LILA POONAWALLA FOUNDATION ,PUNE vs. EXEMPTION CIRCLE, PUNE

The brief facts of the case that assessee is a charitable trust registered under the Bombay Charitable Trust Act, 1950 and was granted registration u/sec. 12A of the Act and the approval u/sec 80G of the Income Tax Act. The assessee has filed the return of income for the Assessment Year 2023-24 on 22.11.2023 disclosing a total income of Rs.NIL after claiming exemption u/sec11 of the Act and claimed a refund of Rs.26,70,303/-. Subsequently the return of income was processed u/sec 143(1) of the Act by the 2 Lila Poonawalla Foundation, Pune CPC assessing a total income of Rs.44,71,490/- and denied the TDS credit to the extent of Rs.7,52,677/- vide order dated18.11.2024. 3. Aggrieved by the order, the assesse has filed an appeal before the CIT(A), whereas the CIT(A) has considered the grounds of appeal, statement of facts, submissions and findings of the AO and has issued notices of hearing and there was compliance by the assessee to notices. Whereas the CIT(A) on the issue of short credit of TDS has directed the assessing officer to grant credit in accordance with the provisions of section 199(3) and Rule37BA(3)(i) of I T Rules and allowed the appeal for statistical purpose. Aggrieved by the order of the CIT(A), the assessee has filed an appeal before the Hon'ble Tribunal.

At the time of hearing, the Ld.AR submitted that the CIT(A) has erred in not adjudicating the ground of appeal on the disallowance of provision of expenses made by the CPC in the intimation u/sec143(1) of the Act and has not passed a speaking order. Further the Ld.AR mentioned that the assessee has a good case on merits and substantiated the submissions with factual paper book and prayed for an opportunity to explain with supporting evidences before the lower authorities. Per Contra, the Ld.DR supported the order of the CIT(A).

We heard the rival submissions and perused the material on record. Prima-facie the CIT(A) on the issue of short credit of TDS has directed the assessing officer to grant TDS credit in accordance with the provisions of section 199(3) and Rule37BA(3)(i) of I T Rules. The Ld.AR has 3 Lila Poonawalla Foundation, Pune referred to the ground of appeal.no.1 filed with the CIT(A) on the disallowance of provision of expenses made by the CPC in the intimation u/sec143(1) of the Act. Whereas the CIT(A) has not adjudicated this ground of appeal and has not passed the speaking order .Therefore, considering the facts, submissions and principles of natural justice, we shall provide with one more opportunity of hearing to the assessee to substantiate the claim, Accordingly, we set aside the order of the CIT(A) to the extent of this disputed issue and remit this issue to the file of the CIT(A) to adjudicate and pass a speaking order and the assesse should be provided adequate opportunity of hearing and shall cooperate in submitting the information for early disposal of appeal. And we allow the grounds of appeal of the assessee for statistical purposes.

In the result, the appeal filed by the assessee is allowed for statistical purpose. Order pronounced on the day of 18th May, 2026. DIPAK P. RIPOTE PAVAN KUMAR GADALE (ACCOUNTANT MEMBER) (JUDICIAL MEMBER) पुणे / Pune; दिन ांक / Dated :18th May, 2026. Abhishek Satish Kumar Madishetty Date: 2026.05.19 13:30:12 +05'30'

The Pr. CIT concerned. विभ गीय प्रतितनधि, आयकर अपीलीय अधिकरण, “SMC” बेंच, 4. पुणे / DR, ITAT, “SMC” Bench, Pune. ग र्ड फ़ इल / Guard File. 5. //// आिेश नुस र / BY ORDER,