SHRI APPASAHEB DESHMUKH SAMAJIK BAHUUDDESHIYA SANSTHA,MALSHIRAS vs. ITO EXEMPTION WARD 1(2), PUNE

There is a delay of 169 days in filing of the appeal before the Tribunal 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 along with the affidavit and after hearing the Ld. DR, the delay in filing of the appeal is condoned and the appeal is admitted for adjudication.

Although a number of grounds have been raised by the assessee, however, these all relate to the ex-parte order of the Ld. CIT(A) / NFAC in confirming the addition of Rs.1,15,31,267/- made by the Assessing Officer rejecting the assessee’s claim of deduction u/s 57 of the Act in the order passed u/s 143(3) r.w.s. 144B.

Facts of the case, in brief, are that the assessee is a public charitable trust engaged solely in imparting education. It is duly registered u/s 12A of the Act vide registration certificate dated 15.12.2016. The assessee e-filed its original return of income for the assessment year 2020-21 on 31.03.2021 declaring total income of Nil. The case of the assessee was selected for limited scrutiny through CASS with reason ‘Deductions from Income from other sources’. Accordingly, statutory notices u/s 143(2) and 142(1) of the Act along with questionnaire were issued and served upon the assessee. The assessee sought time to respond to the notices issued by the Ld. AO, however, failed to make any submissions before him. Since no explanation / details were furnished by the assessee with regard to the claim of deduction of Rs.1,15,31,267/- u/s 57 of the Act despite several opportunities provided to the assessee. The Ld. AO disallowed the assessee’s claim of deduction of Rs.1,15,31,267/- and added the same back to the income of the assessee vide his order dated 12.09.2022 passed u/s 143(3) r.w.s. 144B of the Act.

Since the assessee did not make any submission before the Ld. CIT(A) / NFAC despite number of opportunities granted, the Ld. CIT(A) / NFAC dismissed the appeal filed by the assessee. While doing so, he relied on the decision of the

Aggrieved with such order of the Ld. CIT(A) / NFAC the assessee is in appeal before the Tribunal.

The Ld. Counsel for the assessee submitted that the notices issued by the office of the Ld. CIT(A) / NFAC were not delivered to the e-mail address provided by the assessee in Form No.35, due to which the assessee could not respond to the notices issued by the office of the Ld. CIT(A) / NFAC. Further, the Ld. CIT(A) / NFAC has not decided the appeal on merit and has simply dismissed the appeal for want of prosecution which is not as per the provisions of section 250(6) of the Act.

The Ld. DR on the other hand heavily relied on the orders of the Assessing Officer and the Ld. CIT(A) / NFAC.

We have heard the Ld. representatives of the parties and perused the material available on record. We find that the Assessing Officer in the instant case made addition of Rs.1,15,31,267/- by disallowing the claim made by the assessee u/s 57 of the Act. We find the Ld. CIT(A) / NFAC dismissed the appeal for want of prosecution. It is the submission of the Ld. Counsel for the assessee that given an opportunity, the assessee is in a position to substantiate its case by filing the

A perusal of the order of the Ld. CIT(A) / NFAC shows that the Ld. CIT(A)/ NFAC has not decided the appeal on merit but has simply dismissed the same for want of prosecution. The provisions of section 250(6) of the Act read as under: “250(1). … (6) The order of the [Joint Commissioner (Appeals) or the] Commissioner (Appeals) disposing of the appeal shall be in writing and shall state the points for determination, the decision thereon and the reason for the decision.”

Since it is the submission of the Ld. Counsel for the assessee that given an opportunity the assessee is in a position to substantiate its case by filing the requisite details, therefore, 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 a reasonable opportunity to the assessee to substantiate its case by filing the requisite details and decide the issue as per fact and law by passing a speaking order. The assessee is also hereby directed to submit the requisite details before the Ld. CIT(A) / NFAC on the appointed date 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 raised by the assessee are accordingly allowed for statistical purposes.

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