CONTAI ROTARY COMMUNITY WELFARE TRUST,MEINIPUR vs. I.T.O.,WARD 1(1),EXEMPTION, KOLKATA

Per Sonjoy Sarma, Judicial Member:

The present appeal has been preferred by the assessee against the order dated 08.11.2024 of the National Faceless Appeal Centre
[hereinafter referred to as ‘CIT(A)’] passed u/s 250 of the Income Tax Act
(hereinafter referred to as the ‘Act’).
2. Brief facts of the case are that the assessee is a charitable trust and registered u/s 12A of the Act. The assessee filed its return of income for the assessment year 2018-19 by declaring nil income which was processed u/s 143(1) of the Act. Subsequently, the case of the assessee was selected for scrutiny under CASS to examine certain issues particularly the expenses claimed under the head of ‘income from other sources’. Notice u/s 143(2) of the Act was issued to the assessee requiring submission of certain documents but no response was received. Thereafter, a notice u/s 142(1) of the Act was issued calling for details of expenses claimed u/s 57 of the Act but the assessee again failed to respond. Thereafter, the Assessing Officer issued reminder to I.T.A. No.52/Kol/2025
Assessment Year: 2018-19
Contai Rotary Community Welfare Trust

2
the assessee but the assessee continued to remain non-compliant. In the absence of explanation or evidence, the Assessing Officer had no option but to proceed the assessment under the best judgment provision u/s 144 of the Act. While framing the assessment order, the Assessing
Officer noted that the assessee declared income from various sources which are as under:
Interest from S.B A/c

1,374

Registration charges

22,91,714

Incentive

1,750

Honorarium to Doctor

90,000

Income from X-ray

6,78,600

Blood other Test

12,01,870

Testing charges

14,018

Miscellaneous income

6,000

Sale of medicine without GST

80,48,093

GST from Medicine sale

7,87,584

Closing stock of medicine

9,77,546

Total
1,40,98,549

I.T.A. No.52/Kol/2025
Assessment Year: 2018-19
Contai Rotary Community Welfare Trust

3
3. Aggrieved by the order of the Assessing Officer, the assessee filed an appeal before the ld. CIT(A) contending that the non-compliance was due to negligence of the previous counsel and lack of timely communication. It was also argued before the ld. CIT(A) that sufficient materials were later on submitted but the ld. CIT(A) without detailed examination of the facts and evidences confirmed the order of the Assessing Officer by simply dismissing the appeal of the assessee on technical ground.
4. Dissatisfied with the above order, the assessee has filed the present appeal before this Tribunal arguing that the assessment order was passed ex parte u/s 144 and the ld. CIT(A) also passed the appellate order without appreciating the facts and materials subsequently submitted. The ld. AR stated that the entire assessment and appellate proceedings were completed without granting proper opportunity to the assessee to be heard. He, therefore, prayed that the matter may be remanded back to the file of the Assessing Officer for fresh adjudication.
5. On the other hand, the ld. DR supported the orders of the authorities below and opposed the above prayer of remand.
6. After hearing rival contentions and perusing the materials available on record, we find that the assessment order was passed ex parte u/s 144 of the Act due to assessee’s non-compliance to the statutory notices.
We also find that even before the ld. CIT(A), the assessee failed to present its case effectively and the appeal was disposed of without proper consideration of the factual matrix and supporting documents. In the interests of justice and fair play, we are of the considered opinion that the matter needs to be restored to the file of the Assessing Officer for fresh consideration. We, therefore, set aside the order of the ld. CIT(A) and remand the matter to the file of the Assessing Officer for fresh adjudication after providing reasonable opportunity to the assessee to I.T.A. No.52/Kol/2025
Assessment Year: 2018-19
Contai Rotary Community Welfare Trust

4
furnish documentary evidences in support of its claim. We direct the assessee to appear positively before the Assessing Officer and comply with all the notices diligently which will be issued in the remand proceedings, failing to do so may result in ex parte adjudication as per law.
7. In the result, the appeal of the assessee is allowed for statistical purposes.
Kolkata, the 7th May, 2025. [Rajesh Kumar]

[Sonjoy Sarma]
लेखा सदèय/Accountant Member

ÛयाǓयक सदèय/Judicial Member

Dated: 07.05.2025. RS

Copy of the order forwarded to:
1. Contai Rotary Community Welfare Trust
2. ITO, Ward-1(1), Exemption, Kolkata
3. CIT(A)-
4. CIT- ,

////
By order