ASSISTANT COMMISSIONER OF INCOME TAX, PATNA vs. SANJIVANI VIKAS FOUNDATION, PATNA

ITA 307/PAT/2023Status: HeardITAT Patna21 September 2026AY 2017-184 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal dismissed the Revenue's appeal. Regarding the first issue, the Tribunal found that the Revenue had not demonstrated that the assessee's activities were not covered under Section 2(15) of the Act. Furthermore, the assessee possessed a Section 12A registration, indicating that the authority granting it had considered its activities eligible as charitable. Thus, the first ground raised by the Revenue was rejected. Concerning the second issue, the Tribunal noted that the CIT(A)'s order was dated 12.09.2023, and the power to set aside was granted to the CIT(A) effective from 01.10.2024. Given the current date (2026), directing the CIT(A) to re-adjudicate was deemed unnecessary. The Tribunal found the CIT(A)'s order for re-examination of expenditure to be on the right footing and not requiring interference. It was also observed that the AO's method of estimated disallowance from expenditure was impermissible, as the AO is expected to verify each expense individually. Therefore, the second issue raised by the Revenue was also rejected.

What were the facts?

The Revenue filed an appeal before the Income Tax Appellate Tribunal (ITAT) challenging an order passed by the CIT(A), NFAC, Delhi, for the assessment year 2017-18. The Revenue's grounds of appeal concerned the CIT(A)'s decision to grant exemptions under Section 11 of the Income Tax Act, 1961, despite alleged violations of Section 13(8), and the CIT(A)'s direction to the Assessing Officer (AO) to reconsider issues on which additions were made, citing limitations under Section 251(1)(a). The assessee is Sanjivani Vikash Foundation. The ITAT heard the appeal at Kolkata.

What were the issues?

1. Whether the assessee is eligible for exemptions under Section 11 of the Income Tax Act, 1961, notwithstanding the provisions of Section 13(8). - Revenue's contention: The CIT(A) erred in law by holding the assessee eligible for exemptions under Section 11, ignoring Section 13(8). - Assessee's contention: Not recorded. 2. Whether the CIT(A) erred in law by directing the AO to reconsider issues on which additions were made, considering the limitation of power conferred under Section 251(1)(a). - Revenue's contention: The CIT(A) erred in law by directing the AO to reconsider issues on which additions were made, citing limitations under Section 251(1)(a). - Assessee's contention: Not recorded.

Which sections of the Income-tax Act were involved?

Section 11,Section 13(8),Section 2(15),Section 251(1)(a),Section 12A

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, PATNA BENCH PATNA

Before: SHRI GEORGE MATHAN & SHRI LAXMI PRASAD SAHU

Hearing: 21/09/2026Pronounced: 21/09/2026

Per George Mathan, JM: This is an appeal filed by the revenue against the order of the CIT(A), NFAC, DELHI [hereinafter referred to as the ‘CIT(A)’] in appeal no.NFAC/2016-17/10006865 dated 12.09.2023 for the assessment year 2017-18. 2. Shri Prasoon Kumar, AR appeared on behalf of the assessee and Shri Ravi Kant Chowdhary, Sr. D.R. represented on behalf of the revenue.

3.

In the revenue’s appeal, the revenue has raised the following grounds which reads as follows:

1.

The Commissioner of Income Tax (Appeal) erred in law while h

The order continues below.

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