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Facts
Shramik Serva Seva Trust, a registered charitable trust, failed to file its income tax return for A.Y. 2011-12. The AO initiated reassessment proceedings, made an addition of Rs. 11,12,450/-, treated the assessee as an AOP, and levied interest under sections 234B and 234C. The assessee appealed to the CIT(A), but the appeal was dismissed due to non-appearance, leading to the current appeal before the ITAT.
Held
The Tribunal considered the assessee's non-compliance unintentional and, referencing a previous decision in the assessee's own case for A.Y. 2013-14, restored all issues on merits to the CIT(A) for fresh adjudication. The CIT(A) was directed to provide a reasonable opportunity of hearing and pass a speaking order, while the assessee was advised to update contact details and avoid unnecessary adjournments. The impugned order was set aside.
Key Issues
Whether the AO erred in treating a registered charitable trust as an AOP and whether the disallowance of Rs. 11,12,450/- and levy of interest under sections 234B and 234C were justified.
Sections Cited
143(3), 147, 12A, 234B, 234C, 194C, 250(6)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, SMC BENCH, PUNE
Before: Dr. MANISH BORAD
Assessee by : Shri Pramod S Shingte Revenue by : Shri Vishwajit Shinde, JCIT Date of hearing : 21.01.2026 Date of : 28.01.2026 pronouncement आदेश/ORDER PER DR. MANISH BORAD, ACCOUNTANT MEMBER :- This appeal at the instance of the assessee is directed against the order of Ld. CIT(A) ADDL/JCIT(A), Panaji dated 11.10.2025 framed u/s 143(3) r.w.s 147 of the Income Tax Act, 1961 for A.Y. 2011-12.
Assessee has raised following grounds of appeal:-
1. On the facts and in the circumstance of the case and in low the Income Tax Officer (Exemption) Ward 1(1) Nashik, Erned in aversing the Appellant as AOP (Trust) instate of Charitable Trust. while doing so, the learned AO has failed in appreciating the facts that the Appellant is charitable that duly registered u/s 12Ala) of the Act; and also got 80G certificate from income tax department. The Appellant is in fact doing activities as per its Trust Deed/Memorandum of Association duly registered;
2. On the facts and in the circumstance of the case and in law the Income Tax Officer (Exemption) Ward 1(1) Nashik, Erred in assessing the Appellant as AOP (Trust) instate of Charitable Trust, erred in levying interest u/s 234B and 234C of the Act.
On the facts and in the circumstance of the case and in law the Income Tax Officer (Exemption) Ward 1(1) Nashik, erred in disallowing and added back an amount of Rs.11,12,450/-received TDS is treat as a Income of the Trust i.e., Refund Treat as a Income of the Trust. 4. The Appellant craves for to leave, add, alter, amend, modify, amend delete any or all above grounds of appeal before or at the time of hearing."
3. Sole grievance of the assessee is that Ld. Addl/JCIT(A) erred in disallowing the amount of Rs. 11,12,450/- on account of TDS u/s 194C.
4. I have heard rival contentions and perused the record placed before me. The assessee is a charitable trust granted registration u/s 12A of the Act vide order dated 05.11.1991. No return of income for A.Y. 2011-12 was furnished. Ld. Assessing Officer (AO) after recording the reasons carried out the reassessment proceedings and made an addition of Rs. 11,12,450/- against which the assessee preferred appeal before Ld. CIT(A) but then failed to appear on four occasions resulting into dismissal of the appeal. Now the assessee is in appeal before this Tribunal. Before me Ld. Counsel for the assessee referred to the decision of this Tribunal in assessee’s own case for A.Y. 2013-14 vide ITA 1553/PUN/2025 dated 22.08.2025, submitted that non compliance was not intentional and that one more opportunity may please be granted to go before Ld. CIT(A). Ld. Departmental Representative (DR) did not oppose to this request.
I therefore considering the facts and circumstances of the case and also taking into consideration the decision of this Tribunal in assessee’s own case for A.Y. 2013-14 deem it appropriate to restore the issues raised on merits to the file of Ld. CIT(A) for afresh adjudication and to pass a speaking order as provided u/s 250(6) of the Act. Needless to mention that Ld. CIT(A) in the set aside proceedings shall afford reasonable opportunity of hearing to the assessee. Assessee is directed to update latest email id and contact detail on ITBA portal. Assessee is also directed to remain vigilant and not to take adjournment unless otherwise required for reasonable cause. Impugned order is hereby set aside and effective grounds of appeal raised by the appellant are allowed for statistical purposes.
In the result, appeal of the assessee is allowed for statistical purposes.
Order pronounced on this 28th day of January, 2026.