NAND LAL MADHAV LAL CHAPLOT CHARITABLE TRUST,UDAIPUR vs. ITO, WARD EXEMPTION, UDAIPUR

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ITA 566/JODH/2025Status: DisposedITAT Jodhpur27 April 2026AY 2021-223 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal found that the AO's observation regarding the assessee's registration was factually incorrect. Since the assessee had valid registration, the disallowance was deemed illegal.

What were the facts?

The assessee, a trust registered under Section 12A, claimed a donation to another registered trust as application of income. The AO disallowed 30% of the expenditure for lack of supporting evidence, which was confirmed by the CIT(A).

What were the issues?

Whether the disallowance of expenditure claimed as application of income is valid when the assessee possesses valid registration under Section 12A. Whether the CIT(A) erred in summarily rejecting the appeal without valid reasons.

Which sections of the Income-tax Act were involved?

Section 12A,Section 11(1)(a),Section 143(3),Section 144B,Section 80

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, JODHPUR BENCH, JODHPUR

Before: DR. MITHA LAL MEENA, HON’BLE & SHRI SUDHIR PAREEK, HON’BLE

For Appellant: Shri Amit Kothari, CA (Physical)
For Respondent: Shri Ghanshyam Meena, Addl. CIT-DR
Hearing: 09.04.2026

IN THE INCOME TAX APPELLATE TRIBUNAL JODHPUR BENCH, JODHPUR BEFORE DR. MITHA LAL MEENA, HON’BLE ACCOUNTANT MEMBER AND SHRI SUDHIR PAREEK, HON’BLE JUDICIAL MEMBER ITA No. 566/Jodh/2025 (Assessment Year – 2021-22) Nand Lal Madhav Lal Chaplot CIT(Appeals) NFAC Delhi/ITO, Charitable Trust Ward Exemption 377, K-1, Road Bhupalpura, Udaipur Udaipur - 313001 PAN No. AAAAN 0540 M Assessee by Shri Amit Kothari, CA (Physical) Revenue by Shri Ghanshyam Meena, Addl. CIT-DR (Virtual) Date of Hearing 09.04.2026. Date of Pronouncement 27.04.2026. ORDER DR. MITHA LAL MEENA, A.M.: This appeal is filed by assessee against the order of National Faceless Appeal Centre, Delhi [hereinafter referred to as NFAC, Delhi] dated 06.06.2025 with respect to assessment year 2021-22 challenging therein confirmation of Rs. 71,819/-.

2.

We have heard both the sides and perused the material on record, in the present case the appellant has filed return of income declaring nil total income along with copy of statement of accounts and audit report in Form 10B. The AO has passed Assessment Order u/s 143(3) r.w.s. 144B of the Income Tax Act vide order dated 19.12.2022 assessing at total income of Rs. 71,819/- by

2 ITA No. 566/Jodh/2025 Asst. Year: 2021-22 disallowing 30% of the expenditure claimed of Rs. 2,51,000/- by holding as disallowance without supporting evidence as it was a receipt being in the nature of donation to Shri Ram Janmbhoomi Teerth Kshetra (a Trust duly registered u/s 12Aof the IT Act) and as per the contention of the AR it was allowable as application of income as per Section 11(1)(a) of the IT Act.

3.

The Ld. CIT(A) has summarily rejected the appeal of the assessee without assigning valid reasons. We find that the disallowance of Rs. 71,819/- was made by the AO by observing that the appellant was having certificate of registration u/s 12A of the IT Act. Admittedly, the observation of the AO is factually incorrect as the appellant was having the certificate of registration u/s 12A valid upto assessment year 2021-22 and further the appellant has also been granted registration u/s 12A from assessment 2026-27 (copy filed on record).

4.

Since, the appellant assessee being having registration u/s 12A for the year under consideration, hence the disallowance made by the AO and sustained by the Ld. CIT(A) is bad in law and illegal.

5.

In view of the principles of natural justice, we consider it deem appropriate to restore the matter back to the file of the AO to examine the veracity of the evidence furnished by the assessee in the form of certificate of

3 ITA No. 566/Jodh/2025 Asst. Year: 2021-22 registration u/s 12A and approval u/s 80 of the Act for the assessment year under consideration. The AO shall grant adequate opportunity of being heard to the assessee while examining the claim of the assessee in accordance with law.

6.

Accordingly, the matter is restored back to the file of the AO to examine the claim of the assessee afresh and decide the matter in accordance with law.

7.

In the result, the appeal is allowed for statistical purpose.

Order pronounced in the open court on 27/04/2026.

Sd/- Sd/- (SUDHIR PAREEK) (DR. MITHA LAL MEENA) JUDICIAL MEMBER ACCOUNTANT MEMBER Dated : 27/04/2026. True Copy Nimisha Sr. PS Copies to : (1) The appellant. (2) The respondent. (3) CIT (4) CIT(A) (5) Departmental Representative (6) Guard File BY ORDER,

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