TaxTMI 
TaxTMI 
2022 (6) TMI 111
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....ncome of Rs.10,02,000/-. The assessee has shown income from running Hostel. The case was selected under limited scrutiny to examine the issue whether investment and income relating to properties are duly disclosed. Accordingly, notice u/s 143(2) of the I.T. Act was served on the assessee through e-filing portal on 18.09.2017. The AO also issued notice u/s 142(1) of the I.T. Act alongwith a questionnaire dated 09.02.2018 and 19.07.2018 which were duly served on the assessee. After considering the reply filed by the assessee, the AO completed the assessment accepting the returned income of Rs.10,02,000/-. 3. Subsequently, the ld. PCIT perused the record and noted that the order passed by the AO is erroneous and prejudicial to the interest ....
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....he provision of section 13(1) of I.T. Act which prohibits any trust/society from diverting its income directly or indirectly for the benefit of any person referred to in Sub-Section(3). Further, the assessee has not submitted the bank statements of either himself or the society to specify the nature of transaction made for the purchase of property and the source thereof. Moreover, the assessee has neither submitted any document stating that the property has been subsequently transferred to the society nor any statement of the current ownership of the property and status thereof in support of his claim that the property belongs to the society. During the assessment proceedings, the A.O. had not enquired into or called for any documentary evi....
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....e submission dated 03.07.2018 has filed a certificate from Kulwant Kaur Kukreja Educational Society confirming the purchase of property in the name of Sh. Himanshu Kukreja. He submitted that the balance sheet and schedule of fixed assets of the society was filed before the AO which show that the land in question was appearing in the schedule of fixed assets of the society. He submitted that during the course of assessment proceedings, the assessee has explained verbally regarding the purchase of property in the name of assessee individual but the payments were made from the bank account of the society. He further submitted that another part of the property was purchased in the name of Sh. Praveen Kukreja and the order has been passed u/s 14....
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....e of cases then the provisions will become otiose. He accordingly submitted that the grounds raised by the assessee should be dismissed. 7. We have considered the rival arguments made by both the sides, perused the orders of the AO and ld. PCIT and the paper book filed on behalf of the assessee. We have also considered the various decisions cited before us. We find that the case of the assessee was selected under limited scrutiny to examine the issue as to whether investments and income relating to properties are duly disclosed. A perusal of the reply given by the assessee during the course of assessment proceedings show that the assessee has purchased two properties, the details of which are as under: Date Purchase Price (Rs.) ....