GELUK INTERNATIONAL FOUNDATION,NEW DELHI vs. ITO, WARD EXEMPTION , DELHI

This appeal by the assessee is emanating from the order of the Ld.
Addl/JCIT(A)-1,
Chandigarh in Appeal
No.
Addl/JCIT(A)-1,
Chandigarh/10053/2022-23 dated 04.02.2025 relating to assessment year
2023-24. 2. None appeared on behalf of the assessee, despite issue of notice for hearing, hence, I am proceeding exparte qua the assessee, after hearing the Ld.
DR and perusing the records.
3. It was the contention of the assessee made in the grounds of appeal that the Intimation Order u/s. 143(1) of the Act has been passed without providing

2 | P a g e proper and reasonable opportunity of being heard and as such the adjustment made therein is in contravention to the principles of natural justice. It was the further contention that the adjustment of Rs. 7,91,846/- made on the alleged ground of non-utilization of accumulated funds within the stipulated period being not in the nature of any arithmetical error or any mistake apparent from record, the said adjustment is illegal and without juri iction and the Ld. CIT(A) also erred in upholding the adjustment of Rs. 7,91,846/- made in the Intimation order issued u/s. 143(1) of the Act, without properly appreciating the correct facts and the legal position prevailing at the relevant time. It was pleaded in that the provisions of section 11(3)(c) of the Act clearly stipulates that accumulated income should be utilized within the five year period of accumulation or in the year immediately following the expiry thereof, and as such the adjustment made by the lower authorities on account of misinterpretation of law is illegal and liable to be deleted. That even otherwise, the appellant Trust having properly utilizsed the funds accumulated in the AY 2017-18 within a period of six years i.e. A.Y. 2023-24 and the same being fully supported from the Audited books of accounts, the action of the lower authorities in making the adjustment is not sustainable under law.
However, Ld. DR relied upon the orders of the orders of the authorities below. In view of the aforesaid facts and circumstances, I am of the considered view that the aforesaid plea of the assesee needs to be examined at the level of the Assessing Officer and thereafter the issues in dispute has to be decided afresh, in accordance with law. Hence, in the interest of natural justice, I remit back the issues to the file of the Assessing Officer for fresh adjudication, after giving adequate opportunity of being heard to the assessee, keeping in mind the aforesaid contentions of the assessee. Assessee is also directed to fully cooperate with the AO and canvass its case properly.

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Order pronounced on 25.06.2025. (MAHAVIR SINGH)

VICE PRESIDENT

SRBhatnagar