RKKR FOUNDATION,CHANDIGARH vs. DCIT, EXEMPTION CIRCLE 1, CHANDIGARH, CHANDIGARH

ITA 477/CHANDI/2024Status: DisposedITAT Lucknow28 September 2026AY 2018-1918 pages
AI SummaryRemanded

What were the facts?

The assessee, RKKR Foundation, filed an appeal against the order of the CIT(A)/NFAC, Delhi, dated 28.02.2024, for Assessment Year 2018-19. The assessee's appeal before the CIT(A) was dismissed ex-parte. The assessee contended that the CIT(A) erred in dismissing the appeal without considering submissions, without granting a personal hearing, and without issuing a show-cause notice. The assessee also raised grounds challenging the validity of the assessment order passed by the jurisdictional assessing officer, citing lack of jurisdiction and limitation. Further grounds pertained to the disallowance of donations, agricultural expenses, and additions to income from redemption of bonds and FDs. The assessee also challenged interest under sections 234B and 234C and penalty under section 270A.

What did the Tribunal hold?

The Tribunal noted that the assessee's appeal before the CIT(A) was dismissed ex-parte. The Tribunal observed that while the assessee had raised substantial grounds, including jurisdictional and limitation issues, these were not appropriately adjudicated by the CIT(A) due to the assessee's non-compliance. The Tribunal also noted that the assessee's authorized representative declined to advance arguments on the merits before the ITAT, confining submissions to jurisdictional and limitation issues. The Tribunal expressed strong disapproval of the manner in which the appeal was conducted by the assessee, but considering the peculiar facts, decided not to visit the assessee with the ultimate consequence of lapse without adjudication on merits. The Tribunal found that the issues relating to jurisdiction and limitation were not appropriately adjudicated by a speaking order. Therefore, in the interest of justice and fair play, the Tribunal set aside the impugned order of the CIT(A) and restored the matter to the file of the CIT(A) for fresh adjudication on all issues, including jurisdictional/legal grounds and the merits of the additions. The CIT(A) was directed to pass a comprehensive, reasoned, and speaking order after affording adequate opportunity to both parties. The Tribunal made it clear that it had expressed no opinion on the merits of the issues.

What were the issues?

The Tribunal had to decide the following questions: 1. Whether the CIT(A) erred in dismissing the assessee's appeal ex-parte, violating principles of natural justice and procedural fairness, in contravention of the directions of the Delhi High Court and Section 144B of the Act. 2. Whether the assessment order passed by the jurisdictional assessing officer was without jurisdiction and barred by limitation under Section 153(1) of the Act. 3. Whether the disallowance of donation to Unique Social Foundation as application of income was erroneous, particularly concerning Explanation 2 to Section 11(1). 4. Whether the donation to IILM Education Trust was violative of Section 13(1)(c) due to alleged related entity status. 5. Whether the disallowance of agricultural expenses was justified. 6. Whether the addition of income from transfer/redemption of bonds and FDs under Section 11(3) was correct. 7. Whether interest under Sections 234B and 234C and penalty under Section 270A were leviable. Assessee's contentions: The assessee argued that the ex-parte dismissal by the CIT(A) was bad in law. It contended that the assessment order was without jurisdiction and barred by limitation. It also argued that donations were valid applications of income, that it and IILM Edu were independent trusts, that agricultural expenses were within the trust deed's scope, and that Section 11(3) was wrongly applied to bond and FD redemptions. The assessee also challenged interest and penalty. Revenue's contentions: The judgment does not record specific contentions from the Revenue on the merits of the grounds.

Which sections of the Income-tax Act were involved?

Section 11(1),Section 11(2),Section 11(3),Section 11(5),Section 13(1)(c),Section 13(3),Section 143(3),Section 144B,Section 153(1),Section 234B,Section 234C,Section 270A

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances
आयकर अपीलीय अिधकरण,च"ीगढ़ "ायपीठ “बी” , च"ीगढ़ IN THE INCOME TAX APPELLATE TRIBUNAL, CHANDIGARH BENCH “B”, CHANDIGARH HEARING THROUGH: VIRTUAL MODE "ी लिलत कुमार, "ाियक सद" एवं "ी िवजय वमा" , लेखा सद" BEFORE: SHRI. LALIET KUMAR, JM & SHRI. VIJAY VARMA, AM आयकर अपील सं./ ITA No. 477/Chd/ 2024 िनधा"रण वष" / Assessment Year : 2018-19 RKKR Foundation The DCIT बनाम Rai Complex, Sector 48B, Exemption Circle-1 Chandigarh-160047 Chandigarh "ायी लेखा सं./PAN NO: AAHFR7133C अपीलाथ"/Appellant ""थ"/Respondent िनधा"रती की ओर से/Assessee by : Shri Rahul Srivastava, Advocate राज" की ओर से/ Revenue by : Smt. Kusum Bansal, Pr. CIT, DR सुनवाई की तारीख/Date of Hearing : 09/09/2026 उदघोषणा की तारीख/Date of Pronouncement : 28/09/2026

आदेश/Order PER VIJAY VARMA, A.M: This is an appeal filed by the Assessee against the order of the Ld. CIT(A)/NFAC, Delhi dt. 28/02/2024 for the Assessment Year 2018-19. 2. In the present appeal Assessee has raised following grounds: Re: Ex-parte dismissal of first appeal - invalid

1.

That on the facts and circumstances of the case and in law, the order dated 28.02.2024 passed by the Commissioner of Income Tax (Appeals), National Faceless Appeals Centre [`CIT(A)'] is bad in

The order continues below.

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