SRI DEVRAJ URS EDUCATIONAL TRUST FOR BACKWARD CLASSES(R) ,KOLAR vs. INCOME TAX OFFICER (TDS) WARD-2(2), BANGALORE

IN THE INCOME TAX APPELLATE TRIBUNAL BANGALORE BENCHES : “B”, BANGALORE BEFORE SHRI A.K.GARODIA, ACCOUNTANT MEMBER AND SMT.BEENA PILLAI, JUDICIAL MEMBER ITA Nos.3307 to 3312(Bang)/2018 (Assessment years : 2013-14 to 2014-15) Shri Devaraj Urs Educational Trust for Backward Classes, Tamaka, Kolar-563 101 Pan No.AAATS5344P Appellant Vs The Income Tax Officer, Ward-2(2), Bangalore Respondent Appellant by : Shri S.Ramasubramanian, CA Revenue by : Shri Guruprasad, Addl.CIT

Date of hearing : 21-10-2019 Date of pronouncement : 23-10-2019 O R D E R PER BENCH : At the outset, Ld.AR submitted that issues arise out of orders dated 09/10/18 passed by Ld.CIT (A)-13, Bangalore for assessment years 2013-14 and 2014-15. It has been submitted that these orders are directed against orders passed under section 201(1) and 201(1A) for years under consideration. 2. Brief facts of the case are as under: Assessee is a trust running Medical College in Kolar. Survey under section 133A of the Act was conducted at the premises, wherein

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documents were found establishing assessee having received donations from its employees on which benefit of deduction under section 80G was given. It has been observed by authorities below that three employees have given donations under section 80G to the trust were summoned under section131 of the IT Act, 1961 and were examined by AO. Based upon the statements of these employees and also verifying the documents/details filed by assessee was treated to be in default and orders under section 201 (1) and 201(1A) was passed for years under consideration. 3. At the outset, in all the appeals filed before us, assessee alleged legal issue of gross violation of principles of natural Justice, as no notice was issued before passing orders under section 201(1) and 201 (1A) of the Act by Ld.AO. Ld.AR submitted this issue was raised before Ld.CIT(A), however it has not been adjudicated. He also submitted that copies of evidences relied upon by Ld.AO to compute interest under section 201(1) and 201(1A) of the Act has not been provided to assessee. 4. Under such circumstances, in our considered opinion, there has been gross violation of principles of natural Justice. We thus, direct Ld.CIT(A) to call for assessment records verify the details regarding legal plea raised by assessee in respect of non-issuance of show cause notice under section 201(1) and 201(1A) of the Act. 5. Accordingly, we set aside all appeals back to Ld.CIT(A) to decide legal ground raised as noted in para-4 above. In the event, assessee fails on the legal plea raised, Ld.CIT (A) is directed to pass a fresh order on merits also having regard to provisions of

ITA Nos.3307 to 3312(B)/2018 Page 3 of 3 the Act, because decision on merit should be after deciding the legal issue. 6. In the result appeal is filed by assessee stands allowed for statistical purposes. Order pronounced in the open court 23-10-2019 Sd/- Sd/- (A.K.GARODIA) (BEENA PILLAI) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated: 23-10-2019 *am Copy of the Order forwarded to: 1.Appellant; 2.Respondent; 3.CIT; 4.CIT(A); 5. DR 6. ITO (TDS) 7.Guard File By Order

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