ANDHRA EVANGELICAL LUTHERAN CHURCH,GUNTUR vs. ACIT, EXEMPTION CIRCLE, VIJAYAWADA

PDF · subscribers
ITA 715/VIZ/2025Status: DisposedITAT Visakhapatnam08 May 2026AY 2016-178 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal held that the CIT(A) erred in dismissing the appeal ex-parte because notices for hearings were sent to an incorrect email address. The matter was set aside to the CIT(A) for re-adjudication after proper notice.

What were the facts?

The Assessing Officer initiated reassessment proceedings under section 147 for AY 2016-17 due to unexplained deposits and interest income. The assessee failed to provide explanations, leading to additions. The CIT(A) dismissed the appeal ex-parte as the assessee did not participate in hearings.

What were the issues?

Whether the CIT(A) was justified in deciding the appeal ex-parte without ensuring proper service of notice to the assessee. Whether the reassessment proceedings and additions were valid.

Which sections of the Income-tax Act were involved?

Section 147,Section 144,Section 271(1)(c),Section 69A,Section 148,Section 142(1),Section 194A

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, Visakhapatnam Bench, Visakhapatnam

Before: Shri Ravish Sood & Shri Omkareshwar Chidara

आयकर अपीलीय अिधकरण, िवशाखापटणम पीठ IN THE INCOME TAX APPELLATE TRIBUNAL Visakhapatnam Bench, Visakhapatnam Before Shri Ravish Sood, Judicial Member and Shri Omkareshwar Chidara, Accountant Member आ.अपी.सं /ITA No.715 & 716/Viz/2025 (िनधा�रण वष�/Assessment Year:2016-17) Andhra Evangelical Lutheran Vs. ACIT, Church, Exemption Circle, Guntur. Vijayawada. PAN: AAATA3115G (Appellant) (Respondent) िनधा�रती �ारा/Assessee by: Shri GVN Hari, Advocate (Hybrid) राज� व �ारा/Revenue by: Shri Shahnawaz Ul Rahman, CIT-DR सुनवाई की तारीख/Date of 06/05/2026 Hearing: घोषणा की तारीख/Date of 08/05/2026 Pronouncement: आदेश / ORDER PER. BENCH: The present appeals filed by the assessee trust are directed against the respective orders passed by the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi, dated 13/10/2025 and 06/11/2025, which in turn arises from the order passed by the Assessing Officer (for short, “AO”) under section 147 r.w.s 144 of the Income Tax Act, 1961 (for short, “the Act”), dated 26/03/2022 and

2 ITA No.715 & 716/Viz/2025 Andhra Evangelical Lutheran Church vs. ACIT

under section 271(1)(c) of the Act, dated 27/09/2022 for the Assessment Year (AY) 2016-17. As the issues involved in the captioned appeals are interlinked and interwoven, the same are being taken up and disposed of vide a consolidated order. We shall first take up the appeal filed by the assessee in ITA No. 715/Viz/2025, wherein the impugned order has been assailed on the following grounds of appeal:

“1. The order of learned Commissioner of Income Tax (Appeals) is contrary to the facts and also the law applicable to the facts of the case. 2. The learned Commissioner of Income Tax (Appeals) is not justified in deciding the appeal ex-parte. 3. Without prejudice to the above, the learned Commissioner of Income Tax (Appeals) ought to have quashed the notice issued u/s 148 of the Act as invalid and consequently the learned Commissioner of Income Tax (Appeals) ought to have quashed the reassessment proceedings as void ab initio. 4. Without prejudice to Ground no.2 and 3, the learned Commissioner of Income Tax (Appeals) is not justified in sustaining the following additions made by the assessing officer: i) Addition of Rs.11,33,40,351 u/s 69A of the Act towards unexplained deposits in bank accounts of appellant. ii) Addition of Rs.44,86,128 towards interest on fixed deposits. 5. Any other ground that may be urged at the time of appeal hearing.” 2. Succinctly stated, the AO based on the information that there was material available on record which revealed that the assessee during the subject year had income from various streams, viz., (i) cash deposits in savings bank account: Rs.5,19,60,409/-; (ii) cash deposits with a banking company: Rs.2,57,12,668/-; (iii) time deposits: Rs.3,56,67,274/- ; and (iv) interest income (on which tax deducted at source under section

3 ITA No.715 & 716/Viz/2025 Andhra Evangelical Lutheran Church vs. ACIT

194A of the Act): Rs.44,86,128/-, but had not filed any valid return of income, initiated proceedings under section 148 of the Act. Notice under section 148 of the Act, dated 31/03/2021 was thereafter served upon the assessee.

3.

During the course of the assessment proceedings, the AO issued notice under section 142(1) of the Act to the assessee calling upon him to put forth an explanation regarding the sources of the aforesaid cash deposits, time deposits and interest income earned during the subject year. However, as the assessee failed to come forth with any explanation, the AO made an addition of the subject deposits of Rs.11.33 crores (approx.) under section 69A of the Act. Also, the AO made an addition of the interest income of Rs.44.86 lakhs (approx.) in the hands of the assessee trust. Accordingly, the AO vide his order passed under section 147 r.w.s. 144 r.w.s 144B of the Act, dated 26/03/2022 determined the income of the assessee at Rs.11,78,26,479/-.

4.

Aggrieved, the assessee carried the matter in appeal before the CIT(A). As the assessee despite having been put to notice about the hearing of the appeal had failed to participate in the said proceedings, the CIT(A) finding no infirmity in the view taken by the AO upheld the additions made by him and dismissed the appeal.

4 ITA No.715 & 716/Viz/2025 Andhra Evangelical Lutheran Church vs. ACIT

5.

The assessee aggrieved with the order of the CIT(A) has carried the matter in appeal before us.

6.

We have heard the Learned Authorized Representatives of both parties, perused the orders of the lower authorities and the material available on record.

7.

Shri GVN Hari, Advocate, Learned Authorized Representative (for short, “Ld. AR”) for the assessee trust, at the threshold of hearing of the appeal, submitted that as the assessee had remained divested of an opportunity to participate in the proceedings before the CIT(A) and suffered an ex-parte order for no fault on its part, therefore, the order so passed by the first appellate authority cannot be sustained and is liable to be set aside. Elaborating on his contention, the Ld. AR submitted that on all the three occasions when the hearing of the appeal was fixed before the CIT(A), i.e., 17/09/2024, 29/05/2025 and 12/08/2025, the respective notices intimating the fixation of the appeal were not forwarded at the email address that was provided by the assessee appellant in Form-35, i.e., “fcakamalakar@gmail.com” but were dropped in a stray email address, i.e., “8341804524d@gmail.com”. The Ld. AR to buttress his contention had drawn our attention to the screen shots of the e-filing portal, Page-95, Page-100 and Page-105 of APB. Carrying his contention further, the Ld. AR submitted that as the assessee had

5 ITA No.715 & 716/Viz/2025 Andhra Evangelical Lutheran Church vs. ACIT

suffered the dismissal of his appeal without being afforded of any opportunity to participate in the proceedings and prosecute the matter, the order of the CIT(A) cannot be sustained.

8.

Per contra, Shri Shahnawaz Ul Rahman, Learned CIT-DR, relied upon the orders of the lower authorities.

9.

We have given thoughtful consideration to the contentions advanced by the Learned Authorized Representatives of both parties and perused the record.

10.

Admittedly, it is a matter fact borne from the record that the assessee had in Form-35 provided email address, i.e., “fcakamalakar@gmail.com” for forwarding notices/communication by the CIT(A)’s office. However, we find that on all the three occasions when the hearing of the appeal was fixed, i.e., 17/09/2024, 29/05/2025 and 12/08/2025, the respective notices were not forwarded/dropped to the aforesaid email address but were forwarded to an email address i.e., “8341804524d@gmail.com”. In our view, as the assessee had not been validly put to notice about the fixation of the appeal on either of the aforesaid occasions, there is substance in the Ld. AR’s contention that the CIT(A) had wrongly disposed of the appeal vide an ex-parte order. We are of firm conviction that the dismissal of the assessee’s appeal

6 ITA No.715 & 716/Viz/2025 Andhra Evangelical Lutheran Church vs. ACIT

without validly putting him to notice about the fixation of the same on either of the three occasions had, thus, divested him from participating in the proceedings, which cannot be justified much the less approved on our part.

11.

In the backdrop of our aforesaid deliberations, we hereby set aside the matter to the file of the CIT(A) with a direction to re-adjudicate the appeal after validly putting the assessee appellant to notice about the fixation of the same.

12.

In the result, appeal filed by the assessee is allowed for statistical purposes in terms of our aforesaid observations.

ITA No.716/Viz/2025 AY: 2016-17

13.

We shall now take up the appeal filed by the assessee against the order passed by the CIT(A), National Faceless Appeal Centre, Delhi, dated 06/11/2025, which in turn arises from the order passed by the AO under section 271(1)(c) of the Act, dated 27/09/2022.

14.

As we have set aside the quantum appeal of the assessee in ITA No.715/Viz/2025, therefore, on the same terms, the present appeal of the assessee wherein he has assailed the penalty imposed by the AO under section 271(1)(c) of the Act is also set aside to the file of the CIT(A)

7 ITA No.715 & 716/Viz/2025 Andhra Evangelical Lutheran Church vs. ACIT

with a direction to re-decide the same after disposing of the assessee’s quantum appeal for the subject year.

15.

Resultantly, the appeal filed by the assessee is allowed for statistical purposes in terms of our aforesaid observations.

16.

In the result, both the appeals filed by the assessee are allowed for statistical purposes in terms of our aforesaid observations.

Order pronounced in the open court on 08th May, 2026.

Sd/- Sd/- (OMKARESHWAR CHIDARA) (RAVISH SOOD) ACCOUNTANT MEMBER JUDICIAL MEMBER Hyderabad, Dated 08th May, 2026 OKK / SPS Copy to:

S.No Addresses 1 Andhra Evangelical Lutheran Church D.No.5-98-60, Becker Compound, Lodge Centre, Brodipet, Guntur. 2 The Asst. Commissioner of Income Tax, Exemption Circle, Vijayawada. O/o. Income Tax Office, 1st Floor, Annex, CR Building, MG Road, Vijayawada. 3 The Pr. Commissioner of Income Tax, Visakhapatnam. 4 The DR, ITAT, Visakhapatnam Bench 5 Guard File

8 ITA No.715 & 716/Viz/2025 Andhra Evangelical Lutheran Church vs. ACIT

More judgments on Section 147

All 49,210 judgments and leading authorities on Section 147 →

Recent GST High Court judgments

Search GST case law →