INCOME TAX OFFICER,EXEMPTIONS WARD, TIRUNELVELI vs. THE SREE AYYAPPA EDUCATIONAL SOCIETY, KANYAKUMARI

0 As the two appeals are centering around a common issue and hence for the purposes of convenience were heard together and are being adjudicated by this common order together. For the purposes of this adjudication the facts and figures for AY-2016-17 have been taken. As facts have been reported to be identical in AY-2016-17 and 2019-20, the decision for AY-2016-17 shall apply mutatis mutandis for appeal of AY-2019-20. 3.0 In ITA No.2967 for AY-2016-17, appellant Revenue has contested that the assessee had not furnished any evidences during the course of assessment proceedings but filed the same before the appellate authority. It was contended that the issue in dispute was utilization of building fund contributions and UGC grant by the assessee which is a society in educational sector. It is the case of the Revenue that the Ld.CIT(A), as evident from page 13 to 19 of his order, admitted evidences which were not available to the Ld.AO. The Ld.DR has argued that the Ld.CIT(A) has violated clear provisions of Rule 46A of providing an opportunity of being heard to the Ld.AO before giving any relief to the assessee. The Ld. AR placed reliance upon the order of Ld.CIT(A).

0 We have heard rival submissions in the light of material available on records. The order of Ld.AO shows that the assessee could not provide any satisfactory evidence to the extent of Rs. 2,75,57,842/- and hence he proceeded to add the same u/s 68 of the Act. It was noted that the assessee had obtained unsecured loans of Rs. 2,76,35,842/-, out of which it could provide documentary evidence to the Ld.AO of only Rs.78,000/-. For the balance, it was simply submitted that the same pertained to UGC grant and building fund. The latter received from the students and guardians as voluntary contributions. The assessee however did not provide any specific details. From the perusal of order of Ld.First Appellate Authority, we have noted that the relief was accorded by relying upon the evidences filed during appellate proceedings. Consequently, we find sufficient force in the argument of the Revenue that its rights under Rule 46A have been adversely impacted. Accordingly, we set aside the order of lower authorities and remit the issue back to the Ld.AO for limited verification of the evidences produced by the assessee before the Ld.First Appellate Authority. He will decide the matter in accordance with law by affording due opportunity of being heard and passing a speaking order. The grounds of appeal raised by the Revenue are allowed for statistical purposes.

0 In the result the Revenue’s appeal for ITA No.2967 is allowed for statistical purposes. 6.0 The decision taken herein above shall apply in Revenue’s appeal vide ITA No.2968 for AY-2019-20, mutatis mutandis. Order pronounced on 4th , April-2025 at Chennai. ( एबी टी. वकी) (ABY T VARKEY) न्याययक सदस्य / Judicial Member (अयिताभ शुक्ला) (AMITABH SHUKLA) लेखा सदस्य /Accountant Member चेन्नई/Chennai, यदनांक/Dated: 4th , April-2025. KB/- आदेश की प्रयतयलयप अग्रेयषत/Copy to: 1. अपीलार्थी/Assessee: 2. प्रत्यर्थी/Revenue 3. आयकर आयुक्त/CIT - Madurai 4. यवभागीय प्रयतयनयि/DR 5. गार्ड फाईल/GF