Chandra Mohan Garg ORDER
Chandra Mohan Garg, Member (J)
1. This is an appeal filed by the assessee against the order of the CIT(A), National Faceless Appeal Centre, Delhi dated 20.4.2021 for the assessment year 2014-15, in the matter of order under section 154 of the Income tax Act, 1961.
2. The assessee has raised the following grounds:
"1. On the facts and circumstances of the case, the ld. CIT(A) has erred in passing order ex parte on 20.4.2021 i.e. when the area of the assessee and counsel of the assessee were lock down due to the spread of COVID 19. The order passed by the ld. CIT(A) is without providing proper opportunity of being heard which is against the principle of natural justice, hence, the order passed by the AO is unjustified, unwarranted and uncalled for.
2. On the facts and in the circumstances of the case, the ld. CIT(A) has erred in passing order without calling for the documents submitted with the AO in the original proceeding. Therefore, order passed without verifying the documents available with the department is unjustified, unwarranted and uncalled for.
3. On the facts and in circumstances of the case, the ld. CIT(A) has erred in passing order without adjudicating the legal ground raised by assessee judiciously. Therefore, order passed in unjustified, unwarranted and uncalled for.
4. On the facts and in the circumstances of the case, the ld. CIT(A) has erred in sustaining the order of the AO where in the AO has erred in considering the specific fund as general fund and treating it as revenue receipt while passing the order. The addition made by the AO and confirmed by ld. CIT(A) is unjustified, unwarranted and uncalled for."
3. Briefly stated the facts are that the assessee is a trust, filed its return of income on 28.9.2014, claiming exemption under section 11 of the Act. The return was processed u/s. 143(1) of the Act by the CPC on 14.3.2016 on total income of Rs. 1,54,10,132/- raising demand of Rs. 66,50,150/-. Thereafter, a rectification petition was filed by the assessee u/s. 154 of the Act alongwith audited income and expenditure account, receipt and payment account, balance sheet, on the ground that the CPC has not considered the expenses incurred during the year for running of the trust. The Assessing Officer, on verification of balance sheet, noticed that the assessee has shown special fund of Rs. 2,09,36,028/- from various donors (the details are reproduced by the ld. CIT(A) at page 4 6 of the impugned order) without routing through the income and expenditure account. The AO asked the assessee to explain as to why the special fund received through donation would not treated as revenue receipt. The secretary of the trust produced the list of donors and amount of donation. The AO found that an amount of Rs. 44,91,791/- has been donated for the specific purpose, therefore, same were considered to be genuine and balance amount of Rs. 1,64,44,237/- was added to the total income of the assessee and determined the total income at Rs. 19,83,850/-. Aggrieved by the order of the AO, the assessee trust went in appeal before the ld. CIT(A), who passed the order ex parte confirming the addition so made by the AO. Hence, the assessee is in appeal before the Tribunal.
4. Ld. counsel for the assessee submitted that first of all the disallowances of special fund by the ld. AO while considering the application under section 154 was beyond his scope. It was his submission that the appellant had submitted the rectification petition claiming for allowing of expenditure incurred by it while considering the receipts. Ld. AO exceeded his jurisdiction in proceeding with examination of special fund. In addition to this submission, ld. A.R. submitted that the receipts of special fund being capital in nature, need requir........