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Facts
The assessee's appeal was against an order by NFAC for AY 2018-19. The assessee raised grounds regarding an addition of Rs.1,60,26,047/- sustained without granting exemption u/s 11, despite being registered u/s 12AA, and also related to a delay of 106 days in filing the appeal before NFAC.
Held
The Tribunal held that the assessee was not given a proper opportunity of hearing by NFAC and the order was passed ex-parte. Therefore, the case was remitted back to NFAC to decide the issue after giving an opportunity to the assessee.
Key Issues
Whether the assessee was given proper opportunity of hearing and whether the delay in filing the appeal before NFAC should be condoned.
Sections Cited
11, 12AA
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, “B’’ BENCH: BANGALORE
Before: SHRI CHANDRA POOJARI & SHRI PRAKASH CHAND YADAV
PER CHANDRA POOJARI, ACCOUNTANT MEMBER:
This appeal by assessee is directed against order of NFAC for the assessment year 2018-19 dated 7.5.2024.
The assessee raised grounds with regard to sustaining addition of Rs.1,60,26,047/- without granting exemption u/s 11 of the Income Tax Act, 1961 (in short “The Act”) though the assessee was registered u/s 12AA of the Act without condoning the delay of 106 days in filing of appeal before NFAC.
At the time of hearing, the ld. A.R. submitted that there no proper opportunity was given to the assessee and order was passed by NFAC ex-parte and prayed that one more opportunity may be given in the interest of justice.
The ld. D.R. strongly opposed the plea of the assessee and submitted that the issue may be decided on merit.
Indian Red Cross Society, Bangalore Page 2 of 2 5. After hearing both the parties, in our opinion, it is appropriate to remit this issue in dispute to the file of NFAC to decide the same after giving an opportunity of hearing to the assessee as the assessee has not properly submitted the reasons for delay in filing the appeal before NFAC. Hence, we remit the impugned issue with regard to delay of 106 days to the file of NFAC with a direction to assessee to explain this delay before NFAC by filing proper application for condonation of delay. At this stage, we refrain from adjudicating the issue on addition made by ld. AO which kept open and to be decided by NFAC, if it condones the delay in filing the appeal before it.
In the result, appeal of the assessee is partly allowed for statistical purposes. Order pronounced in the open court on 22nd July, 2024