CDCON FOUNDATION,AHMEDABAD vs. THE ITO, WARD-1(EXEMPTION), AHMEDABAD

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ITA 2644/AHD/2025Status: DisposedITAT Ahmedabad15 May 2026AY 2019-204 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal held that the assessee failed to justify its exemption claims and did not submit details of expenses. The matter was remanded to the CIT(A) for fresh consideration of the application and submissions.

What were the facts?

The assessee claimed exemption under Section 11/12 of the Income Tax Act but failed to produce the necessary 12A/12AA registration certificate during assessment. The Assessing Officer treated receipts as income from other sources and denied exemption.

What were the issues?

Whether the assessee was eligible for exemption under Section 11/12 without proper registration, and if receipts could be taxed as income from other sources without allowing expenses.

Which sections of the Income-tax Act were involved?

Section 11,Section 12,Section 12A,Section 12AA,Section 56

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “A” BENCH, AHMEDABAD

Before: DR. B.R.R. KUMAR, VICE-SHRI TR SENTHIL KUMAR

For Appellant: Shri Mehul K Patel, AR
For Respondent: Shri Kamal Deep Singh, Sr. DR
Hearing: 22.04.2026Pronounced: 15.05.2026

IN THE INCOME TAX APPELLATE TRIBUNAL “A” BENCH, AHMEDABAD BEFORE DR. B.R.R. KUMAR, VICE-PRESIDENT SHRI TR SENTHIL KUMAR, JUDICIAL MEMBER I.T.A. No.2644/Ahd/2025 (Assessment Year: 2019-20) CDCON FOUNDATION, The Income Tax Officer, Vs. A-311 Radhe Kishan Villa Ward-1, Complex, (Exemption), Jaymala Cross Road, Ahmedabad. Isanpur, Ahmedabad-380045. [PAN :AACTC2205 R] (Appellant) .. (Respondent) Appellant by : Shri Mehul K Patel, AR Respondent by: Shri Kamal Deep Singh, Sr. DR Date of Hearing 22.04.2026 Date of Pronouncement 15.05.2026 O R D E R PER DR. B.R.R. KUMAR, VICE-PRESIDENT:-

This appeal is filed by the Assessee against the appellate order dated 17.10.2025 passed by the National Faceless Appeal Centre (NFAC), New Delhi, relating to the Assessment Year 2019-20.

2.

The assessee has raised the following grounds of appeal:

(1) That on facts, and in law, the learned NFAC has grievously erred in treating the status of appellant as that of 'AOP' instead of treating it as 'TRUST' as done by assessing officer. (2) That on facts, and in law, the learned NFAC has in not treating the grievously erred registration u/s 12A as applicable to the year under consideration.

ITA No. 2644/Ahd/2025 Asst. Year : 2019-20 - 2– (3) That on facts, and in law, the learned NFAC has grievously erred in confirming the disallowance of claim of exemption u/s 11 of the Act (4) That on facts, and in law, the learned NFAC has grievously erred in holding that the activities of the appellant are non-charitable, without appreciating the entire activities as a whole, which is entirely charitable and for spreading medical knowledge only. (5) WITHOUT PREJUDICE, and ALTERNATIVELY, the learned NFAC has grievously erred in law, and on facts, in confirming the action of AO in taxing the gross receipts of Rs.3,18,40,721/- as income from other sources, and in disallowing the entire expenses incurred to earn the said income.

3.

The brief facts of the case are that the assessee had filed its ITR on 18.06.2020. The case was selected for scrutiny criteria issue registration/approval u/s of IT Act had been granted or have been cancelled/ withdrawn and the assessee has been found to be claiming tax-exemption deduction in the ITR filed. The assessee could not produce certificate u/s 12A/12AA of the Act during the assessment proceedings and also not filed any response to show-cause notice dated 17.09.2021. Hence, the Assessing Officer concluded the assessment proceedings on 23.09.2021 and made an addition of Rs.3,18,40,721/- treating all receipts as income of the appellant u/s 56 of the Act and denied the exemption claimed u/s 11/12 of the Act

4.

On going through the record we find that the assessee failed to justify the exemptions claimed u/s 12A/12AA. Hence assessee's claim of exemption U/s. 11/12 of the Income Tax Act, 1961 is being denied and the sum of receipts towards the object of the trust is treated as income from other source and is to be taxed under the head income from other sources. Further assessee failed to submit any details of expenses and failed to substantiate that such expenditure was laid out

ITA No. 2644/Ahd/2025 Asst. Year : 2019-20 - 3– or expended wholly and exclusively for the purpose of making or earning such income under the head income from other sources. Therefore, the Ld. Counsel prayed that given an opportunity, the same would be apprised to the Ld.CIT(A). Ld. CIT(DR) argued that the assessee-trust needs to furnish requisite details/explanations and submissions before the Ld. CIT(A). Having considered the facts on record, we hold that interests of justice would be well served by remanding the matter to the Ld. CIT(A) for consideration of the application afresh and to pass an order by taking into consideration the submissions /explanations submitted by the assessee.

5.

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

The order is pronounced in the open Court on 15.05.2026.

Sd/- Sd/- (TR SENTHIL KUMAR) (DR. B.R.R. KUMAR) JUDICIAL MEMBER VICE-PRESIDENT (True Copy) Ahmedabad; Dated 15.05.2026 MV

ITA No. 2644/Ahd/2025 Asst. Year : 2019-20 - 4– आदेश की �ितिलिप अ�ेिषत/Copy of the Order forwarded to : 1. अपीलाथ� / The Appellant 2. ��थ� / The Respondent. 3. संबंिधत आयकर आयु� / Concerned CIT 4. आयकर आयु�(अपील) / The CIT(A)- 5. िवभागीय �ितिनिध, आयकर अपीलीय अिधकरण, अहमदाबाद / DR, ITAT, Ahmedabad 6. गाड� फाईल / Guard file. आदेशानुसार/ BY ORDER, True Copy

सहायक पंजीकार (Dy./Asstt. Registrar) आयकर अपीलीय अिधकरण, अहमदाबाद / ITAT, Ahmedabad

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