KAMMAGONDANAHALLI SRI MARUTHI SEVA SAMITHI,BENGALURU vs. ITO(EXEMPTIONS) , BENGALURU

This appeal is filed by the assessee against the Order passed bythe CIT(A) vide DIN and Order No.ITBA/N FAC/S/250/2024-25/1071525593(1) dated 24.12.2024.

At the outset of hearing, the learned Counsel submitted that during the course of appellate proceeding before the CIT(A), documents were submitted as additional evidence and CIT(A) called for remand report from AO and the AO submitted the remand report dated 22.04.2022 and after receiving the remand report, the learned CIT(A) did not provide opportunity to file rebuttal / rejoinder on the findings recorded by the AO in the remand proceedings and he violated the principle of natural justice and requested that one more Page 2 of 3 opportunity may be given to the assessee since the documents were voluminous and the AO has not examined properly. Therefore, he requested that the matter may be remitted to the AO.

On the other hand, learned DR relied on the Order of lower authorities.

Considering the rival submissions and on perusal of the entire material available on record and Orders of authorities below, we noted that the dispute is regarding 7.52 Crores which was received by the assessee and shown it as voluntary donation and entire receipts were claimed as exempt. The society is registered under section 12A of the Act since 01.04.2004, filed return of income on 30.09.2008 declaring Nil income. Later on 01.12.2008, the return of income was revised declaring total income of Rs.9,680/- reducing the revised claim to Rs.40,930/-. During the course of assessment proceedings, detailed questions were asked and assessee filed reply and from para No.9(a) of the Assessment Order it is noted that sum of Rs.7,52,25,500/- was received from a number of doners which were collected by various volunteers and pooled together and deposited to Trust bank accounts beyond the imagination of belief and the AO noticed that the cash was deposited in 4 accounts viz., Rs.1,50,00,000/- on 06.03.2010, Rs.1,50,00,000/- on 07.03.2010, Rs.3,01,50,000/- on 12.03.2010 and lastly Rs.1,50,75,000/- on 18.03.2008 and he noted that this huge amount cannot be collected within few days. From the above findings of the AO, we noted that the income of the assessee is pertaining to Financial Year 2007-08 relevant to Assessment Year 2008-09. However, the AO has mentioned that cash was collected on 06.03.2010 and 07.03.2010 which is not related to the impugned Assessment Year, and added to the total income of the assessee.

In the result, appeal filed by the assessee is allowed for statistical purposes.