KJSL FOUNDATION,DELHI vs. INCOME TAX OFFICER, DELHI

Brief facts of the case are that the assessee filed its return of income on 30.11.2023. The case was processed u/s. 143(1) and an addition of Rs. 10,00,000/- was made under section 115BBI of the Act, resulting in a demand of Rs. 3,93,280/-. Aggrieved, assessee appealed before the Ld. Addl/JCIT(A), who vide order dated 14.7.202025 has upheld the addition. Against the aforesaid, assessee is in appeal before the Tribunal.

After hearing both the sides and perusing the records, I find that Ld. Addl/JCIT(A) has observed that the assessee was provided with an opportunity to explain the nature of the addition and substantiate the claim of exemption under section 11(1)(d). He further, noted that the assessee failed to appear or furnish any evidence despite adequate opportunity. Hence, Ld. Addl/JCIT(A) in the absence of any rebuttal or supporting documentation, the claim that the donations were corpus donations cannot be accepted. Therefore, in the absence of any response or supporting evidence from the assessee, the addition of Rs. 10 lacs made under section 115BBI was upheld. However, it was the contention of the AR that AO erred in law and on facts by invoking the provisions of Section 115BBI of the Act and taxing the corpus donations received by the appellant at the maximum marginal rate, disregarding that such donations are exempt under section 11(1)9d) of the Act when received with specific directions and CIT(A) also has erred in confirming the same.

In view of the aforesaid discussions, I note that in appeal, Ld. CIT(A) has not decided the matter on merit and only noted that there is no explanation from the assessee, he upheld the action of the AO by passing a non-speaking order. Therefore, in view of the factual matrix, as aforesaid and in the interest of justice, I remit back the issues in dispute to the file of the Addl/JCIT(A) to decide the same afresh, in accordance with law, after giving adequate opportunity of being heard to the assessee. Assessee is also directed to furnish all the requisite evidences during the proceedings to canvass its case properly and fully cooperate with the Ld. Addl/JCIT(A).