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Income Tax Appellate Tribunal, “SMC” Bench, Mumbai
Before: Shri Shamim Yahya (AM)
O R D E R These are appeals by the assessee against respective orders of learned Commissioner of income tax appeals for assessment years 2013- 14 and 2014- 15 respectively wherein in learned Commissioner of income tax has sustained the addition of Rs. 500,000 each, being donation said to be bogus.
Brief facts of the case are that there was a survey action under section 132 of the income tax act on Naujeevan Charitable Trust on 27/10/2014. In the search action it was found that the said trust was booking bogus expenditure. One of the trustees has also accepted the same. Assessee was found to have given donation to the said trust. Upon this information the assessing officer reopened the assessment of the assessee. It was held that assessee has given donation to the said concern which was not genuine. Initially one of the director’s of the firm accepted the same to be bogus. However later on the same was retracted. However the assessing officer relying upon the finding of the investigation wing in the case of the said charitable trust made the impugned addition of Rs. 500,000 each which was claimed by the assessee as donation. Up on assessee’s appeal learned CIT-A confirmed the addition.
Against this order assessee is in appeal before the ITAT.
I have heard both the counsel and perused the records. Assessee has challenged the addition on various grounds. However the main issue remains that the challenge to the addition of Rs.500,000 being given to charitable trust as donation on the ground that on the search of the said charitable trust it has been found that it has been incurring only bogus expenditure. This led to the presumption of the assessing officer that the said sum of Rs.500,000 has actually come to the assessee clandestinely. In my considered opinion it is undisputed that assessee has submitted the receipt for the donation. The same has been paid by banking channel. There is no evidence on record that the same amount has been received back by the assessee from the said charitable trust. In these circumstances in my considered opinion this addition is solely based on surmise and conjecture and not sustainable in law. Accordingly I set aside the order’s of authorities below and delete the addition.
In the result, the assessee’s appeal stands allowed
Order has been pronounced in the Court on 12.6.2019.