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INCOME TAX APPELLATE TRIBUNAL, DELHI BENCHES, NEW DELHI

BENCH: B

BEFORE ANUBHAV SHARMA, JUDICIAL MEMBER AND MANISH AGARWAL, ACCOUNTANT MEMBER

ITA 6718/DEL/2025 निर्धारण वर्ा/Assessment Year: 2018-19)

SOCIETY FOR HUMAN ITO WARD 2(2) EXEMPTIONS, TRANSFORMATION AND DELHI

RESEARCH ITO WARD 2(2) EXEMPTIONS, 22 VAISHALI , PITAMPURA, DELHI

DELHI-34 C/O RAVI GUPTA B-41, Vs. NEW DELHI-110002, DELHI LGF , KAILASH COLONY, NEW DELHI-110048, NEW DELHI-

110048, DELHI अपीलध्ቕी Appellant ्ቚ्ቓ्ቕी Respondent

Permanent Account Number of Assessee: AABTS9928C

Shri Harish Chaudhary, CA, Shri अपीलध्ቕी ्ቛारा/Appellant represented by: Mohit Chaudhary, CA and Shri

Mitika Chaudhary, Adv ्ቚ्ቓ्ቕी ्ቛारा/Respondent represented by: Shri Rajesh Chandra,CIT(DR)

सुनवाई की तारीख / Date of conclusion of hearing: 21.05.2026 घोषणा की तारीख / Date of pronouncement: 07.08.2026

आदेश / ORDER PER ANUBHAV SHARMA, JUDICIAL MEMBER

This appeal preferred by the assessee against the order dated 26.09.2025

of Ld. National Faceless Appeal Centre (NFAC) Delhi, (hereinafter referred to as the First Appellate Authority or ‘the ld. FAA’ for short) in DIN & Order No: ITBA/NFAC/S/250/2025-26/1081201889(1) arising out of the assessment order dated

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ITA 6718/DEL/2025 SOCIETY FOR HUMAN TRANSFORMATION AND RESEARCH

02.02.2021 u/s 143(3) r.w.s 144(3A) and 143(3B) the Income Tax Act, 1961 (hereinafter

referred to as ‘the Act’) passed by National e-assessment Centre, for AY: 2018-19.

2. Heard and perused the records. The assessee’s return was picked up for scrutiny assessment and based upon queries raised AO found that in Form 10B transactions with persons specified u/s 13(3) of the Act are mentioned which includes following

payments:

Sr. No. Details Amount (in Rs.) Rate of interest Nature of security charged if any

1. Divine Realbuild Pvt. Ltd. 37,36,900 0 NIL 2. Divine International 20,65,00,515 8 NIL 3. Divine Education Trust 4,84,26,233 0 NIL 4. Dr. B.P.Singh Public Charitable 7,04,804 0 NIL

Tust

3. The assesse was asked to explain the same. Further AO found from the books of accounts that the assesse has raised huge secured loan @ interest rate 12% to 13% and interest expenses (net) Rs.80,34,371/- has been charged and above amounts of loans and advances to the persons specified u/s 13(3) of the Act were given without any interest and whereas it was claimed that interest of Rs.1,59,31,000/- @ 8% had been received from M/s Divine International and the same has been reduced from the interest paid on loan taken and net interest of R.80,34,371/- has been claimed as expenses in the income & expenditure account. The AO observed that interest rate is not justified and the 12.50% rate as per SBI lending rate was reasonable rate to be charged by the assesse from the related parties as on the same rate assesse is paying interest of loan taken by them. Accordingly, addition u/s 40A(2)(a) of the Act was made and as specified persons of the trust were given undue advantage benefit of exemptions u/s 11 & 12 of the Act

r.w.s 164(2) of the Act were denied.

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ITA 6718/DEL/2025 SOCIETY FOR HUMAN TRANSFORMATION AND RESEARCH

3.1 Then, ld. AO examined the donations of Rs.80,91,000/- and claimed that the same not allowable as expenses u/s 37 of the Act as there is no certificate of 80G of the

parties to whom such donations has been paid by the assesse.

3.2 Ld. CIT(A) has sustained the additions with the following relevant findings in

para 10.2 to 11.3:

“10.2 During the course of appellate proceedings, it is submitted that addition of the amount of interest not charged or less charges Rs. 1,64,90,055/- u/s. 40A(2)(a) is also an apparent mistake as the said section is applicable while computing income from business or profession which is not the case of assessee as computation sheet enclosed with the assessment order by

ld. AA is showing income from business or profession as Zero.

10.3 I have gone through the assessment order and the submissions of the appellant. The AO observed that the assessee society has giv