GURU GOBIND SINGH EDUCATIONAL SOCIETY,MOGA vs. INCOME TAX OFFICER EXEMPTIONS, JALANDHAR

Per:Anikesh Banerjee, JM: The instant appeal of the assessee was filed against the order of the ld. Commissioner of Income Tax (Appeals)-4,Ludhiana,[in brevity the ‘CIT (A)’] order passed u/s 250 (6) of the Income Tax Act 1961, for A.Y. 2011-12.The impugned order was emanated from the order of the Income Tax Officer (Exemption), Jalandhar order passed u/s 148/147/143(1) of the Act date of order 28.03.2016. The assessee has taken the following grounds: - “

1. That Ld Cit (A) Has Erred In Facts And Law In Confirming Addition Of Rs. 3884300 Toward The Income As Against Nil Income Declared By Assessee.

2. That theLd Cit (A) Erred In Confirming The Aforesaid Addition,Whereas The Appellant had Duly Submitted Its Reply To The Satisfaction Of Assessing Authority And Also Furnished The Required Evidence As Demanded By The Assessing Authority During The Assessment Proceedings In Support Of The Claim Of Donation Being Exempt In Terms Of Section 11(1)(d) Of The Income Tax Act And Confirmation Of Addition By Ld CIT (A) Is Bad In Law.

3. That The Appellant Had Legitimate Source Of Donation Of Rs.388430Q/-Received As Corpus Fund Of The Society And Also Submitted Detailed List Of All The Donors Along With Their Names And Addresses As Required By Assessing Authority And All The Donors Had Also Admitted Before The Assessing Authority That They Made Corpus Donation Supported By The Affidavits Along With Relevant Evidence Of Donations Made By Them To The Society To The Assessing Authority During The Assessment Proceeding And Ld CIT (A) Erred In Confirming In The Same.

4. That The Amount Of Donations Received As Corpus Fund Were Duly Utilized For Construction Of School Building As Per The Objects Of The Society And Confirmation Of Addition By Ld Cit(A) Is Opposed To Facts And Law And Circumstances Of Case.

5. Ld Cit (A)Completely Ignored The Facts, Supported With Decided Case Law That Corpus Donations Are Capital Receipts And Confirmation Of Addition Is Bad In Law.

6. That Ld Cit (A) Erred In Dismissing The Appeal Whereas On Certain Dates A.R. Of Assessee Did Not Appear.

7. That Order Pass ByLd Cit(A) Is Bad In Law.”

2. Brief fact of the case is that the assessee’s case was reopened U/s 148 of the Act, and addition was made amount of Rs.38,84,300/- related to corpus fund received by the assessee during the impugned assessment year. The assessee is an educational society and claimed exemption u/s 11 of the Act. But assessee was not registered u/s 12AA of the Act. The ld. AO placed that the assessee was also not approved u/s 10(23C) (vi). The entire corpus donation was added back with the total income of the assessee. Aggrieved assessee filed an appeal before the ld. CIT(A). But the ld. CIT(A) pass the order ex parte and upheld the decision of the ld. AO. Being aggrieved assessee filed an appeal before us.

“6. On careful consideration of the material on record, it has been noticed that the assessee has failed to furnish any submissions in support of the grounds of appeal taken by it. It is observed that the assessing officer has passed well-reasoned order after considering all the relevant facts of the case. The assessee has not filed any reply or evidence to controvert the findings of the assessing officer. Therefore, for reasons recorded in the order the assessing officer, the assessment order is upheld and appeal of the assessee is dismissed.”