SWAPNIL EDUCATION SOCIETY,NASHIK vs. INCOME TAX OFFICER EXEMPTION WARD 1(2), PUNE, PUNE

ITA 1287/PUN/2026Status: DisposedITAT Pune05 October 2026AY 2015-165 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal acknowledged that the CIT(A) had passed an ex parte order due to the assessee's non-compliance with notices, despite adequate opportunities. However, the Tribunal also recognized that there could be various reasons for non-appearance or non-compliance, which should not be overruled. Considering the principles of natural justice, the Tribunal decided to provide the assessee with one more opportunity to present its case with evidence and information. Consequently, the order of the CIT(A) was set aside, and the disputed issue was remitted back to the file of the CIT(A) for adjudication afresh. The assessee was directed to cooperate by submitting necessary information for an early disposal of the appeal. The grounds of appeal were allowed for statistical purposes.

What were the facts?

The assessee, Swapnil Education Society, filed an appeal against an ex parte order of the CIT(A) for Assessment Year 2015-16. The dispute originated from an addition of Rs. 52,27,107/- made by the Assessing Officer (AO) under Section 68 of the Income Tax Act, treating unexplained corpus fund receipts as income. This addition was made after the Principal CIT (Pr. CIT) initiated revision proceedings under Section 263, finding the initial assessment order under Section 143(3) r.w.s 147 erroneous due to lack of verification of building fund and fly color school account. The AO, after issuing notices under Section 142(1) and show cause notices with no reply, proceeded under Section 144 to make the addition. The CIT(A) confirmed the AO's action and dismissed the assessee's appeal due to non-compliance. The assessee then appealed to the ITAT.

What were the issues?

1. Whether the CIT(A) erred in confirming the addition made by the AO under Section 68 of the Income Tax Act, particularly in passing an ex parte order without granting a proper opportunity to the assessee to present its case? Assessee's Contention: The assessee argued that the CIT(A) erred in confirming the AO's action by overlooking information from the assessment proceedings. They contended that non-compliance with notices before the CIT(A) was not deliberate and that they have a strong case on merits, seeking an opportunity to substantiate their claims with material evidence before the lower authorities. Revenue's Contention: The Revenue supported the order of the CIT(A).

Which sections of the Income-tax Act were involved?

Section 68,Section 250,Section 143(3),Section 147,Section 263,Section 142(1),Section 144,Section 144B

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, PUNE

Before: DR. MANISH BORAD & SHRI PAVAN KUMAR GADALE

Hearing: 30.09.2026Pronounced: 05.10.2026

PER PAVAN KUMAR GADALE, JUDICIAL MEMBER:

- The assessee has filed the appeal against the order of NFAC/CIT(A) passed u/sec 250 of the Income Tax Act for the Assessment Year 2015-16. The assessee has raised the grounds of appeal challenging the ex parte order of the CIT(A) in sustaining the addition/sec68 of the Act made by the Assessing Officer.

2.

At the time of hearing, the Ld.AR submitted that there is a delay in filing the appeal before Hon'ble Tribunal and the delay was not intentional and the assessee has filed an affidavit for condonation of delay. On consideration of facts

ITA.No.1287/PUN/202

The order continues below.

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