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Facts
The assessee, a charitable organization registered under Section 12A, is aggrieved by the CIT(A)'s order confirming additions made by the AO. The assessee's primary ground is that due to the non-appearance of their consultant before the lower authorities, their appeal was dismissed by the CIT(A) as barred by limitation.
Held
The Tribunal held that in the interest of justice, the assessee should be given an opportunity to present its case. Consequently, the CIT(A)'s order was set aside, and the matter was restored to the AO for fresh assessment after considering the assessee's submissions.
Key Issues
Whether the assessee, claiming exemption under Section 11, should be granted an opportunity to represent its case before the AO/CIT(A) when its appeal was dismissed due to procedural non-compliance by its consultant?
Sections Cited
12A, 11, 250, 147, 148, 143(3)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, “SMC” BENCH, AHMEDABAD
Before: Shri Sanjay Garg
Year : 2019-20 Shri Govardhan Nataji Pushti The ITO बनाम Margiya Vaishnab Haveli Ward-1 / Janta Chowk Dahod – 389 151 v/s. Desai Wada Dahod Gujarat – 389 151 "थायी लेखा सं./PAN: AAATS 7386 K (अपीलाथ$/ Appellant) (%& यथ$/ Respondent) Assessee by : Shri Kunal Shangvi, AR Revenue by : Shri Suresh Chand Meena, Sr.DR सुनवाई की तारीख/Date of Hearing : 17/02/2026 घोषणा की तारीख /Date of Pronouncement: 12/03/2026 आदेश/O R D E R The present appeal has been preferred by the assessee against the order of the Learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [hereinafter referred to as ‘CIT(A)’] dated 12/12/2025 passed u/s.250 of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) for the Assessment Year (AY) 2019-20.
The assessee, in this appeal, is aggrieved by the action of the Ld. CIT(A) in confirming the additions made by the Assessing Officer (AO) of Rs.14,50,179/- as income from other sources and of Rs.11,99,688/- on account of donation and rental income, tatalling to Rs.26,49,867/-. Shri Govardhan Nataji Pushti Margiya Vaishnab Haveli vs. ITO Asst. Year : 2019-2020 2
At the outset, the Ld. Counsel for the assessee has submitted that the assessee is a charitable organization registered u/s.12A of the Income Tax Act, 1961 (for short “the Act”) and that the income of the assessee is exempt from taxation under the provisions of section 11 of the Act. He has further submitted that due to the fact that the consultant appointed by the assessee- trust did not properly represent before the lower authorities, hence, the impugned additions were made by the AO. Further, the said consultant did not appear/represent even before the Ld. CIT(A) also, resulting into dismissal of the appeal of the assessee by the Ld. CIT(A) holding the same as barred by limitation. The Ld. Counsel submitted that the assessee-trust is doing charitable activities and its income is exempt u/s.11 of the Act. He has submitted that in the interests of justice, the assessee-trust may be given an opportunity to represent its case before the Ld. CIT(A).
The Ld. DR could not rebut the fact that the assessee claims to be a charitable organization registered u/s.12A of the Act, if it is so, the income of the assessee-trust will be exempt u/s.11 of the Act, however, subject to fulfilment of the relevant necessary conditions/statutory provisions.
Considering the rival submissions, in my view, the interests of justice will be well-served if the assessee be given an opportunity to present its case before the Ld. CIT(A). Therefore, the impugned order of the Ld. CIT(A) is set aside and the matter is restored to the file of the AO with a direction to pass the assessment order after considering the submissions made by the assessee- trust after giving adequate opportunity of hearing to the assessee to present its case. It is also directed that the assessee will remain vigilant and promptly respond to the notices of hearing issued by the AO. Shri Govardhan Nataji Pushti Margiya Vaishnab Haveli vs. ITO Asst. Year : 2019-2020 3
With the above observations, the appeal of the assessee is treated as allowed for statistical purposes.
Order pronounced in the Open Court on 12/03/2026. ( Sanjay Garg ) Judicial Member