SHISHU SANSKAR KENDRA, MAHASAMUND,MAHASAMUND vs. INCOME TAX OFFICER, WARD-1(2), RAIPUR, RAIPUR

The assessee appellant has raised following grounds of appeal:

The relevant facts giving rise to this appeal are that the assessee; Shishu Sanskar Kendra Mahasamund having PAN: AANTS0820P is a school since 1981. As per the assessee, the school; namely, Shishu Sanskar Kendra Mahasamund is basically run by the Shishu Kalyan Kendra Shikshan Samiti having PAN AANTS0821N, a Society. According to the assessee, Shishu Kalyan Kendra Shikshan Samiti per se is a taxable entity and Shishu Sanskar Kendra Mahasamund is the school owned by Shishu Kalyan Kendra Shikshan Samiti. As per the assessee Shishu Sanskar Kendra Mahasamund has wrongly applied for PAN and got the PAN: AANTS0820P allotted by the Income Tax Department. The Ld. Assessing Officer (‘AO’), having information on his Portal that the assessee, a non-filer of his Income Tax Return (‘ITR’) having PAN: AANTS0820P deposited cash of Rs.84,65,678/- during the relevant year in its Bank Account maintained with PNB, formed a belief that the said cash deposits aggregating to Rs.84,65,678/- escaped assessment. Therefore, the Ld. AO issued notice under section 148 of the Act. During the course of reopened assessment proceedings, the assessee admitted that it had erroneously applied for PAN though it was a unit/part and parcel of Shishu Kalyan Shikshan Samiti. Further, the assessee also admitted before the Ld. AO that the entire bank deposits of Rs.84,65,678/- had been duly disclosed in the regular books of accounts of Shishu Kalyan Shikshan Samiti having PAN AANTS0821N and the ITR of Shishu Kalyan Shikshan Samiti. Hence, the same could not be taxed again in the hands of the assessee. However, the Ld. AO was not satisfied with the explanation of the assessee. Therefore, the Ld. AO taxed not only the bank deposits of Rs.84,65,678/- under section 69A of the Act but also taxed the withdrawal of Rs.14,07,012/- made from the said bank account under section 69C of the Act. Aggrieved, the assesse filed appeal before the Ld. CIT(A), who dismissed the appeal with detailed finding not only on legal grounds but also on the merit of the case.

Before us, Mrs. Dimple Warlyani, CA, Ld. Authorized Representative (‘AR’) of the assessee submitted a certificate issued by the PNB (scanned below) to substantiate her claim that Shishu Sanskar Kendra Mahasamund was owned by Shishu Kalyan Shikshan Samiti Mahasamund and that was why the PAN: AANTS0820P of Shishu Sanskar Kendra Mahasamund was replaced with the PAN: AANTS0821N of Shishu Kalyan Shikshan Samiti in the KYC of the said bank account later on after noticing the error.

The said certificate has been claimed to have not been filed before the Authorities below and the same has been filed, before us, under Rule 29 of the Income Tax (Appellate Tribunal) Rules, 1963. She prayed for admission of this additional evidence.

On the other hand, Shri CH. Rajeswara Reddy, Sr. DR, argued the case vehemently and prayed for non-admission of the application under Rule 29 of the Income Tax (Appellate Tribunal) Rules, 1963. He prayed for dismissal of the appeal.

We have heard both parties at length and have perused the material available on the record. The issue in dispute here is that whether Shishu Sanskar Kendra Mahasamund having PAN: AANTS0820P is a taxable entity and its bank account with PAN: AANTS0820P is not incorporated in the Assets & Liability of Shishu Kalyan Shikshan Samiti having PAN AANTS0821N. The assessee’s claim is that it is part and parcel of Shishu Kalyan Shikshan Samiti having PAN AANTS0821N and transactions in the bank account of Shishu Sanskar Kendra Mahasamund having PAN: AANTS0820P have been duly disclosed in the regular books of account of Shishu Kalyan Shikshan Samiti having PAN AANTS0821N. The Contentions/arguments/ submission of the Ld. AR cannot be brushed aside without proper verification otherwise it would be tantamount to double taxation once in the hands Shishu Sanskar Kendra Mahasamund having PAN: AANTS0820P and again in the hands of Shishu Kalyan Shikshan Samiti having PAN AANTS0821N. We find that none of Authorities below has examined the case from this angle though it is required to avoid double taxation.

In case Shishu Sanskar Kendra Mahasamund having PAN: AANTS0820P is found owned (unit/subsidiary/other) by Shishu Kalyan Shikshan Samiti having PAN AANTS0821N; then the fate of assessment of Shishu Sanskar Kendra Mahasamund having PAN: AANTS0820P has to be decided by the Ld. CIT(A). Keeping in view the facts of the case, application filed under Rule 29 of the Income Tax (Appellate Tribunal) Rules, 1963 and above observations/ discussions, we without offering any comment on merit of the case, find impugned order deem fit to set aside and remand the matter back to the file of the Ld. CIT(A)

In the result, the appeal of assessee is allowed for statistical purposes as above.

""थ"/ The Respondent

The Pr. CIT, Raipur (C.G.) 4. िवभागीय "ितिनिध, आयकर अपीलीय अिधकरण, रायपुर/ DR, ITAT, Raipur 5. गाड" फाईल / Guard file.