KAYANAT WELFARE ASSOCIATION,PATNA vs. ITO, EXEMPTION WARD-1,PATNA, PATNA

The assessee is a Society, registered under the Societies Registration Act, 1980 and engaged in the charitable activities. The appellate-Society filed its return of income for the assessment year 2016-17 declaring total income of Rs.6,050/-. The case was selected for scrutiny. Accordingly, notice dated 19.07.2017 under section 143(2) of the Act was issued to the assessee. The said notice was not served upon the assessee. However, on 12.04.2018, notice under section 142(1) was issued to the assessee, but it was not served on the assessee. Thereafter a show-cause notice was issued to the assessee, but there was no response from the assessee. Thereafter ld. Assessing Officer concluded the assessment under section 144 of the Act by disallowing the expenditure of Rs.38,51,539/- and assessed income at Rs.38,57,585/-.

On being aggrieved, the assessee preferred an appeal before the ld. CIT(Appeals). During the appellate proceedings, ld. CIT(Appeals) also issued several notices but there was no response from the assessee. Thereafter ld. CIT(Appeals) has considered the material available on record and dismissed the appeal filed by the assessee since the assessee has not filed any evidence before him to substantiate its case.

On being aggrieved, the assessee preferred an appeal before the ITAT.

(A.Y. 2016-2017) Kayanat Welfare Association 5. The main grievance of the assessee is that the appellant was not given any opportunity to put forth its contention and place evidences before the ld. CIT(Appeals). Before the Tribunal, none appeared on behalf of the assessee. However, considering the facts and circumstances of the case and perusing the material placed on record, we are of the considered view that both the revenue authorities have not given sufficient opportunity to the assessee to substantiate its case.

The ld. Departmental Representative submitted that many number of opportunities have given to the assessee but there was no response from the assessee. Therefore, Revenue Authorities have no option except passing of the order based on the material available on record. He, therefore, pleaded to uphold the order passed by the ld. CIT(Appeals).

We have heard the ld. D.R. and perused the material available on record. Considering the facts and circumstances of the case, in order to meet the principle of natural justice, we are inclined to set aside the order passed by the ld. CIT(Appeals) and remit the matter back to the file of ld. CIT(Appeals) with a direction to provide one more opportunity of being heard to the assessee. At the same breath, we also hereby caution the assessee to promptly co-operate with the proceedings before the Ld. CIT(Appeals) failing which the Ld. CIT(Appeals) shall be at liberty to pass appropriate order in accordance with law and merits based on the materials available on the record. Thus, the grounds raised by the assessee are allowed for statistical purposes.

In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced in the open Court on 12/12/2024.