DERMATOLOGICAL SOCIETY,SADASHIV PETH PUNE CITY vs. COMMISSIONER OF INCOME-TAX (APPEALS), NATIONAL FACELESS APPEAL CENTRE (NFAC) DELHI

This appeal filed at the instance of assessee is directed against the order of Ld. CIT(A)/NFAC dated 22.05.2024 which is arising out of the assessment order for Assessment Year 2017-18 framed on 26.12.2019 by the ITO, Ward-3(4), Pune.

At the outset, Ld. Counsel of the assessee submitted that the assessee due to unavoidable circumstances could not appear before the lower authorities and an ex-parte order u/s 144 of the Act has been passed by the Assessing Officer and even before Ld. CIT(A)/NFAC thought the assessee has been given multiple opportunities to reply/file any submission but the assessee failed to avail any of them. He further submitted that for lack of necessary reply the total deduction u/s 57 of the Act at Rs.58,78,332/- has been denied and the gross receipts has been subjected to tax. He therefore prayed that an opportunity may be provided to go before Ld. Assessing Officer so that all the relevant details can be filed to explain the expenditure of Rs.58,78,332/- incurred by the assessee society which works for the education and training of dermatologists located in the city of Pune. He also submitted that surplus of Rs.11,69,330/- earned by the assessee during the year was from conducting of Study Conference (ASICON 2016) jointly with the Association of Cutaneous Surgeons of India (ACSI).

On the other hand, Ld. Departmental Representative supported the orders of the lower authorities but did not oppose to the request of the assessee if the matter is restored to the file of the Jurisdictional Assessing Officer for necessary verification.

We have heard rival submissions and perused the record placed before us. The assessee is aggrieved with the addition of Rs.58,78,332/- confirmed by Ld. CIT(A)/NFAC which was made by the Assessing Officer by denying the claim of deduction u/s 57 Act solely on account of non-compliance by the assessee during the course of assessment proceedings. It is an admitted fact that though the assessee has e-filed the return of income on 31.03.2018 declaring income of Rs.11,69,330/-, but failed to appear in the scrutiny proceedings which were initiated for limited purpose of examining the large deduction claimed u/s 57 of the Act. The records indicate that the assessee which is a society and working for the education and training of dermatologists in the city of Pune conducted a Study Conference (ASICON 2016) jointly with the Association of Cutaneous Surgeons of India (ACSI) and against the gross receipts of Rs.70,47,662/- including the receipts from members attending the conference, the expenditure of Rs.58,78,332/- were claimed to have been incurred for organizing the conference which included the expenses for venue, food, travelling, etc.. Before us, Ld. Counsel for the assessee stated that the assessee has all necessary evidences to explain the genuineness of expenditure of Rs.58,78,332/- and if an opportunity is granted, the details can be placed before Ld. Assessing Officer for necessary examination. We therefore in the interest of justice and being fair to both the parties set-aside the finding of Ld. CIT(A)/NFAC and direct the Jurisdictional Assessing Officer (JAO) to carry out the