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Income Tax Appellate Tribunal, HYDERABAD “SMC” BENCH, HYDERABAD
Before: SHRI V. DURGA RAO, HON’BLE
Date of hearing : 03/12/2019. Date of pronouncement : 22/01/2020. O R D E R This appeal by the assessee is directed against the order of Commissioner of Income Tax (Appeals)-9, Hyderabad, dated 22/02/2019 for the Assessment Year 2016-17.
Facts of the case, in brief, are that assessee is registered u/sec. 12A of the Income Tax Act, 1961 (hereinafter referred to as 'Act'). The CPC, Bangalore computed the income of the assessee at Rs. 10,68,708/- and levied tax of Rs. 1,85,860/- without giving opportunity of hearing. The assessee-society filed its return of income declaring income of Rs. 8,43,834/-. The CPC, Bangalore has disallowed an amount of Rs. 1,94,895/- out of depreciation of Rs. 2,27,901/- claimed on the assets used by the trust. The sale proceeds on electrical fittings of Rs. 1,42,000/- was considered as income in place of profit of Rs. 47,813/- after adjusting the written down value of Rs. 94,187/-. The CPC, Bangalore also considered the sale proceeds of Rs. 5.00 lakhs on the sale of generator as taxable income in place of profit declared of Rs. 2,29,601/- after setting off of written value of Rs. 2,70,339/- in respect of generator. The CPC, Bangalore has disallowed the amount of Rs.50,884/- accumulated u/sec. 11(1)(a) without assigning any reasons.
On appeal, ld. CIT(A) confirmed the order of the Assessing Officer (CPC).
Before me, ld. counsel for the assessee has submitted that the Assessing Officer (CPC) without giving opportunity of hearing, adjustments were made which are not correct according to law. I find that when the assessee is enjoying 12A registration when the Assessing Officer (CPC) wants to make adjustment, it is necessary for the Assessing Officer (CPC) to give opportunity to the assessee to substantiate its case. In this case, the Assessing Officer (CPC) has not given opportunity of hearing to the assessee, in my opinion opportunity should be given to substantiate its case.
Therefore, I set aside the order passed by the ld. CIT(A) and direct the Assessing Officer (CPC) to pass assessment order denovo in accordance with law after providing reasonable opportunity of hearing to the assessee. Thus, this appeal filed by the assessee is allowed for statistical purpose. 5. In the result, appeal filed by the assessee is allowed for statistical purpose. Order Pronounced on this 22nd day of Jan., 2020.