COMMISSIONER OF INCOME TAX Vs. UTTARANCHAL WELFARE SOCIETY
LAWS(ALL)-2013-8-151
HIGH COURT OF ALLAHABAD
Decided on August 08,2013

COMMISSIONER OF INCOME TAX Appellant
VERSUS
Uttaranchal Welfare Society Respondents




JUDGEMENT

- (1.)WE have heard Shri Dhananjai Awasthi, learned counsel appearing for the Department. Shri Nikhil Agrawal appears for the respondent -assessee. This income -tax appeal under section 260A of the Income -tax Act, 1961, arises out of an order of the Income -tax Appellate Tribunal, Amritsar Bench, Camp at Meerut, dated November 28, 2008, in respect of the assessment year 2001 -02.
(2.)THE appeal has been preferred by the Revenue on the following substantial questions of law:
1. Whether, on the facts and in the circumstances of the case as per law, the hon'ble Income -tax Appellate Tribunal was legally justified in deleting the addition made by the Assessing Officer of Rs. 96,50,000 on account of treating the donations as voluntary whereas the Assessing Officer on test check basis found that the donations were not voluntary and made the additions under section 68 of the Income -tax Act, 1961, as explained cash credits which was clear violation of section 11(1)(d) of the Income -tax Act, 1961?

2. Whether, on the facts and in the circumstances of the case as per law, the hon'ble Income -tax Appellate Tribunal was right in giving the exemption under section 11 of the Income -tax Act, 1961, to the assessee -society in spite of the fact that the assessee -society has failed to comply with the provisions of section 11(1)(d) and violated the provisions of section 13 of the Income -tax Act?

Whether, on the facts and in the circumstances of the case as per law, the hon'ble Income -tax Appellate Tribunal was right in dismissing the appeal of the Revenue on account of interest disallowed by the Assessing Officer amounting to Rs. 11,36,191 without giving any findings?

(3.)WHETHER , on the facts and in the circumstances of the case as per law, the hon'ble Income -tax Appellate Tribunal was right in dismissing the appeal of the Revenue on account of caution money disallowed by the Assessing Officer amounting to Rs. 9,70,035 without giving any findings?
3. In the present case, the Assessing Officer disallowed the exemptions for donations of Rs. 96,50,000 received from 60 persons, who had donated the amounts ranging from Rs. 8,000 to Rs. 19,000 and others. The Assessing Officer issued summons to 15 persons, out of these four persons denied the affidavits and signatures on the affidavits and also stated that they have not donated any money to the assessee. In another two cases they denied that they have any connection with the society. On account of anonymous donations the benefit of sections 11 and 12 was withdrawn.

4. The Commissioner of Income -tax (Appeals) allowed the exemptions under sections 11 and 12 during the continuation of the registration under section 12A on the ground that even if the genuineness of the donations were not proved, if the activities of the trust are genuine and if it has carried out the activities in accordance with the object of the trust and registration granted under section 12A has not been withdrawn, the exemptions cannot be denied.



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