ADIVASI DEOMOGRA EDUCATION SOCIETY,AT NATWAD vs. DEPUTY COMMISSIONER OF INCOME TAX, AURANGABAD

Briefly stated, the facts of the case are that the assessee is a trust registered under Bombay Public Trust Act, 1950 with the Asst. Charity Commissioner of Dhule. It is also registered u/s 80G of the Act vide No. NSK/CIT-1/80-G(5), dated 24-02-2010. The assessee-trust is engaged in educational and social welfare activities. For AY 2017-18, the assessee filed its return of income on 29-10-2017 declaring income at Rs. NIL. The case of the assessee was selected for scrutiny under CASS. Accordingly, the Ld. Assessing Officer (“AO”) issued notice(s) u/s 143(2) and 142(1) of the Act along with questionnaire calling for information/details regarding the donations received by the assessee. The Ld.AO noted that during the

Aggrieved, the assessee filed appeal before the Ld.CIT(A)/NFAC. Despite service of notice(s) of hearing during the appellate proceedings, there was non-compliance which resulted in ex-parte decision by the Ld.CIT(A)/NFAC, dismissing the appeal of the assessee and endorsing the findings of the Ld.AO.

Aggrieved, the assessee is in appeal before the Tribunal raising the following grounds of appeal: “1. That the learned Commissioner of Income Tax (Appeals) erred in law and on facts in passing the appellate order without providing sufficient and reasonable opportunity to the appellant to submit relevant documents, evidence, and explanations in support of the case. 2. The learned CIT(A) erred in law and on facts in not considering the evidences and explanations already submitted during assessment proceedings regarding the genuineness and identity of donors, and in drawing adverse inference merely on incomplete addresses, without conducting any independent verification.

The Ld.AR submitted that the assessee could not submit the complete details of the donors before the lower authorities due to the voluminous data. There are more than 12,250 donors from whom the assessee has received donations during the year under consideration. Before the Ld.AO, list of all these donors was duly furnished but admittedly, the same was incomplete and not having the details such as Adhar/PAN/addresses in some of the cases. The Ld.AR submitted that the assessee has now compiled the necessary details/documents and has also updated the list of donors with the relevant details having Adhar/PAN/addresses for 7,878 donors and out of the remaining donors, since majority of the donors have paid less than Rs. 10,000/-, there is no requirement of providing the details of Adhar/PAN/addresses in such cases. The Ld.AR therefore, prayed that in the interest of justice, the assessee may be granted with one more opportunity to substantiate its claim before the Ld.CIT(A)/NFAC by filing these details/documents.

The Ld.DR relied on the order of the Ld.CIT(A)/NFAC and submitted that since the assessee failed to make any submissions in spite of several

We have heard the learned representatives of the parties and perused the material available on record. Admittedly, there was non- compliance to the notice(s) issued by the Ld.CIT(A)/NFAC which constrained him to pass ex-parte impugned order. We observe that the Ld.CIT(A)/NFAC, in the instant case, has passed the impugned order in concurrence with the findings of the Ld.AO without himself going into the merits of the case due to lack of any proof filed by the assessee in support of its claim. Before us the Ld.AR has submitted that the list of all the donors was duly furnished before the Ld.AO, however, the same was incomplete and not having the details such as Adhar/PAN/addresses in some of the cases. The Ld.AR submitted that the assessee has now compiled the necessary details/documents and has also updated the list of donors with the relevant details having Adhar/PAN/addresses for 7,878 donors and out of the remaining donors, since majority of the donors have paid less than Rs. 10,000/-, there is no requirement of providing the details of Adhar/PAN/addresses in such cases. The assessee is therefore now in a position to substantiate its claim by filing the required details/documents.

On the facts and in the circumstances of the case enumerated above, we deem it fit in the interest of justice, to set aside the order of the Ld.CIT(A)/NFAC and remand the matter to the file of the Ld.AO for adjudicating the issue afresh after verification of the details/documents and if the contention of the assessee is found to be correct, allow the claim of the assessee and amend the order accordingly as per law, after affording due opportunity of hearing to the assessee. We hold and direct

In the result, the appeal filed by the assessee is treated as allowed for statistical purposes.