BADALPUR CHARITY TRUST ,MUMBAI vs. INCOME TAX OFFICER (EXEMPTION)-1(1), MUMBAI

At the outset, it is observed that there is a delay of 254 days in filing of instant appeal, on which the Assessee has claimed that due to negligence of its accountant the delay of 254 days has been occurred, as it also appears from the impugned order that the same has been passed as ex-parte. Though no document is available on record with regard to the contention raised qua condonation of delay, however, considering the fact as appears from the impugned order, the contention raised by the Assessee prima-facie appears to be bonafide and genuine qua condonation of delay, as also not refuted by the Ld. D.R., thus the delay is condoned, subject to deposit of Rs.11,000/- in Revenue Department under “other heads”.

Coming to the merits of the case, we observe that the Assessing Officer (AO) vide order dated 26.12.2017 u/s 143(3) r.w.s. 147 of the Act, has made the addition of Rs.1,10,00,000/- on account of corpus donation received.

The Assessee, being aggrieved, though challenged the said addition before the Ld. Commissioner, however, in spite of affording multiple opportunities, made no compliance. As observed above, the Assessee has levelled allegations against his accountant, who was handling the taxation matters of the Assessee, did not make compliances which resulted into passing the impugned order as ex- parte. Thus, considering the peculiar facts and circumstances specific to the effect as well that the issue involved in the first appellate proceedings before the Ld. Commissioner, remained to be adjudicated in its right perspective and proper manner and the Assessee also remained un-represented and/or submissions/ documents also remained to be filed, which resulted into non- adjudication of the issue involved in its right perspective and proper manner. Thus, considering the peculiar facts and circumstances in totality for just and proper decision of the case and substantial justice, we are inclined to set aside the impugned order and consequently remanding the case to the file of the Ld. Commissioner for decision afresh, however, subject to deposit of Rs.5000/- in the Revenue Department under “other heads” within 15 days of the receipt of this order. Thus, the case is accordingly remanded to the file of Ld. Commissioner, for decision afresh in the aforesaid terms.

In the result, the appeal of the Assessee is allowed for statistical purposes.