SHREE SARASWATI EDUCATION SANSTHAN,MEHSANA vs. THE ITO, EXEMPTION, PALANPUR

: 2211 & 2212/Ahd/2024 Asst. Years: 2019-20 & 2020-21 Shree Saraswati Income Tax Officer Education Sansthan (Exemption) At & Post Rajpur, Vs Palanpur Rajpur Taluka Kadi Dust Dist: Banaskantha, Mehsana-382740 Gujarat, India PAN: AAITS3179G (Appellant) (Respondent) Assessee Represented: Shri Divyakant Parikh, A.R. Revenue Represented: Shri V Nandakumar, CIT-DR Date of hearing : 18-03-2025 Date of pronouncement : 18-03-2025 आदेश/ORDER PER : T.R. SENTHIL KUMAR, JUDICIAL MEMBER:-

These two appeals are filed by the Assessee as against two separate exparte appellate orders both dated 17.10.2024 passed by the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi, (in short referred to as “CIT(A)”), arising out of the rectification orders passed under section 154 of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) relating to the Assessment Years 2019-20 & 2020-21.

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raised by the Assessee are as follows:

1. The learned CIT(Appeals)/NATIONAL FACELESS APPEAL CENTRE (NFAC] has grievously erred both in law and on facts in dismissing the appeal of the appellant on the ground of non-compliances with notices which were not received for the reasons that they were issued on email address of employee who had left the organization. The appellant, having no knowledge of the notices as per averment in affidavit, could not make submissions and had no opportunity of being heard. It be so held now and order passed by ld. CIT(A)/NFAC be set aside.

2. Without prejudice to the above ground, the ld. CIT(A)/NFAC further erred in law and on facts in not appreciating that the appellant had filed detailed grounds and facts were available on record so that ex parte order ought not to have been passed dismissing appeal. It be so held now and in the interest of justice, the order be set aside for fresh proceedings and opportunity to appellant to submit on the grounds in detail.

3. Without prejudice to the above grounds, the ld. CIT(A)/NFAC also grievously erred in law and on facts in not even properly applying his mind to the facts stated in ground of appeal that deduction for sum of Rs.14,01,03,120/- expended or applied for the purposes of the Trust as per audited accounts and statement/return was not allowed in Intimation u/s 143(1) against sanction of law without intimation as per proviso to section 143(1) and not rectifying the same u/s 154 to allow such deduction u/s 11 of the Act.

4. The appellant having been registered u/s 12AA and deduction of amount of Rs. 14,01,03,120/- applied for purposes of the Trust ought to be deducted as claimed but the same was by mistake not deducted. This fact being obvious even on merits, the appeal ought to be allowed. It be so held now and Returned income/deficit be directed to be accepted now.

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5. Both the lower authorities erred in law and on facts in making/sustaining the adjustments without sanction of law and without pre intimation as per proviso to section 143(1) The resultant intimation and rectification order not allowing claim deserve to be quashed and claim of deduction be allowed.

7. Without prejudice to the above grounds, the Id CIT(A)/NFAC erred in law and on facts in not appreciating that appellant had filed Form No: 108 on 09.09.2019 and filed return well before the due date, also when the same was available while processing return u/s 143(1). The disallowance of deduction of sums applied for purposes of the Trust is thus wrongly made and wrongly added/adjusted and that too, without pre intimation as per proviso to section 143(1) of the Act. It be so held now. 8. The Order passed by ld. CIT(A)/NFAC in violation of principles of natural justice and audi alterem partem deserves to be set aside. It be set aside now. 9. The appellant craves leave to add, alter, modify or delete any of the grounds at the time of hearing.

6. Recording the above statements of both the parties, the exparte appellate orders passed by Ld. CIT(A) are hereby set aside with a & 2212/Ahd/2024 A.Ys. 2019-20 & 2020-21 Page No 4 Shree Saraswati Education Sansthan vs. ITO direction to Ld. CIT(A) to give one more opportunity of hearing to the assessee by issuing physical hearing notice and then pass orders on merits of the case. Needless to say, the assessee should cooperate in the final hearing opportunity given to the assessee.

Order pronounced in the open court on 18-03-2025