COMMISSIONER OF INCOME TAX Vs. GEETANJALI EDUCATION SOCIETY

JUDGEMENT

(1.) THIS appeal is directed against order dated 8.11.2007 passed by the Income Tax Appellate Tribunal, Jodhpur Bench, affirming the order passed by the Commissioner of Income Tax (Appeals), setting aside the assessment order made against the assessee society. The Assessing Authority assessed the society ignoring the donations given by different persons in favour of the society, holding the donors as bogus. The Commissioner of Income Tax (Appeals) reversed the order of assessment holding that all the donors were neither examined nor some of them examined, were not allowed to be cross examined to come to a conclusion as to whether they were bogus donors. It clearly held that in case there were some bogus donors and donation was found to be not genuine, registration of the assessee under Section 12AA could have been cancelled/withdrawn. The Appellate Tribunal on appreciation of facts and pleadings of the parties concurred with the views of the Commissioner of Income Tax (Appeals) and reiterated the same view and held that the donors could not have been declared to be bogus, as on totality of it the donors were not examined nor those who were examined were allowed to be cross examined. It further held that since the society is a registered society under the provisions of Section 12AA of the Income Tax Act, it enjoyed the exemption as provided under Section 11 of the Act.

(2.) ON close scrutiny of the findings recorded by the Commissioner of Income Tax and Appellate Tribunal, we are of the view that the donations given in favour of the society could not have been held to be bogus without examining the donors and subjecting them to cross -examination. The veracity of genuineness must be tested at the touch stone of evidence and not otherwise. We are satisfied that registration of the society has not been withdrawn even on account of finding the donors as in -genuine. If the registration is allowed, the society would be entitled to get the exemption as provided under Section 11 of the Act. In the given facts and circumstances of the case, therefore, the finding recorded by the Commissioner of Income Tax (Appeals) and Appellate Tribunal, in our view, cannot be faulted.