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TMI Blog2024 (12) TMI 1327X X X X Extracts X X X X X X X X Extracts X X X X ..... ereinafter referred to as "the Act"] for the Assessment Year (AY) 2017-18. The order of the CIT(A) confirmed the addition made by the Assessing Officer [hereinafter referred to as "AO"] under Section 68 of the Act, amounting to Rs. 14,53,000/- taxed at the rate prescribed under Section 115BBE of the Act, and upheld the initiation of penalty proceedings under Section 271AAC of the Act. Facts of the case: 2. The assessee e-filed its return of income on 06/07/2017 declaring a total income of Rs. 1,12,09,340/-, after claiming an exemption under Section 11 of the Act. The return was processed under Section 143(1) of the Act. The case was reopened by issuing a notice under Section 148 of the Act on 30.03.2021, based on information from the ITO ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... detailed student-wise and course-wise records of the fees collected. The assessee failed to provide complete details, citing the difficulty of retrieving such data for 464 students. The AO also noted that the sample details submitted lacked complete correspondence addresses of students, making verification not possible. 3.2. The AO concluded that the cash book balance was manipulated on 08.11.2016, the day demonetization was announced, to accommodate unaccounted cash. The AO also concluded that the assessee's claim that the cash receipts on that day were genuine was not substantiated with supporting documents or credible evidence. The AO rejected the explanation provided by the assessee regarding the source of Rs. 14,53,000/- deposited in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lant craves leave to add, amend, alter, edit, delete, modify or change all or any of the grounds of appeal at the time of or before hearing of the appeal. 5. During the course of hearing before us, the Authorized Representative (AR) of the assessee explained the facts and circumstances. The AR highlighted the status of the assessee as a registered charitable trust engaged in education and community welfare. The AR informed that the trust manages 11 charitable institutions for carrying out its educational, religious, and welfare activities and Income is primarily generated from fees collected from students and donations received during religious and community events. 5.1. The AR submitted that that the cash deposit of Rs. 14,53,000/- repre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... esponse to DR's request, stated that these details were available with the AO and has already verified. 7. We have carefully considered the submissions made by the AR of the assessee and the DR, as well as the material available on record, including the orders passed by the lower authorities. We find that the assessee is a registered charitable trust under Section 12A of the Income Tax Act, engaged in education, religious, and community welfare activities. The trust manages 11 charitable institutions, including the MSB Educational Institute, and derives its income primarily from student fees and donations. The cash deposit of Rs. 14,53,000/- in the Prime Co-operative Bank, Godhra, was attributed to legitimate fee collections from students ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re derived from legitimate sources aligned with the charitable activities of the trust. 7.2. The DR requested that the matter be remanded back to the file of AO for verification. However, we note that the detailed submissions made by the assessee, including fee receipts, cash book, and bank reconciliation, were already available with the AO during the assessment proceedings. The AR asserted that the AO had sufficient opportunity to verify these details and that no specific discrepancies were pointed out in the assessment order. Hence, remanding the matter would serve no useful purpose and result in unnecessary delay. 7.3. In light of the above findings, we conclude that the cash deposit of Rs. 14,53,000/- in the bank account represents le ..... X X X X Extracts X X X X X X X X Extracts X X X X
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