M/s Jamiya Arabiya Nafe Ul Uloom Education Society vs Income-tax Officer, (Exemption) Ward, Ghaziabad

Parties Involved

Facts Summary

The assessee, M/s Jamiya Arabiya Nafe Ul Uloom Education Society, a registered society and 'madarsa', received a cash deposit of Rs. 38,34,097/- in Allahabad Bank, Kolkata main branch. No return of income was filed by the assessee. The Income Tax Officer, Ward 3(2), Bulandsahar, recorded reasons for reopening the assessment, which was approved by the PCIT, Ghaziabad. A notice under section 148 of the Income Tax Act was issued on 26.03.2018 by the Income Tax Officer, Ward 3(2), Bulandsahar. In the absence of any response from the assessee, the Income Tax Officer, Ward-Exemptions, Ghaziabad completed the assessment under sections 144 read with 147 on 25.10.2018 by making an addition of Rs. 38,34,097/- as an unexplained cash deposit. The assessee approached the Commissioner of Income Tax (Appeals), who confirmed the addition. Aggrieved, the assessee filed an appeal before the Income Tax Appellate Tribunal.…

Legal Issues

• 1. Whether the assessing officer had jurisdiction to initiate re-assessment proceedings under section 147 read with section 148 and pass the assessment order.
• 2. Whether the re-assessment proceedings were initiated without proper service of notices.
• 3. Whether the transfer of jurisdiction by ITO, Bulandshahar to ITO, Exemption, Ghaziabad followed the procedure under section 127.
• 4. Whether the addition of Rs. 38,34,097/- on account of unexplained cash deposit was justified.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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