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Facts
The assessee-Trust, registered under Section 12A(a), received intimations under Section 143(1) raising demands for A.Y. 2014-15 and 2015-16 before its 12A registration. Its petitions for rectification under Section 154 were rejected by the Assessing Officer, and subsequent appeals to the CIT(Appeals) were dismissed ex-parte due to non-submission of documents or representations.
Held
The ITAT, invoking principles of natural justice, set aside the ex-parte orders of the CIT(Appeals) and remitted the matter back for fresh adjudication. The assessee is directed to cooperate, failing which the CIT(Appeals) is free to pass appropriate orders based on available records.
Key Issues
Whether the CIT(Appeals) was justified in dismissing appeals ex-parte, upholding assessment orders based on intimations under Section 143(1) despite pending rectification applications under Section 154 and subsequent Section 12A registration.
Sections Cited
12A, 12A(a), 143(1), 154
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, ‘SMC’ BENCH, KOLKATA
Before: Shri Duvvuru RL Reddy, Vice-(KZ)
Life Saving Society of India,….……..……Appellant 80/1/2, Kankulia Road, Ballygunge, Kolkata-700029 [PAN:AABTL0670J] -Vs.- Income Tax Officer (Exemption),..……...Respondent Ward-1(4), Kolkata, 10B, Middleton Row, 6th Floor, Room No. 10, Kolkata-700007, West Bengal Appearances by: Ms. Swati Baid, A.R., appeared on behalf of the assessee Shri Dheeraj, Sr. D.R., appeared on behalf of the Revenue Date of concluding the hearing: March 18, 2025 Date of pronouncing the order: March 20, 2025 O R D E R
The present appeals bearing and 2366/KOL/2024 are directed at the instance of assessee against the orders of ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi, both dated 26th September, 1 (A.Y. 2014-2015) & (A.Y. 2015-2016) Life Saving Society of India 2024 passed for Assessment Years 2014-15 and 2015-16 respectively.
Brief facts of the cases are that the assessee-Society was established on 24th May, 2013 for charitable purposes. The assessee filed an application for registration under section 12A(a) of the Income Tax Act, 1961 in Form No. 10A on 26.03.2018 and the Trust was granted registration by the ld. CIT(Exemptions), Kolkata vide order dated 31.08.2018. The assessee-Trust filed its returns of income for the assessment years 2014-15 and 2015-16 on 31.03.2016 showing total income at ‘NIL’. Intimation under section 143(1) of the Act was issued showing a demand of Rs.4,14,850/- as income tax payable on gross income after allowing TDS of Rs.10,142/- before grant of registration u/s 12A for assessment year 2014-15. Petition was filed by the assessee- Trust on 23.01.2019 under section 154 for rectification of the said demand of Rs.4,14,850/- for A.Y. 2014-15, but ld. Assessing Officer rejected the petition under section 154. Similarly, intimation under section 143(1) showing a demand of Rs.9,77,120/- after allowing TDS of Rs.22,996/- was served before grant of registration under section 12A for A.Y. 2015-16. Petition under section 154 for rectification of the said demand of Rs.9,77,120/- was filed on 23.01.2019 but ld. Assessing Officer rejected the petition.
On being aggrieved, the assessee-Trust preferred appeals before the ld. CIT(Appeals). (A.Y. 2014-2015) & (A.Y. 2015-2016) Life Saving Society of India
The ld. CIT(Appeals) has given several opportunities to the assessee to substantiate its claim, but the appellant did not file the written submissions and did not represent the case before the ld. CIT(Appeals). Thereafter the ld. CIT(Appeals) dismissed the appeals ex-parte on 26th September, 2024.
On being aggrieved, the assessee preferred appeals before the ITAT.
At the time of hearing, it was the submission of the ld. Counsel for the assessee that ld. CIT(Appeals) passed ex-parte orders by upholding the orders passed by the ld. Assessing Officer. Therefore, he pleaded to delete the additions made by the ld. Assessing Officer as confirmed by the ld. CIT(Appeals).
At the outset, ld. D.R. brought to my notice that the assessee did not produce the relevant documents as asked by the ld. Assessing Officer during the assessment proceedings. Therefore, the ld. Assessing Officer passed the assessment orders assessing the taxable income at Rs. 4,14,850/- and Rs.9,77,120/- for A.Y. 2014-15 and 2015-16 respectively. Thereafter the assessee preferred appeals before the ld. CIT(Appeals). The ld. CIT(Appeals) has given many opportunities to the assessee and the assessee neither filed written submission nor any evidence before the ld. CIT(Appeals). He further submitted that before the ITAT, the (A.Y. 2014-2015) & (A.Y. 2015-2016) Life Saving Society of India assessee did not substantiate its claims. Therefore, he pleaded to uphold the orders passed by the revenue authorities.
I have heard the rival submissions and perused the material available on record. Considering the facts and circumstances of the case, I am inclined to set aside the orders passed by the ld. CIT(Appeals) in order to meet the principle of natural justice, and remit the matter back to the file of ld. CIT(Appeals) with a direction to provide one more opportunity of being heard to the assessee. At the same breath, I also hereby caution the assessee to promptly co-operate with the proceedings before the Ld. CIT(Appeals) failing which the Ld. CIT(Appeals) shall be at liberty to pass appropriate orders in accordance with law and merits of the cases, based on the materials available on the record. Thus, the grounds raised by the assessee in both the appeals are allowed for statistical purposes.
In the result, both the appeals of the assessee are allowed for statistical purposes. Order pronounced in the open Court on 20/03/2025.