SATLUJ SHIKSHA SAMITI Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) Delay of 47 days in refiling the appeal is condoned.

(2.) This appeal has been filed by the assessee under Sec. 260A of the Income Tax Act, 1961 (in short "the Act") against the order dtd. 29/9/2017 (Annexure A-10) passed by the Income Tax Appellate Tribunal, Delhi Bench 'G', New Delhi (hereinafter referred to as "the Tribunal") in ITA No. 777/DEL/2016, for the assessment year 2011-12, claiming the following substantial questions of law:-

(3.) A few facts necessary for adjudication of the instant appeal as narrated therein may be noticed. The assessee has been incorporated with the object to promote child education specially for minority community and under privileged Sec. of the society and is registered as is clear from the certificate of registration along with memorandum of association (Annexure A-1). The assessee for the assessment year 2011-12 filed its return on 15/10/2011 at 'nil' income. The said return was processed under Sec. 143(1) of the Act. Since the date of incorporation on 1/9/1989, till the assessment year 2011-12, the assessee had been filing the returns of income regularly as required under Sec. 139(1) of the Act. During the pendency of the assessment proceedings, the assessee filed written pleadings dtd. 18/2/2014, 27/2/2014 1/3/2014 and 26/3/2014 (Annexure A-2 Colly). The Assessing Officer vide order dtd. 28/3/2014 (Annexure A-3) framed the assessment at Rs.75,64,750.00 as unsecured cash loan of Rs.67,75,000.00 remained unexplained and, thus, added under Sec. 68 of the Act. After adding this amount of Rs.67,75,000.00 to the gross receipts from fees and interest at Rs.72,28,382.00, the gross annual receipts came to Rs.1,40,03,382.00 which exceeded Rs.1.00 crore. Accordingly, the assessee was not entitled to claim exemption under Sec. 10(23C)(iiiad) of the Act. Feeling aggrieved by the order, Annexure A-3, the assessee filed an appeal on 30/4/2014 (Annexure A-4) before the Commissioner of Income Tax (Appeals) [for brevity "the CIT(A)"]. The assessee also furnished written pleadings dtd. 15/5/2015 and 25/6/2015 (Annexure A-5 Colly) before the CIT(A). Pursuant thereto, the CIT(A) sought remand report from the Assessing Officer who issued notice dtd. 6/8/2015 (Annexure A-6), wherein the Assessing Officer had called 6 of the unsecured loanees to record their statements to verify the genuineness of the cash transactions. It was recorded in the remand report that in response to summons to these persons, the assessee produced only five persons and their statements were recorded under Sec. 131 of the Act. All these persons had neither produced copy of any income tax return filed by them nor furnished/produced any documentary evidence in respect of source of cash deposits made in their bank accounts. It was noticed in the remand report that the assessee had not added or produced anything new in respect of the sources of cash deposits made and against which loans have been advanced to the assessee. The CIT (A) vide order dtd. 27/1/2016 (Annexure A-8) dismissed the appeal of the assessee. Still dissatisfied, the assessee filed an appeal before the Tribunal on 12/2/2016 (Annexure A-9). The Tribunal vide order dtd. 29/9/2017 (Annexure A-10) dismissed the appeal of the assessee. Hence, the present appeal.