BIBLE FELLOWSHIP CENTRE,PUNE vs. ITO (EXEMPTION) WARD 1(2), PUNE

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ITA 995/PUN/2025Status: DisposedITAT Pune05 June 2025AY 2025-26Bench: DR.DIPAK P. RIPOTE (Accountant Member), SHRI VINAY BHAMORE (Judicial Member)1 pages
AI SummaryPartly Allowed

What did the Tribunal hold?

The Tribunal noted that the assessee claimed the sum as advances for church construction but failed to provide sufficient details or evidence. The assessee's application for additional evidence before the CIT(A) was rejected, and the assessment order was confirmed.

What were the facts?

The assessee, a trust, filed its return of income for AY 2015-16. During assessment, it was noted that the trust was not registered under Section 12A, making it ineligible for exemption under Section 11. The Assessing Officer added Rs. 23,04,869/- received by the assessee, which was claimed as advances for church construction, to the total income.

What were the issues?

Whether the CIT(A) erred in rejecting the assessee's application for admission of additional evidence and confirming the assessment order when there was sufficient cause for not filing the documents earlier.

Which sections of the Income-tax Act were involved?

Section 250,Section 143(3),Section 12A,Section 11,Section 46A

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, PUNE BENCHES “SMC” :: PUNE

Before: DR.DIPAK P. RIPOTE & SHRI VINAY BHAMORE

For Respondent: Smt. Sonal L Sonkavde –Addl.CIT(DR)
Hearing: 05/06/2025Pronounced: 05/06/2025

Assessment Year: 2015-16 Bible Fellowship Centre, V The Income Tax Officer, A-202, Lunkad Heritage, s Exemption Ward-1(2), Viman Nagar, Pune – 411014. Pune. Maharashtra. PAN: AAATB8528J Appellant/ Assessee Respondent / Revenue Assessee by Ms.Kimaya Kudva – AR (Virtual) Revenue by Smt. Sonal L Sonkavde –Addl.CIT(DR) Date of hearing 05/06/2025 Date of pronouncement 05/06/2025 आदेश/ ORDER

PER DR. DIPAK P. RIPOTE, AM:

1.

This is an appeal filed by the Assessee against the order of ld.Addl.CIT(A)/[NFAC] passed under section 250 of the Act, for the A.Y.2015-16, dated 25.03.2025 emanating from Assessment Order u/s.143(3) of the Act, dated 29.12.2017.

Findings & Analysis : 2. We have heard both the parties and perused the records. In this case, Assessee is a Trust, but Assessee Trust is not registered u/s.12A of the Act. The ld.AR submitted that Assessee’s application for registration u/s.12A of the Act, was rejected by ld.CIT(E). The Assessee filed appeal before the Hon’ble ITAT and the order of ld.CIT(E) has been set-aside to ld.CIT(E). Ld.AR submitted that at this juncture, the order of ld.CIT(E) is awaited.

2.1 In this case, assessee filed Return of Income for A.Y.2015-16 declaring total income at Rs.1,79,590/-. During the Assessment Proceedings, Assessing Officer noted that Assessee Trust does not has registration under section 12A of the Act, hence Assessee is not eligible for exemption u/s.11 of the Act. During the assessment proceedings, Assessing Officer noted that Assessee has received an amount of Rs.23,04,869/-. The Assessing Officer asked assessee to submit the details of these receipts. Assessee claimed that these are advances for Construction of Church and these are to be returned to those persons, who gave advances.

3.

Assessee submitted receipts issued by the Assessee to those persons who had given these amounts. On perusal of the receipts submitted by Assessee, Assessing Officer noted that nowhere in the receipts it is mentioned that these are for the purpose of Construction of Church. Ld.Assessing Officer also noted that in the Balance Sheet these amounts were not shown as unsecured loans.

Assessee Trust could not submit any further details during the assessment proceedings. Therefore, Assessing Officer added Rs.23,04,869/- to the Total Income of the Assessee. The Assessee filed appeal before the ld.CIT(A). Assessee requested ld.CIT(A) to admit additional evidence which were confirmations from those persons. Ld.CIT(A) rejected assessee’s application for admission of additional evidence and confirm the assessment order. It is noted that the additional evidence could not be filed during the assessment proceedings as some of the persons were not immediately available. Ld.AR submitted that the Assessee Trust is looked after by Pastors who are not aware of the taxations procedures. Therefore, ld.AR submitted that there was sufficient cause.

4.

In these facts and circumstances of the case, there was sufficient cause which prevented Assessee from filing the necessary documents, therefore, ld.CIT(A) should have admitted the additional evidence under Rule 46A of the Income Tax Rules, 1963. In these facts and circumstances of the case, we set-aside the order of ld.CIT(A) to ld.CIT(A) for denovo adjudication. The ld.CIT(A) shall provide opportunity to the assessee. Assessee shall file necessary details before the ld.CIT(A). Accordingly, Grounds of appeal raised by the assessee are allowed for statistical purpose.

5.

In the result, appeal of the assessee is allowed for statistical purpose. Order pronounced in the open Court on 05 June, 2025.

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