KRISHI UTPADAN MANDI SAMITI CHARRA,CHARRA vs. DEPUTY COMMISSIONER OF INCOME TAX - CIRCLE 4(1)(1) ALIGARH, ALIGARH

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.

None responded for the assessee. Perused the records and heard the ld. Departmental Representative, who has supported the impugned order.

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 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.