9911796707
TMI Blog2023 (7) TMI 123X X X X Extracts X X X X X X X X Extracts X X X X ..... ing to assessment year 2015-16. 2. Though, the Registry has notified delay of 45 days in filing the appeal, however, the delay is ignored as the delay in filing the appeal was due to strict restriction imposed on account of Covid- 19. 3. Briefly the facts are, the assessee is a society registered under the Societies Registration Act, 1860. Since, the assessee has charitable objects, it has been granted registration under Section 12AA of the Act by Commissioner of Income Tax (CIT), Ghaziabad. As stated, the assessee runs two educational institutions in the name and style of M/s. Reliable Institute of Law and M/s Reliable Institute of Management & Technology. For the assessment year under dispute, the assessee filed its return of income on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt proceeding, the Assessing Officer has conducted proper inquiry, and being satisfied that corpus donation was received from M/s. Suran Protsahan, had accepted the income declared in the return of income. The submission made by the assessee was not to the satisfaction of learned CIT. He observed that as per the confirmation letter of M/s. Suran Protsahan, the assessee had received loan of Rs. 1 crore on 02.04.2014, which was repaid on 31.03.2015. However, there was no corpus donation as claimed by the assessee. He observed, though, in the reconciliation statement furnished during the course of assessment proceeding, the repayment of loan as well as receipt of corpus donation was mentioned, however, such transactions were not reflected, eit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . He submitted, in the balance sheet of the assessee also, the corpus donation was reflected. Thus, he submitted, the allegation of CIT that the corpus donation was not reflected in the balance sheet and bank statements is contrary to materials on record. Without prejudice, he submitted, except the corpus donation of Rs. 1 crore, the assessee has not received any other donation during the year under consideration. He submitted, assuming that the corpus donation is in the nature of ordinary donation, since the assessee has applied more than 85% of its fund/income towards charitable purpose, the assessee would still be entitled for exemption under section 11 of the Act. Hence, it will be tax neutral. Therefore, no prejudice is caused to the R ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessed to tax, confirmations, details of cheque/draft through which donations are received etc. He has further asked the assessee to clarify whether donation was taken as corpus donation or general donation and also to prove the identity and creditworthiness of the donors with supporting evidences, including bank accounts, copies of return of income etc. In reply to the queries raised in the questionnaire, the assessee furnished all the details relating to the corpus donation along with supporting evidence as called for by the Assessing Officer. The assessee also furnished the return of income and bank statements of the donor. Still unsatisfied with the reply of the assessee, the Assessing Officer issued a second notice to the assessee on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nor. Perusal of the bank statements of the donor clearly reveals that on 02.04.2014, the assessee had received loan of Rs.1 crore, which was repaid back on 31.03.2015. Whereas, the assessee received an amount of Rs.1 crore towards corpus donation, which is reflected in the bank statement of donor. These are established facts on record, which cannot be ignored. It is also a fact that donor itself is registered as a charitable trust/society under section 12AA of the Act. Therefore, there cannot be any doubt regarding the genuineness of the donor. Thus, the allegation of learned CIT that the Assessing Officer has not made proper inquiry with regard to the receipt of corpus donation is found to be contrary to facts and materials on record. 8. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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