SHALEM ASSEMBLIES OF GOD MISSION,MUMBAI vs. INCOME TAX EXEMPTION 2(3), MUMBAI

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ITA 5750/MUM/2025Status: DisposedITAT Mumbai23 January 2026AY 2022-233 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that both the assessment order passed by the AO under section 144 and the subsequent order of the CIT(A) were passed ex parte. The assessee's representative submitted that the assessee is involved in genuine charitable activities, including running a school in a slum area, and requested an opportunity to present its case before the AO. Considering the overall facts and circumstances, and in the interest of justice, the Tribunal was of the view that the assessee should be granted one more opportunity before the AO to substantiate its case. Accordingly, the Tribunal set aside the order of the CIT(A) and restored the matter to the file of the AO for fresh adjudication. The assessee was directed to comply with the notices issued by the AO and furnish all necessary details and evidences without fail. The appeal was allowed for statistical purposes.

What were the facts?

The assessee, Shalem Assemblies of God Mission, is a trust that filed its return of income for Assessment Year 2022-23 declaring NIL income. The Assessing Officer (AO), through an ex parte order under section 144 of the Income Tax Act, 1961, denied exemption under section 11 and assessed the total income at Rs. 1,60,49,860/-. The assessee appealed to the Learned Commissioner of Income Tax (Appeals) [CIT(A)], who also dismissed the appeal ex parte due to the assessee's non-compliance with notices. The assessee is a trust engaged in charitable activities, running a school in a Dharavi slum area.

What were the issues?

1. Whether the Tribunal should grant the assessee another opportunity to present its case before the Assessing Officer, given that both the assessment order and the CIT(A)'s order were passed ex parte due to non-compliance. Assessee's contention: The assessee argued that both the assessment order and the CIT(A)'s order were passed ex parte and requested one more opportunity to substantiate its case before the AO, highlighting its genuine charitable activities and operation of a school in a slum area. Revenue's contention: The Revenue supported the orders of the lower authorities and argued that the appeal deserves to be dismissed due to the assessee's non-compliance.

Which sections of the Income-tax Act were involved?

Section 144,Section 11

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “G” BENCH, MUMBAI

Before: SHRI SAKTIJIT DEY & SHRI JAGADISH

For Appellant: Shri Vimal Punmiya- CA
For Respondent: Shri. Swapnil Choudhari- Sr. D.R
Hearing: 21.01.2026Pronounced: 23.01.2026
1.

The present appeal filed by the assessee is directed against the order passed by the Learned Commissioner of Income Tax (Appeals), Mumbai [hereinafter “CIT(A)”] dated 25.07.2025, arising out of the assessment order passed by the Ld. Assessing Officer (AO) under section 144 of the Income Tax Act, 1961 (hereinafter “the Act”) dated 26.03.2024.

2.

The assessee is a trust and filed its return of income declaring total income as NIL. The AO, by an ex parte order passed under section 144 of the Act, denied exemption under section 11 and assessed the total income at Rs.1,60,49,860/-.

Shalem Assemblies of God Mission 3. Aggrieved, the assessee preferred an appeal before the Ld. CIT(A). However, the Ld. CIT(A) dismissed the appeal ex parte on the ground that the assessee did not comply with the notices issued.

4.

The Ld. Authorised Representative (AR), at the outset, submitted that both the assessment order and the order of the Ld. CIT(A) were passed ex parte.

Therefore, one more opportunity may be granted to the assessee to substantiate its case.

5.

The Ld. Departmental Representative (DR) supported the orders of the lower authorities and submitted that the appeal deserves to be dismissed as the assessee has not been compliant.

6.

We have considered the rival submissions and perused the material available on record. It is evident that the assessment was completed ex parte under section 144 of the Act, wherein exemption under section 11 was denied and the total income was assessed at Rs. 1,60,49,860/-. Further, the Ld. CIT(A) also dismissed the appeal ex parte due to non-compliance by the assessee. The Ld. AR submitted that the assessee is engaged in genuine charitable activities and is running a school in Dharavi slum area, and requested that one more opportunity may be granted to the assessee before the AO. Considering the overall facts and circumstances of the case, we are of the considered view that, in the interest of justice, the assessee should be given one more opportunity before the AO to substantiate its case. Accordingly, we set aside the order of the Ld. CIT(A) and restore the matter to the file of the AO for fresh adjudication after providing due opportunity of hearing to the assessee. The assessee is directed to comply with Shalem Assemblies of God Mission the notices issued by the AO and furnish all necessary details/evidences without fail.

7.

In the result, the appeal filed by the assessee is allowed for statistical purposes.

Order pronounced in the open court on 23rd day of January, 2026 at Mumbai.

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