IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCHES ‘E’: NEW DELHI.

BEFORE SHRI S. RIFAUR RAHMAN, ACCOUNTANT MEMBER and SHRI RAJ KUMAR CHAUHAN, JUDICIAL MEMBER ITA No.5120/DEL/2025 (Assessment Year :2015-16)

Jan Kalyan Samiti vs. ITO Ward Exemption A-48, Chander Nagar Sahibabad, Ghaziabad Ghaziabad 201002 (PAN: AAATJ5583B)

ASSESSEE BY : Sh. Gautam Jain, Adv &

Sh. Ankit Kumar Adv REVENUE BY : Ms. Ankush Kalra, Sr. DR Date of Hearing : 11.12.2025 Date of Order : 06.02.2026

O R D E R

PER S. RIFAUR RAHMAN, ACCOUNTANT MEMBER :

1. This appeal is filed by the assessee against the order of ld. Commissioner of Income-tax (Appeals)/ National Faceless Appeal Centre (NFAC), Delhi (hereinafter referred to ‘ld. CIT (E)’) dated 17.07.2025 for Assessment Year

2015-16.

2. Brief facts of the case are, assessee filed return of income declaring NIL income on 28.09.2015. The case was selected for scrutiny under CASS, notices u/s 143(2) and 142(1) were issued and served on the assessee. In response AR of the assessee attended and submitted the relevant information as called for.

3. During assessment proceedings, the Assessing Officer observed that assessee society was granted registration u/s 12AA of the Income Tax Act 1961 (in short “Act”), by ld. CIT(A), Ghaziabad dated 31.08.2004. He observed that there were 7 office bearers of the society the details are reproduced at page 2 of the assessment order.

4. Further he observed that assessee has disclosed total receipts of Rs.3,98,108/-, and revenue expenditure of Rs.2,17,867/-and declared surplus of Rs.1,80,241/- in their financial statement. He observed that the case was selected on the ground of transaction with the specified person under Limited Scrutiny. On perusal of the balance sheet, he noticed that the assessee has sold the agricultural land for Rs.30,00,000/- to Shri Jagan Nanth Ganeshi Lal Bajaj Charitable Trust Samiti. He also observed that, assessee has also purchased 115000 shares of RPL Capital Finance Limited for Rs.69,00,000/- from the private limited company namely M/s Rinkpi Finance & Consultants Pvt. Limited (RFCPL). The Assessing Officer has reproduced the Share Certificate in his order, and observed that the President, Shri Sanjeev Agarwal is also having shareholding in M/s Rinkpi Finance & Consultants Pvt. Limited, from whom assessee purchased 115000 shares at Rs.60/- per equity shares, the fair market value works out at Rs.34/- per share. The Assessing Officer observed that the assessee has paid excess of Rs.26/- per equity share to M/s Rinkpi Finance & Consultants Pvt. Limited totaling to Rs.29,90,000/-. In order to verify the same, notice u/s 133(6) of the Act issued to M/s Rinkpi Finance & Consultants Pvt. Limited to furnish the share holding of the assessee as well as the president of the society Shri Sanjeev Agarwal. In response they submitted the list of share holders which is reproduced at page 5 of the assessment order.

5. From the above information the Assessing Officer noticed that the President Shri Sanjeev Agarwal (HUF) was holding total share holding of 25.84% in M/s Rinkpi Finance & Consultants Pvt. Limited out of total shareholding of 1,67,47,000/-. equity shares . He listed the details of share holding of Sh.

Sanjeev Agarwal (HUF) and assessee society as under:

6. With the above observation he held that, Shri Sanjeev Agarwal President of the society holds 25.84% voting power in M/s Rinkpi Finance & Consultants Pvt. Limited. Accordingly, the provisions of section 13 of the Act read with 'Explanation 3' attracts in this case.

7. By referring to the provisions of Section 13(2)(e) he came to the conclusion that, Shri Sanjeev Agarwal holds voting power of 14.18% through society and 11.66% through Sh. Sanjeev Agarwal (HUF) totaling to 25.84% voting power in M/s Rinkpi Finance & Consultants Pvt. Limited from whom shares are purchased by or on behalf of the society or institution from the private company, in which specified persons are share holder during the previous year for con