TaxTMI 
TaxTMI 
2019 (2) TMI 627
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....thout considering the grounds of appeal agitated by the appellant. 5. The learned Commissioner of Income-Tax (Appeals) erred in confirming the action of the Assessing Officer in treating the amounts received from the donors aggregating to Rs. 3,30,09,249/- as the income of the appellant. The learned Commissioner of Income-Tax (Appeals) ought to have considered the fact that the said amount was received to be passed on to third parties and does not represent the income of the appellant. 6. The learned Commissioner of Income-Tax (Appeals) erred in confirming the action of the Assessing Officer in treating the entire amount, without considering the payments made against such amounts, as the income of the appellant. 7. The learned Commissioner of Income-Tax (Appeals) erred in confirming the levy of interest u/s 234B of the I.T.Act. 8. Any other ground that may be urged at the time of hearing." 3. Facts of the case in brief are that assessee is a society registered originally as "Siva Nagalakshmi Mahila Mandal" under the Societies Registration Act, 1860. Subsequently, vide amendment dated 12/11/2003 society has been renamed as "M/s.Community Rural ....
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....ppeal before the ld. CIT(A), the assessee has not appeared, though ld. CIT(A) has given as many as opportunities to the assessee. Even before us, the assessee has not appeared though as many as opportunities were given on 05/05/2017, 31/07/2017, 31/08/2017, 03/10/2017, 15/11/2017, 01/12/2017, 06/02/2018, 07/03/2018, 15/05/2018, 05/07/2018, 24/07/2018, 21/08/2018, 08/10/2018, 04/12/2018 & 29/01/2019. Therefore, we proceeded to pass the orders in accordance with law. 5. Ld. Departmental Representative has submitted that the assessee has not filed any details in respect of amounts received from the parties and involved in illegal transactions to defraud the Income Tax department therefore, submitted that the order passed by the ld. CIT(A) may be upheld. 6. We have heard ld. Departmental Representative and perused the material available on record. 7. We find that ld. CIT(A) has considered the entire factual matrix of the case and confirmed the order of the Assessing Officer. We have also gone through the assessment order and order of the ld. CIT(A). Prima facie it appears that the assessee is not eligible for claim under section 11 of the Act for the activities carried by the ....
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....dent of the society appeared on 26.02.2016 and furnished photo copies certificate of Registration under societies Act, 11/s 12,1 & U/s 80G of the IT Act and FCRA Act And also produced Copy of Bank statement in respect of Bank a/c held by the society in SBH, Mangalagiri Branch, Guntur Dt. But the Books of a/c of the society and donation receipt books in respect of donations received by the society during the FY 2011-12 relevant to the A Y 2012-13 and the registers recording expenditure for the purposes of the society are not furnished. The president of the society stated that no such books of a/c and receipt books are maintained by the society." The conduct of the assessee-appellant shows the noncompliance at every stage i.e. before the AO and also before the undersigned. No further opportunity/adjournment is given for the above mentioned reasons and that the latest adjournment posting the case for 7-9-2016 was given clearly stating this was the final opportunity which has not been availed by the assessee-appellant. Paras 3,4,5 of the Assessment Order read as under: "Pre assessment enquiries conducted to venrify the genuineness of donations paid by M/s Meg....
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....venue and a/so the other tax public. The objects of the society are inclusive of Relief of poor, providing education and medical relief among many others. The assessee has not pursued any of the objects as per the details available in the Return of Income filed. The assessee was in receipt of donations amounting to Ps. 190.5 lakhs as per Axis Bank, Vijayawada a/c statement, Ps. 136.5 lakh as per Axis Bank, Kolkata Branch account statement and Rs. 3 lakhs as per SBH, Mangalagiri Branch account statement. Total put together Rs. 3,30,00,000/-. Total amount of donations admitted as per income and expenditure account during the previous year was Rs. 3,25159,249/- including interest received in the bank account of the assessee society. Therefore the balance Rs. 4,50,000/- donations received over and above donations admitted in P&L a/c required to be added to the income. The assessee has claimed to have issued donations amounting Rs. 3,00,69,000/- as per P&L a/c, as per Ledger extract for donations paid. The Ledger a/c did not contain the details of donees to whom such donations were paid. All the donations received by the society and paid by the society were through Bank, either....