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Facts
The assessee, a Trust, filed its return of income showing 'Nil' income for AY 2018-19. The case was selected for scrutiny, and the assessee had set apart Rs. 91,00,000/- for specific funds. The AO asked for details of receipts, payments, income, expenditure, and investments, which the assessee failed to provide.
Held
The Tribunal noted that the assessee was given sufficient opportunities but failed to submit necessary documents and evidence, showing non-compliance and negligence in pursuing the case. The Tribunal imposed a cost of Rs. 500/- and remitted the matter back to the AO for fresh adjudication, granting an opportunity to the assessee to present their case.
Key Issues
Whether the AO erred in assessing the returned income of 'Nil' as Rs. 91,00,000/- and whether the assessee was provided with adequate opportunities to present their case.
Sections Cited
143(3), 143(3A), 143(3B), 11(5)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, RAJKOT BENCH, RAJKOT
Before: DR. ARJUN LAL SAINI & SHRI DINESH MOHAN SINHA
आदेश / O R D E R Per, Dinesh Mohan Sinha, JM:
Captioned appeal filed by the assessee, pertaining to Assessment Year (AY) 2018-19, is directed against the order passed by the Learned Commissioner of Income Tax(Appeals), National Faceless Appeal Centre, Delhi [in short “the Ld. CIT(A)/NFAC”], dated 06.06.2025, which in turn arises out of an assessment order passed by Assessing Officer (in short ‘the AO”) u/s 143(3) r.w.s. 143(3A) and 143(3B) of the Income Tax Act, 1961 (hereinafter referred to as “the Act”), vide order dated 13.04.2021.
Grounds of appeal raised by the assesse, are as follows:
Dff Ajara Parshwanathji Pachtithi Jain “1.That the learned AO has grievously erred in assessing the returned income of Rs.Nil, at Rs.91,00,000/-. 2. that the appellat craves for leave and add, amend, and/or modify the grounds of appeal.”
Brief facts of the case that the Assessee is a Trust and e-filed its return of income on 31.10.2018 showing income of Rs. Nil. The case has been selected for complete Scrutiny through CASS for accumulation of income by Trust. The CASS reason was examined with available records. The assessee trust has set apart/ accumulated of Rs.91,00,000/- a part of its receipts for the following purposes. i. Derasar Jinodhar Jogwai Fund - Rs. 31,00,000/- ii. Navi Dharmshala Bandhkam Jogwai Fund- Rs.60,00,000/-.
The assessee was asked to furnish the details of receipts and payment account, income and expenditure account, investment of accumulated fund etc., for the purpose of ascertaining whether the assessee has made investments in accordance with the modes specified u/s 11(5) of the Income Tax Act. The assessee has not furnished any details. Hence the amount accumulated/set apart by the assessee trust is not treated as "Accumulation of income" and is taxed accordingly. In view of the above, the assessment is completed u/s. 143(3) of the Income Tax Act as under: Returned income - NIL Add: As discussed above - Rs.91,00,000 Assessed income - Rs.91,00,000
That the assessee filed an appeal against the order of the AO, before the Ld.CIT(A). that the Ld.CIT(A) dismissed the appeal of the assessee, observing as follows:
Page 2 of 4 Dff Ajara Parshwanathji Pachtithi Jain “8. In the present case, appellant has been provided more than sufficient opportunity but appellant failed to submit any submission or evidence during appeal proceedings in support of grounds of appeal as well as statement of facts, and remained non- compliant, therefore, in view of the above, I am constrained to uphold the order of the AO in absence of any supporting evidence, document presented by the appellant.
9. In the result, the appeal of the assessee is dismissed.”
6. That the assessee filed an appeal against the impugned order of the Ld.CIT(A), before this Tribunal.
During the course of hearing, the Ld.AR of the assesse submitted that the Ld.AR of the assessee prayed that one more opportunity may kindly be given to the assessee to explain the case before the lower authorities.
On the other hand, the Ld.DR for the revenue relied on the order of the Ld.CIT(A).
We have heard both the parties and perused the material available on record. We note that the notices have been issued by the Ld.CIT(A) to submit the documents in support of the case. Since, the appellant did not comply with terms of notice. We further note that the assessee has not made the compliance with the notices for hearing issued by the Ld. AO. We note that the assessee has not gave due care and attention to the case and negligent in pursuing the case before the AO as well as Ld.CIT(A). for this non-cooperative attitude in pursuing the case. We direct the assessee to deposit a cost of Rs.500/-, and the same is to be deposited with Prime Minster Relief fund (Government of India), within 10 days from today, and the receipt is to be submitted with the Registrar of this Tribunal. Keeping in view, and in the interest of justice, we grant an opportunity to the assessee to present his case before the AO. We set aside the order of lower authority and remit the matter back to the file of the AO for fresh adjudication on Page 3 of 4
In the result, appeal of the assessee, is allowed for statistical purpose.
Order is pronounced in the open court on 22/12/2025.