INCOME TAX OFFICER(EXEMPTIONS), WARD-2, PUNE, PUNE vs. CHINCHWAD SHIKSHAN PRASARAK MANDAL, PUNE

The grievance of the Revenue is two fold, firstly that ld.CIT(A) has acted beyond jurisdiction by setting aside the issues to the file of ld. Jurisdictional Assessing Officer ignoring the fact that such powers are available only in case of the assessment orders passed u/s.144 of the Act and not u/s.143(3) of the Act and secondly ld.CIT(A) erred in considering the additional evidences without giving any opportunity to the Assessing Officer to examine these evidences.

We have heard the rival submissions and perused the record placed before us. We observe that the assessee is a trust and e-filed its return of income for A.Y. 2018-19 declaring Nil income. After the case selected for Limited Scrutiny through CASS followed by validly serving statutory notices, ld. Assessing Officer carried out assessment proceedings u/s.143(3) r.w.s.144B of the Act for examining the issue of “Transaction of Trust with Specified Persons”. Ld. Assessing Officer observed that the CPC issued intimation u/s.143(1)(a) of the Act proposing adjustment of Rs.5,30,10,522/- mainly for delay in filing of Audit Report on Form No.10B. Ld. Assessing Officer during the course of assessment proceedings asked the assessee to file submissions to which assessee failed to make any compliance and thus ld. Assessing Officer completed the assessment accepting the income computed by CPC. Thereafter, the assessee preferred appeal before ld.CIT(A) and ld.CIT(A) set aside the issues to the file of ld. Jurisdictional Assessing Officer to examined the CASS reasons observing as follows :

From the perusal of the above finding of ld.CIT(A), we notice that ld. Assessing Officer was required to carry out scrutiny for the limited purpose of examining the issue of “Transaction of Trust with Specified Persons”. Ld.CIT(A) has also observed that the asessee’s application for condonation of delay in filing of Audit Report on Form 10B for A.Y. 2018-19 was accepted by ld.CIT(Exemption), Pune condoning the delay. Under these given facts and circumstances, since the addition made by CPC was mainly on account of delay in filing of the Audit Report and the said delay already stands condoned, therefore, the adjustment proposed by the CPC has rightly been deleted by ld.CIT(A).

So far as direction of the ld.CIT(A) for examining the issue for selection of Limited Scrutiny through CASS, we fail to find any reason to interfere as the assessee did not participate in the assessment proceedings and that ld.Assessing Officer has not examined the issue of Transaction of Trust with Specified Persons in the course of assessment proceedings. Grounds of appeal raised by the Revenue are accordingly dismissed.

In the result, the appeal of the Revenue is dismissed. Order pronounced on this 02nd day of September, 2026.