TaxTMI 
TaxTMI 
2015 (2) TMI 2
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....ere produced before assessing officer as well as before Learned CIT(Appeals). 3. For that the Learned CIT(Appeals) has grossly erred in not accepting the fact that Assessing Officer has not afforded proper opportunity of being heard to the appellant, even after narrating the facts. 4. The appellant seeks the leave to take up such further grounds, at the time of hearing of appeal, which may be necessary in the interest of justice." 4. Facts of the case in brief are that the assessee filed the return of income on 31.03.2005 declaring loss of Rs. 17,600/- in the status of AOP. The case was selected for scrutiny. During the course of assessment proceedings, the AO noticed that the assessee in its balance sheet had shown corpus fund of Rs. 26,15,775/- out of which excess of expenditure income i.e. Rs. 17,596/- had been reduced and the balance amount of Rs. 25,98,179/- was shown in the balance sheet. The AO also noticed that the assessee had received donation of Rs. 20,16,000/- during the year under consideration. He asked the assessee to furnish the list of donors showing their complete addresses and PAN. The AO also asked the details of all the entries of the bank accounts specifyin....
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....see Society by Greater Noida Industrial Development Authority for setting up a school. The Society has paid Rs. 18,70,891/- to Gr. Noida but it has not received the physical possession of the Plot. It is for this reason that the Society could not start its functioning. Since the Society is an educational Society its income is eligible for exemption u/s 10(23C) of the Income Tax Act, 1961." 6. The AO after considering the submissions of the assessee observed that the copy of bank accounts of the assessee revealed that the entire amount i.e. Rs. 20,16,000/- had been received on 22.05.2003 and on the same day it was withdrawn by transfer to current A/c No. 62658. He also pointed out that the bank had sent copies of Drafts which were clubbed and deposited on 22.05.2003 in the bank account of the assessee, detail of the same has been given at page no. 7 of the assessment order. The AO also noted that the assessee purchased Draft from two banks i.e. State Bank of Bikaner & Jaipur, Faiz Road, Karol Bagh, Delhi and State Bank of Bikaner & Jaipur, New Rohtak Road, New Delhi on the same day at the same time. The AO issued a detailed questionnaire to the assessee requiring to explain as unde....
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....tarted any educational activity, the assessee's claim for exemption u/s 10(23C) also cannot be accepted. The assessee's claim for exemption u/s 10(23C) is also not acceptable as the assessee has been unable to prove the genuineness of the receipts in its hands and thus to show that its activities are genuine, above board and it has right to claim exemption u/s 10(23C). Therefore, the entire receipt is not only out of un-disclosed sources but also cannot be claimed to be exempt. It would thus be added to the assessee's total receipts though from un-accounted sources." 8. Being aggrieved the assessee carried the matter to the ld. CIT(A) and furnished the written submission which has been discussed by the ld. CIT(A) in para 5 of the impugned order. On the cost of repetition, the same is not reproduced herein. The assessee stated that a proper opportunity of being heard had not been afforded and also stated as under: "A) One notice for assessment year 2004-05 and another notice for assessment year 2005-06 were dispatched from the office of Additional Commissioner of Income Tax, Noida in single envelope on 26.10.2006, which was served upon the assessee on 02.11.2006, fixing the date o....
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....to question the genuineness of the transaction. The case laws relied upon by the learned AR in case of CIT Vs Stellar Investment Ltd. (1991) 192 ITR 287 (Del.); CIT Agra Vs Prem Kumar (2007) 161 Taxman 50 (All.) and DIT (Exemption) Vs Raunaq Education Foundation (2007) 294 ITR 76 (Del.) do not help the assessee's case as these decisions have been rendered by the Hon'ble Courts in altogether a different context and hence the same are clearly distinguishable. Considering the aforesaid facts and proposition of law, the action of the AO in bringing to tax an amount of Rs. 20,16,000/- is hereby confirmed." 10. Now the assessee is in appeal. At the first instance the ld. Counsel for the assessee argued the ground no. 3 which relates to the proper opportunity of being heard not afforded to the assessee and submitted that the assessee furnished the new addresses of the donors to the ld. CIT(A) but he had not considered the same for the reasons best known to him. He drew our attention towards page nos. 217 to 219 of the assessee's paper book which is the detail of the old and new addresses of the donors alongwith the amount of donation. It was contended that the AO fixed the date of heari....