ST JOSEPHS EDUCATIONAL AND CHARITABLE TRUST,KOTTAYAM vs. INCOMETAX OFFICER(EXEMPTION WARD) KOTTAYAM, KOTTAYAM
Facts
The appellant, a charitable trust, failed to file a return of income for AY 2018-19 and was issued a notice under section 148. The assessment was completed at a total income of Rs. 3,35,59,044/-, with additions for unexplained cash deposits, interest income, and an unexplained term deposit. The CIT(A) confirmed the AO's action.
Held
The Tribunal found that the NFAC failed to adjudicate the grounds of appeal and the written submissions of the appellant. Therefore, the order passed by the NFAC was deemed unreasonable.
Key Issues
Whether the NFAC properly adjudicated the grounds of appeal and written submissions, and if the additions made by the AO are sustainable.
Sections Cited
12A, 139(1), 148, 147, 144B
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, COCHIN BENCH
Before: SHRI INTURI RAMA RAO, AM & SHRI ANIKESH BANERJEE, JM
IN THE INCOME TAX APPELLATE TRIBUNAL COCHIN BENCH BEFORE SHRI INTURI RAMA RAO, AM AND SHRI ANIKESH BANERJEE, JM ITA No. 642 /Coch/2025 Assessment Year: 2018-19 St. Josephs Eucational and Charitable Trust .......... Appellant St. Gosephs Generalate, Kottayam 686006 [PAN: AAHTS8310C] vs. ITO (Exemptions), Kottayam ......... Respondent Assessee by: Shri Romid C.J., CA Revenue by: Shri Sanjit Kumar Das, CIT-DR Date of Hearing: 29.10.2025 Date of Pronouncement: 31.10.2025 O R D E R Per: Inturi Rama Rao, AM This appeal filed by the assessee is directed against the order of the National Faceless Appeal Centre, Delhi (NFAC) dated 17.07.2025 for Assessment Years (AY) 2018-19.
Brief facts of the case are that the appellant is a charitable trust registered u/s. 12A of the Income Tax Act, 1961 (the Act). No return of income u/s. 139(1) was filed for AY 2018-19 by the appellant. Subsequently, the AO issued a notice u/s. 148 calling upon the appellant to file return of income as he formed an opinion that income escaped assessment to tax. In response to the notice u/s. 148,
2 ITA No. 642/Coch/2025 St. Josephs Eucational and Charitable Trust the appellant trust filed return of income disclosing Nil income. Against the said return of income, the assessment was completed by the Assessment Unit, Income Tax Department (hereinafter called "the AO") vide order dated 23.03.2023 passed u/s. 147 r.w.s. 144B of the Act at a total income of Rs. 3,35,59,044/-. While doing so, the AO treated the cash deposits made in the bank accounts of Rs. 2,99,85,604/- as unexplained money of the Trust. The AO also made addition on account of receipt of interest income of Rs. 20,73,440/-. He also made addition on account of term deposit of Rs. 15,00,000/- as unexplained investment of the assessee for failure of the assessee to offer explanation in support of the source of the above investment.
Being aggrieved, an appeal was filed before the CIT(A), who vide the impugned order confirmed the action of the AO.
Being aggrieved, the appellant is in appeal before this Tribunal in the present appeal.
We have heard the rival contentions and perused the material available on record. At the outset, we find that the NFAC had failed to adjudicate the grounds of appeal raised by the appellant and the written submission filed by the appellant seeking deletion of addition made by the AO. Thus, the order passed by the NFAC is unreasonable and, therefore, the matter is restored back to the file of the NFAC for fresh adjudication.
3 ITA No. 642/Coch/2025 St. Josephs Eucational and Charitable Trust 6. In the result, the appeal filed by the assessee stands partly allowed for statistical purposes.
Order pronounced in the open court on 31st October, 2025.
Sd/- Sd/- (ANIKESH BANERJEE) (INTURI RAMA RAO) JUDICIAL MEMBER ACCOUNTANT MEMBER Cochin, Dated: 31st October, 2025 n.p. Copy to: 1. The Appellant 2. The Respondent 3. The Pr. CIT concerned 4. The Sr. DR, ITAT, Cochin 5. Guard File Assistant Registrar ITAT, Cochin
