ITO, (EXEMPTIONS) WARD-2(1), DURGAPUR vs. PRISCILLA VAZ TRUST, DURGAPUR

IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH KOLKATA Before Shri Sanjay Garg, Judicial Member and Shri Girish Agrawal, Accountant Member I.T.A. No.71/Kol/2022 Assessment Year: 2015-16 ITO(Exemption), Ward-2(1), Durgapur...............……........……...…..….. Appellant vs. Priscilla Vaz Trust…………........ .........................................……….…… Respondent 125, S.B. Gorai Road, Asansol-713304 [PAN: AACTP6275C] Appearances by: None appeared on behalf of the appellant. Smt. Ranu Biswas, Addl. CIT-DR, appeared on behalf of the Respondent. Date of concluding the hearing : March 31, 2022 Date of pronouncing the order : March 31, 2022

ORDER Per Sanjay Garg, Judicial Member: The present appeal has been preferred by the Revenue against the order dated 01.08.2021 of the National Faceless Appeal Centre [hereinafter referred to as ‘CIT(A)’] passed u/s 250 of the Income Tax Act (hereinafter referred to as the ‘Act’). 2. No one has put in appearance on behalf of the assessee despite notice, therefore, we proceed to decide the appeal on merit after going through the records and after hearing the ld. DR. The Revenue in this appeal has taken the following grounds of appeal: “1. That on the facts and circumstances of the case and in law, the Ld. CIT(A) has erred in directing the Assessing Officer to verify the genuineness of donors contributing voluntary to the assessee Trust towards corpus exceeding the scope and ambit of Explanation to section 251 in the case of order appealed against was 154/143(1) of the Income Tax Act, 1961. 2. That on the facts and circumstances of the case and in law, the Ld. CIT(A) has erred in directing the Assessing Officer to inquire into all the receipts of the appellant during the year and expenditure out of such receipts without the scope and ambit of Explanation to

I.T.A. No.71/Kol/2022 Assessment Year: 2015-16 Priscilla Vaz Trust section 251 in the case of order appealed against was 154/143(1) of the Income Tax Act,1961. 3. That on the facts and circumstances of the case and in law, the Ld. CIT(A) has erred in directing the Assessing Officer to re-examine the effective date of registration u/s 12AA in the light of proviso to section 12A(2) without the scope and ambit of section 251. 4. That on the facts and circumstances of the case and in law, the Ld. CIT(A) has erred in not distinguishing an assessment order and an order of processing for the purpose of determining effective date of registration under proviso to section 12A(2) of the Income Tax Act,1961. 5. That the appellant craves for leave to add, delete or modify any of the grounds of appeal before or at the time of hearing. 3. The brief facts of the case are that the assessee-trust applied for registration u/s 12A of the Act 19.02.2015. The assessee also filed return for the assessment year under consideration i.e. A.Y 2015-16, wherein, certain voluntary donations received by the assessee have been claimed as exempt. However, the Assessing Officer/CPC while processing the return u/s 143(1) of the Act, disallowed the aforesaid exemption claimed by the assessee in respect of voluntary donations received on the ground that the assessee trust till such date had not get certificate of registration as charitable institution u/s 12A of the Act from the concerned Income Tax Authorities. The assessee, thereafter, moved an application u/s 154 of the Act to the Assessing Officer stating therein that as per the proviso to section 12A(2) of the Act, the assessee will be deemed to be registered and entitled to the benefits for the preceding assessment year for which the assessment proceedings were pending before the Assessing Officer on the date of such registration. However, the Assessing Officer rejected the aforesaid rectification application moved by the stating that it was not a matter of mistake apparent on record.

“8. I have considered the material on record. I find that the receipt of Rs.9088219/- needs investigation. I, therefore, direct the AO to carry out necessary investigation as to who were the donors of the so-called voluntary contributions towards corpus. The AO is also directed to inquire into all the receipts of the appellant during the year under consideration and the expenditure out of such receipts or out of other Sources of income.

I.T.A. No.71/Kol/2022 Assessment Year: 2015-16 Priscilla Vaz Trust On necessary investigation if the AO is satisfied about the genuineness of the affairs of the appellant, then he will re-examine the question, more particularly in the light of proviso to section 12A(2) as it stood in the Act for the AY under consideration, as to what will be the date from which the appellant will have the status of a duly registered charitable organization/trust eligible for exemptions as provided in the Income Tax Act. After such examination and re-examination the AO will take action as per law.”

Sd/- Sd/- [Girish Agrawal] [Sanjay Garg] Accountant Member Judicial Member

Dated: 31.03.2022. RS Copy of the order forwarded to: 1. ITO(Exemption), Ward-2(1), Durgapur 2. Priscilla Vaz Trust 3. CIT(A)- 4. CIT- , 5. CIT(DR),

//True copy// By order Assistant Registrar, Kolkata Benches

I.T.A. No.71/Kol/2022 Assessment Year: 2015-16 Priscilla Vaz Trust