What did the Tribunal hold?

The Tribunal restored the appeal to the file of the CIT(A) for adjudication on merits, citing the principle of natural justice. The assessee was directed to substantiate its case.

The assessee, a registered trust, claimed depreciation which was disallowed. The CIT(A) allowed partial depreciation. The assessee filed a further appeal, but it was dismissed due to an inadvertent submission that the appeal was already disposed of.

What were the issues?

Whether the appeal dismissed due to inadvertent submission should be restored for adjudication on merits.

Karpagam Charity Trust, Coimbatore vs ACIT | ITAT Chennai 2022

Income Tax Appellate Tribunal, ‘B’ BENCH, CHENNAI

Before: HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM & HON’BLE SHRI SONJOY SARMA

आदेश / O R D E R Manoj Kumar Aggarwal (Accountant Member) 1. Aforesaid appeal by assessee for Assessment Year (AY) 2014-15 arises out of the order of learned Commissioner of Income Tax, National Faceless Appeal Centre (NFAC), Delhi [CIT(A)] dated 28-04- 2022 in the matter of an assessment framed by Ld. Assessing Officer [AO] u/s.143(3) of the Act on 29-11-2016. 2. The assessee is a registered trust u/s 12A since 18.08.1994. In the assessment order, the depreciation claimed by the assessee for Rs.1409.05 Lacs was disallowed in terms of decision of Hon’ble Kerala - 2 - High Court rendered in M/s Lissie Medical Institutions V/s CIT (76 DTR 372). The assessee preferred further appeal before Ld. CIT(A) which was disposed-off vide order dated 13.02.2018. The effect of this order was given by Ld. AO vide order dated 23.03.2018 wherein the depreciation was allowed to the extent of Rs.700.78 Lacs. Still aggrieved, the assessee preferred further appeal against the same which was disposed-off vide order dated 28.04.2022. Pursuant to hearing notices, the assessee inadvertently submitted that the appeal was already disposed-off on 13.02.2018 and accordingly, the second appeal was dismissed without considering the merits of the case as per the submissions made by the assessee. Aggrieved, the assessee is in further appeal before us.

The Ld. AR pleaded to restore the appeal to the file of Ld. CIT(A) for adjudication on merits. The Ld. Sr. DR submitted that the appeal has been disposed-off as per the submissions made by the assessee. It appears that the appeal has been dismissed due to inadvertent submissions made by the assessee. Keeping in mind the principle of natural justice, we restore the appeal back to the file of Ld. CIT(A) for adjudication on merits. The assessee is directed to substantiate its case.

The appeal stand allowed for statistical purposes. Order pronounced on 25th August, 2022.

KARPAGAM CHARITY TRUST,COIMBATORE vs. ACIT (EXEMPIONS), COIMBATORE

What did the Tribunal hold?

What were the facts?

What were the issues?

Which sections of the Income-tax Act were involved?

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