DCIT, EXEMPTION CIRCLE, GHAZIABAD vs. KRISHI UTPADAN MANDI SAMITI, JHANSI

The solitary grievance of the revenue is that the CIT(A) erred in deleting the additions of Rs.6,38,61,059/- made by the AO against short utilization of fund.

None appeared on behalf of the assessee inspite of notice, we decided to proceed exparte.

The DR was heard at length. Case record carefully perused.

Briefly stated the facts of the case are that the assessee society was granted registration u/s. 12 AA of the Act. During the course of the scrutiny assessment proceedings the AO noticed that the total receipt during the year has been at Rs.14,50,89,138/- and there was excess of income over expenditure at Rs.8,80,86,862/-. The AO was of the opinion that the asessee has short applied Rs.6,38,61,059/- and assessed this amount as the income of the assesee.

Assessee agitated the matter before the CIT(A) and vehemently argued that there is no short fall in the utilization of funds. After considering the facts and the submissions the CIT(A) was of the opinion that assessee has applied Rs.14,43,92,629/- which is more than 85% of the total income and accordingly deleted the addition.

We find that the CIT(A) has given his finding based upon certain figures which were never considered by the AO in his assessment order. In our considered opinion the AO should get one more opportunity to verify the figures considered by the CIT(A) in coming to the finding that addition made toward short application of income is bad on facts. Therefore, in the interest of justice we restore this issue to the files of the AO. The AO is directed to examine the figures considered by the CIT(A) at para - 6.4 of his order and if found correct may decide the issue afresh as per the provisions of the law.

In the result, the appeal filed by the revenue is allowed for statistical purpose. Decision announced in the open court on 16.06.2022. 9.