What did the Tribunal hold?

The Tribunal restored the issue of corpus fund addition to the AO for fresh consideration, similar to the previous assessment year. For donation income, the Tribunal remanded the issue to the AO to verify and bring the correct amount to tax after providing an opportunity to the assessee.

The assessee appealed against the CIT(A)'s order confirming additions to their income. The appeal involved issues related to donation income, differences in bank credit balances, and corpus fund additions.

What were the issues?

Whether additions made on account of donation income and corpus fund were justified, and if the AO correctly calculated the taxable amount of donations.

Baba Kalyan Dass Kale Babaji… vs ITO | ITAT Chandigarh 2018

Income Tax Appellate Tribunal, DIVISION BENCH ‘A’, CHANDIGARH

Before: MS. DIVA SINGH & MS. ANNAPURNA GUPTA

For Appellant: Shri Sudhir Sehgal

For Respondent: Smt. Chanderkanta, Addl. CIT

Hearing: 02.05.2018Pronounced: 04.05.2018

PER DIVA SINGH

The present appeal has been filed by the assessee assailing the correctness of the order dated 23.09.2016 of ld. CIT(Appeals) Palampur pertaining to 2011-12 assessment year on the following grounds : 1. The income Tax Officer is contrary to law and facts of the case 2. The learned Commissioner of Income Tax (Appeals) has erred in law and facts of case by confirming the addition of 1558594 on account of donation income from interest. 3. The learned Commission of income Tax (Appeals) has erred in law and facts of case by confirming the addition of Rs. 165825/- difference in credit balance in Bank. 4. The learned Commissioner of Income Tax (Appeals) has erred in law and facts of the case by confirming of addition of 4788816/- on account of corpus fund to the total income of the assessee. 5. The appellant craves leave to add or to amend the aforesaid grounds of appeal before the disposal of the appeal. 2. At the time of hearing, ld. AR submitted that he does not wish to press ground No. 2. The said ground is dismissed as not pressed. 3. Inviting attention to ground No. 4 raised by the assessee in the present appeal, it was his submission that the said issue on similar set of facts and circumstances came up before the ITAT in the immediately preceding assessment year and since the order of the CIT(A) had been passed ex-parte, the issue had been restored back to the file of the AO. Copy of the order dated 03.04.2018 in ITA 1237/CHD/2017 was filed. Accordingly, it was his limited prayer that the said issue may also be sent back to the file of the AO.

ITA 1370/CHD/2016 A.Y. 2011-12 2

The ld. Sr.DR considering the material available on record had no objection if the issue is also sent back to the AO as it would depend on the conclusions given by the AO in the earlier year which was pending before the AO. 5. Accordingly, in the light of the submission of the parties and considering the material available on record, the issue raised in ground No. 4 is restored to the AO. 6. Addressing the issue raised in ground No. 2, it was the submission of the ld. AR that the AO at the time of finalizing the order picked up in page 2 para 6 of his order an incorrect amount qua the donations. Inviting attention to Paper Book page 3 and 9, it was his submission that no doubt the AO was justified to bring the amount to tax, however, it is only the difference which could have been brought to tax. Accordingly, it was his limited prayer that the issue may also be remanded to verify and grant necessary relief in accordance with law. 7. The ld. Sr.DR considering the record submitted that she would have no objection if on verification the correct amount is taken on record. 8. We have heard the rival submissions and perused the material on record. On going through the submissions advanced, we find that the limited prayer of the assessee for bringing correct amount on record in the peculiar facts and circumstances of the present case deserves to be allowed. It is seen that before the CIT(A), the assessee apart from advancing arguments on the above aspect primarily agitated that the revised return was maintainable which issue has been decided against the assessee. However, the fact remains that for bringing the amount to tax, the figures should be correctly taken. Accordingly, the issue is sent back to the file of the AO with the direction to pass a speaking order in accordance with law, needless to say after giving the assessee a reasonable opportunity of being heard. 9. In the result, appeal of the assessee is allowed for statistical purposes. Order pronounced in the Open Court on 04.05. 2018.

Sd/- Sd/- (ANNAPURNA GUPTA) (DIVA SINGH) ACCOUNTANT MEMBER JUDICIAL MEMBER

‘Poonam’ Copy to: 1. The Appellant 2. The Respondent 3. The CIT 4. The CIT(A) 5. The DR Asstt. Registrar ITAT Chandigarh

BABA KALYAN DASS KALE BABAJI MAHARAJ TRUST,BILASPUR vs. ITO, BILASPUR

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