INDIAN MEDICAL ASSOCIATION,JALGAON vs. CIT APPEALS, NFAC

Although a number of grounds have been raised by the assessee, however, these all relate to the exparte order of the ld. CIT(A)/ NFAC in dismissing the appeal for non-appearance.

There is delay of 35 days in filing of the appeal for which the assessee has filed A condonation application along with an Affidavit explaining the reasons for such delay. After considering the contents of the condonation application filed

Facts of the case, in brief, are that the assessee is an Educational and Charitable trust, i.e. Association of Doctors and registered as per the provisions of the Maharashtra Public Trusts Act, 1950 on 13.08.1954. It has carried out various activities for Members, Doctors, Children and also for general public. It filed its return of income on 18.12.2023 declaring total income at Nil. The case of the assessee was selected for Complete Scrutiny under CASS as it fell in the category of cases where registration/approval under various sections of the Act such as Section 12A, 12AB, 35(1)(ii)(iia)/(iii), 10 (23C) etc. have not been granted or have been cancelled by the Competent Authority yet the assessee has been found to be claiming tax exemptions in the return. Accordingly, statutory notices u/s.143(2) and 142(1) of the Act were issued and served on the assessee to which the assessee filed the requisite details. The Assessing Officer completed the assessment u/s.143(3) r.w.s.144B of the Act determining the total income of the assessee at Rs.25,01,671/- without allowing the benefit of section 11 of the Act.

Since the assessee did not respond to the statutory notices issued by the office of ld.CIT(A)/NFAC, the ld.CIT(A)/NFAC dismissed the appeal for non- prosecution.

Aggrieved with such order of the ld. CIT(A)/NFAC the assessee is in appeal before the Tribunal by raising the following grounds :

The Ld. counsel for the assessee at the outset submitted that since the concerned Consultant was suffering from cancer and was at an advanced stage of cancer he was not in a position to submit the requisite details before the ld.CIT(A)/NFAC for which all these unfortunate events happened. She submitted that only two opportunities were granted to the assessee by the ld.CIT(A)/NFAC, i.e. on 15.12.2025 and 23.12.2025 to submit the requisite details. She submitted that in the interest of justice the assessee should be given an opportunity to substantiate its case by filing the requisite details.

The ld. Departmental Representative on the other hand heavily relied on the order of the ld.CIT(A)/NFAC and submitted that two opportunities were granted by the ld.CIT(A)/NFAC to submit the requisite details. However, the assessee did not make any compliance and therefore the ld.CIT(A)/NFAC was justified in sustaining the addition made by the Assessing Officer.

We have heard the rival arguments made by both the sides and perused the record. It is an admitted fact that due to non-compliance of the assessee to the statutory notices issued by the ld.CIT(A)/NFAC, he passed the exparte order upholding the action of the Assessing Officer determining the taxable income at Rs.25,01,671/- by withdrawing the claim of exemption u/s.11 of the Act. It is the submission of ld. Counsel for the assessee that given an opportunity the assessee is in a position to substantiate its case by filing the requisite details. Considering the totality of the facts of the case and in the interest of justice, we deem it proper to restore the issue to the file of the Ld. CIT(A) / NFAC with a direction to grant one final opportunity to the assessee to substantiate its case by filing the requisite details and decide the issue as per fact and law. The assessee is also hereby directed to submit the details before the ld.CIT(A)/NFAC on the appointed day without seeking any adjournment under any pretext failing which the ld.CIT(A)/NFAC is at liberty to pass appropriate order as per law. We hold and direct accordingly. The grounds of appeal raised by the assessee are accordingly allowed for statistical purposes.

In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced in the open Court on 21st July, 2026.