Batanagar Education and Research Trust Vs ITO (ITAT Kolkata)
ITAT Kolkata held that non-compliance on behalf of the assessee to notice and hearing notices was due to inadvertence and hence matter restored back to CIT(A) for fresh consideration.
Facts- The appellant are that the assessee being a public charitable Trust engaged in running an educational institution in the name of Batanagar Institute of Engineering, management and Science. A survey u/s 133A of the Act in the premises of BERT campus, Putkhali, Maheshtala, Kolkata and in course of recording statement one Sh. R.N. Lahiri, Vice Chairman deposed that a major part of the corpus donation received in the FY 2011-12 & 2012-13 were in the nature of accommodation entries and so bogus and not genuine.
Accordingly, registration granted u/s 12AA of the Act to the institution has been withdrawn as Society was found to be involved in money laundering to receive bogus donation, ingenuine activities. The assessment is therefore completed under the status ‘AOP’. The alleged corpus donation amounting to Rs. 2,45,29,550/- is considered as income in the hands of the Trust without giving cognizance to the corpus status to the said capital receipt.
CIT(A) dismissed the appeal. Being aggrieved, the present appeal is filed.
