DIRECTOR OF INCOME TAX Vs. HELP AGE INDIA

JUDGEMENT

(1.) 2009 passed by the Income -tax Appellate Tribunal (for short 'the Tribunal') in ITA No. 585/Del/2009 for the asst. yr. 2005 -06 whereby the Tribunal has confirmed the order passed by the CIT(A). 2. It is worth noting that the Revenue has framed the following questions as the substantial questions of law :

(2.)

(3.) TO appreciate the controversy involved, it is necessary to refer to the facts in brief. The assessee -respondent filed a 2006 and thereafter, when the case was selected for scrutiny, notice was issued to the assessee. The assessee filed its response to the notice and the AO came to hold that the assessee had held equity shares donated in kind in various companies other than as mentioned in (A) and (B) of s. 13 and, therefore, the provisions of ss. 11 and 12 would not be applicable so as to exclude any income of the institution from its total income as a result of which no exemption would be admissible. The AO, however, noted that the explanation offered by the assessee was not acceptable as it has held in donation. The AO further took note of the fact that a sum of Rs. 27,58,364 was deducted by the assessee from the total income in the income and expenditure account on account of grants utilized for acquisition of capital assets and as the exemption under ss. 11 and 12 of the Act is not admissible, the same is also to be added to the net taxable income. The donation of Rs. 6,28,000 which was received was added to the corpus fund directly in the balance sheet and, accordingly, the same was also not entitled to exemption. Being of this view, the AO added the said sums to the taxable income. He further opined that as the assessee had concealed the particulars of the income and furnished inaccurate particulars, a penalty proceeding under s. 271(1)(c) of the Act deserved to be initiated and, accordingly, he so directed.