2014 (1) TMI 132

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....on to confirm the addition under Section 69A of the Act which was not subject matter of appeal before it? 2. Whether the ITAT was right in confirming the addition of Rs.13,62,575/- and Rs.1,71,225/- ignoring that the appellant society has raised the specific donation (corpus fund) from 191 donors, whereas the assessing authority has issued notice for confirmation to 32 donors only on 04.03.2011 for confirmation? 3. Whether the learned ITAT was justified to hold that no evidence of opening cash balance was filed before the A.O. upto 18.12.2009, and adequate opportunity was not allowed to appellant at time of assessment nor considered objection to the remand report? 4. Whether the ITAT was right in law in confirming the addition of R....

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....nd loan from three persons amounting to Rs.1,71,225/-. It is stated that cash collected during F.Y. 2003-04 was deposited in bank on various dates during F.Y. 2004-05 (between 13.4.2004 and 17.1.2005) because there was no banking facility at the place where the society was located. The AR contends that it discharged its onus by giving the names and addresses of the donors and that the AO could not go into the source of the source in view of Hon'ble Gujarat High Court's judgment in the case of DCIT Vs. Rohini Builders, 256 ITR 360. The AO carried out enquiries to satisfy himself about the identities and creditworthiness of the donors and the genuineness of the transactions. He sent letters to a number of donors, out of which 11 letters ca....

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....he ITAT that the donations could not be added on income of the assessee under Section 68. The ITAT considered the submissions and found that the donations in any case are to be included and added back to the income of assessee under Section 69A of the Act as they were shown in the books of accounts and which will not make any difference to the reasoning and conclusions. It is submitted by Shri R.R. Agrawal that out of Rs.13,62,575/-, Rs.3 lacs was by way of cancellatin of the demand draft. The demand draft was prepared out of the same amount of donations and would thus not make any difference at all. We have considered the submissions and find that each and every point was discussed by the ITAT. The findings are pure findings of fact,....