TMI Blog2009 (5) TMI 31X X X X Extracts X X X X X X X X Extracts X X X X ..... redited to its principal, and thereafter paid sums to these two schools in cash – but there was no documentary proof - The Director General ordered to produce the books of account of the two schools - The petitioner failed to produce the books of accounts of those two schools and instead requested for issuance of summons under Section 131 - This request was turned down by the Director General. – ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion under Section 10(23C)(vi) of the Income Tax Act, 1961 (in short the Act ) for assessment year 2008-09 onwards stand s rejected. The case of the petitioner which is a Society is that some of the students who were on the rolls Jawahar Public School, run by it had to be transferred to another school because of the closure of the school. 2. This had resulted on account of the fact that earlie ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in cash. The petitioner is not in possession of any documentary proof or receipts of these payments. The Director General came to the conclusion that it was necessary in these circumstances that the books of accounts of these two schools be produced and confirmations be obtained in the absence of documentary proof/ receipts available with the petitioner. The petitioner failed to produce the books ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ound that the petitioner had not applied its income wholly and exclusively to objects for which it was set up. 4. Mr. M.S. Syali, learned Sr. Advocate appearing for the petitioner on the other hand contended that it was incumbent on the part of the Director General to issue process under Section 131 of the Act since a conclusion had already been arrived at that it was necessary that the book ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ther filed confirmation or made available the books of accounts maintained by St. Kabir Modern School and Holy Convent Senior Secondary School. It is the petitioner's case that these books of accounts must be summoned by the Department. This would indeed be a very dangerous precedent fraught with possibilities of harassment at the behest of the assessee, if, without any foundation the Department i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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