DAYA SAROOP USHA BHALLA WELFARE FOUNDATION TRUST,KOLKATA vs. I.T.O., WARD - 1(2), EXEMPTION, KOLKATA

Brief facts of the case are that the assessee is a Charitable Trust, who filed his return of income on 31.03.2018 declaring total income at ‘NIL’. The return was processed under section 143(1) of the Act determining taxable income at Rs.11,43,658/- by disallowing deduction under section 11 of the Act. The tax liability was computed at Rs.1,09,616/-. The ITR was processed by Centralizing Processing Centre, Bangalore (CPC) without allowing deduction claimed under section 11 of the Act. Later on, the appellant filed petition under section 154 of the Act seeking rectification of mistake, which was also rejected. Being aggrieved, the appellant preferred appeal urging for reversal of the order of CPC.

The ld. Addl. /JCIT(Appeals) has given several opportunities to the assesese to substantiate its claim. The appellant was asked to provide supporting documents from which it could have been concluded that it was eligible for deduction under section 11 of the Act for A.Y. 2017-18. Mere claiming in the ITR that income has been applied for the object of the Trust is not enough to hold genuineness of the claim but the appellant did not file the written submissions. Thereafter the ld. Addl./JCIT(Appeals) dismissed the appeal on 19th September, 2024. 4. On being aggrieved, the assessee preferred an appeal before the ITAT.

At the time of hearing, it was the submission of the ld. Counsel for the assessee that ld. Addl./JCIT(Appeals) did not Daya Saroop Usha Bhalla Welfare Foundation Trust 3

At the outset, ld. D.R. brought to my notice that the assessee did not produce the relevant documents as asked by the ld. Assessing Officer during the assessment proceedings. Therefore, the ld. Assessing Officer passed the assessment order assessing the taxable income at Rs.11,43,658/-which exceeds income or gross receipts of Rs.10,34,042/- by Rs.1,09,616/-. Thereafter the assessee preferred an appeal before the ld. CIT(Appeals). The ld. Addl./JCIT(Appeals) has given many opportunities to the assessee and the assessee neither filed written submission nor any evidence before the ld. Addl./JCIT(Appeals). He further submitted that before the ITAT, the assessee did not substantiate its claim. Therefore, he pleaded to uphold the orders passed by the revenue authorities.

I have heard the rival submissions and perused the material available on record. The assessee also filed additional documents before the Tribunal. The only contention of the ld. Addl./JCIT(Appeals) that the assessee has not provided any documents in support of its claim even after issuance of notices on three occasions. Therefore, ld. Addl./JCIT(Appeals) decided these issues on merit. However, before me, the assessee filed some documents. Considering the facts and circumstances of the case, I am inclined to set aside the order passed by the ld. CIT(Appeals) Daya Saroop Usha Bhalla Welfare Foundation Trust 4

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