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IN THE INCOME TAX APPELLATE TRIBUNAL KOLKATA ‘A’ BENCH, KOLKATA BEFORE SHRI RAJESH KUMAR, ACCOUNTANT MEMBERAND SHRI PRADIP KUMAR CHOUBEY, JUDICIAL MEMBER I.T.A. No.2659/KOL/2026 Assessment Year: (2022-23)

Eastern India Healthcare CIT(Exemption), Foundation, Vs. Kolkata

127, Mukundapur, E.M. Bypass, Kolkata – 700099, West Bengal [PAN: AAATE2379J]

(Appellant) .. (Respondent)

Appellant by : Shri S. K. Tulsiyan, Advocate and Ms.

Lata Goyal, CA Respondent by: Shri Raman Garg, CIT-DR Date of Hearing 29.09.2026 Date of Pronouncement 26.10.2026

O R D E R

PER RAJESH KUMAR, ACCOUNTANT MEMBER:

This appeal preferred by the assessee is against the order passed u/s

250 of the Income-tax Act, 1961 (In short, ‘the Act’) by learned Commissioner of Income Tax (Exemption), Kolkata (hereinafter referred to as the “ld.

CIT(E)”], dated17.03.2026for the Assessment Year (AY) 2022-23.

2. The appeal filed by the assessee is barred by 59 days. The assessee filed affidavit along with the condonation petition, explaining the delay in filing the appeal. The assessee submitted that explained the reasons to be for the bonafide and genuine reasons. Considering reasons to be reasonable, we are inclined to condone the delay in filing the appeal and admit the appeal for adjudication.

3. The facts of the case in brief are that the assessee filed its ITR for A.Y.2022-23 in Form ITR-7 on 20.10.2022 declaring total income at NIL. The case of assessee was selected for scrutiny under CASS by issuance of notice u/s 143(2) of the Act, dated 02.06.2022. The assessment was completed vide order dated 23.02.2024 passed u/s 143(3)/144B of the Act, assessing total income at Nil. During the course of assessment proceedings u/s 143(3) of the Act, the Ld.AO raised query regarding the large foreign donation received by the Trust assessee in compliance with the provisions of Foreign Contribution Regulatory Act, 2010 and the Expenditure incurred and application made vide notices issued u/s 142(1) of the Act dated 07.07.2023 and 27.12.2023 copies whereof are enclosed at page 108-112 and 139-141 of paper book respectively. In response, the assessee filed reply on 13.07.2023 and 30.12.2023 and copies replies are enclosed at page 113-138 and 142-149 of paper book. The assessee also vide Annexure -1 at page 118 of the paper book explained the nature of activities undertaken during the year. The assessee trust also explained the nature of donations received from DEG, Germany for the purpose of COVID-19 activities. Further the assessee also furnished Cost Calculation/Funding Ratio on account of COVID-19 related activities certified by Chartered Accountant as Annexure-3 and the same is enclosed at page 120-123 of the Paper book. Thereafter, the Ld. AO passed an assessment order u/s 143(3) of the Act on 23.02.2024 without any variation to the returned income of the assessee.

4. Thereafter, the ld.CIT(E) issued notice u/s 263 of the Act on 15.01.2026 alleging that the trust has entered into transactions with a related party in contravention of the provisions of section 13(3) of the Act. Further it was alleged that in view of section 13(1)(c)(ii), exemption u/s 11 and 12 is not available where the income or property of trust is applied directly or indirectly for the benefits of specified persons. Hence the ld.CIT(E) alleged that the AO allowed the claim of the assessee without conducting the requisite enquiries or verification that ought to have been made, resulting in an erroneous determination of income. The ld.CIT(E) alleged that the assessment order dated 23.02.2024 passed u/s 143(3) r.w.s. 144B of the Act is thus prima facie erroneous in so far it is prejudicial to the interests of the Revenue within meaning of section 263 of the Act. In response the assessee filed detailed reply on 06.02.2026. Thereafter, further notice was issued on 26.02.2026 calling for certain details and documents which were also submitted during the course of proceedings w/s 263 of the Act. Finally, the