KAILASWASI NARAYAN ALIAS BAPU PATIL SHIKSHAN PRASARAK MANDAL,KOLHAPUR vs. INCOME-TAX OFFICER, WARD 1(2), KOLHAPUR

Facts

The assessee, a trust running an educational institution, claimed its income as exempt. The Assessing Officer (AO) denied exemption as the trust was not registered under Section 12A for the assessment year in question and added the entire donation amount as unexplained credit under Section 68, disallowing expenses.

Held

The Tribunal noted that the assessee had filed additional grounds and evidence. Considering the interest of justice and fair play, the Tribunal set aside the order of the CIT(A) and restored the matter to the AO to decide the issues afresh.

Key Issues

Whether the CIT(A) erred in applying Section 115BBC on donations and rejecting the claim for exemption under Section 10(23C)(iiiad) without proper consideration of facts and law. The case was remanded for fresh adjudication.