TMI Blog2021 (12) TMI 459X X X X Extracts X X X X X X X X Extracts X X X X ..... 2AA(3) of the Income Tax Act, 1961. 2. Registry has raised a defect in the appeal that the assessee has not filed certified copy of the impugned order. However, the assessee did not remove this defect. This appeal was listed on board on 14.6.2019. Nobody had appeared on behalf of the assessee, and it was adjourned time and again. Earlier, Shri Bharat S. Shah partner in Shah Dalal Co. has put appearance on behalf of the assessee, but thereafter, he withdrew his appearance and filed a letter to that effect on 19.10.2020. Hearing was adjourned to 18.1.2021 and fresh notice was issued. One Shalini Somani partner in Atal Shriram Associates, CA filed a letter of authority on behalf of the assessee and sought adjournment. Hearing was adjourned; but again nobody appeared on the adjourned date. Fresh notice was issued. In spite of service, none has come present. Thereafter, notice was served through department through affixture. A report to this effect has been submitted by Shri Vinesh N. Rayda. Nanishkumar R. Acharya Inspector of Income-Tax Department effected service in the presence independent witness. He even filed photo exhibiting gate of the assessee s premises which was foun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 3. You are requested to give detailed justification in respect of this discrepancy. (C) It is also a matter of record that you have received a sum of ₹ 24,81,222/- from 44 persons. During the assessment proceedings it was submitted by you that the advances are for the purpose of construction of houses/tenements for the physically handicapped persons. The houses can only be constructed on a piece of land. However, land is not reflected in your Balance-Sheet. This way, the entire explanation is untrustworthy. To prove the genuineness of these transactions please file copies of the agreement with the persons from whom advances are received along with confirmations from these persons D) Perusal of your Balance-sheet reveals that you have shown interest free loan of' ₹ 4,90,000/- as on 31-3-2014. You have not filed details of this interest free loan. Please furnish complete name and address of the persons to whom this loan was forwarded along with their confirmations, Since the trust funds are advanced interest free, you are also requested to file complete justification for making an interest free advance (E) During the assessment proceedings for the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on 12AA of the Act would apply. In this regard, the ld.Commissioner took cognizance of section 12AA(4) of the Act, and also made reference to the part of the explanatory note explaining scope of sub-section (4) of section 12AA of the Act. The discussion made by the ld.Commissioner in this regard reads as under: 6. The issue of registration is to be decided within the factual metrics as mentioned in para 5 of this order. The legalities for cancellation of registration is mentioned u/s. 12AA(4) of the IT. Act, 1961. Section 12AA(4) reads as under: tt[4] Without prejudice to the provisions of sub-section (3), where a trust or an institution has been, granted registration under clause (b) of sub-section (1) or has obtained registration at any time under section 12A /as it stood before its amendment by the Finance (No.2) Act, 1 996 (33 of 1996 and subsequently ii is noticed that the activities of the trust or like institution are being carried out in a manner that the provisions of sections 11 and 12 do not apply to exclude either whole or any part of the income of such trust or institution due or operation of sub-section (1) of section 13} then, the Principal Commissione ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ere was a reasonable cause for the activities . .... to be earned out in the aforesaid manner. 7. It has been discussed in detail in para 5 of this order that in the Financial Year 2013-14, the assessee trust has made interest free advances to the below mentioned entities which arc cither-trustees or concerns where the trustees arc interested. i) Shri Ramesh Patel ₹ 1,00,000/- ii) Shri Kamlesh Patel ₹ 1,55,000/- iii) Sankalp Corporation ₹ 1,55,000/- (iv) Sankalp Corporation Pvt. Ltd ₹ 6,55,045/- (v) Sollywood Corporation ₹ 52,000/- ₹ 11,17,045/- In the Financial Year 2014-15 the assessee had made interest free advances to below mentioned assessees which are either trustees or concerns where the trustees are interested. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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