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Facts
The assessee, a charitable trust, filed an appeal against the order of the NFAC for AY 2019-20. The impugned order sustained additions made by the AO on account of corpus donation (Rs. 3,50,000) and general donations (Rs. 29,857), totaling Rs. 3,97,875.
Held
The Tribunal noted that the assessee raised a legal ground regarding the denial of natural justice, as the appellate order was passed before a remand report was provided. Consequently, the Tribunal decided to remand the matter back to the CIT(A) for a fresh decision.
Key Issues
Whether the appellate order was passed in violation of principles of natural justice, and if corpus donations and general donations were correctly treated as income by the lower authorities.
Sections Cited
250 of the Income Tax Act, 1961, 143(3) of the Income-tax Act, 1961, 143(3A) of the Income-tax Act, 1961, 143(3B) of the Income-tax Act, 1961, 11(1)(d) of the Income-tax Act, 1961, 234A of the Income-tax Act, 1961, 234B of the Income-tax Act, 1961, 234C of the Income-tax Act, 1961, 12A of the Income-tax Act, 1961
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, JODHPUR BENCH, JODHPUR
PerBench: The instant appeal of the assessee was filed against the order of the National Faceless Appeal Centre (NFAC), Delhi [in short, 'Ld.CIT(A)] passed under section 250 of the Income Tax Act, 1961(in short, 'the Act') for A.Υ. 2019-20, date of order 31/03/2024. The impugned order emanated from the order of the National e-Assessment Centre, Delhi [in short, the "Ld. AO"] passed under section 143(3) read with sections 143(3A) & 143(3B) of the Income-tax Act, 1961, date of order 18/02/2021. Akhil Bhartiy Brahmkshtriy Dharamshala Trust The assessee has taken the following grounds of appeal:- "
The Id. CIT(A) has erred in sustaining the assessment order framed by the Id. AO which is bad in law and bad on facts. The order passed by Id. CIT(A) is against the principles of natural justice and before remand report was provided the appellate order was made.
The Id. CIT(A) has erred in considering the corpus donation received of Rs. 3,50,000/-as income of the assessee which was capital receipt u/s 11(1)(d) The addition so sustained bad in law.
The Id. CIT(A) has erred in disallowing application of income received out of general donations of Rs. 29,857/- received during the year. The addition so sustained bad in law. The interest charged u/s 234A, 234B and 234C is bad in law and bad on facts.
The appellant crave liberty to add, amend, alter, modify or delete any of the ground of appeal on or before its hearing before your honour." The Ld.AR argued and filed a paper book spanning pages 1 to 62 which is kept on record. The Ld.AR, in argument, placed that the assessee is a charitable trust and during the impugned assessment year assessee received corpus donation of Rs.3,50,000/- which added to the total income of the assessee, by the Ld.AO and confirmed by the Ld.CIT(A). Also the income from other than voluntary contribution of Rs.29,857/- was added. So, the total addition of Rs.3,97,875/- has been made, which is under dispute before the Bench. The assessee during this hearing placed that the assessee received this corpus donation which is enclosed at APB pages53 to 57and further, the said income of Rs.29,857/- was wrongly treated as income of the trust which is in nature of general donation.
The Ld.DR placed that during filing of return and during assessment, the assessee has not obtained any registration certificate under section 12A of the Act. So, he prayed for remanding the matter for further verification before the revnue authorities.
Considering the grounds of the assessee, we find that the assessee has taken a legal ground in the form of ground No.1 that natural justice was denied to the assessee as before the remand report was provided to the assessee, the appellate order was passed. Considering this we find that the matter should be remanded back to the file of the Ld.CIT(A) for decision afresh after considering the reply of the assessee on the remand report. The matter is according restored to the file of the Ld.CIT(A) for decision afresh.
In the result, the appeal of the assessee bearing ITA No. 244/Jodh/2024 is allowed for statistical purpose. Order pronounced in the open court on 21 th May of May 2025. (DR. MITHA LAL MEENA) ACCOUNTANT MEMBER Mumbai, दिनांक/Dated: Pavanan 29 /05/2025 Copy of the Order forwarded to: 1. अपीलार्थी/The Appellant, 2. प्रतिवादी / The Respondent. 3. आयकर आयुक्त CIT 4. विभागीयप्रतिनिधि, आय. अपी. अधि., जोधपुर/DR, ITAT, JODHPUR 5. गार्डफाइल/Guard file. //// BY ORDER, (Asstt.