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Facts
The assessee filed two appeals against the orders passed by the NFAC. The appeals pertained to assessment years 2011-12 and 2013-14. The primary issues involved additions made by the Assessing Officer (AO) regarding UGC grants, utilization of UGC grants, VS Management account, university fees payable, and purchase of land. The AO's additions were confirmed by the CIT(A) in part.
Held
For ITA No.814/Bang/2025, the Tribunal decided to remit the issue of opening balance back to the AO for verification, allowing the appeal for statistical purposes. For ITA No.815/Bang/2025, the assessee was permitted to withdraw the appeal with liberty to approach the Tribunal later if the relief granted was challenged by the Revenue, and the appeal was dismissed as withdrawn.
Key Issues
Whether the AO's additions regarding UGC grants, management accounts, and other expenditures were justified and whether proper opportunity was provided to the assessee for verification of opening balances.
Sections Cited
143(2), 12A, 11, 12
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, “B” BENCH : BANGALORE
Before: SHRI. LAXMI PRASAD SAHU & SHRI. KESHAV DUBEY
Per Laxmi Prasad Sahu, Accountant Member :
These two appeals are filed by the assessee against the Order passed by the NFAC vide DIN and Order No.ITBA/NFAC/S/250/2024- 25/1072951432(1) dated 05.02.2025 and .ITBA/NFAC/S/250/2024- 25/1072953310(1) dated 05.02.2025 respectively as per the following grounds of appeal;- , 815/Bang/2025 Page 2 of 6. Grounds raised in ITA No.814/Bang/2025:
2. Assessee filed return of income on 29.05.2012 declaring Nil income. The case was selected for scrutiny and statutory notices were issued to the assessee under section 143(2) of the Act dated 14.08.2013. Subsequently, other statutory notices were issued to the assessee. Assessee submitted information. The assessee is registered under section 12A of the Act vide registration No.PRO719/10AAVOL.AIII/V-163 dated 28.02.1981. After examination of the documents furnished by the assessee, AO made various , 815/Bang/2025 Page 3 of 6 additions. During the course of assessment proceedings there was difference noticed from UGCgrant and the opening balance of Rs.44,74,249/- was added by the AO observing as under:
3. Further during the course of assessment proceedings there was addition of Rs.4,48,000/- towards opening balance in the account of V S Management account and there was further addition of outstanding account of university fee payable amounting to Rs.51,49,0399/- and for purchase of land of Rs.1,57,90,500/- AO did not consider as application of income. The learned CIT(A) confirmed addition made by the AO and against Order of learned CIT(A) assessee filed appeal before the Tribunal. The learned Counsel reiterated submissions made before the lower authorities and submitted that both the authorities have confirmed opening balance. For verification of opening balance it requires to produce some documents. Therefore he requested that a chance may be given to the assessee.
On the other hand, the learned DR relied on the Order of lower authorities.
Considering the rival submissions and on perusal of entire material available on record and Orders of authorities below, we noted that opening balance has also been added by the AO and confirmed by the CIT(A) and considering the request of the learned Counsel, we are remitting this issue back to the file of AO for verification of the issue with regard to the issue raised by the assessee as stated in the grounds of appeal and after giving reasonable opportunity of being heard decide the issue as per law and assessee is directed to substantiate its case with documentary evidence. In case of failure no second leniency shall be granted to the assessee.
In the result, appeal filed by the assessee is allowed for statistical purposes.
In this appeal, during the assessment proceedings various documents were called for and same were submitted. After examining the documents total taxable income was determined at Rs.15,,64,54,828/- and tax was determined at Rs.8,79,91,132/-.
Aggrieved from the above Order, assessee filed appeal before the learned CIT(A). The learned CIT(A) partly allowed appeal of the assessee.
Aggrieved from the above Order, assessee is in appeal before the Tribunal. The learned Counsel filed letter which is as under:
He further submitted that while giving OGE the grounds were allowed and complete relief under section 11 of the Act was granted by the AO. Therefore appeal filed by the assessee is dismissed as withdrawn with liberty , 815/Bang/2025 Page 6 of 6 to file appeal before Tribunal if the relief given in OGE is challenged by the Revenue.
Learned DR did not have objection.
Considering the application of the assessee noted supra, we are permitting to withdraw appeal of the assessee with a liberty to approach Tribunal if the relief given in OGE is challenged by the Revenue.
In the result, appeal of the assessee is dismissed.