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Facts
The assessee, a trust, was a non-filer and its case for AY 2015-16 was reopened due to financial transactions. The assessee claimed exemption under section 11 on excess income of Rs. 7.16 Lacs, which was disallowed by the AO because no return was filed. The CIT(A) upheld the AO's action.
Held
The Tribunal accepted the assessee's plea for another opportunity to substantiate its case, considering the principle of natural justice. The impugned order was set aside, and the assessment was restored to the AO for de novo assessment.
Key Issues
Whether the assessee should be granted an opportunity for de novo assessment to substantiate its claim for exemption, given it was a non-filer.
Sections Cited
147, 144, 144B, 11
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Income Tax Appellate Tribunal, “C” BENCH, CHENNAI
Before: HON’BLE SHRI MAHAVIR SINGH, VP & HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM
(िनधा�रण वष� / Assessment Year: 2015-16) Makkal Kattral Maiyam ITO, Mavatta Magamai-E Service Centre, Exemptions Ward-3, बनाम/ Vs. Jaibeen Nagar, Vengikaal, Chennai. Thiruvannamalai-606 603. �थायीलेखासं./जीआइआरसं./PAN/GIR No. AACTM-5036-E (अपीलाथ�/Appellant) : (��थ� / Respondent) अपीलाथ�कीओरसे/ Appellant by : Shri S. Sridhar (Advocate) - Ld. AR ��थ�कीओरसे/Respondent by : Ms. R. Anita (Addl.CIT) - Ld. DR सुनवाईकीतारीख/Date of Hearing : 29-08-2024 घोषणाकीतारीख /Date of Pronouncement : 18-11-2024 आदेश / O R D E R Manoj Kumar Aggarwal (Accountant Member)
Aforesaid appeal by assessee for Assessment Year (AY) 2015-16 arises out of the order of learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [CIT(A)] dated 27-02-2024 in the matter of an assessment framed by Ld. Assessing Officer [AO] u/s. 147 r.w.s 144 r.w.s 144B of the Act on 13-02- 2023. The sole grievance of the assessee is confirmation of addition of Rs.7.16 Lacs. Having heard rival submissions, the appeal is disposed-off as under.
The assessee-trust was non-filer and the case was reopened pursuant to receipt of information that the assessee carried out various financial transactions. On perusal of income and expenditure account, it was seen that the assessee claimed exemption u/s 11 on excess income of Rs.7.16 Lacs. The Ld. AO disallowed the same since the assessee did not file return of income. During appellate proceedings, the assessee merely filed grounds of appeal
and statement of facts and accordingly, the action of Ld. AO was upheld against which the assessee is in further appeal before us. The Ld. AR has raised issue on reopening and pleaded for another opportunity of hearing before lower authorities which has been opposed by Ld. Sr. DR.
3. Accepting the prayer of Ld. AR and keeping in mind the principle of natural justice, we deem it fit to grant another opportunity to the assessee to substantiate its case before lower authorities. Accordingly, the impugned order is set aside and the assessment is restored back to the file of Ld. AO for de novo assessment with a direction to the assessee to substantiate its case.
4. The appeal stand allowed for statistical purposes. Order pronounced on 18th November, 2024 Sd/- Sd/- (MAHAVIR SINGH) (MANOJ KUMAR AGGARWAL) उपा�� / VICE PRESIDENT लेखा सद� / ACCOUNTANT MEMBER चे�ई Chennai; िदनांक Dated : 18-11-2024 DS आदेशकी�ितिलिपअ�ेिषत/Copy of the Order forwarded to : 1. अपीलाथ�/Appellant 2. ��थ�/Respondent 3. आयकरआयु�/CIT Chennai. 4. िवभागीय�ितिनिध/DR 5. गाड�फाईल/GF