JEEVAN MEHAK PUBLIC CHARITABLE TRUST,DELHI vs. ASSESSING OFFICER, DELHI

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ITA 2829/DEL/2025Status: DisposedITAT Delhi23 July 2025AY 2018-19Bench: Sh. Satbeer Singh Godara (Judicial Member)1 pages
AI SummaryPartly Allowed

What did the Tribunal hold?

The Tribunal held that since the assessee's activities were considered business-like, it was entitled to claim corresponding business expenditure. The appeal was restored to the assessing authority for fresh adjudication and verification of expenditure.

What were the facts?

The assessee, an unregistered trust, appealed an order for AY 2018-19 where its entire receipts were added without deducting expenditure. The lower authorities had found the assessee's activities to be in the nature of trade or business.

What were the issues?

Whether the assessee, an unregistered trust, is entitled to claim business expenditure for its activities when the lower authorities have already held its activities to be in the nature of business or trade.

Which sections of the Income-tax Act were involved?

Section 143(3),Section 12A

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH ‘SMC’, NEW DELHI

Before: Sh. Satbeer Singh Godara

Hearing: 23.07.2025Pronounced: 23.07.2025

Asstt. Year: 2018-19 Jeevan Mehak Public Charitable Vs CIT(A)/NFAC Trust, A-2/152, Ground Floor, Delhi Pankha Road, Janak Puri, New Delhi-110058 (APPELLANT) (RESPONDENT) PAN No. AABTJ6244J Assessee by: Sh. Prempal Sharma, Adv. Revenue by : Sh. Manoj Kumar, Sr. DR Date of Hearing: 23.07.2025 Date of Pronouncement: 23.07.2025 ORDER This assessee’s appeal for Assessment Year 2018-19 arises against the CIT(A)/NFAC, Delhi’s DIN & order No. ITBA/NFAC/S/250/2024-25/1074647737(1) dated 18.03.2025, in proceedings u/s 143(3) of the Income Tax Act, 1961 (in short “the Act”).

2.

Heard both the parties at length. Case file perused.

3.

It transpires during the course of hearing that both the learned lower authorities have assessed the assessee; an unregistered trust u/s 12A, for it’s entire receipts resulting in addition of Rs.8,69,997/- without giving any deduction of the corresponding expenditure incurred in the course of carrying out it’s regular activity. It is made clear that the assessee has already been held as carrying it’s activities as amounting to

4.

That being the case, the Revenue could hardly dispute that the assessee is further entitled to claim the corresponding business expenditure although not satisfactorily prove before the learned lower authorities. I accordingly restore the assessee’s instant appeal back to the learned assessing authority for it’s afresh appropriate adjudication and factual verification subject to a rider that it shall be onus and responsibility only to plead and prove all the expenditure, within three effective opportunities.

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