Vidya Kunj School Vs ITO (ITAT Raipur)
ITAT Raipur held that exemption under section 11 and section 12 of the Income Tax Act not admissible to assessee society due to non-furnishing of return of income as required u/s. 12A(1)(b) of the Income Tax Act.
Facts- AO gathered information that the assessee society had during the demonetization period though made cash deposits of Rs.10,18,050/- in Specified Bank Notes (SBNs) in its bank account but had not filed its return of income. AO issued notice u/s 142(1) of the Act, dated 09.03.2018 calling upon the assessee society to file its return of income for the subject year. As the assessee society failed to file its return of income in compliance to the aforesaid notice, therefore, the AO was constrained to proceed with and frame the assessment to the best of his judgment u/s 144 of the Act.
AO in absence of any plausible explanation as regards the source of the cash deposits in SBN’s of Rs.10,18,050/-, held the same as the assessee’s unexplained money u/s 69A of the Act.
AO, further observed, that the assessee society during the period other than the demonetization period had in its aforementioned bank account made cash deposits of Rs.62,74,700/-. AO, based on the aforesaid claim of the assessee society except for the cash deposits in SBN’s of Rs. 10,18,050/- held the balance receipts of Rs. 1,76,27,889/- [Rs. 1,86,45,939/(-) Rs. 10,18,050/-] as its business receipts for the year under consideration. Accordingly, the AO worked out the income component on the aforesaid business receipts @ Rs. 10% i.e. 17,62,790/- and vide its order passed u/s 144 of the Act, dated 26.11.2019, determined income of the assessee society at Rs.27,80,840/-.
