What did the Tribunal hold?

The Tribunal set aside the issues in dispute to the Assessing Officer. The Assessing Officer was directed to decide the issues in accordance with law after providing a reasonable opportunity to the assessee.

The assessee, an educational welfare society, appealed against the confirmation of taxing its entire receipts of Rs. 12,98,710/- for AY 2018-19. The assessee claimed exemption under Section 10(23C)(iiiad) of the Income Tax Act.

What were the issues?

Whether the assessee is eligible for exemption under Section 10(23C)(iiiad) and whether the assessment order was passed without providing a reasonable opportunity to the assessee.

Talent Art Educational Welfare… vs ITO | ITAT Lucknow 2026

Income Tax Appellate Tribunal, LUCKNOW BENCH ‘SMC’, LUCKNOW

Before: SHRI ANADEE NATH MISSHRA

For Appellant: Shri B.P. Yadav, Advocate

PER ANADEE NATH MISSHRA:A.M.

(A) This appeal has been filed by the assessee against the impugned appellate order of learned CIT(A)/Addl/JCIT(A)-(6), Kolkata vide order dated 06.02.2026 for the AY 2018-19. The assessee has raised the following grounds of appeal:

“1. The Ld. Additional/Joint Commissioner of Income-Tax (Appeals)-6, Kolkata (hereinafter referred to as Ld. CIT-A) has erred in law and on facts of the case in confirming the action of the Learned Assessing Officer in taxing the whole receipts of Rs. 12,98,710/-by not appreciating the law that by virtue of section 10(23C)(iiiad) of the Income Tax Act, 1961, the whole receipts of the assessee is exempt from tax.

I.T.A. No. 434/Lkw/2026 Assessment Year:2018-19 2

The Ld. CIT(A) has also erred in law and on facts of the case in not appreciating the law that an assessee availing exemption under section10(23C) (iiiad) of the Act is neither mandatorily required to obtain registration/approval u/s 12A/10(23C) of the Act nor it required to submit the audit report in Form 10B provided its gross receipts during the current year does not exceed the threshold limit of Rupees One Crore.

The Ld. A.O. has erred on facts and in law in taxing the whole receipts of Rs. 12,98,710/-without providing any opportunity to the assessee to have its say as provided under the FIRST PROVISO to section 143(1)(a) of the I.T.Act, 1961.

Without prejudice to grounds no 1 to 3 above, the Ld. CIT-A has erred on facts and in law in taxing the whole receipts of Rs. 12,98,710/--in the hands of the appellant without appreciating the fact that even if it is presumed that the appellant was not entitled for deduction u/s 10(23C(iiiad)/ 11 of the Act, then the only surplus amount of Rs.31,750/-was to be taxed as the genuineness of the application of fund of Rs. 12,66,960/-has not been in dispute and doubt.

The appellant reserves his right to advance such other grounds before or at the time of hearing which he may consider fit and appropriate, for which he craves leaves to amend, alter or otherwise modify the grounds appearing hereinabove with kind permission of the office of Hon'ble Bench.”

(B) At the time of hearing, the Learned Authorized Representative for the assessee submitted that the impugned appellate order was passed without providing reasonable opportunity to the assessee. He submitted that the issues in dispute should be remanded to the file of the Assessing Officer with the direction to decide the issues in accordance with law after providing reasonable opportunity to the assessee. The Learned Departmental Representative for Revenue expressed no objection to this. In view of the foregoing, after hearing both sides and after due consideration of materials on record; the issues in dispute regarding additions made in the assessment order

I.T.A. No. 434/Lkw/2026 Assessment Year:2018-19 3

are set-aside to the file of the Assessing Officer, with the direction to decide issues in dispute through a speaking order in accordance with law, after providing reasonable opportunity to the assessee.

(C) All grounds of appeal are treated as disposed off, in accordance with the aforesaid directions. For statistical purposes, the appeal is partly allowed.

(Order was pronounced in the open court on 08/07/2026)

Sd/- (ANADEE NATH MISSHRA) Accountant Member Date: 08/07/2026 SK, Sr.PS

Copy of the order forwarded to : 1. The Appellant 2. The Respondent. 3. Concerned CIT 4. D.R., I.T.A.T., 5. CIT(A)

Senior Private Secretary Income Tax Appellate Tribunal Lucknow

TALENT ART EDUCATIONAL WELFARE SOCIETY,BAREILY vs. ITO-2(2), BAREILY

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