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Facts
The assessee, Janapriya Trust, filed a NIL return for AY 2018-19. Its case was selected for scrutiny, and the AO treated donations of Rs. 61,91,669/- as anonymous income, assessing it under Section 115BBC. The Ld.CIT(A) dismissed the assessee's subsequent appeal ex-parte.
Held
The Tribunal, upholding the principles of natural justice, set aside the ex-parte order passed by the Ld.CIT(A). The appeal is restored to the file of the Ld.CIT(A) for fresh hearing, granting the assessee another opportunity to present its case.
Key Issues
Whether the CIT(A) was justified in dismissing the assessee's appeal ex-parte, and if the principles of natural justice warrant providing another opportunity for a fresh hearing.
Sections Cited
80G, 115BBC, 143(3), 143(3A), 143(3B)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, ‘A’ BENCH, CHENNAI
Before: HON’BLE SHRI MANOJ KUMAR AGGARWAL & HON’BLE SHRI MANU KUMAR GIRI
(िनधा�रणवष� / Assessment Year: 2018-2019) Janapriya Trust, Vs. The Income Tax Officer, 108/4, Ukkirankottai, Exemption Ward, North Christian Street, Tirunelveli. Alangulam Taluk, Tirunelveli 627 020. [PAN: AAATJ 4644D] (अपीलाथ�/Appellant) (��यथ�/Respondent) अपीलाथ� क� ओर से/ Appellant by : None ��यथ� क� ओर से /Respondent by : Shri R. Bhoopathi, Addl. CIT. सुनवाई क� तार�ख/Date of Hearing : 03.02.2025 घोषणा क� तार�ख /Date of Pronouncement : 05.02.2025 आदेश / O R D E R PER MANU KUMAR GIRI (Judicial Member) This appeal filed by the assessee is directed against the order of the Ld. Commissioner of Income Tax (Appeals)(NFAC) Delhi [CIT(A)] dated 20.09.2024 for Assessment Year 2018-19.
Brief facts of the case are that the assessee furnished its return of income for the A.Y. 2018-19 electronically vide on 17.07.2018 disclosing a total income at Rs. NIL. The case was selected for scrutiny through CASS with reason description "Approval obtained u/s.80G and Large increase in total voluntary contributions as per Part B-TI of ITR." In spite of the show-cause notice, the assessee did not provide the details of persons who had given donations to the organization. Therefore, the donation shown in the return of income at Rs.61,91,669/- was treated by the AO as anonymous donation as the income of the assessee as per provisions of section 115BBC of the Act which was calculated at Rs. 58,82,086/- (i.e. Rs. 61,91,669/- (-) Rs. 3,09,583/-). The total income of the assessee was assessed accordingly. Aggrieved, the assessee is in appeal. Assessee further challenged the order of assessment u/s u/s 143(3) r.w.s. 143(3A) & 143(3B) of the Act before the ld.CIT(A) who proceeded ex-parte and dismissed the appeal on merits. Aggrieved, assessee is in appeal before us.
Before us also, none appeared on behalf of the assessee. The ld.DR stated that the assessee is habitual defaulter in appearing before the appellate authority hence no lenient view is to be taken in this case and prayed for dismissal of appeal.
Though we concur with the submissions of Ld. Sr. DR however, keeping in mind the principle of natural justice and grant another opportunity of hearing to the assessee. We also find that assessee has not represented before the ld.CIT(A). Accordingly, in the interest of substantial justice, the impugned order is set aside and the appeal is restored back to the file of Ld. CIT(A) for fresh hearing of appeal after affording proper opportunity of hearing to the assessee. The assessee is directed to prosecute and substantiate its case with all evidence diligently, if any, forthwith without any fail, failing which Ld.CIT(A) shall be at liberty to proceed with the disposal of appeal as per law.
In the result, appeal filed by the assessee is allowed for statistical purpose.
Order pronounced in the open court on 5th day of February, 2025 at Chennai.