TaxTMI 
TaxTMI 
TaxTMI 
2023 (1) TMI 894
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....ions towards the corpus fund received during the relevant year and hence, the addition of Rs. 8,4,700/- made/confirmed on account of alleged fresh contributions towards the corpus fund, without appreciating the detailed explanations with evidences furnished, is without jurisdiction, perverse, bad in law and liable to be struck down. 3. On the facts and in the circumstances of the case as well in law, the learned CIT (Appeals) erred in confirming the addition of Rs. 17,61,257/- for the alleged unexplained unsecured loans, in spite of the onus upon the appellant trust has fully been discharged to prove the identity, creditworthiness of the lenders as well as genuineness of the transactions and therefore, it deserves to be deleted. 4. On the facts and in the circumstances of the case as well in law, both the lower authorities have grievously failed to appreciate that the detailed explanations with cogent, authentic and believable evidences placed on the records for the expenses claimed towards the objects of the trust and hence, the adhoc disallowance at the rate of 10% to total expenses made/confirmed is without jurisdiction, arbitrary, baseless, perverse, unwarranted o facts, ba....
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....alance of such funds as on 31/3/2012 was Rs. 13,34,700/-. The Assessing Officer recorded that on comparison of balance sheet furnished to the Charity Commissioner for A.Y. 2012- 13 and closing balance reported as on 31/3/2013, the Assessing Officer found that the assessee reported closing balance as on 31/3/2012 at Rs. 5.00 lacs only, however, in the statement file before him it was shown 13,34,700/-. On the basis of such discrepancies, the Assessing Officer noted that the assessee has reported (received) fresh donation of Rs. 8,34,700 (13,34,700 - 5,00,000) during the A.Y. 2013-14 which is not included in the income and the assessee claimed exemption under Section 11 of the Act. The Assessing Officer further noted that no details of donors were furnished by the assessee for the corpus funds. To avail the benefits of Section 11, 12 and 13 of the Act, all conditions, as mentioned in Section 12A must be fulfilled including of getting registration under Section 12AA of the Act. Accordingly, the Assessing Officer was not allowed benefit under Section 11 and 12 of the Act and added Rs. 8,34,700/- in the income of assessee. 4. The Assessing Officer further noted that there was a fresh a....
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....evelopment of youth and labourers in the surrounding remote area of the locality for operation of trust. During the assessment, the assessee complied various notices issued to them. The Assessing Officer made various additions/disallowances in arbitrary manner. On the allegation of Assessing Officer about the discrepancies in the balance sheet furnished to the Charity Commissioner and before the Assessing Officer, the assessee stated that the audit report furnished before Charity Commissioner is final and correct audited statement which is collected directly by the Assessing Officer by issuing notice under Section 133(6) of the Act. The assessee-trust due to oversight, filed projected balance sheet which has actually been prepaid to submit before the banker for future financial need. There is no case of different balance sheet as on 31/3/2012 as presumed by Assessing Officer. From the balance sheet as on 31/3/2012, filed before the Charity Commissioner, it is evident that there is no increase in the corpus donation during the year, it is shown as a balance as per last balance sheet for Rs. 5.00 lacs. The Assessing Officer failed to consider the same in a proper perspective and addi....
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....lance sheet filed before him during the assessment. Admittedly, the current balance sheets for the year ending on 31.03.212 and 31.03.2013 shows the increase of corpus fund by Rs. 8,34,700/-. And that the written submissions and oral submissions lack clarity hence upheld the addition. The addition of unexplained cash credit was also upheld by ld CIT(A) by taking a view that creditworthy and genuineness of transaction is not proved. However, on the disallowance of 10% of total expenses, the ld. CIT(A) granted substantial relief to the assessee by taking a view that except the expenses shown at serial number 1 to 9, 18 and 20 are by in cash and some of the expenses were paid by cheque. The expenses shown at serial number 1,4,5,6,7, are paid in cash are verifiable and do not call for any disallowance. The expenses shown at serial number 9 and 18 to 20 are not fully verifiable. Accordingly, the ld. CIT(A) restricted 10% of disallowance only on these items of expenses thereby worked out total expenses under serial number 8,9 and 18 to 20 of Rs. 32,43,550/- and 10% of which was worked out at Rs. 3,24,355/- and remaining disallowance was deleted thereby granted relief of Rs. 10,77,780/-. ....
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....addition by taking a view that the audited balance sheet for the A.Y. 2012-13 and 2013-14 filed before the Charity Commissioner, Valsad is different than the audited balance sheet for A.Y. 2012-13 and 2013-14 filed before him. On comparison of both the balance sheet, the Assessing Officer found that there was difference of corpus donation fund and on comparison of both the audited balance sheets filed before the Charity Commissioner i.e. for the A.Y. 2012-13 and 2013-14, the Assessing Officer was of the view that there was increase in the corpus fund. As no detail was furnished by the assessee, therefore, in absence of any detail, the Assessing Officer made addition of Rs. 8.34 lacs by denying the exemption under Section 11 of the Act. The ld. CIT(A) upheld the addition with similar view in the corpus fund. Before us, the ld. AR of the assessee vehemently submitted that the audited balance sheet filed before the Charity Commissioner, Valsad is true and correct audited balance sheet and that the receipt of corpus donation is not taxable. We find that the assessee has taken a stand before ld CIT(A) that there is no increase in the corpus donation. The ld CIT(A) rejected the submissio....
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....r creditworthiness nor the genuineness of transaction was proved. The ld. CIT-DR for the revenue submits that the assessee has furnished the details of all three lenders as per details filed on page No. 52 and 53 of the paper book. The ld. CIT-DR for the revenue by referring the dates of lending the money as per details recorded on page No. 52 & 53 of the paper book and shown us the entry in cash ranging from Rs. 10,000/- to 19,000/- on more than 50 occasions. Similar transaction in cash of unsecured loan from Ajitsinh M. Thakkar, Bhanubhai M Gavit and Vijaysinh Gandabhai Parmar received in cash. Details of which are available at page No. 93, 94, 96 and 97 of the paper book respectively. The ld. CIT-DR submits that all the entries of unsecured loans are sham transaction received by way of other than banking mode. The circumstances of cash transaction are suspicious and cannot be treated as genuine. All the entries of the alleged loan are shown in cash. Thus, from the entries neither the creditworthy nor genuineness of transaction is proved. 17. We have considered the rival contentions of both the parties and have gone the entries of the loan received in cash. We find that, though ....