TaxTMI 
TaxTMI 
2019 (5) TMI 1548
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....er noticed that the assessee took a loan of Rs..25,00,000/- from M/s. Megatrend Inc. vide Cheque No. 020716 dated 25.02.2011 [Account No. 449001010036430, Union Bank of India, Egmore Branch, Chennai] and the same cheque was deposited in account No. 2550101100128834 held in the name of M/s. Bharosha (Society for Welfare of the Handicapped Persons) at Axis Bank, No. 85, Price Anwar Shah Road Branch, Kolkata 700 033. The Assessing Officer noticed that the account No. 2550101100128834 was opened without compliance of KYC norms and found fictitious. A commission under section 133(6) of the At to the society for Welfare of the Handicapped Persons, for confirmation of the said receipt of donation. The accountant of the trust stated that they were not having any account in Axis Bank and this account was opened with the help of some bank officials without compliance of KYC norms. Accordingly assessment under section 143(3) of the Act was completed by making disallowance of deduction of Rs..43,75,000/- claimed under section 35(1)(ii) of the Act. On appeal, the ld. CIT(A) confirmed the assessment. On further appeal, vide order in I.T.A. No. 2316/Mds/2015 dated 18.08.2016, the Tribunal directe....
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....ccordingly, the Assessing Officer requested the DDIT (Inv.) to conduct enquiries and to verify the following facts: "i. The assessee made payment of Rs. 25,00,000/- to Account No. 2550101100128834 which belongs to the trust M/s. Society for Welfare of the Handicapped Persons (PAN:AAETS6278C) Axis Bank, Prince Anwar Shaw Road Branch, Kolkata vide Cheque No. 020716, dated 25/02/2011 (Issued by M/s Megatrand Inc., Union Bank of India). To examine the KYC details of the Axis bank account, like introducer or any other linked account in any other bank etc. ii. To verify the genuineness of the receipt no. C044/10-11 issued by the said trust M/s BHAROSHA (Society for Welfare of the Handicapped Persons) in favour of the assessee is genuine? iii. How this amount of Rs. 25,00,000/- was transferred from a/c number 2550101100128834 (Axis Bank) to actual account (any other bank) of the genuine trust M/s. Society for Welfare of the Handicapped Persons. To verify the modus operandi or procedures adopted to transfer the fund. (Please furnish the details of the trust's actual account.) iv. Whether any other such fund transfers have occurred between the Axis Ba....
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....bank. Parallel enquiry is being conducted by RBI and state police. 5. It transpires from the enquiry that there is no genuineness of exemption claim u/s 35(1) of the Income Tax Act, 1961 in this case. All the deposits and receipts of this account were fraudulently used by the wrong person who opened the same and accordingly, the alleged donation of Rs. 25,00,000/- by Smt. Deviyani Dilip Patel is not actually received by the actual society and therefore there is no question allowance u/s 35(1) of the act in this case. It may happen that similar donations have been misappropriated in this case. Further Investigation is under process in this case." 6. In light of the verification made by the ADIT(Inv.), Durgapur, it is clear that the amount of Rs..25,00,000/- was not received by the Society for Welfare of Handicapped Persons (Real Trust) and the said trust was not having any account in Axis Bank anywhere in India. Hence, the donation claimed to have made by assessee in the said Axis Bank A/c located at prince Anwar Shah Branch was found to be bogus. 7. Upon the verification report of the Department, the assessee was summoned to appear and substantiate her claim. The ass....
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....usband is partner, was deposited in Axis Bank account in the name of the society. When the society was summoned under section 133(6) of the Act, it was stated that the society is not having any account in Axis Bank. In this case, confirmation of receipt of donation by the donee is not available and moreover, assessee has not produced any evidence of the donation having received by the society so that the donor (assessee) can claim the weighted deduction under section 35(1)(ii) of the Act. From the efforts of the investigation wing of the Department, it reveals that bank A/c in Axis Bank, Kolkata does not belong to the real trust in Durgapur (i.e. Society for Welfare of Handicapped Persons, Durgapur) and the matter regarding the alleged payment of amounts into the said account is being investigated by various agencies including RBI & West Bengal State Police Department. Investigations have further revealed that the original trust at Durgapur has taken up the matter with the High Court, regarding mis-use of its Name & PAN, by miscreants. Thus, these facts point to the fact that the said Axis Bank account claimed to belong to BHAROSHA (i.e. Society for Welfare of Handicapped Person....