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TMI Blog2012 (7) TMI 398X X X X Extracts X X X X X X X X Extracts X X X X ..... tion certificate u/s 80G was valid for a period w.e.f. 01.04.2002 to 31.03.2007. A search operation u/s 132 was carried out at the premises of the assessee as well as at the residence of the trustees on 04.08.2005. The assessments for Assessment Year 2005-06 and 2006-07 were completed on 28.12.2007. As per these orders, an addition of Rs.2,50,000/- was made for Assessment Year 2005-06 and Rs.22,69,450/- made for the Assessment Year 2006-07. The renewal of exemption u/s 80G was declined on 29.11.2007. The registration granted u/s 12AA(3) was also cancelled on 30.01.2008 by holding that the assessee trust is not a genuine and activities are not carried out in accordance with the object of charity. The assessee trust has been again granted registration u/s 12AA on 12.06.2008 and also allowed exemption u/s 80G vide order dated 18.07.2008 for a period from 01.04.2008 to 31.03.2012. The additions made in the Assessment Years 2005-06 and 2006-07 were challenged before the CIT (A) who had deleted the addition in both the years. No appeal filed by the revenue against the orders of the CIT (A) for Assessment Years 2005-06. However, for the Assessment Year 2006-07, the revenue is in appeal be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd Prashant Bhalla). The separate additions have been made in the hands of Shri O.P. Bhalla, Shri Amit Bhalla and Shri Prashant Bhalla aggregating to Rs.9,30,850/- on substantive basis. In the case of Shri O.P. Bhalla, the addition of Rs.1,90,650/- was made and it has been deleted by the CIT (A). The relevant order of the CIT (A) is placed at pages 29 to 41 of the paper book, Volume-1 wherein the CIT (A) has categorically stated that the money was belonging to Manav Rachna Educational Society and M/s. Techplast India Pvt. Ltd. and the cash books were duly produced before the Assessing Officer and additions cannot be sustained on the suspicion of possibility of any manipulation in the cash books. There was no specific finding that there was any manipulation in the cash book. Ld. AR also pleaded that in the cases of Shri Amit Bhalla and Shri Prashant Bhalla, the addition was deleted by CIT (A) and the revenue has accepted the order of the CIT (A). Revenue has not filed further appeals. Ld. AR pleaded that the cash was brought and kept at the residence of trustees at the night due to security reasons. The cash was belonging to the assessee Trust which was duly reflected in its cash bo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nation, the cash of Rs.1,30,000/- entered in the daybook on 22.07.2005 belonging to CITM and Rs.1,40,000/- in the name of MRES are reflected in respective cash book. Similarly, other entries were also reflected in the cashbook. Therefore, in our considered view, the CIT (A) has rightly deleted the addition and we find no merit in the revenue's appeal. 8. Ground No.3 is related to canceling the registration and then working out the 85% of the additional income applied towards the charity for the year under consideration. Since we have dismissed the revenue's appeal on the issues of additions made no additional income remains in the hands of assessee which can be considered for working out the application of income up to 85%., therefore, this ground becomes infructuous and the same is dismissed. 9. Ground Nos.4 & 5 are general in nature and do not required adjudication. 10. In the result, the appeal being ITA No.1148/Del/2010) filed by the revenue is dismissed. ITA No.1841/Del/2011 11. This appeal filed by the assessee for the Assessment Year 2007-08. The CIT (A) has confirmed the addition made by holding as under :- "4.3 I have considered the facts of the case as per as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it of section 11 and 12 by treating it as AOP at maximum marginal rate. 2. That having regard to the facts and circumstances of the case, Ld. CIT(A) has erred in law and on facts in confirming the action of Ld. AO in passing the impugned order being illegal and void ab initio and passed without providing an adequate opportunity of being heard and by not observing the principles of natural justice. 3. That in any case and in any view of the matter action of Ld. CIT(A) in confirming the action of Ld. AO in passing the impugned order being contrary to law and facts, void ab initio, beyond jurisdiction and the same is not sustainable on various legal and factual grounds. 4. That having regard to the facts and circumstances of the case, Ld. CIT(A) has erred in law and on facts in not reversing the action of Ld. AO in charging interest u/s 234B of the Income Tax Act, 1961. 5. That the appellant craves the leave to add, modify, amend or delete any of the grounds of appeal at the time of hearing and all the above grounds are without prejudice to each other." 13. While pleading on behalf of the assessee, the Ld. AR submitted that the assessee trust was granted registration on 27.03.200 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at the activities of the trust are not genuine and charitable, allegedly on account of the additions made during assessment proceedings in the case of the assessee for A.Y 05-06 & 06-07 and that too retrospectively from 1-10-2004. 2. In any view of the matter and in any case the cancellation of registration granted, U/S 12AA is bad in law and against the facts and circumstances of the case and that too retrospectively from 1-10-2004. 3. That the appellant craves the leave to add, modify, amend or delete any of the grounds of appeal at the time of hearing and all the above grounds are without prejudice to each other." 18. We have heard both the sides in detail. The registration of the assessee which was granted on 27.03.2001 was cancelled by the order dated 30.01.2008. This cancellation was based on the three additions made to the income of the assessee for Assessment Year 2005-06 and 2006-07. The first addition was in respect of unaccounted cash found and seized from the residence of trustees of assessee. In the quantum appeal, we have dismissed the revenue's appeal by confirming the relief granted to assessee, therefore, this ground for cancellation no more survive befor ..... X X X X Extracts X X X X X X X X Extracts X X X X
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