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Facts
A religious trust (assessee) made cash deposits of Rs. 1,07,93,249/- in bank accounts during F.Y. 2014-15 but did not file an income tax return. The Assessing Officer initiated reassessment proceedings, denying exemptions under sections 11 and 12, and assessed an income of Rs. 1,31,85,860/-. The CIT(A) dismissed the assessee's appeal for non-compliance, citing non-payment of taxes and no response to a deficiency letter, invoking section 249(4)(b) of the Act.
Held
The Tribunal condoned the delay in filing the appeal. Recognizing that the CIT(A) dismissed the appeal due to the assessee's non-compliance and non-payment of taxes, the Tribunal acknowledged that there could be various valid reasons for non-appearance/non-compliance. Applying principles of natural justice, the Tribunal set aside the CIT(A)'s order and remitted all disputed issues back to the CIT(A) to provide the assessee with another opportunity to present its case.
Key Issues
Whether the CIT(A) was justified in dismissing the appeal for non-compliance and non-payment of taxes under section 249(4)(b) without providing sufficient opportunity, and whether the assessee deserves another opportunity to substantiate its exemption claims.
Sections Cited
11, 12, 119(2)(b), 142(1), 143(2), 144, 144B, 147, 148, 249(4)(b), 250
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, PANAJI BENCH
Before: SHRI PAVAN KUMAR GADALE & SHRI G D PADMAHSHALI
सुनवाई क� तार�ख/Date of Hearing 03.06.2025 घोषणा क� तार�ख/Date of Pronouncement 04.06.2025 ORDER
PER PAVAN KUMAR GADALE, JM:
The appeal is filed by the assesse against the order of National Faceless Appeal Centre (NFAC) Delhi / CIT(A) passed u/sec 147 r.w.s144 r.w.s144B and u/sec 250 of the Act.
At the time of hearing, the Ld.AR brought to the knowledge of the bench, that there is a delay in filing the appeal before the Hon’ble Tribunal and the assesse has filed the affidavit for condonation of delay. Whereas, the Cofre do fundo da cruz alo de bambolim.. facts mentioned in the affidavit are reasonable and the Ld. DR has no specific objections. Accordingly, we condone the delay and admit the appeal.
The brief facts of the case are that, the assessee is a religious trust. The Assessing Officer (AO) based on the information from ITBA data, found that the assesse has made cash deposits in two bank accounts during the F.Y.2014-15 and the assesse has not filed the return of income. The Assessing Officer has reason to believe that the income has escaped the assessment and notice u/sec148 of the Act was issued. Further notice u/sec 143(2) and u/sec 142(1) of the Act are issued and there was no proper compliance. Whereas the A.O found that the assesse has made the cash deposits aggregating to Rs.1,07,93,249/- in the bank accounts in the F.Y.2014-15 and explanations were called to substantiate the deposits. The assesse has filed the letter on 24.03.2022, mentioning that the cash deposits are out of the hundi collection boxes. The A.O. has dealt on the additional submissions and explanations in Para5 of the order and found that the assessee has not filed the return of income and Form.No.10B within the prescribed time limit and the assessee has filed an application for condonation of delay u/sec 119(2)(b) of the Act in filling Form.No.10B with the Commissioner of Income Tax(exemptions) Bengaluru on 10.03.2023 and the decision is awaited. The A.O considering the facts, submissions and details observed Cofre do fundo da cruz alo de bambolim.. that the assesses is not eligible for exemptions under section 11 and 12 of the Act and assessed the total income of Rs.1,31,85,860/- and passed the order u/sec u/sec 147 r.w.s144 r.w.s144B of the Act dated 26.03.2023.
Aggrieved by the order, the assessee has filed an appeal before the CIT(A), whereas the CIT(A) has considered the grounds of appeal, statement of facts, findings of the AO and Form no 35 and find that the assessee has not paid the taxes and the provisions of section 249(4)(b) of the Act are attracted and has issued deficiency letter and since there was no compliance by the assesse, the CIT(A) has dismissed the appeal as not liable to admitted. Aggrieved by the order of the CIT(A), the assessee has filed an appeal before the Hon'ble Tribunal.
We heard the rival submissions and perused the material on record. Prima-facie the CIT(A) has passed the order considering the fact that there is no compliance to deficiency letter nor appearance in spite of providing adequate opportunity of hearing. Therefore, the CIT(A) was of the opinion that the assesse is not interested and find that as per Form no 35, the assessee has not paid the taxes/advance tax and the provisions of section 249(4)(b) of the Act are attracted and the CIT(A) has issued the deficiency letter dated 05-01-2024 referred at Para3.5 of the order and there was no response and hence the CIT(A) has dismissed the appeal as not eligible for admission. Whereas the assesse has raised grounds of appeal Cofre do fundo da cruz alo de bambolim.. challenging the addition by the A.O and there could be various reasons for non appearance/ compliance which cannot be overruled. Further, in the case, were the return of income is not filed by the assessee and the case falling under section 249(4)(b) of the Act, there is a provision, provided that, the assessee can make an application to appellate authority explaining the good and sufficient reasons for claiming the exemption. Therefore, considering the facts and principles of natural justice, we shall provide with one more opportunity to the assessee. Accordingly, we set aside the order of the CIT(A) and remit the entire disputed issues to the file of the CIT(A) as discussed above. And, we allow the grounds of appeal of the assesse for statistical purpose.
In the result, the appeal filed by assessee is allowed for statistical purposes.
Order pronounced in the open court on 04.06.2025.