DY. COMMISSIONER OF INCOME TAX (EXEMPTIONS), CIRCLE, PUNE, SWARGATE, PUNE vs. DATTAJIRAO KADAM TECHNICAL EDUCATION SOCIETY ICHALKARANJI, KOLHAPU
Income Tax Appellate Tribunal, PUNE BENCH “A”, PUNE
Before: SHRI R. K. PANDA & MS. ASTHA CHANDRAAssessment year : 2022-23
PER R.K. PANDA, VP:
This appeal filed by the Revenue is directed against the order dated
11.11.2024 of the Ld. CIT(A) / NFAC, Delhi relating to assessment year 2022-23. 2. It was seen from the order sheet entries that due to non-appearance from the side of the assessee on 2 occasions, a notice was served on the assessee through the Department. However, despite such notice being served on the assessee
(acknowledgement is placed on record), none appeared on behalf of the assessee nor any application seeking adjournment of the case was filed. Under these circumstances, we deem it proper to decide the appeal on the basis of material available on record and after hearing the Ld. DR.
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3. Facts of the case, in brief, are that the assessee is a trust and has been granted registration u/s 12A of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’). It filed its return of income on 29.09.2022 declaring Nil income.
The case of the assessee was selected for scrutiny. Accordingly statutory notices u/s 143(2) and 142(1) of the Act were issued and served on the assessee. The assessee in response to the same filed its submissions. During the course of assessment proceedings the Assessing Officer noted that the assessee is a trust and has been granted registration u/s 12A of the Act. It has obtained provisional registration on 28.05.2021 from assessment year 2022-23 to assessment year 2026-
27. The receipts of the trust are mainly from fees, govt. grants, donation, rental income etc. The assessee is running 16 schools and colleges. From the financials submitted by the assessee the Assessing Officer noted that during the year the assessee has received gross receipts of Rs.60,59,81,891/- and claimed revenue expenditure of Rs.51,04,00,807/- and capital expenditure of Rs.2,02,79,774/-. He further noted that the assessee has also claimed repayment of loan of Rs.4,72,20,482/- as application. Since the assessee did not furnish the financials along with receipts and payments account, the computation of income for the year in which the loan was taken, the confirmation of loan taken from the bank and supporting bank statement and sanction details and did not furnish the breakup of capital expenditure incurred out of loan and since it is not clear as to whether the funds utilized towards capital expenditure is met out of borrowed loan or from the receipts of the assessee, the Assessing Officer did not allow the claim of repayment
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of loan u/s 11 and disallowed the same. He accordingly disallowed an amount of Rs.4,72,20,482/-.
In appeal the Ld. CIT(A) / NFAC restored the matter to the file of the Assessing Officer for de novo assessment after granting sufficient opportunity to the assessee and re-examine the submission submitted by the assessee during appeal proceedings.
Aggrieved with such order of the Ld. CIT(A) / NFAC, the Revenue is in appeal before the Tribunal.
The Ld. DR at the outset submitted that since the order was passed u/s 143(3) r.w.s. 144B of the Act on 24.03.2024 which is evident from the assessment order, the Ld. CIT(A) / NFAC was not justified in setting aside the order passed by the Assessing Officer for de novo assessment since it is not an ex-parte order. He accordingly submitted that the matter may be set aside to the file of the Ld. CIT(A)/NFAC with a direction to decide the appeal on merit.
We have heard the Ld. DR and perused the record. A perusal of the assessment order shows that the Assessing Officer has passed the order u/s 143(3) r.w.s. 144B of the Act on the basis of the various submissions made by the assessee. Therefore, it is not an ex-parte order passed by the Assessing Officer u/s 144 of the Act and therefore, the Ld. CIT(A) / NFAC was not justified in setting
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aside the order to the file of the Assessing Officer for de novo assessment without adjudicating the same on merit by himself. We, therefore, deem it proper to restore the issue to the file of the Ld. CIT(A) / NFAC with a direction to decide the appeal on merit and as per fact and law after providing due opportunity of being heard to the assessee. We hold and direct accordingly. The grounds raised by the Revenue are accordingly allowed.
In the result, the appeal filed by the Revenue is allowed.
Order pronounced in the open Court at the conclusion of hearing itself i.e. on 26th August, 2025. (ASTHA CHANDRA)
VICE PRESIDENT
पुणे Pune; दिन ांक Dated : 26th August, 2025
GCVSR
आदेश की प्रतितिति अग्रेतिि/Copy of the Order is forwarded to:
अपीलार्थी / The Appellant; 2. प्रत्यर्थी / The Respondent
4. The concerned Pr.CIT, Pune DR, ITAT, ‘A’ Bench, Pune 5. गार्ड फाईल / Guard file.
आदेशानुसार/ BY ORDER,
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Senior Private Secretary
आयकर अपीलीय अधिकरण ,पुणे
/ ITAT, Pune
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S.No.
Details
Date
Initials
Designation
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Draft dictated on 26.08.2025
Sr. PS/PS
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Draft placed before author
26.08.2025
Sr. PS/PS
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Draft proposed & placed before the Second Member
JM/AM
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Draft discussed/approved by Second
Member
AM/AM
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Approved Draft comes to the Sr. PS/PS
Sr. PS/PS
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Kept for pronouncement on Sr. PS/PS
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Date of uploading of Order
Sr. PS/PS
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File sent to Bench Clerk
Sr. PS/PS
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Date on which the file goes to the Head
Clerk
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Date on which file goes to the A.R.
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Date of Dispatch of order