Case Law Details
Abhodh Memorial Trust Vs ACIT (ITAT Kolkata)
Ld. counsel for the assessee has submitted that building was constructed by Shri Aditya Mondal and Smt. Mamata Mondal, trustees of the assessee-trust who have obtained house building loan from the banks for the purpose of construction of the aforesaid building. The building was not constructed or owned by the trust/institute for the relevant assessment year A.Y 2011-12. We find that the ld. CIT(A) has also categorically made observation that the building was constructed by the trustees of the assessee and not by the assessee itself. Since the building was not constructed by the assessee-trust, there was no question of any addition on account of unexplained investment by the assessee-trust. Therefore, there is no justification on the part of the CIT(A) in confirming the impugned addition especially when the ld. CIT(A) himself has observed that the building was not constructed by the assessee-trust rather the same was constructed by the trustees of the assessee i.e. Smt. Mamata Mondal and Shri Aditya Mondal. Merely because the building was used by assessee-trust without consideration that cannot be said to be, in any way, any unexplained investment by the assessee-trust justifying the addition of section 69 of the Act. In view of this, the impugned order of the CIT(A) is set aside and the addition made by the Assessing Officer is hereby ordered to be deleted.
FULL TEXT OF THE ORDER OF ITAT KOLKATA
The present appeal has been preferred by the assessee against the order dated 27.06.2019 of the Commissioner of Income Tax (Appeals), Durgapur (hereinafter referred to as the ‘CIT(A)’) passed u/s 250 of the Income Tax Act (hereinafter referred to as the ‘Act’). The assessee in this appeal has taken the following grounds of appeal:
“1. That on the facts and in the circumstances of the case, the Ld. CIT(A) erred in passing the order appealed against sustaining the additions made in the assessment order amounting to Rs. 16,00,000/- without considering the facts of the case in its perspective properly.
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