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Judgment
PER ANUBHAV SHARMA, JM:
These are appeals preferred by the assessee against the common order of the Ld. National Faceless Appeal Centre (NFAC) (hereinafter referred to as the First Appellate Authority or ‘the ld. FAA’ for short) in appeals filed before him against the intimation orders of the ld. Assessing Officer (hereinafter referred to as the Ld. AO, for short) passed u/s 143(1)of the Income-tax Act, 1961 (hereafter referred to as ‘the Act’). Further details of the orders of the lower authorities are as under:-
| ITA No. & AY | Ld. FAA who passed the appellate order | Appeal No. & Date of order of the Ld. FAA | AO who passed the assessment order & Date of order |
| 587/D/23 2018-19 | NFAC, Delhi | DIN & Order No: ITBA/NFAC/S/250/2022-23/1048603551(1) Dated 10.01.2023 | DCIT, CPC Dated 26.09.2019 |
| 588/D/23 2019-20 | NFAC, Delhi | DIN & Order No: ITBA/NFAC/S/250/2022-23/1048603303(1) Dated 10.01.2023 | DCIT, CPC Dated 18.05.2020 |
The two cases were heard together and disposed of together for convenience. The facts where relevant of AY 2018-19 shall be reproduced. At the time of hearing Ld. Counsel has pointed out that in the case of assessee which is a charitable trust registered under the Trust Act. The return was filed u/s 139(1) declaring total income of Nil and the same was processed u/s 143(1) of the Act denying deduction of expense/application of income of Rs.70,59,820/- and the taxable income was determined at Rs.70,10,000/-,
Ld. Counsel has submitted that assessee is not claiming any exemption and CPC has erroneously failed to give benefit of the assessee of the expenses and all the donations were considered as income.
Ld. DR defended the issue, however, as the assessee is not claiming any exempt income, we are of the considered view the matter deserves to be restored to the file of Assessing Officer to give assessee an opportunity of explaining the expenses and income on gross basis cannot be made basis for taxation.
Accordingly, we allow the appeals of the assessee for statistical purposes and restore the appeals to the files of assessing officer to give an opportunity to the assessee to justify expenses and pass the orders afresh.