SIDO KANHU PUBLIC CHARITAABLE TRUST,PATNA vs. DCIT/ACIT CENTRAL CIRCLE-3, PATNA

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ITA 103/PAT/2026Status: DisposedITAT Patna24 April 2026AY 2018-194 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal noted that it was unclear if the funds deposited in the trustee's account were utilized for charitable purposes or personal benefit. Therefore, the issue was remitted back to the CIT(A) for fresh adjudication.

What were the facts?

A survey operation at the assessee trust's medical college revealed that trust receipts were deposited into a trustee's personal bank account. The Assessing Officer treated the entire receipts as income for violating trust provisions.

What were the issues?

Whether the deposit of trust funds into a trustee's personal bank account constitutes a violation of trust provisions and leads to the revocation of registration under Section 12A, and whether the funds were utilized for charitable purposes.

Which sections of the Income-tax Act were involved?

Section 133A,Section 143(2),Section 12A,Section 13

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, PATNA BENCH, PATNA

Hearing: 20.04.2026Pronounced: 24.04.2026

IN THE INCOME TAX APPELLATE TRIBUNAL PATNA BENCH, PATNA (VIRTUAL HEARING AT KOLKATA) SHRI LAXMI PRASAD SAHU, ACCOUNTANT MEMBER SHRI SONJOY SARMA, JUDICIAL MEMBER

ITA No. 103/PAT/2026 Assessment Year : 2018-2019

Sido Kanhu Public Charitable Vs. DCIT/ACIT, Trust, Central Circle, Patna 510, Ashiana Galaxy, Central Revenue Exhibition Road, Patna - Building Birchand Patel 800001 Marg, Patna - 800001 [PAN: AACTS1958F]

APPELLANT RESPONDENT

Assessee by : None Revenue by : Sh. Manab Adak, JCIT

Date of hearing : 20.04.2026 Date of Pronouncement : 24.04.2026

O R D E R PER LAXMI PRASAD SAHU, ACCOUNTANT MEMBER

This is an appeal filed by the assessee against the order passed u/s 250 of the Income Tax Act, 1961 (hereinafter referred to as “the Act”) by the Ld. Commissioner of Income Tax (Appeals), Patna-3 [hereinafter referred to as “the Ld. CIT(A)], dated 19.12.2025, DIN & order No. ITBA/APL/S/250/2025-26/1083907180(1) challenging the above order.

2 ITA No. 103/PAT/2026 Sido Kanhu Public Charitable Trust 2. Briefly stated the facts of the case are that a survey operation under Section 133A of the Act was conducted at Sido Kanhu Medical College and Hospital on 12.02.2018. Consequently, the case was selected for scrutiny and notice under Section 143(2) of the Act on 20.09.2019 was issued to the assessee. Subsequently, other statutory notices issued to the assessee and documents were impounded. The assessee trust deriving its income from hospital fees, from trainees’ voluntary contribution and members contribution. During the course of survey, documents were impounded marked as SK-1 contains loose bunch pay- in-slips and cheques of the personal Bank Account No. 916010022121843, 916010021898339 maintained with Axis Bank and A/c No. 11833526739 maintained with SBI. During the statement recorded, it was stated by Mrs. Meera Chaudhary, trustee that the receipts and expenses are maintained by Shri Radhe Shyam Roy and all the receipts of the trust is deposited in the account of Shri Radhe Shyam Roy. During the course of assessment proceedings, the assessee was asked as why not this should be treated as violation of trust deed and as such registration of trust under Section 12A of the Act be revoked. In this regard, the assessee furnished certified true copy of the extract of minutes of meeting etc. After considering the entire submissions, the Assessing Officer observed that the assessee is violated the provision of section 13 and the entire receipts of ₹ 95,81,980/- was treated as income.

3 ITA No. 103/PAT/2026 Sido Kanhu Public Charitable Trust 3. Aggrieved from the above order, the assessee filed appeal before the Ld. CIT(A). The Ld. CIT(A) dismissed the appeal of the assessee, against which the assessee filed appeal before the ITAT.

4.

During the course of hearing, none present on behalf of the assessee. Accordingly, case was heard qua the Ld. DR. The Ld. DR relied on the order of lower authorities and submitted that the assessee has violated the provision of section 13 of the Act and receipt are deposited in Shri Radhe Shyam Roy’s bank account which is complete violation of provision of Income-tax Act. Accordingly, the authorities below are justified.

5.

Considering the submission of the Ld. DR and order of authorities below and grounds of appeal of the assessee. We noted that the receipts are deposited in the account of Shri Radhe Shyam Roy as per the statement given by Mrs. Meera Chaudhary during the course of survey but it was not clear from the assessment order whether the Radhe Shyam Roy has utilised for the charitable purpose or he has got any personal benefit from the trust fund this aspect has not been examined by the lower authorities. Considering the facts of case and in the interests of justice, we are remitting this issue back to the file of Ld. CIT(A) for fresh decision as per law after giving a reasonable opportunity of being heard to the assessee. The assessee is directed to substantiate its case with cogent documents in support of its claim and not seek unnecessary

4 ITA No. 103/PAT/2026 Sido Kanhu Public Charitable Trust adjournments for early disposal of the case. In case of failure, no second leniency shall be granted to the assessee.

6.

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

Order pronounced on 24.04.2026.

Sd/- Sd/- (Sonjoy Sarma) (Laxmi Prasad Sahu) Judicial Member Accountant Member Dated: 24.04.2026 AK, Sr. P.S. Copy of the order forwarded to: 1. Appellant 2. Respondent 3. Pr. CIT 4. CIT(A) 5. CIT(DR)

//True copy// By order

Assistant Registrar, Kolkata Benches

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