KRISHI UTPADAN MANDI SAMITI CHARRA,CHARRA vs. DEPUTY COMMISSIONER OF INCOME TAX - CIRCLE 4(1)(1) ALIGARH, ALIGARH
Facts
The assessee trust's appeal was dismissed ex parte by the CIT(A) for failing to spend 85% of its receipts for charitable purposes, despite being registered under section 12AA and eligible for exemption under sections 10(26AAB) and 11. The appeal was filed with a delay of 113 days.
Held
The Tribunal condoned the delay and noted that the CIT(A) passed an ex parte order without adjudicating on merits. The Tribunal held that the CIT(A) failed to follow the principles of natural justice and remitted the matter back for fresh adjudication.
Key Issues
Whether the ex parte order passed by the CIT(A) violated principles of natural justice. Whether the assessee was denied an opportunity to be heard on merits.
Sections Cited
250, 10(26AAB), 11, 12AA, 250(6)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, AGRA BENCH, AGRA
Before: SHRI SUNIL KUMAR SINGH & SHRI MANISH AGARWAL
IN THE INCOME TAX APPELLATE TRIBUNAL, AGRA BENCH, AGRA BEFORE : SHRI SUNIL KUMAR SINGH, JUDICIAL MEMBER AND SHRI MANISH AGARWAL, ACCOUNTANT MEMBER ITA No. 119/Agr/2025 Assessment Year: 2018-19
Krishi Utpadan Mandi Samiti, Vs. DCIT, Circle 4(1)(1), Charra Mandi, Charra (Aligarh). Aligarh. PAN : AAALK0565A (Appellant) (Respondent)
Assessee by None Department by Sh. Sukesh Kumar Jain, CIT/DR Date of hearing 20.05.2025 Date of pronouncement 29.05.2025
ORDER Per Sunil Kumar Singh, Judicial Member: This appeal has been preferred by assessee against the impugned order dated 06.09.2024 passed in Appeal No. CIT (A), Aligarh/10726/2019-20 by the Ld. ADDL./JCIT(A) Thiruvanantpuram u/s. 250 of the Income-tax Act, 1961 (hereinafter referred to as “the Act”), wherein the learned first appellate authority has dismissed assessee’s first appeal ex parte, confirming the action of the Assessing Officer for assessing the total receipts of the assessee-trust amounting to Rs.6,41,66,317/- on the premise that the assessee failed to spend 85% of the total receipts for charitable purposes. 2. None responded for the assessee. Perused the records and heard the ld. Departmental Representative, who has supported the impugned order.
ITA No.119/Agr/2025
At the very outset, it appears that this appeal has been filed on
28.02.2025 against the impugned order dated 06.09.2024 by a delay of about
113 days. In the interest of justice, we condone the delay in filing this appeal.
This appeal has been preferred on the ground that the ld. First appellate
authority, while dismissing the appeal, has violated the principles of natural
justice without considering the fact that the appellant-trust, being registered
u/s. 12AA, was eligible for blanket exemption u/s. 10(26AAB) and section 11
of the Act.
Perusal of the impugned order shows that notices were issued by the ld.
First appellate authority on 05.08.2024 and 14.08.2024 as also a show cause
notice dated 29.08.2024, but the assessee neither responded to any of the
notices nor filed any submission before the first appellate proceedings. Such
irresponsive conduct of the assessee cannot be appreciated. However, it is
seen that the first appellate authority has passed ex parte impugned order,
but not on merits, whereas she was expected to state the points for
determination, decision thereon and the reasons for the decision as provided
u/s. 250(6) of the Act. In the circumstances and in the interest of justice and
fair play, we deem it just and appropriate to afford last opportunity to the
assessee and remit the matter back to the file of learned CIT(Appeals) for
adjudication on merits. We order accordingly. We further direct the assessee
to be diligent and cooperative in attending the hearings and making 2 | P a g e
ITA No.119/Agr/2025
submissions before the learned CIT(Appeals) for the expeditious and effective
disposal. Assessee shall refrain from seeking any adjournment but for
compelling and unavoidable reasons. Needless to say that learned
CIT(Appeals) shall ensure the observance of the principles of natural justice.
The appeal is liable to be allowed accordingly.
In the result, the appeal is allowed for statistical purposes. The
impugned order dt. 06.09.2024 is set aside.
Order pronounced in the open court on 29.05.2025.
Sd/- Sd/-
(MANISH AGARWAL) (SUNIL KUMAR SINGH) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated: 29.05.2025 *aks/- Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(A) 5. DR Asst. Registrar, ITAT, Agra
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