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Facts
The assessee society filed appeals against orders of the Ld. CIT(A) for AY 2011-12 and 2012-13. The assessee contended that the appeals were adjudicated ex-parte without proper opportunity of being heard due to circumstances beyond their control, specifically the hospitalization of the assessee's brother.
Held
The Tribunal noted that the assessee's counsel submitted an undertaking to comply with all notices if the matter was restored to the Ld. CIT(A). In the interest of substantial justice, the Tribunal decided to restore the appeals to the file of the Ld. CIT(A) for fresh adjudication.
Key Issues
Whether the appeals were rightly dismissed ex-parte by the Ld. CIT(A) without providing sufficient opportunity of hearing to the assessee due to circumstances beyond their control.
Sections Cited
Sec. 11 of the Income Tax Act, Sec. 12A of the Income Tax Act, Sec. 143(3), Sec. 147
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Income Tax Appellate Tribunal, MUMBAI BENCH “H (SMC
Before: SHRI OM PRAKASH KANT & SHRI SUNIL KUMAR SINGH
PER OM PRAKASH KANT, AM
These appeals by the assessee are directed against two separate orders, both dated 19.3.2024 passed by the Ld. Commissioner of Income-tax (Appeals) – National Faceless Appeal Centre, Delhi [in short ‘the Ld. CIT(A)’] for assessment year 2011-12 and 2012-13 respectively.
Film Set Light Spot Welfare Society Film Set Light Spot Welfare Society 2 & 2829/MUM/2024 ITA Nos. 2832 & 2829/MUM/2024
Identical grounds have been raised in both these appeals and Identical grounds have been raised in both these appeals and Identical grounds have been raised in both these appeals and therefore, for brevity the grounds raised by the assessee in therefore, for brevity the grounds raised by the assessee in therefore, for brevity the grounds raised by the assessee in assessment year 2011 assessment year 2011-12 are reproduced as under:
The Hon. CIT(A) ought to have appreciated the fact that 1. The Hon. CIT(A) ought to have appreciated the fact that 1. The Hon. CIT(A) ought to have appreciated the fact that appellant could not represented its case due to circumstances appellant could not represented its case due to circumstances appellant could not represented its case due to circumstances beyond its control. beyond its control. 2 The Hon. CIT(A) was not justified in summarily rejecting the 2 The Hon. CIT(A) was not justified in summarily rejecting the 2 The Hon. CIT(A) was not justified in summarily rejecting the appeal without considering the submissions filed on 23/06/2023. appeal without considering the submissions filed on 23/06/2023. appeal without considering the submissions filed on 23/06/2023. 3 The Hon. CIT(A) and the Ld. AO erred in not a 3 The Hon. CIT(A) and the Ld. AO erred in not appreciating the fact ppreciating the fact that appellant could not file its return due to circumstances beyond that appellant could not file its return due to circumstances beyond that appellant could not file its return due to circumstances beyond its control. 4 The Hon. CIT(A) and the Ld. AO were not justified in 4 The Hon. CIT(A) and the Ld. AO were not justified in 4 The Hon. CIT(A) and the Ld. AO were not justified in disregarding the fact that assessee was non disregarding the fact that assessee was non-profit company profit company registered U/S.25 of the Companies Act registered U/S.25 of the Companies Act and had also received and had also received Registration U/S.12A. Registration U/S.12A. 5 The Ld. AO erred in denying exemption U/S. 11 of the Income 5 The Ld. AO erred in denying exemption U/S. 11 of the Income 5 The Ld. AO erred in denying exemption U/S. 11 of the Income Tax Act. 6. The Ld. AO was not justified in considering the interest received 6. The Ld. AO was not justified in considering the interest received 6. The Ld. AO was not justified in considering the interest received of Rs.37,12,020/ of Rs.37,12,020/- as income from other sources. 3. At the outset, the Ld At the outset, the Ld. counsel for the assessee submitted . counsel for the assessee submitted that the these appeals have been adjudicated ex the these appeals have been adjudicated ex-parte qua the assessee parte qua the assessee without providing opportunity of being heard and therefore, same without providing opportunity of being heard and therefore, same without providing opportunity of being heard and therefore, same should be set aside and restored back to the file of the Ld. CIT(A) for should be set aside and restored back to the file of the Ld. CIT(A) for should be set aside and restored back to the file of the Ld. CIT(A) for deciding afresh.
The Ld. Departmental Representative (DR) relied on the order The Ld. Departmental Representative (DR) relied on the order The Ld. Departmental Representative (DR) relied on the order of the lower authorities. of the lower authorities.
We have heard rival submission of the parties and perused the We have heard rival submission of the parties and perused the We have heard rival submission of the parties and perused the relevant material on record. In ground No. 1 and 2, the assessee is relevant material on record. In ground No. 1 and 2, the assessee is relevant material on record. In ground No. 1 and 2, the assessee is Film Set Light Spot Welfare Society Film Set Light Spot Welfare Society 3 & 2829/MUM/2024 ITA Nos. 2832 & 2829/MUM/2024 aggrieved with the summar aggrieved with the summarily rejection of the assessee without ily rejection of the assessee without considering submission of the assessee and non considering submission of the assessee and non-representation on representation on the part of the assessee due to circumstances beyond its control. the part of the assessee due to circumstances beyond its control. the part of the assessee due to circumstances beyond its control. Before us, the Ld. counsel for the assessee submitted that four Before us, the Ld. counsel for the assessee submitted that four Before us, the Ld. counsel for the assessee submitted that four notices had been issued notices had been issued from April 2023 to June 2023 within a from April 2023 to June 2023 within a period of three months and due to hospitalization of his brother period of three months and due to hospitalization period of three months and due to hospitalization who was suffering from cancer who was suffering from cancer, same could be complied , same could be complied. He submitted that his request for allowing further extension of time for submitted that his request for allowing further extension of submitted that his request for allowing further extension of furnishing for informati furnishing for information was not accepted and the was not accepted and the Ld. CIT(A) after considering the part information considering the part information available on record, available on record, dismissed the appeal observing that the assessee failed to support the grounds appeal observing that the assessee failed to support the grounds appeal observing that the assessee failed to support the grounds raised in the appeal. The relevant finding of the Ld. CIT(A) is raised in the appeal. The relevant finding of the Ld. CIT(A) is raised in the appeal. The relevant finding of the Ld. CIT(A) is reproduced as under: under:
“2. The case was taken up for hearing and notices u/s 250 “2. The case was taken up for hearing and notices u/s 250 “2. The case was taken up for hearing and notices u/s 250 of the Act, were issued on 28/12/2020 & of the Act, were issued on 28/12/2020 & 19/01/2021 fixing 19/01/2021 fixing the case for furnishing written submission. In response to the case for furnishing written submission. In response to the case for furnishing written submission. In response to these notices the Appellant has requested to grant time for these notices the Appellant has requested to grant time for these notices the Appellant has requested to grant time for submit written submission. Again notices were issued on submit written submission. Again notices were issued on submit written submission. Again notices were issued on 05/04/2023, 05/04/2023, 05/04/2023, 25/04/2023, 25/04/2023, 25/04/2023, 04/05/2023, 04/05/2023, 04/05/2023, 16/05/2023, 16/05/2023, 16/05/2023, 24/05/2023 & 1 24/05/2023 & 14/06/2023. In response to these notices the 4/06/2023. In response to these notices the appellant has again & again requested to grant some time appellant has again & again requested to grant some time appellant has again & again requested to grant some time for furnishing written submission. The appellant has for furnishing written submission. The appellant has for furnishing written submission. The appellant has submitted documents i.e. Financial statements with Audit submitted documents i.e. Financial statements with Audit submitted documents i.e. Financial statements with Audit Report and memorandum of Association, Certifi Report and memorandum of Association, Certifi Report and memorandum of Association, Certificate of Incorporation and Registration u/s 12AA on 23/06/2023 Incorporation and Registration u/s 12AA on 23/06/2023 Incorporation and Registration u/s 12AA on 23/06/2023 and quoted remarks "with reference to the above appeal, we and quoted remarks "with reference to the above appeal, we and quoted remarks "with reference to the above appeal, we submit herewith the copies of Financial statements with submit herewith the copies of Financial statements with submit herewith the copies of Financial statements with Audit Report and memorandum of Association, Certificate of Audit Report and memorandum of Association, Certificate of Audit Report and memorandum of Association, Certificate of Incorporation and Re Incorporation and Registration u/s 12AA. As regards the gistration u/s 12AA. As regards the other relevant documents, we have to request your Honor to other relevant documents, we have to request your Honor to other relevant documents, we have to request your Honor to kindly give a fortnights time, as the negotiations with the kindly give a fortnights time, as the negotiations with the kindly give a fortnights time, as the negotiations with the landlord, who was locked the office, are going on and we are landlord, who was locked the office, are going on and we are landlord, who was locked the office, are going on and we are sanguine about the outcome and hence thi sanguine about the outcome and hence this request." The s request." The Film Set Light Spot Welfare Society Film Set Light Spot Welfare Society 4 & 2829/MUM/2024 ITA Nos. 2832 & 2829/MUM/2024 appellant has again requested to grant some time for appellant has again requested to grant some time for appellant has again requested to grant some time for furnishing furnishing furnishing written written written submission submission submission on on on 08/07/2023 08/07/2023 08/07/2023 & & & 05/08/2023. Finally the appellant has not submitted any 05/08/2023. Finally the appellant has not submitted any 05/08/2023. Finally the appellant has not submitted any written submission. In such condition I have no option but to written submission. In such condition I have no option but to written submission. In such condition I have no option but to decide the case on meri decide the case on merits on the basis of records available ts on the basis of records available with this office." with this office."
3. The present appeal is against the order U/s 143(3) r.w.s.
The present appeal is against the order U/s 143(3) r.w.s.
3. The present appeal is against the order U/s 143(3) r.w.s. 147 of the I.T Act 1961 dated 08/11/2018 for the 147 of the I.T Act 1961 dated 08/11/2018 for the 147 of the I.T Act 1961 dated 08/11/2018 for the Assessment Year 2011 Assessment Year 2011-12. I have carefully perused the 12. I have carefully perused the grounds of appeals and the order of grounds of appeals and the order of the AO already available the AO already available on record. The appellant has failed to support the grounds on record. The appellant has failed to support the grounds on record. The appellant has failed to support the grounds raised in this appeal, nor is there any supporting evidence in raised in this appeal, nor is there any supporting evidence in raised in this appeal, nor is there any supporting evidence in favour of the appellant. Since, in the instant case the favour of the appellant. Since, in the instant case the favour of the appellant. Since, in the instant case the appellant has not been able to show that the making appellant has not been able to show that the making appellant has not been able to show that the making addition of Rs. 37,12,017/ ddition of Rs. 37,12,017/- by the AO was arbitrary and by the AO was arbitrary and without any basis, I find no reason to interfere with the without any basis, I find no reason to interfere with the without any basis, I find no reason to interfere with the decision of the AO. Hence, appeal filed by the appellant is decision of the AO. Hence, appeal filed by the appellant is decision of the AO. Hence, appeal filed by the appellant is dismissed.” 5.1 The Ld. counsel for the asses The Ld. counsel for the assessee stated on bar that he could ar that he could not file submission before the Ld. CIT(A) for the reason that his le submission before the Ld. CIT(A) for the reason that his le submission before the Ld. CIT(A) for the reason that his brother was hospitalize brother was hospitalized during relevant period when notice during relevant period when notices were issued by the Ld. CIT(A). issued by the Ld. CIT(A). The Ld. counsel given undertaking that in The Ld. counsel given undertaking that in case matter is restored back to the file of the Ld. CIT(A), all the case matter is restored back to the file of the Ld. CIT(A) case matter is restored back to the file of the Ld. CIT(A) notices shall be duly complied. In view of his undertaking and in notices shall be duly complied. In view of his undertaking and in notices shall be duly complied. In view of his undertaking and in the interest of substantial justice, we feel it appropriate to restore the interest of substantial justice, we feel it appropriate to restore the interest of substantial justice, we feel it appropriate to restore this issue back to the file of the Ld. CIT(A) for deciding afresh after this issue back to the file of the Ld. CIT(A) for deciding afresh after this issue back to the file of the Ld. CIT(A) for deciding afresh after taking into consideration submission of t taking into consideration submission of the assessee. The ground he assessee. The ground No. 1 and 2 of the appeal of the assessee for assessment year 2011- No. 1 and 2 of the appeal of the assessee for assessment year 2011 No. 1 and 2 of the appeal of the assessee for assessment year 2011 12 and 2012-13 are accordingly allowed for statistical purposes. 13 are accordingly allowed for statistical purposes. 13 are accordingly allowed for statistical purposes. Therefore, other grounds raised are not required to be adjudicated Therefore, other grounds raised are not required to be adjudicated Therefore, other grounds raised are not required to be adjudicated upon at this stage.
Film Set Light Spot Welfare Society Film Set Light Spot Welfare Society 5 & 2829/MUM/2024 ITA Nos. 2832 & 2829/MUM/2024
In the result, the appeals of the assessee are allowed for sult, the appeals of the assessee are allowed for sult, the appeals of the assessee are allowed for statistical purposes. statistical purposes.
Order pronounced in the open Court on r pronounced in the open Court on 31/07/2024. 31/07/2024.