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TMI Blog2007 (1) TMI 92X X X X Extracts X X X X X X X X Extracts X X X X ..... 2.The Assessee is admittedly a society and has been running a school by the name of Vidya Niketan since some time in 1960. All along, the Assessee was granted exemption under Section 10(22) of the Income Tax Act, 1961 on the ground that it is a society which is existing solely for educational purposes and not for any profit motive. Even for the years subsequent to the assessment year in question, we have been told that the Assessee has been granted exemption under Section 10 (22) of the Act. 3.In the assessment year that we are concerned with, it has been pointed out that there were three discrepancies in the accounts maintained by the Assessee which led the Assessing Officer to come to the conclusion that it was not existing solely for e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e. 7. Reference has been made by learned counsel for the Assessee to a decision of a Division Bench of this Court in Director of Income Tax (Exemption) vs. Keshav Social and Charitable Foundation , [2005] 278 ITR 152 wherein the allegation made against the assessee was that through some donations, it was introducing unaccounted money into its corpus. It was held, even though it was a case under Section 11 of the Act, that the list of donors had been submitted and even if that list was not submitted or the donors were not produced, it would not necessarily lead to an inference that the assessee was trying to introduce unaccounted money by way of donation receipts. 8.In so far as the present case is concerned, we find that there ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ransaction were not produced, therefore, the transaction itself became doubtful. It was the view of the Assessing Officer that the amount was actually diverted to a member of a society since the genuineness of the transaction was not proved and on this basis the Assessee was not entitled to exemption under Section 10(22) of the Act. 12.Learned counsel for the Assessee has placed reliance upon the order of the learned Tribunal wherein it has been noted that details of construction of the school building through M/s. Pokhriyal Construction have been filed. A copy of the agreement between the Assessee and M/s. Pokhriyal Construction was also placed in the paper book along with the minutes of the Assessee society, the details of payments and ..... X X X X Extracts X X X X X X X X Extracts X X X X
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