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Facts
The assessee, a trust, did not file a return of income for AY 2019-20 despite earning Rs.9,12,630/- interest income on bank deposits and having term deposits of Rs.3,50,000/-, purportedly from donations. The Assessing Officer added the entire interest income and term deposits under Section 69, which the CIT(A) upheld in an ex-parte order.
Held
The Tribunal found that notices issued by the CIT(A) were allegedly not served on the assessee, thereby denying an opportunity to explain its case. Consequently, the appeal was restored to the CIT(A) for a de-novo decision on merits after affording the assessee a reasonable opportunity to make submissions in accordance with law.
Key Issues
Whether the CIT(A) erred in passing an ex-parte order without ensuring proper service of notice to the assessee, thereby denying a reasonable opportunity to explain the source of interest income and term deposits.
Sections Cited
148, 69
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, DELHI BENCH “SMC”, DELHI
Before: SHRI VIKAS AWASTHYShri Mahaveer Jain Mandir Samiti,
(A.Y.2019-20) Shri Mahaveer Jain Mandir Samiti, (A Society Registered under Societies Registration Act, 1860), Techers Colony, Saraswati Vihar, Pitampura, Delhi110034 ...... अपीलार्थी/Appellant PAN: AAHTS-6678-M बिाम Vs. Assessing Officer, Assessment Unit/Verification Unit/ Technical Unit/Review Unit, NaFAC, Income Tax Department ..... प्रनिवादी/Respondent Ward-43(6), Civic Centre, New Delhi 110002 अपीलार्थी द्वारा/Appellant by : Shri Ajit Gandhi, Chartered Accountant प्रधििािीद्वारा/Respondent by : Shri Keshav Kishore Aanad, Sr. DR सुिवाई की निथर्थ/ Date of hearing : 18/12/2025 घोषणा की निथर्थ/ Date of pronouncement : 18/12/2025 आदेश/ORDER
PER VIKAS AWASTHY, JM:
This appeal by the assessee is directed against an ex-parte order of Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi [in short ‘the CIT(A)’] dated 24.09.2025, for Assessment Year 2019-20.
The assessee is a trust. Despite substantial deposits in the Bank on which assessee has earned interest income of Rs.9,12,630/- no return of income was filed by the assessee. Notice u/s.148 of the Income Tax Act, 1961 (hereinafter referred to as 'the Act') was issued to the assessee. In response to the notice the assesee filed submissions explaining that the interest income is from the deposits made in the bank. The deposits in the bank are from donations received in temple. The Assessing Officer (AO) made addition of entire interest income
Aggrieved, the assessee filed appeal before the CIT(A). The CIT(A) in ex- parte proceedings dismissed the appeal of assessee upholding the addition.
The ld. Counsel for the assessee stated that the notices issued by the CIT(A) were never served on the assessee. He contended that the assessee has very good case on merits, if an opportunity is allowed, the assessee would explain its case before the CIT(A).
Considering facts of the case, I am of the view that the assessee needs to be given one more opportunity of making submissions before the CIT(A). Accordingly, the appeal is restored to the CIT(A). The CIT(A) shall decide appeal of the assessee de-novo on merits after affording reasonable opportunity of making submissions to the assessee, in accordance with law.
The assessee shall respond to the notice(s) served by the CIT(A), without fail.
In the result, appeal of the assessee is allowed for statistical purpose.
Order pronounced in the open court on Thursday the 18th day of December, 2025.