Powerloom Development & Export Promotion Council Vs ITO (Exemption) (ITAT Mumbai)
Assessee, a Sec.25 non-profit organisation promoting powerloom industry, claimed exemption u/s 11 which was denied by AO/CIT(A) by applying principle of mutuality and taxing interest income, office rent, prior period income & miscellaneous receipts as non-mutual income. ITAT observed that lower authorities examined issue only from mutuality angle without adjudicating assessee’s alternative claim that such receipts were income from property held under trust eligible for exemption u/s 11.
Tribunal noted that assessee had made detailed submissions and relied on judicial precedents which were not considered by AO or CIT(A). Holding that proper verification of charitable nature and eligibility under s.11 was necessary, ITAT set aside orders and restored matter to AO for fresh adjudication after examining all documents and granting opportunity of hearing. Appeals for A.Y. 2014-15 & 2015-16 allowed for statistical purposes.
FULL TEXT OF THE ORDER OF ITAT MUMBAI
The assessee has filed the present appeals against the separate impugned orders of even date 30.10.2025, passed under section 250 of the Income Tax Act, 1961 (“the Act”) by the learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi [“learned CIT(A)”], for the assessment years 2014-15 and 2015-16.
