M/s. R K Sipani Foundation Vs. The Income Tax Officer (E), Ward – 2, Bangalore

Parties Involved

Facts Summary

The assessee, M/s. R K Sipani Foundation, a charitable trust, filed its return of income on 23/12/2013 and is registered under section 12A of the Act. The case was selected for scrutiny under CASS, and notices under sections 143(2) and 142(1) were issued. The Assessing Officer (AO) did not accept the assessee's claim of applying income towards the trust's object because only an agreement to sale was produced, not a sale deed. The AO also disallowed depreciation of Rs. 1,96,880/-. The assessee appealed to the Commissioner of Income Tax (Appeals) (CIT(A)), but the appeal was decided ex-parte as the assessee did not appear. The CIT(A) mistakenly considered Form 35 of another assessee. The assessee then appealed to the Income Tax Appellate Tribunal (ITAT).…

Legal Issues

• 1. Whether the order of the AO is against the assessee and opposed to law, equity, weight of evidence, probabilities, facts, and circumstances of the case.
• 2. Whether the CIT(A) erred in dismissing the appeal for lack of substantiation by the assessee.
• 3. Whether the CIT(A) erred by referring to Form 35 of a different assessee.
• 4. Whether the addition of INR 3,88,87,980/- as Corpus Donations was justified.
• 5. Whether the disallowance of depreciation of INR 1,96,880/- was justified.
• 6. Whether the denial of exemption u/s. 11 of the Act for investment in immovable property amounting to INR 3,41,72,000/- was justified.

Judgment Outcome

Decided in favour of Assessee.

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