ARUNACHAL PRADESH POLICE WELFARE SOCIETY,ITANAGAR vs. INCOME TAX OFFICER, WARD 2(3) EXEMP, GUWAHATI , GUWAHATI

IN THE INCOME TAX APPELLATE TRIBUNAL – GUWAHATI BENCH VIRTUAL BENCH AT KOLKATA Before Shri Sonjoy Sarma, Judicial Member and Shri Rakesh Mishra, Accountant Member ITA Nos. 294 & 295/GTY/2025 Assessment Year: 2018-19 Arunachal Pradesh Police Welfare Society……………………….………...Appellant Police Head Quarter, Itanagar Circle Ram Krishna Mission, Itanagar Arunachal Pradesh-791113 [PAN: AABTA1599H] vs. ITO, Ward-2(3), Exemption, Guwahati…..………………..……...…..…..Respondent Assam-781005 Appearances by: Shri Anil Kumar Agarwal, FCA, appeared on behalf of the Appellant. Shri Santosh Kumar Karnani, Addl. CIT, appeared on behalf of the Respondent. Date of concluding the hearing : April 23, 2026 Date of pronouncing the order : April 27, 2026 ORDER Per Sonjoy Sarma, Judicial Member: Both the appeals are for the assessment year 2018-19 and filed by the same assessee. Since the issues are common, these appeals were heard together and are being disposed of by this consolidated order. ITA No.294/GTY/2025, this appeal is directed against the order of the NAFC, Delhi [hereinafter referred to as the ‘Ld. CIT(A)’] dated 03.07.2025, arising out of assessment order passed u/s 143(3) of Act, dated 12.04.2021, passed u/s 250 of the Income Tax Act, 1961 [hereinafter referred to as the ‘Act’]. 2. Brief facts of the case are that, the assessee is a trust registered u/s 12A/12AA of the Act since 1987, and is engaged in the charitable activities of Arunachal Pradesh Police Welfare Society. For the relevant

ITA Nos.294 & 295/GTY/2025 Arunachal Pradesh Police Welfare Society assessment year, the assessee filed its return of income at Rs. 7,12,400/-, which was processed u/s 143(1) of the Act, and the case of the assessee was selected for scrutiny, and notices u/s 143(2) and 142(1) were issued. However, the assessee did not properly respond to the notices issued during the assessment proceedings. Therefore, the Assessing Officer observed that the assessee had claimed exemption u/s 11(2), including accumulation of income amounting to Rs. 1,20,00,000/- u/s 11(2) of the Act, and the Assessing Officer denied the claim of accumulation of the income on the ground that Form 10 was not filed within the prescribed time u/s 139(1) of the Act, as the assessee failed to specify the purpose and period of accumulation as required under the law. Accordingly, the amount of Rs. 1,20,00,000/- was treated as income not applied for charitable purpose and added to the total income of the assessee. 3. Aggrieved by the above order, assessee went in appeal before the Ld. CIT(A), where the appeal of the assessee was dismissed by sustaining the order of the Assessing Officer due to non-compliance and lack of proper representation before him. 4. Still aggrieved by the above order, assessee is in appeal before this Tribunal. At the time of hearing, the Ld. AR stated that the impugned order passed by the authority below is an ex-parte order. Therefore, another chance may be given to the assessee so that assessee can represent its case properly and submit the document in order to substantiate the case. He further stated that the issue involves denial of the exemption u/s 11(2) of the Act, on account of non-filing of Form 10 within time which requires proper verification of facts and documents. 5. On the other hand, the Ld. DR supported the decision of the authority below.

ITA Nos.294 & 295/GTY/2025 Arunachal Pradesh Police Welfare Society 6. We, after hearing the rival submission of the parties and perused the material available on record, we are of the view that the assessee deserves one more opportunity to substantiate its claim. Accordingly, we set aside the order of the Ld. CIT(A), to restore the matter to the file of the Ld. CIT(A), with a direction to examine the claim of the assessee afresh, considering the filing and validity of the Form 10 in accordance with law, and provide adequate opportunity of being heard to the assessee. The assessee is also directed to cooperate and furnish necessary details without seeking unnecessary adjournment. Another appeal, being ITA No. 295/GTY/2025, is directed against the order dated 07.07.2025, arising out of penalty proceedings u/s 270A of the Act, vide order dated 31.01.2022. Since the penalty proceedings are consequential to the quantum addition involved in ITA No. 294/GTY/2025, as we have restored the quantum matter to the file of the Ld. CIT(A), this penalty appeal is also restored to the file of the Ld. CIT(A). The Ld. CIT(A) shall re-adjudicate the penalty proceedings in accordance with law, with the outcome of the quantum proceedings. 7. In the result, both the ITA Nos.294/GTY/2025 & 295/GTY/2025 are allowed for statistical purposes.

Kolkata, the 27th April, 2026.

Sd/- Sd/- [Rakesh Mishra] [Sonjoy Sarma] Accountant Member Judicial Member Dated: 27.04.2026. DP, PS

ITA Nos.294 & 295/GTY/2025 Arunachal Pradesh Police Welfare Society Copy of the order forwarded to: 1. Appellant - 2. Respondent - 3. CIT(A)- 4. CIT- , 5. CIT(DR),

//True copy// By order Assistant Registrar, Kolkata Benches