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Income Tax Appellate Tribunal, DELHI BENCH ‘SMC’, NEW DELHI
Before: SH. N. K. BILLAIYA
This appeal by the assessee is preferred against the order of the CIT(A)-15, Delhi dated 07.06.2019 pertaining to A.Y. 2011-12.
The grievance of the assessee read as under :-
The Learned Assessing Officer has erred to pass order in hurry on 04/12/2018 itself though the case is time barred on 31/12/2018 2. The Learned Assessing officer has erred to consider the Income Tax Return filed by the Assessee on 16/11/2018, while passing orders under Section 144 of the Income Tax Act, 1961 3. The learned Assessing Officer has erred in order, though he has full knowledge of the fact about the nature of activities of the Assessee Gurudwara, as he had already mentioned about the same in serial No. 4.2 of the Order “that the Assessee is a Religious Institution/place and acted as a Gurudwara in Bali Nagar, New Delhi-110015 and the amount received as charity & Donations from the Devotees”. It means he has full knowledge of the activities of the Assessee Gurudwara, where devotees pay in cash through receipt(s) and/or Gullaks/Donation Boxes situated/kept at various places in the Gurudwaras and amount collected from the same was deposited in Bank from time to time.
4. The Learned Assessing Officer has erred to pass order without considering the provisions of Section 23BBA of the Income Tax Act,1961 “Income arising to any Body or authority established, constituted or appointed under any enactment for the administration of Public, Religious or Charitable Trusts or endowments or Societies for Religious or Charitable purposes”
The Learned Assessing Officer has erred to include the whole amount of Cash as well as Cheque(s) of Rs. 13,29, 996.00 as income of the Assessee at the time of Assessment 6. The Learned Assessing Officer has erred for not allowing the Intra head adjustment(s) of various heads of Income under Section 70 of the income Tax Act, 1961
Briefly stated the facts of the case are that the appellant is a religious institution/ place and acted as a Gurudwara, Bali, New Delhi.
The return for the year under consideration was selected for scrutiny assessment. During the course of the scrutiny assessment proceedings the AO noticed that certain cash deposits in the bank accounts. The assessee was asked to explain the source of the cash deposited in the bank. On receiving no plausible reply the AO made the addition on account of unexplained money deposited in the bank account. The AO further made addition on account of undisclosed interest income.
5. Assessee agitated the matter before the CIT(A) but for some reason the appellate proceedings were not attended and the CIT(A) framed an exparte appellate order drawing support from the decision of the Hon’ble Madhya Pradesh High Court in the case of Estate of Late Tukojirao Holkar 223 ITR 480. The CIT(A) further observed that the assessee has nothing to explain and is not serious enough in pursuing the appeal. The CIT(A) confirmed the addition made by the AO.
Before me the counsel stated that for some reasons the assessee could not attend the appellate proceedings. It is the say of the counsel that the assessee has complete the details explaining the source of cash deposited in the bank and prayed for one more opportunity to explain the case.
The DR did not raise any objection to this.
I have carefully considered the orders of the authorities below. It is true that the assessee is a religious institution acting as a Gurudwara. Section 23 BBA of the Act provides that income arising to any Body or authority established, constituted or appointed under any enactment for the administration of Public, Religious or Charitable Trusts or endowments or Societies for Religious purposes. In the light of this provision and in the interest of justice I restore the appeal to the files of the CIT(A). The assessee is directed to submit all the relevant / necessary documents in support of its claim and the CIT(A) is directed to decide the issues fresh after giving a reasonable and sufficient opportunity of being heard to the assessee.
In the result, the appeal filed by the assessee is allowed for statistical purpose.
Decision announced in the open court in the presence of both the representatives on 14.09.2021.