9911796707
TMI Blog2014 (2) TMI 180X X X X Extracts X X X X X X X X Extracts X X X X ..... the Income-tax Act, 1961. During these assessment years, appellant-assessee has not been accepted to be existing solely for educational purpose and not for the purpose of profit and, accordingly, it has not obtained the benefit of section 10(22) of the Act. The reason therefor appears to be a survey conducted on 30th December, 1999. In course of such survey, it transpired, amongst others, that the appellant-assessee purported to spend certain amount of money during the assessment years in question for the purpose of effecting repairs. Payments pertaining to those repairs were made to three persons by account payee cheques after deducting TDS. Those cheques were encashed through the payees bank. The amounts of those cheques were, later on, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1 of the Act. Proceeding on the basis that though there is no dispute that the money for the work done landed up in the hands of the father of the chartered accountant, but there being no contention that the work for which the money was spent was not done, the Commissioner of Income-tax (Appeals) held in favour of the appellant-assessee and, while doing so, specifically stated that, in view of the relief granted under section 10(22) of the Act, he has not been called upon to go into the question, whether the assessee was entitled to the benefits of section 11 of the Act for the relevant assessment years. The Revenue took the matter before the Tribunal. The Tribunal concluded the matter on the basis of its decision rendered for the assessme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1996-97 and, in relation thereto, Income Tax Appeal No. 45 of 2009 has been filed and that matter has been adjourned till 30th August, 2013, in order to enable the learned counsel for the Revenue to take instructions, whether the said matter can be remitted back inasmuch as in the assessment years 2001-02, 2002-03 and 2003-04, those payments have been accepted as payment made for purchase of property. Whether those payments were made or not made for purchase of land for the institution, will not deter us from deciding these appeals, as only on the ground of subject payments made to three contractors, which payments, ultimately, landed up in the hands of the father of the chartered accountant of the appellant-assessee, these appeals can be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e money spent ostensibly on account of repair works of the institution landed up in the hands of a person, who had and has no connection with such repair works. In a situation of this nature, unless the assessee establishes by facts and figures as to how the money landed in the hands of that totally unassociated person, the one and the only presumption in law would be that the money has been siphoned away from the institution. It will be presumed that no work has been done and the money has been siphoned away. An educational institution, which had and has no connection with the father of the chartered accountant of the institution, will devise its means in such a way in order to reach the money to the father of the chartered accountant of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to the assessment year 2000-01. The fact remains that the assessee, when went before the Commissioner of Income-tax (Appeals), it had taken a plea that it is entitled to the benefit of section 11 of the Act, if it is held that it is not so entitled under section 10(22) of the Act. As will be evidenced from the order of the Commissioner of Income-tax (Appeals), the contention of the appellant-assessee that it is entitled to the benefit of section 11 of the Act was not gone in by him inasmuch as the case of the assessee for obtaining the benefit under section 10(22) of the Act had been accepted by the Commissioner of Income-tax (Appeals). As aforesaid, the matter reached the Tribunal at the instance of the Revenue. The order of the Commissio ..... X X X X Extracts X X X X X X X X Extracts X X X X
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