JERMEL'S ACCADEMY,SILIGURI vs. I.T.O., WARD - 1(4), SILIGURI, SILIGURI

Facts

The assessee, Jermel's Academy (a Trust running a school), filed appeals against orders from the CIT(A) for Assessment Years 2014-15, 2015-16, and 2017-18. The CIT(A) had dismissed the appeals, often ex-parte, citing non-compliance, and had denied exemption under Section 11(1) for AYs 2014-15 and 2015-16. For AY 2017-18, cash deposits during demonetization were treated as unexplained money under Section 69A, and the trust was treated as an AOP, with issues also raised regarding the validity of reassessment proceedings and sanction under Section 151. A delay of 217 days in filing the ITAT appeal for AY 2017-18 was attributed to the ex-accountant's failure to inform the trustees.

Held

The ITAT condoned the delay for AY 2017-18, finding reasonable cause. It held that the CIT(A) failed in its duty to pass speaking and reasoned orders on merits, instead dismissing appeals often ex-parte without properly adjudicating the grounds or considering evidence, contrary to Section 250(6) of the Income Tax Act and established jurisprudence. Consequently, the ITAT remitted all three appeals back to the CIT(A) for de novo consideration and fresh speaking orders on merits, allowing the assessee a reasonable opportunity to furnish evidence.

Key Issues

Whether the delay in filing the appeal for AY 2017-18 should be condoned; whether the CIT(A) was justified in passing ex-parte orders and dismissing appeals without reasoned adjudication on merits; the eligibility of the assessee trust for exemption under Sections 11 and 12, and the treatment of cash deposits as unexplained money under Section 69A; and the validity of reassessment proceedings for lack of recorded reasons and sanction under Section 151.