M/s. Atul Medical and Rehabilitation Society, Nashik V. Income Tax Officer (Exemption), Ward-1, Nashik

ITA 137/PUN/2023

AI Insights

The case involves M/s. Atul Medical and Rehabilitation Society, a charitable trust engaged in running blood banks, which appealed against the orders of the National Faceless Appeal Centre (NFAC) for the assessment years 2012-13 and 2013-14. The primary issue was the taxability of corpus donations received by the trust, amounting to Rs.18,00,000, which were considered taxable by the Assessing Officer due to the trust's non-registration under section 12A of the Income Tax Act, 1961. The Tribunal found that the NFAC had erred in dismissing the appeal without considering it on merits and thus remanded the case back to the NFAC for a substantive decision.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 137662 (ITAT-PUNE)
• Duration Of Justice: 2 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-04-2023
• Appeal Filed By: Assessee
• Order Result: PartlyAllowed
• Bench Allotted: SMC
• Next Hearing Date: 02-04-2023
• Assessment Year: 2012-2013
• Appeal Filed On: 05-02-2023
• Other Referred Cases: M/s. Nandkishor Education Society vs. ACIT
• Laws Referred To: Income Tax Act, 1961, Bombay Public Trust Act, 1950
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Charitable institution
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH “SMC”, PUNE BEFORE SHRI INTURI RAMA RAO, ACCOUNTANT MEMBER आयकर अपील सं. / ITA Nos.137 & 138/PUN/2023 िनधाᭅरण वषᭅ / Assessment Years : 2012-13 & 2013-14 M/s. Atul Medical and Rehabilitation Society, 101/103, Athawale Chambers, Opp. Gadkari Tilak Path, Ravivar Karanja, Nashik- 422001. PAN : AABAA0272E Vs. ITO (Exemptions), Ward-1, Nashik. Appellant Respondent आदेश / ORDER PER INTURI RAMA RAO, AM: These are the appeals filed by the assessee against the separate orders of the National Faceless Appeal Centre, Delhi [‘NFAC’] dated 08.12.2022 for the assessment years 2012-13 and 2013-14 respectively. 2. Since the identical facts and common issues are involved in both the above captioned appeals, we proceed to dispose of the same by this common order. Assessee by : Shri Sanket Joshi Revenue by : Shri Sonal L. Sonkavde Date of hearing : 10.04.2023 Date of pronouncement : 10.04.2023 ITA Nos.137 & 138/PUN/2023 2 3. For the sake of convenience and clarity, the facts relevant to the appeal in ITA No.137/PUN/2023 for the assessment year 2012-13 are stated herein. ITA No.137/PUN/2023, A.Y. 2012-13 : 4. Briefly, the facts of the case are that the appellant is a charitable trust engaged in undertaking the activities of running of blood banks. The appellant trust was registered under Bombay Public Trust Act, 1950 in 2003. However, it was not registered u/s 12A of the Income Tax Act, 1961 (‘the Act’). During the previous year relevant to the assessment year under consideration, the appellant trust received corpus donations of Rs.18,00,000/- towards equipment fund. The Assessing Officer was of the opinion that since the appellant trust was not registered u/s 12A, voluntarily corpus donations are exigible to tax and, accordingly, brought to tax vide assessment order dated 23.03.2015 passed u/s 143(3) of the Act. 5. Being aggrieved, an appeal was filed before the NFAC, which came to be dismissed in limine for non-prosecution. 6. Being aggrieved, the appellant is in appeal before this Tribunal in the present appeal. ITA Nos.137 & 138/PUN/2023 3 7. Before me, the ld. AR submits that the voluntarily corpus donations are not taxable placing reliance on the decision of the Co- ordinate Bench of this Tribunal in the case of M/s. Nandkishor Education Society vs. ACIT vide ITA Nos.378 & 379/PUN/2022 for A.Ys. 2010-11 & 2012-13 dated 17.01.2023. 8. On the other hand, ld. Sr. DR placing reliance on the orders of the lower authorities submits that since the appellant trust was not responded to the notice of hearing issued by the NFAC, no relief should be granted to the appellant trust. 9. I heard the rival submissions and perused the material on record. I have gone through the order passed by the NFAC, which is impugned before this Tribunal. On perusal of the same, it would be clear that the NFAC had dismissed the appeal in limine for non- prosecution. Now, it is settled position of law that the ld. CIT(A) even while passing ex-parte order, should dispose of the appeal on merits. Thus, the order passed by the NFAC is contrary to the well settled position of law and, therefore, I remand the matter to the file of the NFAC to dispose of the issue in appeal on merits in accordance with law. 10. In the result, the appeal filed by the assessee in ITA No.137/PUN/2023 for the assessment year 2012-13 stands partly allowed for statistical purposes. ITA Nos.137 & 138/PUN/2023 4 ITA No.138/PUN/2023, A.Y. 2013-14 : 11. Since the facts and issues involved in both the appeals of the assessee are identical, therefore, our decision in ITA No.137/PUN/2023 for A.Y. 2012-13 shall apply mutatis mutandis to this appeal of the assessee in ITA No.138/PUN/2023 for A.Y. 2013-14 respectively. Accordingly, the appeal of the assessee in ITA No.138/PUN/2023 for A.Y. 2013-14 stands partly allowed for statistical purposes. 12. To sum up, both the above captioned appeals of the assessee stands partly allowed for statistical purposes. Order pronounced on this 10 th day of April, 2023. Sd/- Sd/- (S. S. VISWANETHRA RAVI) (INTURI RAMA RAO) JUDICIAL MEMBER ACCOUNTANT MEMBER पुणे / Pune; ᳰदनांक / Dated : 10 th April, 2023. Sujeet आदेश कᳱ ᮧितिलिप अᮕेिषत / Copy of the Order forwarded to : 1. अपीलाथᱮ / The Appellant. 2. ᮧ᭜यथᱮ / The Respondent. 3. The Pr. CIT concerned. 4. िवभागीय ᮧितिनिध, आयकर अपीलीय अिधकरण, “SMC” बᱶच, पुणे / DR, ITAT, “SMC” Bench, Pune. 5. गाडᭅ फ़ाइल / Guard File. आदेशानुसार / BY ORDER, // True Copy // Senior Private Secretary आयकर अपीलीय अिधकरण, पुणे / ITAT, Pune.