NIRMAL TAKTH BABA BUDHA SAHIB CHARITABLE TRUST,JALANDHAR vs. INCOME TAX OFFICER, EXEMPTION, JALANDAHR

ITA 316/ASR/2025Status: DisposedITAT Amritsar24 July 2026AY 2012-136 pages
AI SummaryRemanded

What were the facts?

A charitable trust sold capital assets (land) and claimed exemption under Section 11(1A) by stating the sale proceeds were used for constructing a building. The Assessing Officer (AO) initiated reassessment proceedings and completed the assessment on long-term capital gains. The CIT(A) dismissed the appeal, holding that the trust failed to provide sufficient documentary evidence for the construction expenses.

What did the Tribunal hold?

The Tribunal acknowledged the legal tenability of the assessee's claim under Section 11(1A) for deemed application of capital gains. However, it agreed with the Revenue that the AO should be given an opportunity to verify the authenticity of the documentary evidence submitted by the assessee.

What were the issues?

Whether the assessee trust provided sufficient documentary evidence to substantiate the claim that sale proceeds of capital assets were utilized for construction of a building, thereby qualifying for exemption under Section 11(1A) of the Income Tax Act.

Which sections of the Income-tax Act were involved?

Section 11(1A),Section 12A,Section 147,Section 144,Section 250

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, AMRITSAR BENCH, AMRITSAR.

Before: SH. S. RIFAUR RAHMAN & SH. UDAYAN DAS GUPTA

Hearing: 20.07.2026Pronounced: 24.07.2026

Per: Udayan Dasgupta, JM: This appeal is filed by the assessee against the order of ld. CIT(A), NFAC, Delhi, passed u/s 250 of the IT Act, 1961, dated 21.03.2025, which has emanated from the order of the ITO (Exemption), passed u/s 147 r.w.s. 144 of the Act, dated 26.12.2019. 2. The grounds of appeal in Form 36 are as follows:

“1. That the order of learned CIT (A) is against the law and facts of the case. Assessment Year: 2012-13 2

2.

CIT (A) is wrong for not considering section 11(1A) of Income Tax Act, 1961 regarding use of sale proceeds of capital asset for construction of building.

3.

CIT(A) is wrong for not considering documentary evidences and detail provide

The order continues below.

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