part of legal and statutory justice, and not a part of natural justice, therefore, it cannot be laid down as a general proposition of law that the Revenue cannot rely on any evidence which has not been subjected to crossexamination. The CIT(E) also relied on the judgment of Hon'ble Kerala High Court in the case of M.K.Thomas Vs. State of Kerala[40 S.T.C.278) in view of the decision of Hon'ble Supreme Court in the case of K.T.Shaduli Vs. State of Kerala[39 S.T.C. 478 S.C.]. wherein it was held that all these judgements/decisions lead to one conclusion that right to cross-examine the witness, who made adverse reports, is not an invariable attribute of the requirement of the dictum, 'audi alteram partem'. The CIT(E) pointed out that the Case Law mentioned by the assessee Trust in the case of S Khader Khan Sons is not applicable in this case. Therefore, CIT(E) held that indulging in ingenuine activities which is not at par with the trust deed leads to the ultimate conclusion that the trust is in the act of money laundering which is illegal, not genuine and not at par with the objectives of the t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Parks, Town Halls, and Institutions for the promotion of science, Commerce, Art, Literature, meditation, Yoga, Culture or Fine Arts or diffusion of useful knowledge for all round upliftment of body, mind and soul. The Counsel stated that, before the CIT(E), the assessee had already submitted that Bimla Devi Dharam Prakash Jan Kalyan Nidhi was formed under a duly executed deed of Trust and was duly granted registration on after considering the activities of the Trust which were all charitable activities. The Trust is giving donation for charitable activities. The donation was also given by assessee Trust to Gobind Ram Goel Charitable Trust Kolkata and the said donation paid by trust was not bogus donation. It was on record that trust had utilized the donation for the activities of the trust which were all genuine. Therefore, by no stretch of imagination such donation can be treated as bogus donation. The assessee trust is neither indulged in money laundering nor have taken any bogus donation from anybody. A person may also make statement for his own pecuniary interest or for any other reason. Therefore, the assessee trust requested the CIT(E) to call Sri Anand Agarwal for ..... X X X X Extracts X X X X X X X X Extracts X X X X
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