DUMKA CATHOLIC DIOCESE,DUMKA vs. ITO, EXEMPTION WARD, DHANBAD

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ITA 320/RAN/2025Status: DisposedITAT Ranchi30 July 20265 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal restored the issue of Mutual Fund investments to the Assessing Officer for fresh adjudication. The AO is to examine if the cash receipts and Mutual Fund investments were recorded in the assessee's books and considered in the claimed exempt income.

What were the facts?

The Assessing Officer treated the assessee's investment in Mutual Funds as unexplained income and denied eligibility for registration u/s.12A. The CIT(A) recognized the 12A registration and deleted a significant addition but confirmed another addition related to Mutual Fund investments, believing they were not recorded in the books.

What were the issues?

Whether Mutual Fund investments were properly recorded in the books of account and eligible for exemption under Section 12A, and whether the CIT(A) erred in confirming the addition without proper verification.

Which sections of the Income-tax Act were involved?

Section 12A,Section 148

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, RANCHI BENCH, RANCHI

Before: S/SHRI GEORGE MATHAN & RATNESH NANDAN SAHAY

For Appellant: Shri Nitin Pasari & Anand Kumar Pasari, ARs
For Respondent: Shri H.Robindro Singh, ld CIT DR
Hearing: 30/07/2026Pronounced: 30/07/2026

IN THE INCOME TAX APPELLATE TRIBUNAL, RANCHI BENCH, RANCHI BEFORE S/SHRI GEORGE MATHAN, JUDICIAL MEMBER AND RATNESH NANDAN SAHAY, ACCOUNTANT MEMBER Dumka Catholic Diocese, The Vs. Income Tax Officer Principal Officer, Bishop (Exemption), Dhanbad House, P.O. Dumka, Dudhani, Dumka-814101 PAN/GIR No.AAATD 1727 D (Appellant) .. ( Respondent)

Assessee by : S/Shri Nitin Pasari & Anand Kumar Pasari, ARs Revenue by : Shri H.Robindro Singh, ld CIT DR Date of Hearing : 30/07/2026 Date of Pronouncement : 30/07/2026

O R D E R Per Bench

This is an appeal filed by the assessee against the order of the ld CIT(A), NFAC, Delhi dated 3.9.2025 in Appeal No.NFAC/2014-15/10226979 for the assessment year 2015-16.

2.

S/Shri Nitin Pasari & Anand Kumar Pasari, ARs appeared for the assessee and Shri H.Robindro Singh, ld CIT DR appeared for the revenue.

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3.

It was submitted by ld AR that in the course of assessment proceedings, the Assessing Officer had treated the assessee not eligible for having registration u/s.12A of the Act. It was the submission that the assessee trust is doing educational activities. It was the submission that the assessee had made deposits in Mutual Funds to an extent of Rs.8,55,61,033. The Assessing Officer had treated the said investment in the Mutual Fund as not having recorded in the books of account and consequently, added the addition of the said amount as unexplained income of the assessee. It was the submission that the assessee had received Rs.4.27 crores and the assessee had invested in Mutual Fund of Rs.4.10 crores and earned interest thereon to an extent of Rs.34.30 lakhs. It was the submission that all these were disclosed in the return filed in response to notice issued u/s.148 of the Act. It was the further submission that the Assessing Officer has treated an amount of Rs.14,46,52,831/- as the income of the assessee on the ground that the assessee did not have registration u/s.12A of the Act. It was the submission that on appeal, ld CIT(A) recognizes that the assessee had registration u/s.12A of the Act and consequently, in paras 11,11.1 and 11.2 of his order deleted the addition made in respect of addition of Rs.14,46,52,831/- on the ground that the assessee had registration u/s.12A of the Act. In respect of addition of Rs.8,55,61,033/-, it was the submission that the entire amount is not the investment in the Mutual Funds. Out of the said amount Rs.4,27,00,000/- is the receipts of the cash which was deposited in the bank. Rs.4.01 crores is the investment in the Mutual Funds and Rs.34.30 lakhs is the interest. It was the submission that these were recorded

P a g e 2 | 5 in the books of account of the assessee but the ld CIT(A) has confirmed two additions on the mistaken impression that these were not recorded in the books of account of the assessee. He prayed that all these issues may be restored to the file of the AO and the assessee would show that these amounts are recorded in the books of account and this may be taken into consideration when arriving at the amount of Rs.14,46,52,831/- which is the income of the assesse and has been claimed as exempt u/s.12A of the Act and exemption has been provided by the ld CIT(A).

4.

In reply, ld CIT DR submitted that he had no objection if the issues are restored to the file of the AO for re-adjudication.

5.

We have considered the rival submissions. A perusal of the facts in the present case clearly shows that the ld CIT(A) has accepted the contention that the assessee is having registration u/s.12A of the Act. The Revenue has not challenged this action of the ld CIT(A) in appeal. Ld CIT(A) has directed that as the assessee is having registration u/s.12A of the Act, the amount of Rs.14,46,52,831/- treated as income of the assessee by the AO has been deleted. This admittedly has not been challenged by the revenue in appeal before us.

6.

The assessee has challenged the amount of Rs.8,55,61,033/- treated as undisclosed income of the assessee. The claim of the assessee remains that the said amount is break-up of an amount of Rs.4,27,00,000/- received in cash and this has been recorded in the books of account of the assessee. Another amount

P a g e 3 | 5 of Rs.4.01 crores were the investments in the Mutual Funds, which were recorded in the books of the assessee, amount of Rs.34.30 lakhs which was the interest received from such Mutual Funds. The claim of the assessee is that this amount of Rs.8,55,61,033/- has been taken into consideration when arriving at the income of the assessee claimed as exempt to an amount of Rs.14,46,52,831/-. This being so, it shows that the amounts are disclosed in the books of account of the assessee. The ld CIT(A) has taken a stand that the amounts have not been recorded in the books of the assessee, therefore, these issues needs to be restored to the file of the Assessing Officer for fresh adjudication after granting the assessee adequate opportunity of hearing. The Assessing Officer shall examine whether amount of Rs.4,27,00,000/- is the receipt of cash and whether said amount has been recorded in the books of the assessee. He shall also examine Rs.4.01 crores is the investment made by the assessee in Mutual Fund. He shall also examine whether these amounts are recorded in the books of the assessee and whether the amounts have been taken into consideration for determining the income of Rs.14,46,52,831/-. If the said amounts have been considered and taken into account for determining the income of Rs.14,46,52,831/-, then addition is to be made. With these directions, the issues are restored to the file of the AO for fresh adjudication after affording reasonable opportunity of hearing to the assessee.

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7.

In the result, appeal of the assessee stands partly allowed for statistical purposes.

Order dictated and pronounced in the open court on 30/07/2026.

Sd/- sd/- (RATNESH NANDAN SAHAY) (GEORGE MATHAN) ACCOUNTANT MEMBER JUDICIAL MEMBER Ranchi; Dated 30/07/2026 Amit (Sr.PS) Copy of the Order forwarded to : 1. The Appellant : Dumka Catholoc Diocese, The Principal Officer, Bishop House, P.O. Dumka, Dudhani, Dumka-814101 2. The Respondent: Income Tax Officer (Exemption), Dhanbad 3. The CIT(A)-NFAC, Delhi 4. Pr.CIT, 5. DR, ITAT, 6. Guard file. //True Copy// By order

Sr.Pvt. Secretary ITAT, Ranchi

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