MAA SARASWATI CHARITABLE TRUST,SRI DUNGARGARH vs. INCOME TAX OFFICER, WARD- EXEMPTION, JODHPUR

Though, the stay application has been listed for hearing, however, looking into the nature of dispute, with the consent of the parties, in appeal itself was taken up for early hearing and disposed of.

We have heard learned counsel for the assessee and learned DR. The assessee is stated to be a Charitable Trust engaged in charitable activities. Based on information available on record, the Assessing Officer reopened the assessment under section 147 of the Income Tax Act, 1961 (in short, ‘the Act’). As alleged by the Assessing Officer, in course of assessment proceedings, the assessee neither appeared nor complied with the statutory notices. Accordingly, Assessing Officer was compelled to complete the assessment to the best of his judgment by invoking the provisions of Section 144 of the Act. While doing so, he added back an amount of Rs.17,50,759/-.

Against the assessment order so passed, assessee preferred an appeal before learned first appellate authority. However, the appeal was filed with a delay of 233 days. While seeking condonation of delay, the assessee had submitted before learned first appellate authority, due to unavoidable circumstances arising out of death of a key person of the Trust, who looked after all the activities, timely steps could not be taken for filing the appeal. However, the first appellate authority did not find merit in the submissions of the assessee.

After taking note of the rival contentions and perusing the materials on record, we are of the view that explanation furnished by the assessee for delay requires favourable consideration considering the fact that delay is not inordinate and the cause shown cannot be dismissed as entirely unbelievable. In view of aforesaid, we are inclined to set aside the impugned order of learned first appellate authority. However, considering the fact that assessee remained unrepresented before the Assessing Officer and learned first appellate authority has dismissed the appeal in limine, we are inclined to restore the issues arising in the appeal to the Assessing Officer for de novo adjudication, after providing due and reasonable opportunity of being heard to the assessee. The assessee is directed to cooperate with the Assessing Officer in finalizing the proceedings.

In view of our decision in the appeal in foregoing paragraphs, the stay application has become infructuous.

In the result, the appeal is allowed for statistical purposes and the stay application is dismissed.