THE GUJARAT INSTITUTE OF PSVCHOLOGICAL SCIENCES & RESEARCH CENTRE,AHMEDABAD vs. THE ITO, WARD-2 (EXEMP), AHMEDABAD

The Ld. Commissioner of Income-tax (Appeals) NFAC, Delhi has erred in law and on facts in confirming the action of ADIT, CPC, being rejection of exemption claim of the appellant trust u/s. 11(1)(a) of the Act to the tune of Rs. 1,27,204/-/ 3. The Ld. Commissioner of Income-tax (Appeals) NFAC, Delhi failed to appreciate the fact that the CPC, while acting under section 143(1) of the Act, does not have any power to withdraw exemption under section 11 nor has power to disallow the expenditure incurred for the objects of trust. 4. The appellant craves leave, to add, urge, alter, modify or withdraw any grounds before or at the time of hearing. 3. The AO has made disallowance on account of various expenditure incurred for the operation of the Trust amounting Rs.5,38,648/- and disallowed Exemption u/s.11(1)(a) of the Act of Rs.1,27,204/-

During the course of appellate proceedings, the Ld.CIT(A) had issued eight notices to the assessee but assessee remained non complied to all the notices. Such type of behaviour on the part of assessee-trust is hereby condemnd and cannot be encouraged. However, we find that Ld.CIT(A), has not adjudicated the issues on merits of the case. Hence, it is hereby directed that assessee shall submit all the necessary evidences before the Ld.CIT(A), who shall consider the same in passing of the order de novo.

In the result, the appeal of the assessee is allowed for statistical purposes. This Order pronounced in Open Court on 03.01.2025 (SIDDHARTHA NAUTIYAL) VICE PRESIDENT