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TMI Blog2015 (12) TMI 1064X X X X Extracts X X X X X X X X Extracts X X X X ..... y the appellant-assessee, according to his own whims and fancies in his individual capacity. The Tribunal has rightly observed that the collection certificates were also stereo-typed without any PAN etc. Even no effort was made to produce any so called donation affirming the same. Bank accounts were found in the sole name of the appellant-assessee without indicating any adverse eventuality. The nomination of his son by him in the bank accounts, clearly required to draw an inference that all the bank accounts were his personal accounts and not of the Dera. The appellant has miserably failed to show before the authorities that any charitable activities was ever been carried out by him as prescribed under Section 2(15) of the Act. Its affiliation with any other charitable institution was also not proved. The Assessing Officer, the CIT(A) and the Tribunal as well have found on the basis of material before them that the appellantassessee had purchased LIC policy, gas connection, cylinder etc. from the so called funds of the Dera, which were indicative of the fact that the bank account was being operated by him for his personal use. The cumulative effect of all these factors shows tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d by him in his name. Notice under Section 142(1) of the Act was served upon the appellant requiring him to furnish necessary information. However, he did not respond to the same. Thereafter, many questionnaires were issued to him from time to time, which he duly replied that he was a religious preacher doing no business activity and not maintaining any personal bank account. He was residing in Dera of Sant Amir Singh Ji, Bazaar Satto Wala, Amritsar. Expenses towards electricity, telephone and water were being borne by aforesaid Dera. Some mobile phone expenses were incurred by him in 2008-09, details of which were furnished in the Income Expenditure Account etc. The Assessing Officer vide assessment order dated 17.11.2011 (Annexure A-1) made an addition of ₹ 1,21,67,653/- by treating the bank deposits as his income from profession and vocation while, inter alia, disallowing the expenses towards insurance and 1/5th expenses towards telephone, travelling and vehicle etc. amounting to ₹ 6,12,725/- besides, adding back ₹ 1,39,85,512/- claimed by the assessee towards donation of Chhattar of gold weighing 12.670 Kgs. to Sri Hazur Sahib, Abchalnagar, Nanded, Maharas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ngh, (1979) 118 ITR 1015 (All.); and CIT v. Baba Avtar Singh, (1972) 83 ITR 738 (Del.). 4. On the other hand, learned counsel for the respondents pleaded the legality and validity of the impugned order passed by the Tribunal. 5. We have heard learned counsel for the parties. 6. It is pertinent to mention here that to the questionnaire issued to the appellant-assessee by the Assessing Officer, he replied that he does not maintain any personal bank account in his name. However, being dissatisfied with the aforesaid reply, his bank account opening documents were called from the City Bank, Ludhiana under Section 133(6) of the Act. In the account opening form, it was found that in the 'Nomination Column' the appellant-assessee had nominated his son Amandeep Singh as his nominee in case of his death. Upon being asked from the appellant-assessee that when the account was in the name of Dera and not his personal account, then in what capacity, he could nominate his son as his nominee, he could not submit any satisfactory reply. In these circumstances, the Assessing Officer treated the aforesaid bank account as individual account of the appellantassessee. 7. There is n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pon by the learned counsel for the assessee, it may be noticed that in The Punjab State EGovernance Society's case (supra), the assessee was registered under the Societies Registration Act, 1860, besides under Section 12AA of the Act. Its object was to promote the implementation of EGovernance using information technology in the State of Punjab. It received many grants from the State Government and interest from the banks on the deposits. The Assessing Officer assessed those grants as its taxable income, being failed to spent 85% out of it, as required under Section 111 of the Act, besides interests thereon as taxable income, being separate from the grants-in-aid. The CIT (A) set aside the above additions holding that tied-up grants will not constitute income of the assessee. Further, the Tribunal also upheld the aforesaid decision of the CIT(A) by observing that the assessee had received certain grants from Government with a stipulation that such grants are to be utilized only for the stated purposes which are pre decided by the disbursing agency. The learned CIT(A) has also noted that unspent amount of such grants is required to be refunded to the distributing agency and as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ge on charges for admission into the enclosure of the club at the time of horse races for local charities like, Red Cross Society etc., whereas, there are no such circumstances in the present case. 14. In Sant Baba Mohan Singh's case (supra) , all the income spent for religious and charitable purpose was held to be exempted from tax, whereas, as discussed above, in the instant case, the assessee has miserably failed to prove any of its work as of religious and charitable nature. 15. In Baba Avtar Singh's case (supra) , the cash offerings were made at the feet of the religious head, who claimed that he had no interest in the same, whereas, in the instant case the appellant-assessee has miserably failed to prove that he had no interest in the donations received in his bank account in his personal name nominating his real son as his nominee. 16. The principles of law enunciated in these pronouncements is well recognized but in view of factual matrix noticed hereinbefore in the present case, it does not advance the case of the assesseeappellant. 17. No illegality or perversity could be pointed out by the learned counsel for the assessee in the aforesaid findings o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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