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Income Tax Appellate Tribunal, “A” BENCH, AHMEDABAD
Before: SHRI WASEEM AHMED&
IN THE INCOME TAX APPELLATE TRIBUNAL “A” BENCH, AHMEDABAD [CONDUCTED THROUGH VIRTUAL AT AHMEDABAD] BEFORE SHRI WASEEM AHMED, ACCOUNTANT MEMBER & Ms. MADHUMITA ROY, JUDICIAL MEMBER (Assessment Year: N.A.) Shri Jagatbharti Education & Vs. CIT(E) 111-112, 1st Floor, Aaykar Charitable Trust At. Chotila, Anandpur Road B/h Bhavan, Ashram Road, Marketing Yard, Dist. Ahmedabad Surendranagar [PAN No.AADTS2599B] (Appellant) .. (Respondent) Assessee by : Shri S. N. Divatia, Advocate Revenue by : Shri Vijaykumar Jaiswal, CIT DR Date of Hearing 28.02.2022 28.02.2022 Date of Pronouncement O R D E R PER Ms. MADHUMITA ROY - JM:
The instant appeal filed by the assessee is directed against the order dated 29.12.2017 passed by the Commissioner of Income Tax (Exemptions), Ahmedabad passed under Section 10(23C)(iv) & (v) of the Income Tax Act, 1961 (hereinafter referred as to “the Act”).
We have heard the respective parties and we have also perused the relevant materials available on record.
Rejection of application dated 29.12.2017 under Sectio 10(23)(iv) & (v) made by the Commissioner of Income (Exemptions), Ahmedabad is being challenged before us. The assessee is a public charitable trust registered under the Public Trust Act, 1950 at E/572/Surendranagar. Shri Jagatbharti Education & Charitable Trust vs. CIT(E) Asst.Year –N.A. - 2 - Further, it is registered under Section 12AA dated 26.02.2003 and also enjoys exemption under Section 80G(5) issued under the Certificate dated 30.10.2008. The assessee has stated to be carrying out social welfare activities mainly focusing on education, health, environment, women upliftment etc.
While processing the application seeking approval under Section 10(23C)(iv)/(v) made by the assessee upon verification of the Form 56D alongwith other documents particularly the receipt and payment for the F.Y. 2015-16 relevant to A.Y. 2016-17 discrepancy in regard to the total receipts shown at Rs. 98,46,707/- and payment shown at Rs. 75,11,628/- were found. The difference to the tune of Rs. 23,35,079/- was found to be excess of income over expenditure. The details to clarify/explain such discrepancies though were called for, the same were not duly explained with supporting documents. The details of bills and vouchers in support of the expenses incurred of Rs. 98,36,033/- pertaining to school uniform for the F.Y. 2016-17 could not be verified in the absence of documents. The question of genuineness of such expenses remains unverified as claimed by Revenue. In respect of accumulation of fund for the last three years in terms of the provisions of Section 11(2) also remained unverified in the absence of details furnished and finally the application stood rejected by the Ld. CIT(E).
At the time of hearing of the instant appeal the Ld. Counsel appearing for the assessee submitted before us that the assessee though placed various evidences to justify the educational purposes of the assessee in terms of the CBDT Circular dated 17.08.2015, the order of rejection was issued. Shri Jagatbharti Education & Charitable Trust vs. CIT(E) Asst.Year –N.A. - 3 -
However, since the very purpose of the Trust was not been able to be satisfied by the assessee by adducing evidence we find it fit and proper to give another chance to the assessee to submit his case in support of his application under Section 10(23C)(iv)/(v) of the Act and the Ld. CIT(E) is further directed to adjudicate the same and to pass a reasoned order upon giving a reasonable opportunity of hearing to the assessee and upon considering the CBDT Circular dated 17.08.2015 and the evidence already on record or any other evidence which the assessee may choose to rely upon at the time of hearing of the matter. We also make clear that the assessee will not seek any unnecessary adjournment before the Ld. AO during the assessment proceeding. Hence, the assessee’s appeal is allowed for statistical purposes.