ANJUMAN-I-ISLAM CHARITIES FOR EDUCATIONAL AND SOCIAL ADVANCEMENT OF WOMEN AND CHILDREN ,MUMBAI V. ASSISTANT COMMISSIONER OF INCOME TAX EXEM CIRCLE 1, MUMBAI

ITA 4648/MUM/2025

AI Insights

The case involves Anjuman-I-Islam Charities for Educational & Social Advancement of Women & Children, a public charitable trust, which appealed against the addition of \\u20b9 9,68,569/- to its income for the assessment year 2016-17. The addition was based on entries in Form No. 26AS, which reflected income on which tax had been deducted at source but was not included in the trust's income and expenditure account. The trust contended that the income did not pertain to it and was included due to an inadvertent quoting of its PAN by the deductors. The Assessing Officer and the CIT(A) were not satisfied with the trust's explanation, leading to the appeal. The Tribunal found that the issue required factual verification and remitted the matter back to the Assessing Officer for a detailed examination.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 774652 (ITAT-MUMBAI)
• Duration Of Justice: 1 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-09-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: A
• Assessment Year: 2016-2017
• Appeal Filed On: 22-07-2025
• Other Referred Cases: CIT v. Deloitte Touche Tohmatsu (ITA No. 276/Mum/2016)
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: RAJESH KUMAR YADAV
• Assessee Lawyers: JAYESH CHUGH
• Keywords: TDS; Charitable institution; FORM 26AS
• Section: 133(6); 12A; 80G

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH “A” MUMBAI BEFORE SHRI OM PRAKASH KANT (ACCOUNTANT MEMBER) AND SHRI SANDEEP SINGH KARHAIL (JUDICIAL MEMBER) ITA No. 4648/MUM/2025 Assessment Year: 2016-17 Anjuman-I-Islam Charities for Educational & Social Advancement of Women & Children, Anjuman Secretariate, Badruddin Tyabji Marg, Next to times of India, Mumbai-400001. Vs. Asst. CIT Exem Circle 1, Mumbai. 6th floor, MTNL TE Building, Cumballa Hill, Mumbai-400026. PAN NO. AAATA 4147 L Appellant Respondent Assessee by : Mr. Jayesh Chugh Revenue by : Mr. Rajesh Kumar Yadav, CIT-DR Date of Hearing : 02/09/2025 Date of pronouncement : 09/09/2025 ORDER PER OM PRAKASH KANT, AM This appeal by the assessee is directed against order dated 28.03.2025 passed by the Ld. Additional/Joint Commissioner of Income-tax (Appeals) – 1, Gurugram [hereinafter shall be referred as ‘the Ld. CIT(A)’] for assessment year 2016-17, raising following grounds: 1. Whether, on facts and circumstances of the case and in law, the Ld. CIT (A) was right in allowing the Addition in Printed from counselvise.com respect of difference in Income on the basis of Annual Information Report or entries contained in Form 26AS of Rs. 9,68,569/- the A. Y.2016 2. Briefly stated, the facts of the case are that the assessee is a public charitable trust established on 02.11.1970, duly registered with the Office of the Charity Commissioner, Mumbai. The assessee is also registered under sections 12A and 80G of t Act, 1961 (hereinafter referred to as in running various schools and colleges and is carrying out charitable activities for the promotion of education and social advancement of women and children. For the year consideration, the assessee filed its return of income on 11.10.2016 declaring total income at 2.1 The return was selected for scrutiny and statutory notices under the Act were issued and duly complied with. During the course of the assessment observed that certain items of income interest etc, on which tax had been deducted at source in the Permanent Account Number (PAN) of the assessee and accordingly reflected in Form No. 26AS prescr 1962, were not shown in the income and expenditure account of the assessee. Anjum Educational & Social Advancement of ITA No. 4648/MUM/2025 respect of difference in Income on the basis of Annual Information Report or entries contained in Form 26AS of Rs. while computing the taxable income for Y.2016-17? Briefly stated, the facts of the case are that the assessee is a public charitable trust established on 02.11.1970, duly registered with the Office of the Charity Commissioner, Mumbai. The assessee is also registered under sections 12A and 80G of t Act, 1961 (hereinafter referred to as “the Act”). The trust is engaged in running various schools and colleges and is carrying out charitable activities for the promotion of education and social advancement of women and children. For the year consideration, the assessee filed its return of income on 11.10.2016 declaring total income at Nil. The return was selected for scrutiny and statutory notices under the Act were issued and duly complied with. During the course of the assessment proceedings, the Assessing Officer observed that certain items of income including contract work, , on which tax had been deducted at source in the Permanent Account Number (PAN) of the assessee and accordingly reflected in Form No. 26AS prescribed under the Income 1962, were not shown in the income and expenditure account of the Anjum-I-Islam Charities for Educational & Social Advancement of Women & Children 2 ITA No. 4648/MUM/2025 respect of difference in Income on the basis of Annual Information Report or entries contained in Form 26AS of Rs. while computing the taxable income for Briefly stated, the facts of the case are that the assessee is a public charitable trust established on 02.11.1970, duly registered with the Office of the Charity Commissioner, Mumbai. The assessee is also registered under sections 12A and 80G of the Income-tax ). The trust is engaged in running various schools and colleges and is carrying out charitable activities for the promotion of education and social advancement of women and children. For the year under consideration, the assessee filed its return of income on 11.10.2016 The return was selected for scrutiny and statutory notices under the Act were issued and duly complied with. During the proceedings, the Assessing Officer including contract work, , on which tax had been deducted at source in the Permanent Account Number (PAN) of the assessee and accordingly ibed under the Income-tax Rules, 1962, were not shown in the income and expenditure account of the Printed from counselvise.com 2.2 When confronted, the assessee explained that the said income did not pertain to it and had erroneously appeared in its Form No. 26AS owing to inadvertent quoting of its PAN by the deductors concerned. The assessee requested that the Assessing Officer may verify the matter by issuing notice under section 133(6) of the Act to the respective deductors, since the assessee could not procure confirmations directly. Reliance was also placed on the decision of the Co-ordinate Bench in 276/Mum/2016), wherein it was held that additions cannot be made merely on the basis of entries in the Annual Information Return (AIR). 2.3. The Assessing Officer, however, was not satisfied with the explanation. In the absence of confirmation fr held that since the TDS credit stood in the name of the assessee, the corresponding income also pertained to it. Accordingly, he added a sum of ₹ 9,68,569/ further appeal, the Ld. CIT(A) confirm 3. We have carefully considered the rival submissions and perused the material available on record. The controversy around the addition of No. 26AS of the assessee. It is a settled propo has been deducted and credited in the account of a particular assessee, prima facie, the corresponding income is assessable in its Anjum Educational & Social Advancement of ITA No. 4648/MUM/2025 When confronted, the assessee explained that the said income did not pertain to it and had erroneously appeared in its Form No. nadvertent quoting of its PAN by the deductors concerned. The assessee requested that the Assessing Officer may verify the matter by issuing notice under section 133(6) of the Act to the respective deductors, since the assessee could not procure ons directly. Reliance was also placed on the decision of ordinate Bench in CIT v. Deloitte Touche Tohmatsu 276/Mum/2016), wherein it was held that additions cannot be made merely on the basis of entries in the Annual Information . The Assessing Officer, however, was not satisfied with the explanation. In the absence of confirmation from the deductors, he held that since the TDS credit stood in the name of the assessee, the corresponding income also pertained to it. Accordingly, he 9,68,569/- to the total income of the assessee. On further appeal, the Ld. CIT(A) confirmed the addition. We have carefully considered the rival submissions and perused the material available on record. The controversy around the addition of ₹ 9,68,569/-, being income reflected in Form No. 26AS of the assessee. It is a settled proposition that where TDS has been deducted and credited in the account of a particular assessee, prima facie, the corresponding income is assessable in its Anjum-I-Islam Charities for Educational & Social Advancement of Women & Children 3 ITA No. 4648/MUM/2025 When confronted, the assessee explained that the said income did not pertain to it and had erroneously appeared in its Form No. nadvertent quoting of its PAN by the deductors concerned. The assessee requested that the Assessing Officer may verify the matter by issuing notice under section 133(6) of the Act to the respective deductors, since the assessee could not procure ons directly. Reliance was also placed on the decision of CIT v. Deloitte Touche Tohmatsu (ITA No. 276/Mum/2016), wherein it was held that additions cannot be made merely on the basis of entries in the Annual Information . The Assessing Officer, however, was not satisfied with the om the deductors, he held that since the TDS credit stood in the name of the assessee, the corresponding income also pertained to it. Accordingly, he to the total income of the assessee. On ed the addition. We have carefully considered the rival submissions and perused the material available on record. The controversy centers , being income reflected in Form sition that where TDS has been deducted and credited in the account of a particular assessee, prima facie, the corresponding income is assessable in its Printed from counselvise.com hands. However, the assessee has contended that the income does not pertain to it and has been wrongly mention of its PAN by the deductors. The assessee has also asserted that no credit of TDS corresponding to the impugned income has been claimed in its return. 3.1 Before us, the learned counsel for the assessee submitted that the assessee is now in a position to obtain necessary confirmation from the deductors to establish that the impugned income actually pertains to other entities. It was further submitted that the said income has been duly offered to tax in the hands of those e 3.2 In our considered view, the issue is essentially one of factual verification. The authorities below have made the addition merely on the basis of entries in Form No. 26AS without independently ascertaining whether the income indeed pertained to th Since the assessee has expressed willingness to furnish confirmation from the deductors, and the statute itself empowers the Assessing Officer to cause verification under section 133(6) of the Act, we deem it just and proper to remit the matter file of the Assessing Officer. 3.3 The Assessing Officer shall verify, on the basis of confirmation from deductors or through independent enquiry, whether the income of ₹ 9,68,569/ Anjum Educational & Social Advancement of ITA No. 4648/MUM/2025 hands. However, the assessee has contended that the income does not pertain to it and has been wrongly reflected due to erroneous mention of its PAN by the deductors. The assessee has also asserted that no credit of TDS corresponding to the impugned income has been claimed in its return. Before us, the learned counsel for the assessee submitted that assessee is now in a position to obtain necessary confirmation from the deductors to establish that the impugned income actually pertains to other entities. It was further submitted that the said income has been duly offered to tax in the hands of those e In our considered view, the issue is essentially one of factual verification. The authorities below have made the addition merely on the basis of entries in Form No. 26AS without independently ascertaining whether the income indeed pertained to th Since the assessee has expressed willingness to furnish confirmation from the deductors, and the statute itself empowers the Assessing Officer to cause verification under section 133(6) of the Act, we deem it just and proper to remit the matter file of the Assessing Officer. The Assessing Officer shall verify, on the basis of confirmation from deductors or through independent enquiry, whether the 9,68,569/- in question pertains to the assessee or to Anjum-I-Islam Charities for Educational & Social Advancement of Women & Children 4 ITA No. 4648/MUM/2025 hands. However, the assessee has contended that the income does reflected due to erroneous mention of its PAN by the deductors. The assessee has also asserted that no credit of TDS corresponding to the impugned income has Before us, the learned counsel for the assessee submitted that assessee is now in a position to obtain necessary confirmation from the deductors to establish that the impugned income actually pertains to other entities. It was further submitted that the said income has been duly offered to tax in the hands of those entities. In our considered view, the issue is essentially one of factual verification. The authorities below have made the addition merely on the basis of entries in Form No. 26AS without independently ascertaining whether the income indeed pertained to the assessee. Since the assessee has expressed willingness to furnish confirmation from the deductors, and the statute itself empowers the Assessing Officer to cause verification under section 133(6) of the Act, we deem it just and proper to remit the matter back to the The Assessing Officer shall verify, on the basis of confirmation from deductors or through independent enquiry, whether the in question pertains to the assessee or to Printed from counselvise.com other entities, and whether such income has already been declared by the rightful recipient. Subject to such verification, the Assessing Officer shall decide the issue afresh in accordance with law after affording reasonable opportunity of hearing to the assessee. 4. In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced in the open Court on 09 Sd/- (SANDEEP SINGH KARHAIL JUDICIAL MEMBER Mumbai; Dated: 09/09/2025 Rahul Sharma, Sr. P.S. Copy of the Order forwarded to 1. The Appellant 2. The Respondent. 3. CIT 4. DR, ITAT, Mumbai 5. Guard file. //True Copy// Anjum Educational & Social Advancement of ITA No. 4648/MUM/2025 d whether such income has already been declared by the rightful recipient. Subject to such verification, the Assessing Officer shall decide the issue afresh in accordance with law after affording reasonable opportunity of hearing to the assessee. result, the appeal of the assessee is allowed for nounced in the open Court on 09/09/2025. - Sd/ SANDEEP SINGH KARHAIL) (OM PRAKASH KANT JUDICIAL MEMBER ACCOUNTANT MEMBER Copy of the Order forwarded to : BY ORDER, (Assistant Registrar) ITAT, Mumbai Anjum-I-Islam Charities for Educational & Social Advancement of Women & Children 5 ITA No. 4648/MUM/2025 d whether such income has already been declared by the rightful recipient. Subject to such verification, the Assessing Officer shall decide the issue afresh in accordance with law after affording reasonable opportunity of hearing to the assessee. result, the appeal of the assessee is allowed for /09/2025. Sd/- OM PRAKASH KANT) ACCOUNTANT MEMBER BY ORDER, (Assistant Registrar) ITAT, Mumbai Printed from counselvise.com "