SAMARPAN SEVA SAMITI SAMARTH DESH SAMARDH DESH,RAIPUR vs. INCOME TAX OFFICER-2(1), INDORE, INDORE
Facts
The assessee, a charitable entity, appealed against an assessment order for AY 2018-19, which the AO passed as an ex-parte best judgment assessment u/s 144, despite citing Section 143(3). Both the AO and CIT(A) noted the assessee's habitual non-compliance, failure to respond to multiple notices, and repeated requests for adjournments without providing documentary evidence. The assessee's AR sought a remand, citing difficulties during the Covid-19 period and the organization's charitable nature.
Held
The Tribunal, acknowledging the principles of natural justice, remanded the case back to the AO for fresh adjudication. The assessee was directed to pay a cost of Rs. 2,000/- to the Prime Minister National Relief Fund and ensure active participation in subsequent hearings without seeking unnecessary adjournments. The AO is to provide a fresh opportunity of hearing and pass an uninfluenced order.
Key Issues
The key issue was the validity of an ex-parte assessment due to the assessee's non-compliance, and whether, given its charitable status, the case should be remanded for fresh adjudication to provide another opportunity to present its case.
Sections Cited
143(3), 144
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, INDORE BENCH, INDORE
Before: SHRI B.M. BIYANI & SHRI PARESH M. JOSHI
आदेश/ O R D E R
Per B.M. Biyani, A.M.:
Feeling aggrieved by order of first-appeal dated 27.05.2024 passed by learned Commissioner of Income-Tax (Appeals)-NFAC, Delhi [“CIT(A)”] which in turn arises out of assessment-order dated 12.04.2021 passed by learned National e-Assessment Centre, Delhi [“AO”] u/s 143(3) of Income-tax Act, 1961 [“the Act”] for Assessment-Year [“AY”] 2018-19, the assessee has filed this appeal on the grounds mentioned in Appeal Memo (Form No. 36).
Page 1 of 3
Samarpan Seva Samiti Samarth Desh Samardh Desh ITA No. 540/Ind/2024 - AY 2018-19
It emerged on perusal of orders of lower-authorities that the AO has
though mentioned section 143(3) in assessment-order but actually passed
ex-parte order in the nature of best judgement assessment u/s 144. The AO
has noted in Para 5 to 11 of assessment-order the details of as many as 10
notices/reminders/show-cause notices given to assessee but the assessee
did not comply. In Para 7, the AO has mentioned “It is observed that the
assessee is a habitual non-complier”. Further, the CIT(A) has also noted in
Para 5.2 and 5.4 of impugned order that during first-appellate proceedings,
opportunities were given to assessee on 23.01.2024, 08.04.2024 and
08.05.2024 but the assessee only sought adjournments and did not file any
documentary evidence.
Ld. AR submitted that the AO issued notices during Covid-19 period
and further that the assessee is a charitable entity being handled by
honorary office-bearers, hence a liberal view should be taken and in the
interest of justice this case must be restored at the level of AO for
adjudication afresh. He asserted that the assessee shall be making adequate
participation before AO on the dates of hearing.
Ld. DR for revenue agreed that he has no objection if the case is
remanded to the file of AO. However, he emphasized the non-cooperative
attitude of assessee and requested to issue stricter directions to assessee.
In view of above submissions and also having regard to the principle
of natural justice and fair play, we deem it fit to remand this matter back to
Page 2 of 3
Samarpan Seva Samiti Samarth Desh Samardh Desh ITA No. 540/Ind/2024 - AY 2018-19
the file of AO for adjudication afresh, at the risk and responsibility of
assessee and subject to payment of cost of Rs. 2,000/- to Prime
Minister National Relief Fund and production of challan to AO. The AO
shall give necessary opportunity of hearing to assessee and pass an
appropriate order uninfluenced by his earlier order. The assessee is also
directed to ensure participation in the hearings as may be fixed by AO and
do not seek unnecessary adjournments failing which the AO shall be at
liberty to pass appropriate order in accordance with law. Ordered
accordingly.
Resultantly, this appeal is allowed for statistical purpose.
Order pronounced in open court immediate after conclusion of hearing and subsequently reduced in writing on same day.
Sd/- Sd/-
(PARESH M. JOSHI) (B.M. BIYANI) JUDICIAL MEMBER ACCOUNTANT MEMBER
Indore िदनांक/Dated : 26/03/2025 Patel/Sr. PS Copies to: (1) The appellant (2) The respondent (3) CIT (4) CIT(A) (5) Departmental Representative (6) Guard File By order UE COPYAssistant Registrar Income Tax Appellate Tribunal Indore Bench, Indore
Page 3 of 3
