UTKRISHTHA SHIKSHA SAMITI INDORE,INDORE vs. ACIT 1(1), INDORE, INDORE

ITA 438/IND/2025Status: DisposedITAT Indore22 October 2026AY 2021-2210 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal condoned the delay of 378 days in filing the appeal, accepting the assessee's explanation of a change in management and subsequent steps taken to pursue the appeal as bona fide, in the interest of substantial justice. The Tribunal noted that while earlier non-compliance could not be overlooked, the expression 'sufficient cause' requires a liberal interpretation. On the merits, the Tribunal observed that the CIT(A) had dismissed the appeal due to non-compliance without adjudicating the additions on merits, which is contrary to the requirement of section 250(6) of the Act. Furthermore, the Tribunal noted that the issue of the assessee's registration under section 12AB was under separate proceedings before the Tribunal, which had been restored to the CIT(E). Therefore, in the interest of justice, the Tribunal set aside the impugned appellate order and restored the matter to the file of the CIT(A) for fresh adjudication on merits, after affording a reasonable opportunity of being heard to the assessee. The Tribunal clarified that it had not expressed any opinion on the merits of the additions or the eligibility for exemption.

What were the facts?

The assessee, Utkrishta Shiksha Samaj Samiti, filed its return of income for Assessment Year 2021-22 declaring nil total income after a loss of Rs. 4,70,655/-. The case was selected for scrutiny due to issues with registration under various sections of the Act. The assessee failed to comply with notices from the Assessing Officer (AO), leading to an ex-parte assessment order under section 144 read with section 144B, determining total income at Rs. 86,17,752/- after an addition of Rs. 90,88,407/-. The assessee appealed to the CIT(A) with a four-day delay, but again failed to comply with notices, resulting in the dismissal of the appeal by the CIT(A) on 06.02.2024. The assessee then filed a second appeal before the ITAT with a delay of 378 days, attributing it to a change in management.

What were the issues?

1. Whether the Tribunal should condone the delay of 378 days in filing the appeal, considering the assessee's continuous non-compliance in earlier proceedings and the explanation of a change in management. Assessee's Contention: The delay was due to a change in management, with the newly elected President assuming office on 30.07.2024 and subsequently initiating steps to address pending tax matters. The delay was not intentional and should be condoned in the interest of substantial justice. Revenue's Contention: The assessee's conduct demonstrated continuous non-compliance. A change in management or appointment of a consultant is not sufficient cause for condoning an inordinate delay. Reliance was placed on lower authorities' orders and judicial decisions. 2. Whether the CIT(A) erred in dismissing the appeal on account of non-compliance without adjudicating the additions on merits, and whether the assessment order passed under section 144 read with section 144B was bad in law. Assessee's Contention: The CIT(A) erred in sustaining the assessment order and additions without providing a reasonable opportunity of being heard. The assessee also sought relief under section 10(23C)(iiiad). Revenue's Contention: Not recorded in the judgment.

Which sections of the Income-tax Act were involved?

Section 253,Section 250,Section 139(1),Section 144,Section 144B,Section 12A,Section 35(1)(ii)/(iia)/(iii),Section 12AB,Section 250(6)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, INDORE BENCH, INDORE

Before: SHRI PARESH M. JOSHI & SHRI ARVIND SONI

Hearing: 14.10.2026Pronounced: 22.10.2026

Per Arvind Soni, AM:

1.

This is an Appeal filed by the Assessee under section 253 of the Income Tax Act 1961, [ herein after referred to as the Act for the sake of brevity] before this tribunal as & by way of a second Appeal. The Assessee is aggrieved by the order dated 05.02.2024 passed by the Ld. CIT(A) U/S 250 of the Act, which is herein after referred to as the “Impugned Order”.

2.

The assessee is a society which filed its return of income on 31.03.2022 under section 139(1) of the Income-tax Act, 1961 (hereinafter referred to as "the Act"), declaring nil total income after reporting a loss of Rs. 4,70,655/-.

3.

The case of the assessee was selected for compulsory scrutiny

The order continues below.

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