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Income Tax Appellate Tribunal, DELHI BENCH “SMC” NEW DELHI
Before: SHRI CHALLA NAGENDRA PRASAD
आदेश /O R D E R This appeal is filed by the assessee against the order of ld.
Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC) dated 20.10.2021 for the AY 2018-19. The assessee has raised the
following grounds in its appeal: - 1. “That the order dated 20.10.2021 passed u/s 250 of the I.T. Act, 1961 by Ld. CIT(A) – NFAC is bad in law and not relevant to the intimation order appealed against dated 31.05.2019 passed u/s 143(1) of the I.T. Act, 1961 is wrong on facts and is liable to be dismissed. 2. That on the facts, circumstances and legal position of the case, Ld. CIT(A) – NFAC has grossly erred in the impugned order by not dealing at all with the grounds raised by the appellant. 3. That on the facts, circumstances and legal position of the case, the Ld.CIT(A) has erred in recording wrong facts, not relating to the appellant, in the impugned order.
I.T.A.No.2425/Del/2022
The Appellant craves leave to add, alter, amend or vary any of the above grounds either before or at the time of hearing as may be advised.” 2. At the outset, the Ld. Counsel for the assessee submits that the
Ld.CIT(A) has not dealt with the issue which was in appeal before him
and he has passed a totality irrelevant order and not dealing with the
grounds before him. Ld. Counsel submits that the CPC while processing
the return u/s 143(1) of the Act did not allow exemption u/s 10(25)(ii) of
the Act for the AY 2018-19 though the assessing is entitled for such
exemption. The Ld. Counsel further submits that the assessee society is
registered u/s 12A and its income is exempt u/s 10(25)(ii) of the Act.
The Ld. Counsel submits that the Assessing Officer in fact allowed such
exemption for the assessment years 2014-15 and 2015-16 while
completing the assessments u/s 143(3) of the Act dated 10.06.2016 and
08.11.2017 respectively. The Ld. Counsel also submits that for the
assessment years 2017-18, 2019-20 and 2020-21 even the CPC while
processing the return u/s 143(1) of the Act allowed the exemption u/s
10(25)(ii) of the Act to the assessee. However, only for the AY 2018-19
the CPC in the return processed u/s 143(1) did not allow exemption u/s
10(25)(ii) and the reason is not known. The Ld. CIT(Appeals) did not deal
with the ground raised by the assessee before him in not allowing
exemption u/s 10(25)(ii) of the Act but decided an issue which is totally
relevant and not arising out of the intimation passed nor the grounds
raised by the assessee before him. 2
I.T.A.No.2425/Del/2022
On hearing both the parties and perusing the orders of the
authorities below, we find that the Ld. CIT(Appeals) in his order dated
20.10.2021 extracted the grounds said to have been raised by the
assessee. He has also extracted the submissions said to have been
submitted by the assessee which are relevant for the dispute regarding
addition made on account of salary. However, Form 35 and the grounds
of appeal filed by the assessee trust before the CIT-National Faceless
(Appeal) Centre was against non granting of exemption u/s 10(25)(ii) of
the Act to the assessee. None of the grounds raised by the assessee were
decided by the Ld. CIT(A) presumably inadvertently. Therefore, taking
the totality of facts and circumstances into consideration in the interest
of justice, this appeal is restored to the file of Ld. CIT(A) for deciding the
grounds raised by the assessee in the appeal filed before the Ld. CIT(A)
afresh and in accordance with law. The assessee be given adequate
opportunity of being heard.
In the result, appeal of the assessee is allowed for statistical
purpose.
Order pronounced in the open court on 23/01/2023 Sd/- (C.N. PRASAD) JUDICIAL MEMBER
Dated: 23.01.2023 *Kavita Arora, Sr. P.S. Copy of order sent to- Assessee/AO/Pr. CIT/ CIT (A)/ ITAT (DR)/Guard file of ITAT. By order 3
I.T.A.No.2425/Del/2022
Assistant Registrar, ITAT: Delhi Benches-Delhi