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TMI Blog2022 (4) TMI 342X X X X Extracts X X X X X X X X Extracts X X X X ..... capital receipt . The assessee also furnished the details of donors along with their PAN card, on sample basis. The assessee also filed copy of deed of conveyance in respect of purchase of property/Dragah in financial year 2018 19. Neither these documents were examined by the CIT(A) nor any report was sought from the AO and merely by erroneous understanding of order passed in Bank of India Retired Employees Medical Assistance Scheme [ 2017 (2) TMI 602 - ITAT MUMBAI] fresh plea of the assessee was rejected by the CIT(A). As no scrutiny proceedings were initiated by the Revenue and return filed by the assessee was processed vide intimation under section 143 (1) these documents also could not be verified by the AO. We deem it appropriate to set aside the order passed by the CIT(A) and remand this issue to the file of CIT(A) for de novo adjudication after necessary verification of all the details / documents in respect of claim of the assessee. We further direct that if it is found that donations were received with respect to corpus of the trust for the purpose of purchase of property/Dargah then to that extent the same be not taxed being in the nature of capital receipt . ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ust was to maintain, administer and manage the Masjid, Dargah, provide funeral facility for Muslims, celebrate and perform Muslim festivals, to provide burial ground for Muslims, to provide burial materials and facilities for last rites of Muslims. During the year under consideration the assessee filed its return of income on 16.10.2015 declaring total income at ₹ 4,75,980 in form ITR 7 claiming exemption under section 11 of the Act. While processing the return under section 143(1) of the Act, the Assessing Officer after making certain adjustments determine the total income of the assessee at ₹ 21,67,070/- as against ₹ 4,75,980 declared by the assessee. Under intimation issued under section 143(1) of the Act, the Assessing Officer, inter-alia, disallowed the entire amount of voluntary contribution of ₹ 13,84,207/- received by the assessee out of which ₹ 8,99,811/- was received specifically towards corpus donation of the assessee trust for the purpose of purchase of immovable property/Masjid/Dargah. 5. In appeal before the CIT(A), assessee submitted that the assessee trust is not registered under section 12A of the Act. However, the consultant bein ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hich were also filed before the CIT(A). 8. On the other hand, Shri Chandra Vijay, learned Departmental Representative ( learned D.R. ) by vehemently relying upon the order passed by the CIT (A) submitted that the Assessing Officer proceeded on the basis of claim made by the assessee in its return of income. 9. We have heard the rival submissions and perused the material available on record. In the present case, it is evident from the record that there is no dispute that the assessee is trust registered with Maharashtra State Board of Wakf . It has also not been disputed that assessee is not registered under section 12A of the Act and thus not entitled to any benefit under section 11 of the Act. The Assessing Officer rightly proceeded to disallow the erroneous claim made by the assessee under section 11 of the Act, which is available only to a trust registered under section 12A of the Act. However, before the CIT(A), the assessee agreed that it had made wrongful claim under section 11 even when assessee is not registered under section 12A of the Act and submitted that despite not being registered under section 12A of the Act, the corpus donation received specifically for the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e assessee for the purpose of purchase of property/Dargah and therefore is in nature of capital receipt . The assessee also furnished the details of donors along with their PAN card, on sample basis. The assessee also filed copy of deed of conveyance in respect of purchase of property/Dragah in financial year 2018 19. However, neither these documents were examined by the CIT(A) nor any report was sought from the Assessing Officer, and merely by erroneous understanding of order passed by the Co-ordinate Bench of Tribunal in Bank of India Retired Employees Medical Assistance Scheme (supra), fresh plea of the assessee was rejected by the CIT(A). As no scrutiny proceedings were initiated by the Revenue and return filed by the assessee was processed vide intimation under section 143 (1) of the Act, these documents also could not be verified by the Assessing Officer. In view of the above, we deem it appropriate to set aside the order passed by the CIT(A) and remand this issue to the file of CIT(A) for de novo adjudication after necessary verification of all the details / documents in respect of claim of the assessee. We further direct that if it is found that donations were received wit ..... X X X X Extracts X X X X X X X X Extracts X X X X
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