NALANDA EDUCATION TRUST,DEHRADUN vs. ASSESSING OFFICER, DEHRADUN ,UP

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ITA 266/DDN/2026Status: DisposedITAT Dehradun05 August 2026AY 2016-175 pages

In favour of the assessee: the assessee's appeal was allowed. From the AI summary of this appeal.

AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the cash deposits were mistakenly attributed to the assessee due to a PAN linkage error. The deposits were already accounted for by Nalanda College of Education under Usha Society of Human Affairs.

What were the facts?

The assessee, Nalanda Education Trust, had its PAN mistakenly linked to a bank account of Nalanda College of Education, managed by Usha Society of Human Affairs. This resulted in cash deposits of Rs. 50,51,700 being attributed to the Trust, despite the Trust having closed before the financial year ended and the deposits pertaining to the college's fees.

What were the issues?

Whether cash deposits in a bank account are attributable to the assessee when its PAN was mistakenly linked to the account of another entity, and the deposits actually belonged to that other entity.

Which sections of the Income-tax Act were involved?

Section 147,Section 144,Section 144B

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DEHRADUN BENCH, DEHRADUN

Before: Shri Mahavir Singh & Shri Sanjay Awasthi

For Appellant: CA &
Hearing: 20.07.2026Pronounced: 05.08.2026

IN THE INCOME TAX APPELLATE TRIBUNAL DEHRADUN BENCH, DEHRADUN Before Shri Mahavir Singh, Vice President & Shri Sanjay Awasthi, Accountant Member ITA No. 266/DDN/2026 : Asstt. Year : 2016-17 Nalanda Education Trust, Vs Assessing Officer, S1 D6, Defence Colony, S.O. Exemption Ward, Dehradun, Uttarakhand-248012 Dehradun-248001 (APPELLANT) (RESPONDENT) PAN No. AABTN6323J Assessee by: Sh. Surya Dev, CA & Sh. Manish Negi, CA Revenue by: Sh. Mohan Lal Joshi, Sr. DR Date of Hearing: 20.07.2026 Date of Pronouncement: 05.08.2026

ORDER Per Bench: This appeal by assessee is arising out of the order of ld. CIT(A)/NFAC, Delhi in DIN & order No. ITBA/NFAC/S/250/2025- 26/1087544108(1), order dated 18.03.2026. Assessment was framed by AO of NFAC for Assessment Year 2016-17 u/s 147 r.w.s. 144 r.w.s. 144B of the Income Tax Act, 1961 (hereinafter “the Act”) vide order dated 28.02.2024.

2.

The only issue in this appeal of the assessee is as regards the order of ld. CIT(A) confirming the action of the AO in making assessment in the hands of the assessee of cash deposits amounting to Rs.50,51,700/- in the bank account maintained with Bank of Baroda A/c No. 41460100000168 and

2 ITA No. 266/DDN/2026 Nalanda Education Trust A/c No. 41460100000003 which, as claimed, does not pertain to the assessee but it pertained to Nalanda College of Education working under Usha Society of Human Affairs.

3.

Brief facts are that a notice u/s 148 of the Act was received by the assessee on 29.03.2023 on the basis of information available with the department that during the year under consideration, an amount of cash of Rs.50,51,700/- was deposited in Bank of Baroda, but no return of income was filed for the relevant assessment year being 2016-17. The assessee in his reply stated that the trust namely, Nalanda Education Trust was closed on 01.02.2016, that was before the end of the concerned financial year, as there was no income of the trust. However, due to Permanent Account Number (PAN) of Nalanda Education Trust being mistakenly attached to the bank account of Nalanda College of Education being managed under Usha Society of Human Affairs, all the credits representing fee amounts received of Nalanda College of Education were mistakenly considered. This plea was taken by assessee before the Assessing officer at the first instance and this fact is noted by the AO in his order as under: “Please find the evidence of Collect Fees B Ed Course in the concerned Assessment Year it was taken into account in the College bank account which was running under Usha Society for Human Affairs. Only bank account was opened in name off college Nalanda Education Trust in which loans were taken earlier for college building and working capital overdraft for college expenses from Canara Bank. All the receipts of college

3 ITA No. 266/DDN/2026 Nalanda Education Trust were already declared in ITR 7 of Usha Society for Human Affairs. The existence of Nalanda Education Trust in Assessment Year 2016-17 is not there. Only bank was continuing erroneously without any malafide intention, which was already taken into account.” 3.1 Ld. Counsel for the assessee also pointed out from the Assessment Order that the AO issued show-cause notice dated 18.10.2023, assessee replied to the show-cause notice as under: “We are attaching the Bank of Baroda statements in earlier reply we had erroneously stated that out bank was Canara Bank but we had obtained the bank statements of Bank of Baroda so we get to remember that in earlier years we were having term loan for college from Bank of Baroda. We need that Income Tax Inspectors of Local Dehradun may verify our running renowned college in name of Nalanda College of Education at Miyanwala Chowk Dehradun and they can visit out banks for enquiry also it may serve the purpose of natural justice as the money renowned college of Dehradun please accept out request to provide an opportunity of local verification by any of your Income-tax Officer so that fact findings can be done in a way providing natural justice.” 3.2 It is seen that a reference was sent by AO to verification unit and verification unit has sent report to the Assessing Officer which reads as under: “Usha Society for Human Affairs has no relation with Nalanda Education Trust, as Mr. Harender Rawat who is a member of Usha Society for Human Affairs was also the principal officer of Nalanda Education Trust and by mistake PAN card of trust was attached to the bank account of Nalanda College of Education, which runs under Usha Society for Human Affairs. Now the trust has been closed but due to linking o incorrect PAN of Nalanda Education Trust all the credits were issued to be of trust, while the credits were in Nalanda Collect of Education, which runs under Usha Society for Human Affairs.” 3.3 But the AO has not considered these reports and finally held that the assessee, Nalanda College, deposited cash

4 ITA No. 266/DDN/2026 Nalanda Education Trust amounting to Rs. 50,51,700/- in the bank account maintained with Bank of Baroda and therefore added the entire cash deposit as unexplained.

4.

Aggrieved, the assessee preferred appeal before ld. CIT(A) who confirmed the action of the AO on identical facts.

5.

Aggrieved by the impugned order, the assessee is in appeal before the Tribunal.

6.

We have heard the rival contentions and have gone through the facts and circumstances of the case. We note that the assessee has not filed any return of income as the trust was closed on 01.02.2016 i.e. before the end of concerned financial year as there was no income of the Trust. The assessee was holding PAN number and that PAN was mistakenly attached to the bank account of Nalanda College of Education being managed by Usha Society of Human Affairs. The cash deposits of Rs.50,51,700/- were already accounted for and considered in the hands of Nalanda Colleges of Education while filing the ITR for assessment year 2016-17 under the name and style of Usha Society for Human Affairs, under which the college is being run and managed after closure of Nalanda Education Trust. Thus there is only mis-communication of PAN number in the name of assessee as against Nalanda College of Education. The bank manager also failed to change the PAN in

5 ITA No. 266/DDN/2026 Nalanda Education Trust their bank portal and mistakenly reported the PAN of Nalanda Education Trust in financial year 2015-16, relating to assessment year 2016-17. A certificate from Bank of Baroda has also been issued regarding this fact that the Bank of Baroda account is in the name of Nalanda College of Education and the same was mistakenly linked to PAN of Nalanda Education Trust. Thus, this is a case of mistaken identity and we direct the AO to delete the addition and allow the appeal of the assessee.

7.

In the result, appeal of the assessee is allowed. Order Pronounced in the Open Court on 05/08/2026. Sd/- Sd/- (Sanjay Awasthi) (Mahavir Singh) Accountant Member Vice President Dated: 05/08/2026 *Subodh Kumar, Sr. PS* Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR

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