SHREE JAIN SHEWATAMBER SANSTHAN,ARADHNA BHAWAN vs. ITO(EXEMPTION), WARD-I JAIPUR
आयकर अपीलीय अधिकरण] जयपुर न्यायपीठ] जयपुर
IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHES,”SMC” JAIPUR
Jh jkBkSM+ deys'k t;UrHkkbZ] ys[kk lnL; ,o Jh ujsUnz dqekj] U;kf;d lnL; ds le{k
BEFORE: SHRI RATHOD KAMLESH JAYANTBHAI, AM & SHRI NARINDER KUMAR, JM vk;dj vihy la-@ITA No. 340/JPR/2025
fu/kZkj.k o"kZ@Assessment Year : 2010-11
Shree
Jain
Shewatmber
Sansthan
I-1, Vashishtha Marg, Shyam
Ward-1,
Jaipur.
LFkk;hys[kk la-@thvkbZvkj la-@PAN/GIR No.: AACTS2447M vihykFkhZ@Appellant izR;FkhZ@Respondent fu/kZkfjrh dh vksj ls@Assessee by : Sh. Vimal Chopra, C.A.
jktLo dh vksj ls@Revenue by: Shri Gautam Singh Choudhary, Addl. CIT lquokbZ dh rkjh[k@Date of Hearing
: 15 /10/2025
mn?kks"k.kk dh rkjh[k@Date of Pronouncement: 15/10/2025
vkns'k@ORDER
PER: Narinder Kumar, Judicial Member,
Appellant claims to be a society, registered under Rajasthan Societies
Act, 1958, and section 12A of the Income Tax Act, 1961 (hereinafter referred to as “the Act”).
Appellant is feeling aggrieved by order dated 06.01.2025, passed by Learned CIT(A), NFAC, Delhi, whereby assessment order dated 25.08.2017, relating to the assessment year 2010-2011, has been sustained, while dismissing the appeal filed by the assessee.
2
Shree Jain Shewatamber Sansthan, jaipur
Arguments heard. File perused. Facts in Brief 3. Appellant society is allegedly running a Homeopathic clinic, where medicines are provided/supplied free of cost, in addition to other activities. Further, it has been claimed in the statement of facts, before this Appellate Tribunal, that the society is run and managed by Jain Samaj, but the beneficiary of its activities is actually the public at large. 4. Vide assessment order dated 25.08.2017, passed u/s 147 r.w.s. 144 of the Act, the Assessing Officer computed total income of the assessee society at Rs. 10,50,970/-: (a) while arriving at the conclusion that the assessee society was found not eligible to claim benefit u/s 11 of the Act, in view of provisions of section 13(1)(b) of the Act. Accordingly, while denying benefit of sections 11 and 12 of the Act to the assessee society, the Assessing Officer passed the assessment order.
(b) The Assessing Officer treated an income of Rs. 9,04,499/- as income of the assessee society, having noticed that a sum of Rs. 7,34,499/- said to have been received on Dev Dravys and a sum of Rs. 1,70,000/- received on Aradhana Bhawan, were not found eligible for benefit of provisions of section 11 of the Act.
3
Shree Jain Shewatamber Sansthan, jaipur
Admittedly, the assessee society had not filed any return of income for the year under consideration. An information was available with the Income Tax Department that the assessee had deposited in cash of Rs. 12,33,000/- in its bank account maintained with the Bank of Rajasthan Limited (ultimately known as ICICI Bank). That is how, proceedings were initiated u/s 147 of the Act. Notice u/s 148 of the Act, was issued, on the basis of reasons recorded and after obtaining of requisite approval from Ld. CIT(E). That is how, on 30.06.2017, return of income was filed declaring income of Rs. 1,25,414/-. However, the Assessing Officer in para 3 of the assessment order the return of income having not been filed within the time allowed vide notice u/s 148 of the Act, no cognizance thereof could be taken. Accordingly, the Assessing Officer proceeded to complete assessment proceedings u/s 144 of the Act. 6. As is available from para 4 of the assessment order, notice u/s 142(1) of the Act accompanied by a questionnaire was issued, and served upon the assessee. Thereupon, the authorized representative of the assessee participated in the proceedings and produced books of account with reference to the details furnished. Ultimately, the assessment order came to be passed on 25.08.2017, while making above said addition, which in turn, came to be confirmed by Learned CIT(A).
4
Shree Jain Shewatamber Sansthan, jaipur
The Sole Contention on behalf of the Appellant
7. The only raised by Ld. AR for the appellant-assessee society before this Bench is that the Assessing Officer never issued any notice u/s 143(2) of the Act, and as such, the assessment order deserves to be set aside, but Learned
CIT(A) sustained the addition, without dealing with said contention raised before Learned CIT(A), NFAC, on the ground that no notice u/s 143(2) of the Act was issued to the assessee.
8. A perusal of form 35 submitted before Learned CIT(A), NFAC would reveal that initially no such ground was raised in the grounds of appeal.
9. At page 25 to 27 of the appeal file there is available copy of notice dated
20.12.2024 issued by the office of Learned CIT(A), NFAC calling upon the assessee to furnish written submissions on or before 27.12.2024. Thereupon, on 27.12.2024, the assessee society put forth submissions with prayer that more grounds of appeal were sought to be raised in the appeal.
One of the grounds so sought to be raised was the abovesaid legal ground raised before this Bench. As per page 30 of the appeal file, said prayer was uploaded by the assessee, on the e-portal of the department on 24.12.2024 in reply to the notice dated 20.12.2024. 10. In the given situation, Learned CIT(A), NFAC should have dealt with the prayer made by the assessee society to raise said ground and another ground
5
Shree Jain Shewatamber Sansthan, jaipur mentioned in the remarks column of the e-Proceedings Response
Acknowledgment.
From the impugned order, we do not find that the above said prayer seeking to raise additional ground of appeal was considered by Learned
CIT(A), NFAC. Ld. DR for the department admits this fact.
Non service of notice under section 143(2) of the Act- Its impact ?
11. Coming to the only legal ground regarding non service of notice u/s 143(2) of the Act, on the assessee, Ld. AR for the appellant has relied on the following decisions:-
PCIT vs. Kamla Devi Sharma, in D.B. Income Tax Appeal No. 197/2018
dated 10.07.2018 Hon’ble Rajasthan High Court .
Major Suresh Yadav (Retd.) vs. ITO, ITA No. 9432/Del/2019 dated
31.07.2023. 12. Admittedly, no notice u/s 143(2) of the Act appears to have been issued by the Assessing Officer to the assessee society. Even in the assessment order, there is no mention about issuance of any such notice to the assessee.
As observed above, Learned CIT(A), NFAC should have decided said issue.
Even a report could be called in this regard by Learned CIT(A), NFAC, from the office of the Assessing Officer, but, when Learned CIT(A), NFAC did not consider the said legal ground, we have no option, but to infer that no such 6
Shree Jain Shewatamber Sansthan, jaipur notice u/s 143(2) of the Act, was issued by the Assessing Officer to the assessee.
Non issuance of notice u/s 143(2) of the Act is not a curable defect as observed by Hon’ble Delhi High Court in case of Pr. CIT vs Shri Jain Shiv
Shankar Travels (P.) Ltd. (2015) 64 Taxmann.com 220 (Delhi) .
Therein, it was observed that failure to issue such notice to the assessee is fatal to the assessment order.
In view of the decisions cited by Ld. AR for the appellant, we hold that the assessment order suffers from illegality and deserves to be set aside, but Learned CIT(A), NFAC did not decide said issue.
Result
13. This appeal is allowed on the above said technical and legal ground, and the impugned order passed by Learned CIT(A), NFAC, and the assessment order, passed by the Assessing Officer are hereby set aside.
File be consigned to the record room after the needful is done by the office.
Order pronounced in the open court on 15/10/2025. ¼jkBkSM+ deys'k t;UrHkkbZ ½
¼ujsUnz dqekj½
(RATHOD KAMLESH JAYANTBHAI)
(NARINDER KUMAR) ys[kk lnL; @Accountant Member U;kf;d lnL;@Judicial Member
Tk;iqj@Jaipur fnukad@Dated:- 15/10/2025
7
Shree Jain Shewatamber Sansthan, jaipur
*Santosh
आदेश की प्रतिलिपिअग्रेf’ात@ब्वचल वf जीम वतकमत वितूंतकमक जवरू
1. The Appellant- Shree Jain Shewatmber Sansthan, Jaipur.
2. izR;FkhZ@ The Respondent- ITO (Exemption), Ward-1, Jaipur.
3. vk;dj vk;qDr@ The ld CIT
4. vk;dj vk;qDr@ CIT(A)
5. विभागीय प्रतिनिधि] आयकर अपीलीय अधिकरण] जयपुर@क्त्ए प्ज्Aज्ए Jंपचनत
6. xkMZ QkbZy@ Guard File ITA No. 340/JPR/2025) vkns'kkuqlkj@ By order,
सहायक पंजीकार@Aेेजज. त्महपेजतंत