SHIVDAYAL DHARAM SHALA TRUST,SOLAN vs. ITO EXEMPTION WARD SOLAN, SOLAN

That in the facts and circumstance of the case the Ld. CIT (A) is not justified in appreciating the submission put forth by the assessee/ appellant and confirming the order passed by the Ld. Assessing Officer.

That in the facts and circumstance of the case the Ld. CIT (А) is not justified in upholding the addition of Rs.47,92,621/- made on account of disallowing the claim of accumulation under section 11(2) of the Income Tax Act, 1961. The assessment so made is bad in law and facts.

That in the facts and circumstances the case the Ld. CIT(A) is not justified in upholding the order of the Ld. Assessing Officer whereby the form no.10 submitted the assessee/appellant was rejected. The same is bad in law and facts.

That the order of the Ld. Commissioner of Income Tax (Appeals) is bad in law and facts.

Brief facts of the case are that the assessee is a trust registered under section 12AA of the Act and is stated to be engaged in running Dharamshala

Aggrieved by the assessment order, the assessee carried the matter before the Ld. CIT(A). However, from the record it is evident that despite various opportunities granted by the appellate authority, the assessee was not able to furnish the requisite documents, explanations and supporting evidences as called for by the Ld. CIT(A). Consequently, the Ld. CIT(A)proceeded to decide the appeal substantially on the basis of material available on record and in the absence of effective assistance from the side of the assessee or its Authorised Representative. The Ld. CIT(A), after considering the assessment order and material available on record, concurred with the findings of the Assessing Officer and upheld the addition made by him.

Against the order of the Ld. CIT(A) the assessee preferred an appeal before the Tribunal.

During the course of hearing before us, the Ld. AR submitted that the assessee could not properly place the relevant evidence and reconciliations before the lower authorities, and therefore, one more opportunity may be granted to substantiate the claim of exemption and accumulation under section 11(2) of the Act. It was submitted that the assessee trust is carrying on charitable activities in accordance with its objects and the accumulations were made for charitable purposes.

Per contra, the Ld. DR strongly relied upon the orders of the authorities below. The Ld. DR submitted that the assessee has a huge rental income and no substantial expenditure has been incurred towards charitable objects. It was further submitted that the assessee failed to comply with the statutory conditions prescribed under section 11(2) of the Act, and despite repeated opportunities before the lower authorities, no proper documentary evidence was furnished in support of the claim.

We have heard the rival submissions and perused the material available on record. We find that the controversy involved in the present appeal relates to the allowability of exemption and accumulation claimed by the assessee under section 11(2) of the Act. We further note that the authorities below have recorded findings of non-compliance with statutory conditions, non-electronic filing of Form No. 10, and failure of the assessee to demonstrate the actual charitable application of income. At the same time, we also notice that the assessee could not effectively place the relevant documentary evidence and reconciliations before the Ld. CIT(A), resulting in the disposal of the appeal substantially on the basis of available material and without proper assistance from the side of the assessee.

1 Considering the entirety of the facts and circumstances of the case and in the interest of substantial justice, we are of the considered opinion that the assessee deserves one more opportunity to substantiate its claim. Accordingly, we deem it appropriate to restore the matter to the file of the Assessing Officer for fresh adjudication. The assessee is directed to furnish complete details, books of account, supporting vouchers and documentary

2 The Assessing Officer shall examine all the evidence and legal contentions that may be raised by the assessee and thereafter decide the issue afresh in accordance with law after affording adequate and reasonable opportunity of being heard to the assessee. However, the aforesaid restoration to the file of the Assessing Officer shall be subject to the condition that the assessee shall deposit a sum of Rs.10,000/- with Kayakalp Naturopathy Institute and furnish proof thereof before the Assessing Officer during the remand proceedings.

3 Needless to say, in case the assessee again fails to cooperate or fails to furnish the requisite evidences, the Assessing Officer shall be at liberty to decide the matter in accordance with law on the basis of material available on record.

In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced in the open Court on 13/05/2026 मनोज कुमार अ"वाल लिलत कुमार (MANOJ KUMAR AGGARWAL) (LALIET KUMAR) लेखा सद"/ ACCOUNTANT MEMBER "ाियक सद" /JUDICIAL MEMBER AG आदेश की "ितिलिप अ"ेिषत/ Copy of the order forwarded to : 1. अपीलाथ"/ The Appellant

""थ"/ The Respondent 3. आयकर आयु"/ CIT 4. आयकर आयु" (अपील)/ The CIT(A) 5. िवभागीय "ितिनिध, आयकर अपीलीय आिधकरण, च"ीगढ़/ DR, ITAT, CHANDIGARH 6. गाड" फाईल/ Guard File