IMPROVEMENT TRUST,RAJPURA vs. ITO EXEMPTION, CHANDIGARH

1. That, on the facts and circumstances of the case, and in law, the ADDL/JCIT(A)-1Noiada (hereinafter referred to as ‘CIT(A), has erred in passing the said order in contravention of the provisions of Section 240 of the Income Tax Act, 1961 (hereinafter referred to as “the Act’), without referring to the material on record. 2 That, on the facts and circumstances, and in law, the Worthy CIT(A), through his order, has erred in passing the said order without providing a fair opportunity of being heard, thereby contravening the principles of natural justice. 3. That, on the facts and circumstances of the case, and in law, the Worthy CIT(A) has erred in confirming the action of the Learned Assessing Officer (AO), wherein the A.O. made the impugned addition of Rs. 26,48,388/- by holding that assessee is not entitled for the benefit of exemption u/s 11 of the Income Tax Act, 1961, with respect to Section 2(15) read with Section 13(8) of the Act. 4. That, on the facts and circumstances of the case, and in law, the Worthy CIT(A) has erred in confirming the action of the Learned Assessing Officer (AO), wherein the Ld. A.O. grossly erred in not accepting condonation of filling Form No. 10. Improvement Trust, Rajpura.

Per contra, the Ld. DR relied on the orders of the authorities below.

We have considered the assessment order passed by the Assessing Officer and the appellate order passed by the Addl. CIT(A). We find that in the present case, the Addl. CIT(A) has passed ex-parte order without going into the merits of the case, therefore, we are of the considered view that in the fitness of things and keeping in view the element of natural Improvement Trust, Rajpura. justice to the Assessee, the matter should be remanded back to the file of the CIT(A) for adjudication afresh on merit.

Accordingly, the case is remanded back to the file of the CIT(A) for adjudication afresh on merit, by considering the submissions and documents produced by the Assessee and the relevant material available on record. Needless to say, that the CIT(A) shall afford due, reasonable and adequate opportunity of hearing to the Assessee. The Assessee, no doubt, shall cooperate in the fresh proceedings before the CIT(A). All pleas available under the law shall remain so available to the assessee. Ordered accordingly.

In the result, appeal of the Assessee is allowed for statistical purposes.