WARDHA EDUCATION SOCIETY,WARDHA V. INCOME TAX OFFICER WARD-2, WARDHA

ITA 13/NAG/2025

AI Insights

The case involves M/s. Wardha Education Society appealing against the order of the National Faceless Appeal Center/Commissioner of Income Tax (Appeals), which disallowed deductions claimed by the Assessee for the Assessment Year 2015-16. The Assessing Officer had made additions to the income of the Assessee amounting to Rs.5,79,640 for variation in surplus and Rs.32,21,689 for unexplained investment, computing the total income at Rs.38,01,329. The Assessee argued that it is a government-funded organization and all income received is exempt under section 10(23C) of the Income Tax Act. The Tribunal found that the issue had not been adjudicated properly due to the absence of relevant details and documents and thus remanded the case for a fresh decision.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 793709 (ITAT-NAGPUR)
• Duration Of Justice: 8 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-09-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2015-2016
• Appeal Filed On: 08-01-2025
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Matter Remanded
• Court: TRIBUNAL
• Department Lawyers: SURJIT KUMAR SAHA; LD.
• Assessee Lawyers: ANUP BHASERE; LD
• Keywords: Opportunity of being heard; Unexplained investment

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL, NAGPUR BENCH “SMC”, NAGPUR BEFORE SHRI NARENDER KUMAR CHOUDHRY, JUDICIAL MEMBER ITA No.13/NAG/2025 Assessment Year: 2015-16 M/s. Wardha Education Society Mahadeopura Wardha Maharashtra-442001. PAN: AAATW1049H Vs. Income Tax Officer, Ward-2 Wardha. Ayakar Bhawan, Civil Lines Wardha Maharashtra-442001. (Appellant) (Respondent) Present for: Assessee by : Shri Anup Bhasere, Ld. A.R. Revenue by : Shri Surjit Kumar Saha, Ld. Sr. D.R. Date of Hearing : 27.06.2025 Date of Pronouncement : 24.09.2025 O R D E R Per : Narender Kumar Choudhry, Judicial Member: This appeal has been preferred by the Assessee against the order dated 05.11.2024, impugned herein, passed by the National Faceless Appeal Center (NFAC)/Ld. Commissioner of Income Tax (Appeals) (in short Ld. Commissioner) u/s 250 of the Income Tax Act, 1961 (in short ‘the Act’) for the A.Y. 2015-16. 2. In this case, the Assessing Officer (AO) disallowed the deduction claimed by the Assessee and made the addition of Rs.5,79,640/- in respect of variation in surplus and Rs.32,21,689/- Printed from counselvise.com ITA No.13/NAG/2025 M/s. Wardha Education Society 2 variation in respect of unexplained investment and computed the income to the tune of Rs.38,01,329/-. Before both the authorities below the Assessee has not filed relevant details to determine the eligibility of exemption u/s 10(23C)(iiiab)/10(23C)(iiiad) of the Act and the income and expenditure. Therefore, both the authorities below declined to grant the deduction claimed by the Assessee society. Whereas before this Court the Assessee has pleaded that it is totally Government funded organization based on the grant received from Government etc. and all the income received by the society is therefore exempt u/s 10(23C) of the Act and therefore one last and final opportunity may be given to the Assessee to demonstrate its case properly, before the Ld. Commissioner. 3. Considering the peculiar facts and circumstances in totality and the specific fact that in the absence of relevant details and documents the issue also remained to be adjudicated in its right perspective and proper manner. Therefore, for just and proper decision of the case and substantial justice this Court deem it appropriate to remand the instant case to the file of the Ld. Commissioner for decision afresh, suffice to say by affording reasonable opportunity of being heard to the Assessee. 4. Thus, the case is accordingly remanded to the file of the Ld. Commissioner for decision afresh. 5. The Assessee is also directed to comply with the notices to be issued by the Ld. Commissioner and file the relevant submissions/documents as would be essentially required for proper and just decision of the case. It is clarified that in case of subsequent default, the Assessee shall not be entitled for any leniency. Printed from counselvise.com ITA No.13/NAG/2025 M/s. Wardha Education Society 3 6. In the result, the Assessee’s appeal is allowed for statistical purposes. Order is pronounced on 24.09.2025 as per Rule 34(5) of the Income Tax (Appellate Tribunal) Rules, 1963. Sd/- (NARENDER KUMAR CHOUDHRY) JUDICIAL MEMBER * Kishore, Sr. P.S. Copy to: The Appellant The Respondent The CIT, Concerned, Nagpur The DR Concerned Bench //True Copy// By Order Dy/Asstt. Registrar, ITAT, Nagpur. Printed from counselvise.com "