NIH SAHAY UTTHANSAMITI,MADHUBANI vs. INCOME-TAX OFFICER (EXEMPTION), MUZAFFARPUR

The present appeal filed by the assessee is directed against the order dated 16.12.2024 passed by the NFAC, Delhi u/s 250 of the Income Tax Act, 1961 (the ‘Act’) for the assessment year 2015-16.

Brief facts of the case are that the assessee, is a trust, engaged in activities of general public utility, filed its return of income for the assessment year 2015–16 declaring nil income. Subsequently, the case of the assessee was selected for scrutiny assessment (CASS). Accordingly, notices under sections 143(2) and 142(1) of the Income-tax Act, 1961 were issued during the course of assessment proceedings. During the assessment proceedings, the Assessing Officer observed that the assessee was not registered under section 12AA of the Act, though Nih Sahay Utthansamiti it had claimed exemption under section 11 of the Act. The Assessing Officer held that registration under section 12A/12AA is a mandatory pre-condition for claiming exemption under section 11 of the Act. Consequently, the Assessing Officer denied the exemption and made additions while completing the assessment.

Aggrieved by the assessment order, the assessee preferred an appeal before the CIT(A). The Ld. CIT(A), however, dismissed the appeal and upheld the order of the Assessing Officer.

Not satisfied with the order of the CIT(A), the assessee has filed the present appeal before the Tribunal raising various grounds. One of the principal grounds taken by the assessee is that no proper opportunity of being heard was provided by the CIT(A), as no specific notice was issued and no explanation was called for before passing the appellate order. It was contended that the order passed by the Ld.CIT(A) is therefore bad in law and liable to be set aside.

From the records, it is noticed that the assessee did not appear on consecutive dates before the Tribunal, despite service of notices. Hence, the appeal cannot be kept pending for an indefinite period. Accordingly, the matter was heard ex parte with the assistance of the learned Departmental Representative, who supported the orders of the lower authorities.