ITO WD-EXEMPTION, RANCHI vs. M/S INTEGRATED DEVELOPMENT THROUGH EFFECTIVE APPROACH, RANCHI

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ITA 100/RAN/2017Status: DisposedITAT Ranchi28 February 2018AY 2012-133 pages

In favour of the assessee: the Revenue's appeal was dismissed. From the AI summary of this appeal.

AI SummaryDismissed

What did the Tribunal hold?

The Tribunal upheld the order of the CIT(A) and dismissed the revenue's appeal. It held that since the donations were already declared as income by the assessee, a fresh addition as income was not permissible. The Tribunal also dismissed the revenue's second ground as misconceived.

What were the facts?

The revenue appealed against the deletion of an addition of Rs. 59,63,200/- made for unsubstantiated donations. The Assessing Officer had treated these donations as unexplained money and added them under Section 68 of the Income Tax Act. The assessee had declared these receipts as income in its Income and Expenditure Account.

What were the issues?

Whether unsubstantiated donations declared as income in the Income and Expenditure Account can be added again as unexplained income under Section 68. Whether a mistaken citation of a section by the AO vitiates a valid addition.

Which sections of the Income-tax Act were involved?

Section 68,Section 69A

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, RANCHI BENCH, RANCHI

Before: Shri J. Sudhakar Reddy]

Heard together (2 matters)

I.T.A. No. 100/Ran/2017
C.O. No. 09/Ran/2017

Read from the judgment's own cause title. This page is filed under one of them.

IN THE INCOME TAX APPELLATE TRIBUNAL RANCHI BENCH, RANCHI [Before Shri J. Sudhakar Reddy, Accountant Member] I.T.A. No. 100/Ran/2017 Assessment Year: 2012-13 Income Tax Officer (Exemptions)..…………………………………………………………..Appellant Ward-Ranchi, 3rd Floor, Central Revenue Building (Annexe), 5, Main Road, Ranchi – 834 001. M/s. Integrated Development Through Effective Approach........................Respondent NGO: IDEA, C/o. Sri Sushil Kumar Jha, Vidya Vihar, New Nagar (Jaiprakash Nagar), Bariatu, Ranchi – 834 009. [PAN : AAATI 2578 K] C.O. No. 09/Ran/2017 (Arising out of ITA No. 100/Ran/2017) Assessment Year: 2012-13 M/s. Integrated Development Through Effective Approach............................Appellant NGO: IDEA, C/o. Sri Sushil Kumar Jha, Vidya Vihar, New Nagar (Jaiprakash Nagar), Bariatu, Ranchi – 834 009. [PAN : AAATI 2578 K] Income Tax Officer (Exemptions)..…………………………………………………………..Respondent Ward-Ranchi, 3rd Floor, Central Revenue Building (Annexe), 5, Main Road, Ranchi – 834 001. Appearances by: Shri Sanjay Malik, Jr. DR appearing on behalf of the Revenue. Shri P.K. MondaL, JCIT appearing on behalf of the Revenue. Date of concluding the hearing : February 26, 2018 Date of pronouncing the order : February 28 , 2018 ORDER PER J SUDHAKAR REDDY, AM

Appeal by the revenue directed against the order of Ld. CIT(Appeals), Ranchi – 834 001 dated 24.02.2017 for the assessment year 2012-13 on the following grounds: “1. The Ld. CIT(A) has erred in deleting addition of Rs. 59,63,200/- made for unsubstantiated donations.

2 I.T.A. No. 100/Ran/2017 & C.O. No. 09/Kol/2017 Assessment Year: 2012-13 Integrated Dev. Through Effective Approach

2.

The Ld. CIT(A) has erred in not appreciating the fact that the A.O. has discussed the issue involved in threadbare details that the donations in question were not substantiated by the assessee with credible evidences and so, it was assessee’s unexplained money which was shown as donations in the Income & Expenditure A/c of the society. The Ld. CIT(A) has also erred in not appreciating the fact that instead of making additions u/s 69A of the Act, the A.O. mistakenly added the same u/s 68 of the Act and quoting a section erroneously does not nullify a valid addition or vitiate the assessment. Apart from quoting certain judicial pronouncements that donations shown as income in the Income & Expenditure A/c cannot be added u/s 68, the Ld. CIT(A) has erred in not pointing out any defect & deficiency in A.O’s finding that the alleged donations in questions were not genuine.

3.

Any other ground that may be raised at the time of hearing.

2.

After hearing rival contentions, we find that the Ld. CIT(A) held vide page 7 at para 6.6 as follows: “I have considered the submissions of the appellant and have also perused the assessment order. The important thing to be noted while deciding the ground of appeal is the treatment of the funds received as donations. The Ld. Assessing Officer has doubted donations on the ground of its non verifiable evidence produced. The fact remains that the same was shown its income in the ‘Income Expenditure’ account. It is not that the same was treated was ‘corpus contribution’ and taken to the balance sheet”

3.

As the assessee has already declared these receipts as income, the question of making an addition as income once again does not arise. Hence I uphold the order of the Ld. CIT(A) on this issue and dismiss ground no 1 of the revenue.

4.

Ground No. 2 does not arise either from the order of the learned Assessing Officer or from the order of the Ld. CIT(A). Hence the same is dismissed as misconceived. Ground No. 3 is general in nature.

3 I.T.A. No. 100/Ran/2017 & C.O. No. 09/Kol/2017 Assessment Year: 2012-13 Integrated Dev. Through Effective Approach 5. In the result, appeal filed of the assessee is dismissed. Cross-objection is only in support of the order of the Ld. CIT(A). Hence the same is also dismissed. Order Pronounced in the Open Court on 28th February, 2018. Sd/- (J. Sudhakar Reddy) ACCOUNTANT MEMBER

Dated: 28/02/2018 Biswajit, Sr. PS

Copy of order forwarded to: 1. M/s. Integrated Development Through Effective Approach, Ranchi – 834 009

2.

ITO (Exemptions), Ranchi – 834 001.

3.

The CIT(A)

4.

The CIT

5.

DR True Copy, By order,

Sr. P.S. / H.O.O. ITAT, Ranchi

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