SHRI JALARAM AROGYA SEVA TRUST,SABARKANTHA V. THE ITO (EXEMPTION), PALANPUR

ITA 808/AHD/2025

AI Insights

The case involves Shri Jalaram Arogya Seva Trust, a charitable trust, appealing against the order of the National Faceless Appeal Centre (NFAC), which confirmed the assessment order passed by the Assessment Unit, determining the income of the trust at Rs. 9,01,020 for the assessment year 2019-20. The trust contested the additions made under sections 68 and 11 of the Income Tax Act, arguing that the Assessing Officer did not provide sufficient time to comply with the requirements and that the NFAC erred in law and facts by not observing the principles of natural justice. The tribunal noted that the certificate under section 12AA was not before the Assessing Officer during the initial assessment and that the CIT(A) did not take cognizance of it, leading to the decision to remand the matter back for further verification and proper adjudication.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 712947 (ITAT-AHMEDABAD)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-07-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Assessment Year: 2019-2020
• Laws Referred To: Income Tax Act
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: KAMAL DEEP SINGH
• Assessee Lawyers: BANDISH SOPARKAR
• Keywords: Revised return; Principle of natural justice; Charitable institution
• Section: 142(1); 11; 12AA; 68; 12A

Judgement Text

"THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD “SMC” BENCH Before Dr. BRR Kumar, Vice President And Ms. Suchitra Kamble, Judicial Member Shri Jalaram Arogya Seva Trust 1, Undva Meghraj Road Nr. Vatrak Bridge, Sabarkantha-383350 Gujarat, India PAN: AACTS6681F (Appellant) Vs The ITO (Exemp), Palanpur, ITO Palanpur (Respondent) Assessee by: Shri Bandish Soparkar, A.R. Revenue by: Shri Kamal Deep Singh, Sr. D.R. Date of hearing : 08-07-2025 Date of pronouncement : 31-07-2025 आदेश/ORDER Per Suchitra Kamble, Judicial Member: This is an appeal filed against the order dated 20-03- 2025 passed by National Faceless Appeal Centre (NFAC), Delhi for assessment year 2019-20. 2. The grounds of appeal are as under:- “1. The National Faceless Appeal Centre (NFAC) has erred in law and in facts in dismissing the appeal filed by the appellant confirming the assessment order passed by Assessment Unit, National Faceless Assessment Centre determining income at Rs. 9,01,020/-. 2. The NFAC has erred in law and in facts in rejecting the ground of the Appellant that the Assessing Officer did not provide sufficient time to comply and provide the details asked for. The ITA No. 808/Ahd/2025 Assessment Year 2019-20 Printed from counselvise.com I.T.A No. 808/Ahd/2025 Shri Jalaram Arogya Seva Trust, A.Y. 2019-20 2 NFAC ought to have sent the matter back to the Assessing Officer to pass a fresh order observing the principles of natural justice. 3. The NFAC has erred in law and in facts in confirming addition of Rs. 4,91,618/- disregarding the exemption u/s 11 available to the Appellant. The NFAC ought to have deleted the same. 4. The NFAC has erred in law and in facts in upholding the addition of Rs. 15,00,000/- u/s 68. The NFAC ought to have deleted the same as no addition is called u/s 68 is called for. 5. The appellant further reserves its right to add, alter, amend or modify any of the aforesaid grounds before or at the time of hearing of an appeal.” 3. The assessee is a charitable trust registered under the Charitable Trust Act u/s. 12A of the Income Tax Act. The assessee filed its return of income on 24-10-2019 declaring total income at Rs. nil after claiming exemption u/s. 11 of the Act. The Assessing Officer observed that the assessee filed revised return of income on 22-02-2020 declaring total income of Rs. nil. Even in his revised return of income, the assessee claimed exemption u/s. 11. The assessee’s case was selected for scrutiny as the assessee has not mentioned description for section under which it has been registered or approved. The assessee has also not mentioned even the registration no. in the original return of income. The statutory notices were issued to the assessee which the assessee failed to respond and therefore the Assessing Officer made addition of Rs. 15,00,000/- u/s. 68 of the Act and charged the tax u/s. 115BBE of the Act. 4. Being aggrieved by the assessment order, the assessee filed appeal before the CIT(A). The CIT(A) dismissed the appeal of the assessee. 5. The ld. A.R. submitted that the assessee trust was registered u/s. 12AA of the Act w.e.f. 12-07-2001 order dated Printed from counselvise.com I.T.A No. 808/Ahd/2025 Shri Jalaram Arogya Seva Trust, A.Y. 2019-20 3 24-09-2002. The original return of income was filed on 24-10- 2019 and revised return filed on 22-02-2020. Notice u/s. 143(2) was issued on 25-09-2020. Notice u/s. 142(1) was issued on 21-01-2021 and the assessee filed revised return dated nil. The ld. A.R. further submitted that the Assessing Officer issued subsequent notice u/s. 142(1) dated 17-08-2021 and show cause notice dated 16-09-2021 thereby grant time till 21-09- 2021, the assessee sought adjournment on 21-09-2021 but there was no communication accepting or rejecting the said adjournment. The ld. A.R. submitted that the assessment order was passed on 27-09-2021 at assessed income Rs. 19.91 lakhs including the corpus of Rs. 15,00,000/-. The ld. A.R. submitted that the CIT(A) dismissed the appeal on the ground that the assessee has not submitted the certificate issued u/s. 12AA and rejected the submission of the said certificate at the time of hearing. The ld. A.R. submitted that despite giving certificate issued u/s. 12AA, the CIT(A) has not taken cognizance of the same and simply sustained the order of the Assessing Officer which categorically mentioned that the assessee is not registered. Thus, the ld. A.R. submitted that the matter may go back to the Assessing Officer for verifying the certificate and after verifying the exemption grant the assessee exemption claimed u/s. 11 of the Act. 6. The ld. D.R. relied upon the assessment order and the order of the CIT(A). The ld. D.R. pointed out para 10.1 of the CIT(A)’s order wherein it is categorically mentioned the assessee has not responded to any statutory notices. 7. We have heard both the parties and perused all the relevant materials available on record. It is pertinent to Printed from counselvise.com I.T.A No. 808/Ahd/2025 Shri Jalaram Arogya Seva Trust, A.Y. 2019-20 4 note the assessment was passed u/s. 144B of the Act. Thus, the certificate issued u/s. 12AA was not before the Assessing Officer. The CIT(A) has also not taken note of cognizance of the same. Therefore, in the interest of justice, it will be appropriate to remand back this matter to the file of Assessing Officer for proper verification of the said documents and adjudicate the issue as per the Income Tax Act. The appeal of the assessee is partly allowed for statistical purposes. 8. The appeal of the assessee is partly allowed for statistical purposes. Order pronounced in the open court on 31-07-2025 Sd/- Sd/- (Dr. BRR Kumar) (Suchitra Kamble) Vice President Judicial Member Ahmedabad : Dated 31/07/2025 आदेश क\u0006 \u0007\bत ल प अ\u000fे षत / Copy of Order Forwarded to:- 1. Assessee 2. Revenue 3. Concerned CIT 4. CIT (A) 5. DR, ITAT, Ahmedabad 6. Guard file. By order/आदेश से, उप/सहायक पंजीकार आयकर अपील\u0012य अ\u0013धकरण, अहमदाबाद Printed from counselvise.com "