KRISHNA CONSCIOUSNESS & WELFARE TRUST,LUDHIANA vs. ITO, WARD-6(1), LUDHIANA

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ITA 330/CHANDI/2023Status: DisposedITAT Chandigarh20 January 2025AY 2019-20Bench: SHRI. VIKRAM SINGH YADAV, AM आयकर अपील सं . / ITA No. 330/CHD/2023 निर्धारण वर्ष / Assessment Year: 2019-20 Krishna Consciousness & Welfare Trust, B-34/2622, New Tagore Nagar, Haibowal Kalan, Ludhiana, Punjab, India- 141001 स्थायी लेखा सं./PAN NO:AADTK2239E अपीलार्थी/Appellant बनाम The ITO Ward -6(1) Ludhiana प्रत्यर्थी/Respondent निर्धारिती की ओर से/Assessee by : राजस्व की ओर से / Revenue by : None Shri Vivek Vardhan, Addl.CIT सुनवाई की तारीख /Date of Hearing : 01/01/2025 उदघोषणा की तारीख/1 pages

AI SummaryPartly Allowed

Facts

The assessee's assessment was completed under section 143(3) r.w.s 144B of the Act, where a donation of Rs. 7,02,053/- was brought to tax in the absence of section 12A registration. The CIT(A) sustained the addition.

Held

The Tribunal noted that the assessee's section 12A registration was initially rejected and later restored by a Coordinate Bench for adjudication by the Ld. CIT(E). Considering this, the matter was set aside to the AO for a fresh decision.

Key Issues

Whether the addition made without considering the pending section 12A registration is valid? Whether the matter should be adjudicated by the AO considering the outcome of the pending proceedings for section 12A registration?

Sections Cited

143(3), 144B, 12A

AI-generated summary — verify with the full judgment below

िनधा"रती क" ओर से/Assessee by : None राज"व क" ओर से/ Revenue by : Shri Vivek Vardhan, Addl.CIT सुनवाई क" तारीख/Date of Hearing : 01/01/2025 उदघोषणा क" तारीख/Date of Pronouncement : 20/01/2025 आदेश/Order

PER VIKRAM SINGH YADAV, AM

This is an appeal filed by the assessee against the order of the Ld. CIT(A)/NFAC, Delhi dt. 24/03/2023 pertaining to Assessment Year 2019-20 challenging the sustenance of addition Rs. 7,02,053/-, being the donation received during the year, which was brought to tax by the Assessing officer.

Briefly, the facts of the case are that the assessment in this case was completed under section 143(3) r.w.s 144B of the Act dt. 21/09/2021 wherein the donation amounting to Rs. 7,02,053/- was brought to tax in absence of 2 registration under section 12A of the Act. Being aggrieved, the assessee carried the matter in appeal before the Ld. CIT(A) who has since sustained he said addition.

Against the said findings, the assessee is in appeal before us. During the course of hearing, none appeared on behalf of the assessee nor was any adjournment application filed. However, considering the fact that the appeal was filed way back in 23/05/2023, it was decided that no useful purpose would be served in adjourning the matter any further and to proceed with the hearing and decide the same based on material available on record.

As per the submissions of the Ld. Counsel for the Assessee dt. 14/08/2024 available on record, the registration of the assessee trust under section 12A was rejected by the Ld. CIT(A), Chandigarh and thereafter, on appeal, the Coordinate Amritsar Bench had restored the matter to the file of Ld. CIT(E), Chandigarh and it was submitted that all the requisite documents have since been submitted by the assessee to prove the genuineness of the religious and charitable activities so carried out by the assessee trust since its inception.

In light of the aforesaid submissions and after hearing the Ld. DR, the matter is set aside to the file of the AO to decide the same afresh as per law after taking into consideration the outcome of the proceedings which are currently pending adjudication before the Ld. CIT(E), Chandigarh under section 12A of the Act after providing reasonable opportunity to the assessee.