D.L. ASHISH FOUNDATION TRUST,AHMEDABAD vs. ASST. UNIT. INCOME TAX DEPT.(PRESENT JURI.ITO, WARD 1(EXEMPTIONS) AHMEDABAD), AHMEDABAD

PDF · subscribers
ITA 1546/AHD/2026Status: DisposedITAT Ahmedabad16 June 2026AY 2011-127 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal set aside the ex-parte orders of the CIT(A) and restored the appeals for denovo adjudication. The CIT(A) was directed to grant the assessee a reasonable opportunity of being heard. The grounds not adjudicated were dismissed as infructuous.

What were the facts?

The assessee-trust filed appeals for AY 2011-12 and 2014-15. The CIT(A) dismissed the appeals ex-parte due to non-prosecution, without dealing with the merits of the case. The assessee contended that they could not respond due to circumstances beyond their control.

What were the issues?

Whether the CIT(A) erred in dismissing the appeal ex-parte without adjudicating on merits, and whether the assessee was denied a reasonable opportunity of being heard.

Which sections of the Income-tax Act were involved?

Section 144,Section 250(6),Section 11,Section 13,Section 40(a)(ia),Section 43B

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, C” BENCH, AHMEDABAD

IN THE INCOME TAX APPELLATE TRIBUNAL "C” BENCH, AHMEDABAD DR. B.R.R. KUMAR VICE PRESIDENT SHRI RAHUL CHAUDHARY, JUDICIAL MEMBER ITA No. 1546 and 1579/AHD/2026 Assessment Year:2011-2012 & 2014-2015 D.L. Ashish Foundation Trust 203, Rajvi Tower, Raj Vansh Judges Bunglow, Thaltej Road, Ahmedabad-380054, Gujarat. [PAN:AAATD3625Q] …………. Appellant Assessment Unit Vs Income Tax Department. Present Jurisdiction: ITO, Ward-1 Exemptions) Ahmedabad New Income Tax Office, Vejalpur Global Odyssey, Jodhpur Village Ahmedabad-380015, Gujarat …………. Respondent Appearance For the Appellant/Assessee : Shri Sulabh Padshah For the Respondent/Department : Shri C Dharani Nath, Sr. DR Date Conclusion of hearing : 15.06.2026 Pronouncement of order : 16.06.2026

O R D E R Per Rahul Chaudhary, Judicial Member: 1. These are two appeals preferred by the same Assessee-Trust for the Assessment Year 2011-2012 and 2014-2015. Since the appeals involved identical issues, the same were taken up together and are being disposed off by way of a common order.

ITA No. 1546/AHD/2026 2. We would first take up ITA No. 1546/AHD/2026 preferred by the Assessee against the Order, dated 21/02/2026, passed by the National Faceless Appeal Centre (NFAC), Delhi [hereinafter referred to as the ‘CIT(A)’] whereby Learned CIT(A) had dismissed the appeal against

ITA No.1546 and 1579/AHD/2026 Assessment Year: 2011-2012 & 2014-2015 the Assessment Order, dated 26/03/2025, passed under Section 144 r.w.s Section 254 and 144B of the Income Tax Act, 1961 [hereinafter referred to as ‘the Act’], for the Assessment year 2011-2012.

3.

The Assessee has raised following grounds of appeal in ITA No.1546/AHD/2026: “1. The Ld. Assessing Officer has erred in law and on facts in passing the order under Section 144 of the Act. It is submitted that the Appellant has duly responded during course of assessment proceeding and filed detailed submission and explanation. On facts and circumstances of the case, the Ld. AO has wrongly invoked the provisions of Section 144 of the Act and thus the Assessment Order passed is incorrect and invalid accordingly. 2. The Learned CIT(Appeals) has erred in confirming the addition made without appreciating the fact that the Ld. AO has merely presumed misuse of the asset without any evidence or inquiry to substantiate that the car was used by trustees for personal purposes, which is against law, equity and principal of natural justice. 3. The lower authorities have erred in law and on facts in denying the benefit of exemption u/s 11 of the Act to the appellant trust without appreciating the fact that the vehicle purchased was used for the furtherance of the charitable objectives of the trust and not for any personal benefit to the trustees. 4. The Learned CIT (Appeals) has erred in law and on facts in confirming the disallowance of car purchase of Rs.28,45,000/- and further disallowance towards car insurance of Rs.49,615/- and depreciation of car of Rs.2,13,375/-. On facts and circumstances of the case, the above disallowances made wrongly treating the above expenditures incurred for the benefit of the trustees without any direct or indirect evidence is completely incorrect and illegal and thus the same be deleted in the interest of justice. The same please be held accordingly. 5. The Learned CIT (Appeals) has erred in passing an Ex-parte order and dismissing the appeal of the Appellant without appreciating the facts and circumstances of the case. It is submitted that the Appellant has filed detailed explanation on issues involved before AO, however the responses could not be filed before CIT Appeal due to reasonable causes and circumstances beyond the control of the Appellant. In view of this, the CIT Appeal may please be directed to hear the appellant again and the additions made wrongly invoking provisions of Section 13 be deleted after granting fresh opportunity of being heard to the Appellant. 6. The Order passed by the learned CIT(A) and Ld. AO are bad in law and contrary to the provisions of law and facts. It is submitted that the same be held so now.”

ITA No.1546 and 1579/AHD/2026 Assessment Year: 2011-2012 & 2014-2015

4.

We have heard both the parties and have perused material on record in relation to Ground No. 5 raised by the Assessee.

5.

It is an admitted position that the Assessee was not able to respond to notices of hearing issued by the Learned CIT(A) and therefore, the appeal preferred by the Assessee was dismissed on account of non- prosecution. We find that while dismissing the appeal the Learned CIT(A) has not dealt with the averments made in the statement of facts and the legal grounds raised by the Assessee in appeal before the Learned CIT(A). Irrespective of non-appearance of an Assessee before the Learned CIT(A), the Learned CIT(A) is required to deal with the issue raised by the Assessee on merits in view of the provisions contained in Section 250(6) of the Act1. Accordingly, we deemed it appropriate to set aside the ex-parte order, dated 21/02/2026, and restore the grounds raised in appeal before the Learned CIT(A) for denovo adjudication before Learned CIT(A) as per law after granting the Assessee a reasonable opportunity of being heard. Assessee is directed to be vigilant and track the appellate proceedings through Income Tax Business Application (ITBA) Portal and file submissions and supporting documents before Learned CIT(A) without seeking unnecessary adjournments. It is clarified that in case the Assessee fails to file submission and/or fails to enter appearance, the Learned CIT(A) would be at liberty to adjudicate to grounds raised in appeal on merits based upon materials on record. In terms of the aforesaid, Ground No.5 raised by the Assessee is treated as allowed for statistical purposes without returning any finding on merits. Since we have set aside the impugned order passed by Learned CIT(A), all the rights and contentions of the Assessee are left open. Therefore, Ground No.1 to 4 and 6 raised by the Assessee are not adjudicated upon and dismissed as having been rendered infructuous at this stage.

1 CIT (Central) Nagpur vs. Premkumar Arjundas Luthra (HUF) (2017) 297 CTR 614 (Bombay) 25/04/2016, and Gujarat Themis Biosyn Ltd. Vs. Joint Commissioner of Income Tax: [2000] 74 ITD 339 (Ahmedabad-ITAT

ITA No.1546 and 1579/AHD/2026 Assessment Year: 2011-2012 & 2014-2015 6. In result, in terms of Paragraph No.5 above, the present appeal preferred by the Assessee is allowed for statistical purposes.

ITA No. 1579/AHD/2026 7. We would next take up ITA No. 1579/AHD/2026 preferred by the Assessee against the Order, dated 21/02/2026, passed by the Learned CIT(A) whereby the Learned CIT(A) had dismissed the appeal against the Assessment Order, dated 26/03/2025, passed under Section 144 r.w.s Section 254 and 144B of the Act for the Assessment year 2014- 2015.

8.

The Assessee has raised following grounds of appeal in ITA No.1579/AHD/2026 :

“1. The lower authorities have erred in law and on facts in denying the benefit of exemption u/s 11 of the Act to the appellant trust without appreciating the fact that the provisions of Section 13 are not attracted in case of Appellant looking to the fact that advances given are for the furtherance of the charitable objectives of the trust and not for any personal benefit to the trustees. In view of this, the action of AO rejecting exemption u/s 11 claimed is totally incorrect and illegal and the same be granted in the interest of justice. 2. The Learned CIT (Appeals) has erred in law and on facts in confirming the adhoc disallowance of Rs 7,75,347/-on account of Bonus and Salary expenses incurred. It is submitted that the above expenses are genuinely incurred for the objects of the trust. On facts and circumstances of the case, the above disallowances made purely on adhoc basis and with presumption and thus the same is ought to have been deleted in interest of justice. The same please be held accordingly. 3. The Learned CIT (Appeals) has erred in law and on facts in confirming the disallowance made u/s 40(a)(ia) of the Act of Rs 20,00,00/- on account of Rent paid. On facts and circumstances of the case, the provisions of section 40(a)(ia) of the act are not attracted in case of appellant. It is therefore submitted that above disallowance made is illegal and unjust and the same be deleted accordingly. 3.1 Alternatively, it is submitted that the recipients have already offered rent income in his return of income filed for the year. Under the current circumstances, the provisions of Section 40(a)(ia) are not applicable and the disallowance so made be deleted accordingly.

ITA No.1546 and 1579/AHD/2026 Assessment Year: 2011-2012 & 2014-2015 4. The Learned CIT (Appeals) has erred in passing an Ex-parte order and dismissing the appeal of the Appellant without appreciating the facts and circumstances of the case. It is submitted that the Appellant has filed detailed explanation on issues involved before AO, however the responses could not be filed before CIT Appeal due to reasonable causes and circumstances beyond the control of the Appellant. In view of this, the CIT Appeal may please be directed to hear the appellant again and the various additions be deleted after granting fresh opportunity of being heard to the Appellant. 5. The lower authorities has erred in making disallowance of Rs 20,300/- on account of TDS payable u/s 43B of the Act. It is submitted that the disallowance so made is illegal and unsustainable and the same be deleted accordingly. 6. The Order passed by the learned CIT(A) and Ld. AO are bad in law and contrary to the provisions of law and facts. It is submitted that the same be held so now.” 9. Since there is no change in facts and circumstances, our finds/adjudications in appeal for the Assessment Year 2011-2012 shall apply mutatis mutandis to the present appeal for the Assessment Year 2014-2015. Accordingly, we set aside the ex-parte Order, dated 21/02/2026, passed by the Learned CIT(A) for the Assessment Year 2014-2015 with directions identical to those given in Paragraph 5 above while setting-aside the Order passed by the Learned CIT(A) for the Assessment Order 2011-2012. Thus, the grounds raised by the Assessee in appeal before the Learned CIT(A) are restored back to the file of the Learned CIT(A) for denovo adjudication as per law after granting the Assessee a reasonable opportunity of being heard. It is clarified that in case the Assessee fails to file submission and/or fails to enter appearance, the Learned CIT(A) would be at liberty to adjudicate to grounds raised in appeal on merits based upon materials on record. In terms of the aforesaid, Ground No.5 raised by the Assessee is treated as allowed for statistical purposes without returning any finding on merits. Since we have set aside the impugned order passed by Learned CIT(A), all the rights and contentions of the Assessee are left open. Therefore, Ground No.1 to 4 and 6 raised by the Assessee are not adjudicated upon and dismissed as having been rendered infructuous at this stage.

ITA No.1546 and 1579/AHD/2026 Assessment Year: 2011-2012 & 2014-2015

10.

In result, in terms of Paragraph No.9 above, the present appeal preferred by the Assessee is allowed for statistical purposes.

11.

In conclusion, both appeals the appeals are allowed for statistical purposes.

The order is pronounced on 16.06.2026

Sd/- Sd/- (Dr. B.R.R. Kumar) (Rahul Chaudhary) Vice President Judicial Member

िदनांक Dated : 16.06.2026 अहमदाबाद Ahmedabad; True Copy H.C. PS

ITA No.1546 and 1579/AHD/2026 Assessment Year: 2011-2012 & 2014-2015 आदेशक��ितिलिपअ�ेिषत/Copy of the Order forwarded to : 1. अपीलाथ�/ The Appellant 2. ��यथ�/ The Respondent. 3. संबंिधतआयकरआयु�/ Concerned CIT 4. आयकरआयु�(अपील) / The CIT(A) 5. िवभागीय�ितिनिध, आयकरअपीलीयअिधकरण/ DR, ITAT, 6. गाड�फाईल /Guard file. आदेशानुसार/BY ORDER, उप/सहायकपंजीकार (Dy./Asstt.Registrar) आयकरअपीलीयअिधकरण, अहमदाबाद / ITAT, Ahmedabad

More judgments on Section 11

All 7,190 judgments and leading authorities on Section 11 →

Recent GST High Court judgments

Search GST case law →