SRI GOWRI SANKARA SAGARA (UPPARA) ANNA SATHRA SANGHAM,KURNOOL vs. ITO., EXEMPTION WARD, HYDERABAD

The brief facts of the case are that, the assessee, a charitable trust, filed its return of income for the A.Y. 2018-19 on 24.10.2018, declaring total income at Rs. Nil after claiming exemption under Section 11 of the Income Tax Act, 1961. The case was selected for complete scrutiny assessment under the E- assessment Scheme, 2019 for verification of approval under Section 80G and large voluntary contributions reported in the return. Accordingly, notice under Section 143(2) was issued on 23.09.2019, followed by notices under Section 142(1) dated 13.11.2019, 18.11.2020, and a further letter dated 31.12.2020, calling for details in support of the return and for explanation on the issues identified for scrutiny. The assessee, however, did not comply with the notices. Therefore, a final show-cause notice dated 27.02.2021 was issued, requiring the assessee to furnish complete donor details such as names, addresses, e-mail IDs, PAN and mode of receipt of voluntary contributions, failing which the A.O. proposed to treat the entire voluntary contributions of Rs. 1,06,98,759/- as anonymous donations under Section 115BBC of the Act, for which there was no response form the assessee.

The A.O., after considering the submissions of the assessee on record and in view of the non-compliance to the statutory notices issued during the scrutiny proceedings, concluded that the assessee had failed to furnish even the basic particulars of donors to establish the genuineness of voluntary contributions. The A.O., therefore, completed the assessment ex parte under Section 144 r.w.s. 143(3) of the Income Tax Act, 1961 and treated the entire voluntary contributions of Rs. 1,06,98,759/- as anonymous donations under Section 115BBC of the Act and brought the same to tax and thus assessed the total income of the assessee at Rs. 1,06,98,759/-. 8. Aggrieved by the assessment order, the assessee carried the matter in appeal before the Ld. CIT(A). 9. Before the Ld. CIT(A), although submissions have been made with relevant evidences and further remand report has been called for from the A.O., but on subsequent two days, the assessee did not respond to the notice issued by the A.O. Therefore, the Ld. CIT(A) dismissed the appeal filed by the assessee without giving

The learned CIT–DR for the Revenue, Dr. Narendra Kumar Naik, on the other hand, strongly supported the orders of the lower authorities. He submitted that the assessee repeatedly failed to comply with statutory notices issued during the assessment as well as appellate proceedings, and such non-compliance clearly shows negligence on the part of the assessee in discharging its statutory obligations. He further submitted that, in the absence of basic particulars of donors, the A.O. was justified in invoking the provisions of Section 115BBC of the Act and bringing the entire voluntary contributions to tax, and the Ld. CIT(A) rightly sustained the addition made by the A.O. 13. We have heard both parties, perused the material on record and had gone through the orders of the authorities below. The Ld. CIT(A) dismissed the appeal filed by the assessee for non- prosecution and has not considered the issues on merits even though the assessee has furnished relevant evidences of monetary contributions received from donors, including bank statements. It is also an admitted fact that, the Ld. CIT(A) recorded a categorical finding that, the assessee has submitted various details, however could not furnish further evidences when subsequent notices were 9 Sri Gowri Sankara Sagara (Uppara) Anna Sathra Sangham, Srisailam, issued to the assessee. No doubt, the assessee did not appear and furnish further evidences as called for by the Ld. CIT(A), but fact remains that, once the Ld. CIT(A) admitted the fact that, the assessee has furnished certain evidences, it is the duty of the Ld. CIT(A) to decide the issues on merits on the basis of the material available on record and also the evidences furnished by the assessee. Further, the assessee has also explained the reasons for non-appearance or not submitting relevant details or details called for by the Ld. CIT(A) in respect of subsequent notices and in our considered view, the reasons given by the assessee appear to be bona fide and reasonable. Since the Ld. CIT(A) has not considered the evidences filed by the assessee, in our considered view, the issue needs to be set aside to the file of the A.O., because the assessment proceedings itself were ex parte and the assessee did not get an opportunity to explain its case before the A.O. Thus, we set aside the order of Ld. CIT(A) and remanded the issue back the issue to the file of the A.O. for reconsideration. The assessee is directed to furnish relevant evidences in support of its case as and when the case is posted for hearing.

In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced in the Open Court on 19th November, 2025. (श्री रवीश सूद) (RAVISH SOOD) न्याययक सदस्य/JUDICIAL MEMBER (मंजूनाथ जी) (MANJUNATHA G.) लेखा सदस्य/ACCOUNTANT MEMBER

निर्धाररती/The Assessee : M/s. Sri Gowri Sankara Sagara (Uppara) Anna Sathra Sangham, Patalaganga Road, Srisailam, Kurnool, Rep. by its Secretary Shri S. Venkataramana Sagar. 2. रधजस्व/ The Revenue : The Income Tax Officer, Exemptions Ward, Hyderabad. 3. The Principal Commissioner of Income Tax, Hyderabad. 4. नवभधगीयप्रनतनिनर्, आयकर अपीलीय अनर्करण, हैदरधबधद / DR, ITAT, Hyderabad 5. गधर्ाफ़धईल / Guard file