2022 (12) TMI 832

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.... 148 on 29.3.2016 to assess the income on account of cash deposit of Rs. 45,55,746/- in the bank account. In response, the assessee, vide letter dated 14.7.2016 requested the Assessing Officer to drop the proceedings in view of the status of the assessee enjoying the benefit of section 10(23C)(iiiad) of the Income tAx Act. The assessee also submitted before the Assessing Officer that the amount in question was donation given to Dalai Lama Charitable Trust Dharmshala by the devotees of Dalai Lama who visited Varanasi for teachings on BODDHICHARYAVATARA which was transferred to Charitable Trust at Dharmshala by getting the demand draft from the bank account of the assessee in question. The Assessing Officer did not accept this explanation for....

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....gible for exemption under section 11 and 12 of the Income Tax Act. He has also submitted that the Dalai Lama Trust has also filed the return of income and included this amount of donation in its income which is subjected to verification and assessment. These transfers were made as per the request of the Dalai Lama Trust, a copy of the request letter of the Dalai Lama Charitable Trust to the Vice Chancellor of the University is also filed by the learned AR of the assessee. Thus, he has contended that this amount represents the donation received by the Dalai Lama Charitable Trust during the visit of Dharmshala at Varanasi and assessee has only felicitated the transfer of that donation from Varanasi to Dharmshala. Thus, the learned AR has subm....

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.... 12.08.2016, the assessee has filed return of income for A.Y. 2009-10 alongwith bank statement. Accordingly notice u/s 143(2) was also issued. Again, vide notice u/s 142(1) dated 17.09.2016 the assessee was asked to give following explanation. "On going through the statement of account of the UBI(41463020116003), it is noticed that following cash deposits have been credited, you are directed to substantiate the source of such deposits by supporting documents. You are also requested to explain why this amount be not treated as unexplained money and may not be treated as deemed to be your income u/s 69A of the I.T. Act, 1961 for A.Y. 2008-09." S. No. Date Amount deposited in cash 1. 17.01.....

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....aritable Trust and rest of the amount in the bank account of the assessee was on account of sale of books and advance received for University work. The Assessing Officer has made the addition of the entire amount in para 5 to 7 as under:- 5. I have considered the assessee's reply but do not agree with the same. The assessee has utilized its bank account to deposit the money though it is exempt institution and need not to use its account for any other person since the amount has been deposited in the account of the assessee and onus lies on the assessee to give the list of the persons with complete address from whom the donation has been taken on the basis of which account is added to the total income of the assessee u/s 69A of the ....

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....ource of these deposits. Even the name and addresses of the persons who allegedly contributed were also not submitted. 8. In view of these facts, I am satisfied that the A.O. has correctly treated the amount of cash deposited in the bank account as unexplained deposit made by the appellant and the addition made by the A.O. u/s 69A of the IT Act is held to be proper. Accordingly, the addition made amounting to Rs. 45,55,746/- is sustained and the appeal is dismissed." 7. Thus, neither the Assessing Officer nor the CIT(A) has taken any steps to examine the record to verify the correctness of claim of the assessee. The assessee has filed the details of deposits of Rs. 40,20,423/- which was explained as under: Date Amount (Rs.....

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....ell as cash book of the assessee. From these documentary evidence, it is clear that the amount deposited in the bank account was immediately transferred to the Dalai Lama Trust account at Dharmshala from Varanasi. The Dalai Lama Trust has also owed this amount as donation receipt during the visit of Dalai Lama at Varanasi for a lecture and teaching on the BODDHICHARYAVATARA. This program was organized by Holy Teachings Organizing Committee and donation was also collected by the said committee during the period from 8th January, to 14th January, 2009. There is no dispute about the fact that this amount was deposited in the bank account of the assessee for making the demand draft in the name of Dalai Lama Charitable Trust. Once this amount be....