9911796707
TMI Blog2022 (10) TMI 119X X X X Extracts X X X X X X X X Extracts X X X X ..... passed under Section 143 (3) read with Section 147 of The Income Tax Act, 1961 ( the Act) dated 17th March, 2022 by the learned Assessing Officer wherein addition of Rs.22,925,500/- was made Under Section 68 of The Act as unexplained, unverifiable and unsubstantiated receipt, was deleted. 02. Learned Assessing Officer has raised following grounds of appeal: - "i. Whether on facts and circumstances of the case and in law, the learned CIT (A) erred in deleting the additions u/s 68 of the IT act of Rs 2,29,25,500/- holding that the assessee has explained the source of cash and also relying on the provisions of Section 115BBC (2) by ignoring the circumstantial evidences and without appreciating the fact that assessee had not satisfactorily ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntain Derasars , Upasharays , Paushad Shala , lecture halls, palkhis, Ardhana Bhavans , meant for stay of sadhus and Sadhvis of Swetambar Murtipujak Jain sangh along with other religious purposes. 05. Assessee filed its return of income on 18th October, 2017 declaring total income of Rs.2,23,790/-. This return was processed under Section 143 (1) 27th March, 2019. 06. Subsequently, survey under Section 133A of The Act was conducted on assessee's premises on 29th March, 2017 by the Income Tax Officer (Exemption) - 1 (4), Mumbai. It was found that during the period assessee has deposited cash of Rs.2,90,58,000/- in its bank accounts. During survey, the assessee neither established identity of the donors nor nature and source of cash deposite ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing evidences. Therefore, because of these contradictory statements the cash deposit was not explained. Thus, case was reopened. 08. In response to notice under Section 148 of the Act, assessee did not file any objections but complied with the statutory notices and therefore, reassessment proceedings were initiated. 09. When the assessee was questioned about the above deposit, assessee submitted a reply stating that cash is deposited in HDFC bank account in the month of November, 2016 as on 11th November, 2016 a sum of Rs.148,58,000/- and on 19th November, 2016 a sum of Rs.142 lakhs was deposited in the bank account. It was submitted that the above cash is received mainly for the construction of Jain temple at Lonavala. The trust received ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... following the decision of the honourable Delhi High Court in CIT (Exemption) versus other one Shri Lakshmi Narayan Dham trust 62 taxman.com 358 (Delhi) deleted the above addition. 011. The learned Assessing Officer aggrieved with the appellate order has preferred this appeal. The learned Departmental Representative vehemently supported assessment order. He referred to the provisions of Section 68 and 115BBC of the Act with respect to anonymous donations and submitted that same are required to be taxed at the maximum marginal rate and therefore, the learned CIT (A) is not correct in deleting the above addition. 012. The learned Authorized Representative submitted that taxation of anonymous donations received by wholly charitable trust or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nations of Rs. 18,24,200 as its income and it cannot be disputed that all receipts, other than corpus donations, would be income in the hands of the assessee. There was, therefore, full disclosure of income by the assessee and also application of the donations for charitable purposes. It is not in dispute that the objects and activities of the assessee were charitable in nature, since it was duly registered under the provisions of section 12A of the Act." 014. According to the provisions of Section 68 of the Act, if any sum is found credited in the books of accounts of the assessee including the trust, the nature and source of such credit is required to be explained to the satisfaction of the learned assessing officer. Otherwise, it may be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d no. 1 of the appeal is dismissed. 016. Ground no. 2 is with respect to the entertainment of the revised grounds of appeal filed by assessee during the appellate proceedings without granting the opportunity to the AO and thereby provisions of rule 46A are contravened, the learned departmental representative did not advance any argument on the same, therefore, it is dismissed. 017. Ground no. 3 of the appeal is with respect to the same addition of Rs. 22,925,500/- under Section 68 of the Act. The learned Assessing Officer in grounds of appeal has referred to the decisions of the Hon'ble Supreme Court, however, on careful consideration of both these decisions of the Hon'ble Supreme Court, we find that those are not applicable to th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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