AUXILIUM CONVENT SCHOOL,HOOGHLY vs. A.C.I.T., CIRCLE-23(1), HOOGHLY

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ITA 2148/KOL/2024Status: DisposedITAT Kolkata30 June 2025AY 2017-18Bench: Shri Rajesh Kumar (Accountant Member), Shri Pradip Kumar Choubey (Judicial Member)3 pages

AI SummaryAllowed (for statistical purposes)

Facts

The assessee, Auxilium Convent School (PAN AAAAA2459A), failed to file its income tax return for AY 2017-18 despite a Section 142(1) notice. During demonetization, substantial cash was deposited, and due to the assessee's non-compliance in providing details, the AO added Rs. 75,29,700/- to its income under Section 68 on a protective basis. Penalty proceedings under Section 274B were initiated, noting the assessee had two PANs.

Held

The assessee argued that it is part of a trust (Bandel Auxilium Educational Society, PAN AAATB8373R) and its transactions were accounted for under that PAN, thus negating the need for a separate ITR. Admitting to having two PANs and being assessed on one, the Tribunal remitted the matter back to the AO. The AO is directed to provide an opportunity for the assessee to explain the circumstances of having two different PANs and then pass a fresh order as per law.

Key Issues

Whether the addition under Section 68 for cash deposits was justified given the non-filing of ITR and non-compliance. Whether the assessee, having two PANs and being part of a trust, was obligated to file a separate income tax return for the PAN under assessment.

Sections Cited

142(1), 68, 274B

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “B” BENCH: KOLKATA

Before: Shri Rajesh Kumar&Shri Pradip Kumar Choubey]

ORDER / आदेश Per Pradip Kumar Choubey, JM:

This is the appeal preferred by the assessee against the order of Commissioner of Income Tax (Appeals), NFAC, Delhi (hereinafter referred to as the Ld. CIT(A)] dated 18.07.2024 for AY 2017-18.

Assessment Year: 2017-18 Auxilium Convent School 2. Brief facts of the case of the assessee are that the assessee did not file return of income for AY 2017-18 against PAN AAAAA 2459 A. Notice u/s 142(1) was issued requesting to file its return of income but no income tax return was filed against this PAN. The AO after going over the record find that substantial cash amount was deposited during demonetization period. The assessee was requested to furnish details of cash deposits but no compliance, as a result of which, an amount of Rs. 75,29,700/- is added to the total income of the assessee for AY 2017-18 on protective basis u/s 68 of the Act. It has also been held that since the assessee having two PANs and using its penalty proceeding initiated u/s 274B of the Act.

Aggrieved by the said order, the assessee preferred an appeal before the Ld. CIT(A) wherein the appeal of the assessee has been dismissed.

Being aggrieved and dissatisfied the assessee preferred an appeal before us.

The Ld. Counsel appeared on behalf of the assessee challenges the impugned order thereby submitting that the Ld. CIT(A) ought to have consider this fact that all the transactions were duly accounted for in the books of account of Bandel Auxilium Educational Society having PAN NO. AAATB 8373 R and the assessee is a part of trust so the assessee is not entitled to file income tax return separately. The Ld. A.R prayed that the matter should be remitted back to the file of AO for fresh consideration.

Contrary to that the Ld. D. R supports the impugned order but did not raise any objection in remitting the appeal of the assessee back to the file of AO for fresh consideration in the light of submission made.