2014 (5) TMI 703

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....unal") passed in ITA No. 1150/CHD/2009 for the assessment year 2005-06 claiming the following substantial questions of law:- A. Whether the ITAT has misdirected itself in being influenced by irrelevant factors and applying erroneous criteria while deciding the issue of genuineness of the impugned donations thereby ignoring sufficient evidences to prove the factum of receipt of donations by the UK Sangat for application of the funds for the benefit of Gurudwara Sahib by treating the explanation and affidavit of Sewadar of Gurudwara Baba Balwinder Singh as not sufficient evidence and thereby making addition u/s 68 of the Income Tax Act, 1961 in the hands of appellant who having simply collected the said amount in the absence of Baba Ji from ....

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.... made an addition of Rs. 11,26,000/- along with interest of Rs. 39,410/-. Feeling aggrieved, the assessee filed an appeal before the Commissioner of Income Tax (Appeals) who vide order dated 10.9.2009 (Annexure A-2) deleted the aforesaid additions made by the Assessing Officer. Against the order of the CIT(A), the Revenue filed an appeal before the Tribunal. The Tribunal vide order dated 21.6.2011 (Annexure A-3) while allowing the appeal of the revenue, sustained the order of the Assessing Officer. Hence, the present appeal by the assessee. 3. We have heard learned counsel for the parties. 4. The issue that arises for consideration in this case is whether the addition of Rs. 11,26,000/- on account of donations collected by way of Sangat o....

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....egating to Rs.11,26,000/- on behalf of Gurdwara and handed over the same to Balwinder Singh by two cheques, the observations made by the AO that the deposits so made in the account of Balwinder Singh were subsequently withdrawn from his bank account, cannot be lightly brushed aside. It is a case where the assessee claims to hand over the amount to Balwinder Singh through cheques but the money is found to have been withdrawn in cash from the bank account of Balwinder Singh. The whole story rings false right from the beginning to end. As regards the affidavit filed by Balwinder Singh, the law is fairly well settled. Affidavits are not included in the definition of "evidence" in the Evidence Act but are admissible if the conditions of Order XI....