2025 (7) TMI 22 - AT - Income Tax

Unexplained donations - AO s favourable remand report confirming that the donations were received from specific donors with instructions to form part of the society s corpus - HELD THAT - CIT(A) s lower appellate discussion makes it clear that he has gone by the Assessing Officer s favourable remand report only that these donation(s) had come from the concerned corresponding donors with specific instructions that it shall form part of the societies corpus only. These Assessing Officer s remand report has been duly extracted in the lower appellate discussion. This being the clinching case we hereby quote CIT Vs. D.M. Prunesh 2020 (9) TMI 731 - KARNATAKA HIGH COURT and Smt. B. Jayalakshmi 2018 (8) TMI 208 - MADRAS HIGH COURT that the Revenue could hardly be treated even an aggrieved party in the Assessing Officer s above favourable remand report. This instant appeal fails therefore. Revenue s appeal is dismissed.

Summary

The Appellate Tribunal (ITAT Delhi) dismissed the Revenue's appeal for assessment year 2016-17 against the CIT(A)'s order dated 13.08.2024 under section 143(3) of the Income-tax Act, 1961. The Revenue sought to revive the Assessing Officer's action treating donations of Rs. 11,12,26,500/- as unexplained. However, the CIT(A) relied on the Assessing Officer's favourable remand report confirming that the donations were received from specific donors with instructions to form part of the society's corpus. The Tribunal emphasized that, per precedents CIT Vs. D.M. Prunesh (2020) 426 ITR 169 (Kar)(HC) and Smt. B. Jayalakshmi vs. ACIT (2018) 96 taxmann.com 486 (Mad.), the Revenue could not be considered an aggrieved party when the Assessing Officer's remand report was favourable. Consequently, the appeal was dismissed.