2017 (10) TMI 867

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....Mr. Vineet Tibrewal, Adv., Ms. Sagarika Roy, Adv., And Prabir Kr. Bhaumick, Adv. ORDER The Court : The scope of the challenge in this reference is limited to the object of the exercise undertaken by the department while canceling a registration granted or continuing under Section 12AA of the Income Tax Act, 1961. A particular donor of a sum of Rs. 37 lakh in two tranches in February and M....

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....he petitioner trust a right to cross-examine the representatives of the donor who had alleged that the donation was bogus or fictitious. It is evident that there are several matters in which the same procedure had been adopted by the department and, quite routinely, the tribunal has been remanding the matters for the assessees to be given opportunities to question or cross-examine the persons who ....

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.... the trust. There is sufficient basis to the petitioner's contention. While it is possible that a particular donation may be bogus or fictitious and, as such, the assessee may be assessed to tax therefor and other steps may be taken against the assessee for recovery of interest or penalty, if permissible; but the fact that one donation may be bogus would not establish that the activities of the....

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.... one or many more than one, it may be possible for a reasonable person to conclude that the activities of the trust are not genuine. By virtue of the order impugned dated April 10, 2017, the matter has been remanded before the appropriate commissioner, but only for the purpose of ascertaining whether the officials of the donor would stand by their statements in the wake of any cross-examination....