WARDHA EDUCATION SOCIETY,WARDHA vs. INCOME TAX OFFICER WARD-2, WARDHA

In this case, the Assessing Officer (AO) disallowed the deduction claimed by the Assessee and made the addition of Rs.5,79,640/- in respect of variation in surplus and Rs.32,21,689/- variation in respect of unexplained investment and computed the income to the tune of Rs.38,01,329/-. Before both the authorities below the Assessee has not filed relevant details to determine the eligibility of exemption u/s 10(23C)(iiiab)/10(23C)(iiiad) of the Act and the income and expenditure. Therefore, both the authorities below declined to grant the deduction claimed by the Assessee society. Whereas before this Court the Assessee has pleaded that it is totally Government funded organization based on the grant received from Government etc. and all the income received by the society is therefore exempt u/s 10(23C) of the Act and therefore one last and final opportunity may be given to the Assessee to demonstrate its case properly, before the Ld. Commissioner.

Considering the peculiar facts and circumstances in totality and the specific fact that in the absence of relevant details and documents the issue also remained to be adjudicated in its right perspective and proper manner. Therefore, for just and proper decision of the case and substantial justice this Court deem it appropriate to remand the instant case to the file of the Ld. Commissioner for decision afresh, suffice to say by affording reasonable opportunity of being heard to the Assessee.

Thus, the case is accordingly remanded to the file of the Ld. Commissioner for decision afresh.

The Assessee is also directed to comply with the notices to be issued by the Ld. Commissioner and file the relevant submissions/documents as would be essentially required for proper and just decision of the case. It is clarified that in case of subsequent default, the Assessee shall not be entitled for any leniency.

In the result, the Assessee’s appeal is allowed for statistical purposes.