TaxTMI 
TaxTMI 
2016 (7) TMI 839
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....s, account payee cheques and transaction through RTGS. The amounts were in fact credited to the bank account of the Trusts to whom the money was donated. All the three trusts were approved u/s 35AC of the Act. The Assessing Officer made enquiry behind the back of the assessee and came to the conclusion that the Trusts had not received the money donated by the assessee. The Assessing Officer observed in the assessment order that the Secretary of the Trust was examined. According to the ld. Counsel, the erstwhile Secretary was examined by the Assessing Officer and not the present Secretary. Moreover, no opportunity was given to the assessee for cross-examination. The Assessing Officer disallowed the claim of the assessee by holding that the donations made by the assessee to three different Trusts are not genuine. The matter was carried by way of appeal before the CIT(A). During the pendency of appeal before the CIT(A), the assessee-company was in the process of winding up, therefore, the company wanted to settle the issue peacefully with the Department. Accordingly, the donations made to the extent of Rs. 2,25,00,000/- was not pressed before the CIT(A). The CIT(A) dismissed the issue....
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....s/2014 before this Tribunal, the ld. Counsel submitted that since the assessee has not pressed the issue of donation of Rs. 2,25,00,000/- before the CIT(A), initially, the assessee could not file the appeal. Since penalty proceeding was initiated just before expiry of the limitation period, the assessee was compelled to file the appeal against the quantum addition confirmed by the CIT(A) also. Therefore, the ld. Counsel submitted that the delay of 683 days in filing the appeal before this Tribunal may be condoned and the appeal of the assessee may be adjudicated on merit. 5. Now, coming to the merit of the addition, the ld. Counsel submitted that the Assessing Officer made enquiry behind the back of the assessee without giving any opportunity for cross examination. Therefore, the ld. Counsel submitted that an opportunity may be provided to the assessee for cross examination of the so called Secretary who was examined by the Assessing Officer. 6. On the contrary, Shri B. Koteswara Rao, ld. Departmental Representative submitted that the Assessing Officer made a thorough investigation with regard to the transaction of the so called donations said to be given by the assessee. The Ass....
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....e has furnished inaccurate particulars. Referring to the details said to be found in the website, the ld. DR submitted that the details available in the website are not authenticated one. It is for the assessee to further confirm whether the Trusts who claims to have obtained the approval from the National Committee u/s 35A are genuine or not. In this case, even though all the three Trusts were approved u/s 35AC of the Act, the so called bank account to which the money was transferred does not belong to the above three Trusts. In the name of the three Trusts, a bank account was opened fraudulently by some other persons with the knowledge of the Axis Bank, therefore, this kind of transactions cannot be entertained by the Income Tax Department. Therefore, the Assessing Officer has rightly levied penalty u/s 271(1)(c) of the Act which was confirmed by the CIT(A). 8. In the quantum appeal in I.T.A.No.1439/Mds/2014, the assessee has not pressed the issue of donation of Rs. 2,25,00,000/-, therefore, the CIT(A) has no occasion to consider the same on merit. The CIT(A) has simply rejected the appeal of the assessee on the ground that the issue was not pressed before him. This Tribunal is ....
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....ubmitted by the Income Tax Inspector was not furnished to the assessee. The assessee, however, enclosed a copy of the communication said to be received by the Dy. Commissioner of Income Tax, Chennai from the Dy. Director of Income Tax (Investigation), Jamshedpur. This communication clearly indicates that the bank account of the recipient Trust does not show the receipt of donation. The Dy. Director of Income Tax (Investigation), Jamshedpur, has reported to the Dy. Commissioner of Income Tax, Chennai, as follows: "1. M/s Adivasi Mahila Vikas Samiti (PAN: AAAAA 2945B) Phuldungri, Ghatsila, Jharkhand is a genuine concern, which has registration u/s 12AA/AA of IT Act, 1961 and files its return of income with The Dy. CIT, Circle -1, Jamshedpur. 2. The charitable activities undertaken by this Samiti are on very small scale and in the area of Formation of Self Help Groups, Manufacturing of Candle, preparing Tashar thread, etc. 3. Summons were issued to the President of the Samiti, Shri Diku Hansda to produce the books of account and bank statements of Samiti for F.Ys 07-08 & 08-09 and Smt. Sukul Hansda, the then Secretary of the Samiti and her statement was recorded. 4. Verific....
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....ry report filed by the Income Tax Inspector and the communication said to be received by the Dy. Commissioner of Income Tax, Chennai from the Dy. Director of Income Tax(Investigation), Jamshedpur, was communicated to the assessee. The assessee claims before this Tribunal that no opportunity was given to it to cross examine the Secretary and Treasurer of the Trust who denied the receipt of money. This Tribunal is of the considered opinion that when the Assessing Officer examined the Secretary and Treasurer of the Trust, an opportunity shall be given to the assessee to cross examine them to find out whether actually the Trust received the money or not. It is also necessary to find out who actually opened the bank account in Axis Bank at Kolkata and operated the same. If the trustees of the so called three Trusts opened the bank account in the name of some other persons with connivance of the officials of Axis Bank, the Assessing Officer has to find out what kind of action was taken against the Axis Bank officials and the trustees who are responsible for opening the bank account. Since these details are not available on record, this Tribunal is of the considered opinion that the matte....