RAYAT EDUCATION SOCIETY,NAGPUR vs. ITO WARD1-1,EXEMP, NAGPUR

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ITA 52/NAG/2025Status: DisposedITAT Nagpur08 June 2026AY 2020-20215 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal admitted the additional ground, noting that the assessee's eligibility for exemption under Section 10(23C)(iiiad) was not examined by the lower authorities. The issues were restored to the Assessing Officer for a fresh assessment.

What were the facts?

The assessee, a charitable trust, had its expenditures disallowed for lack of documentary evidence. The CIT(A) dismissed the appeal, stating no new evidence was produced and the assessee failed to avail opportunities for hearing. The assessee then raised an additional ground regarding eligibility for exemption under Section 10(23C)(iiiad).

What were the issues?

Whether the assessee is eligible for exemption under Section 10(23C)(iiiad) and whether the matter should be remanded for fresh examination of this claim.

Which sections of the Income-tax Act were involved?

Section 143(3),Section 144B,Section 250

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, NAGPUR BENCH :: NAGPUR

For Respondent: Shri Surjit Kumar Saha, Sr. DR
Hearing: 08.06.2026Pronounced: 08.06.2026

PER ANUBHAV SHARMA, JM:

This appeal filed by the assessee is directed against the order of Ld. Commissioner of Income Tax (Appeals)/NFAC, Delhi, (for short, “CIT(A)”), dated 27/12/2024 passed under section 250 of the Income Tax Act, 1961 (for short, “Act”) which is emanating from the assessment order dated

ITA No. 52/NAG/2025 (Rayat Education Society) 22.09.2022 passed u/s. 143(3) r.w.s. 144B of the Act by the ITO, for the Assessment Year (AY) 2020-21.

2.

On hearing both the sides, we find that the assessee is a Charitable Trust registered under Societies Registration Act, 1860 and its return was selected for scrutiny and the assessment order was passed by disallowing the expenditures on the basis that the assessee could not produce evidences in support of the claim of the expenditure and as assessee approached before Ld. CIT(A), the appeal of the assessee was dismissed with following findings;–

6.2 On perusal of the material available on record, it is seen that the Assessing Officer has disallowed expenditure amounting to Rs.83,14,387/-, being the expenses for which no documentary evidences were furnished during assessment proceedings. Further, the appellant has not produced any new documentary evidences on record during appellate proceedings, but has merely requested to remand the case. In accordance with Rule 46A, case can be remanded back to the Assessing Officer when deemed admissible in view of additional evidences furnished during appellate proceedings. In the present case, the appellant did not file any application for additional evidence, nor has furnished any additional evidence during appellate proceedings. Further, as requested by the appellant, opportunity of being heard through video

ITA No. 52/NAG/2025 (Rayat Education Society) conferencing was provided twice vide notice dated 06.12.2024 and 13.12.2024, but the same was not availed. 6.3 In view of the above discussion, expenses cannot be allowed on the basis of mere statements or case laws. Accordingly, I concur with the view adopted by Assessing Officer in disallowing expenditure claimed by the appellant amounting to Rs.83,14,387/-, for which documents were not furnished. The appellant has not pressed other grounds of appeal and accordingly, the grounds of appeal are dismissed.

3.

Now before us, the assessee has raised an additional ground. The appellant being an educational institution existing solely for education purposes and not for purposes of profit, is eligible for exemption under Section 10(23C) (iiiad) of the Act and entitled to exemption and the order taxing the gross receipt of the assessee, is erroneous.

4.

Ld. DR has objected to the admission of this ground submitting that the same is not a legal ground. After taking into consideration the facts and circumstances, we find that National Faceless Appeal Centre, (NFAC) has observed that it has examine the issue only to the extent of request of assessee to remand the case and as there was no additional evidences, this assertion was not found to have any

ITA No. 52/NAG/2025 (Rayat Education Society) substance. Thus, at the stage of Assessing Officer and so also at the stage of Ld. First Appellate Authority, the assessee’s case has not been examined with regard to eligibility to claim exemption under Section 10(23C) (iiiad) of the Act. However, from facts and circumstances, this claim is certainly not a legal one which can be adjudicated here and requires verification being a mix question of law and fact.

5.

In the light of aforesaid circumstances, we admit the additional ground of the assessee and sustain it for statistical purposes. The issues on merits are restored to Assessing Officer to give afresh opportunity of hearing to the assessee and pass an order afresh.

6.

In the result, the appeal is allowed for statistical purposes.

Order pronounced in open Court on 08.06.2026 Sd/– Sd/– ANUBHAV SHARMA KHETTRA MOHAN ROY ACCOUNTANT MEMBER JUDICIAL MEMBER Nagpur: Dated: 08/06/2026 Z.U, P.S

ITA No. 52/NAG/2025 (Rayat Education Society) Copy to: 1. The Assessee 2. The Revenue 3. The Pr.CIT concerned. 4. The DR, ITAT, Nagpur 5. Guard file. By order

Sr.PS/PS ITAT, Nagpur

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