RYA COSMO DISPENSARY TRUST,CHENNAI vs. ITO, EXEMPTION WARD-3 , CHENNAI
What did the Tribunal hold?
The Tribunal, while acknowledging the assessee's negligence, granted another opportunity for hearing on principles of natural justice. This is subject to a cost of Rs. 2,000 to be deposited by the assessee, after which the CIT(A) will conduct a de novo adjudication.
What were the facts?
The assessee trust's appeal against the denial of income accumulation under Section 11(2) was confirmed by the CIT(A) as the assessee failed to appear. The assessee is now before the ITAT seeking another opportunity to present its case.
What were the issues?
Whether the assessee should be granted another opportunity to present its case before the appellate authorities despite previous non-appearance, and the implications of such a grant on the proceedings.
Which sections of the Income-tax Act were involved?
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, “A” BENCH, CHENNAI
Before: HON’BLE SHRI MAHAVIR SINGH, VP & HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM
आयकर अपीलीय अिधकरण “ए” �ायपीठ चे�ई म�। IN THE INCOME TAX APPELLATE TRIBUNAL “A” BENCH, CHENNAI माननीय �ी महावीर िसंह, उपा ! एवं माननीय �ी मनोज कुमार अ%वाल ,लेखा सद( के सम!। BEFORE HON’BLE SHRI MAHAVIR SINGH, VP AND HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM आयकरअपील सं./ (िनधा)रण वष) / Assessment Year: 2017-18) Rya Cosmo Dispensary Trust ITO बनाम/ 380/2, Konnur High Road, Otteri, Exemption Ward-3 Vs. Chennai-600 012. Chennai. �थायीलेखासं./जीआइआरसं./PAN/GIR No. AAATR-2978-L (अपीलाथ�/Appellant) : (� थ� / Respondent) अपीलाथ�कीओरसे/ Appellant by : Shri N.Vijayakumar (CA)- Ld.AR � थ�कीओरसे/Respondent by : Shri AR V Sreenivasan (Addl.CIT) -Ld. DR सुनवाईकीतारीख/Date of Hearing : 24-06-2024 घोषणाकीतारीख /Date of Pronouncement : 03-07-2024 आदेश / O R D E R Manoj Kumar Aggarwal (Accountant Member)
The grievance of the assessee trust in captioned appeal is confirmation of an assessment order passed by Ld. Assessing officer (AO) on 17-12-2019. In the order, Ld. AO had denied accumulation of income u/s 11(2). Upon further appeal Ld. Addl. / JCIT (Appeals)-3, Mumbai [CIT)] has confirmed the same which is in further challenge before us. From page-4 of impugned order, it could be seen that the assessee has failed to appear during first appellate proceedings despite being provided with several opportunities of hearing. Accordingly, the assessment was confirmed against which the assessee is in further appeal before us. The Ld. AR has prayed for another opportunity of hearing which has been opposed by Ld. Sr. DR.
Though the assessee has remained negligent, however, keeping in mind the principle of natural justice, we deem it fit to grant another opportunity to the assessee to substantiate its case. The same would come at a cost of Rs.2,000/- which shall be deposited by the assessee within 30 days from the date of receipt of this order to ‘Tamil Nadu State Legal Services Authority’ at Hon’ble High Court of Madras. The proof of the same shall be furnished by the assessee to learned CIT(A) who shall proceed for de novo adjudication after affording opportunity of hearing to the assessee. The assessee is directed to substantiate its case forthwith failing which Ld. CIT(A) shall be at liberty to proceed with disposal of appeal on merits on the basis of material on record. 3. The appeal stand allowed for statistical purposes. Order pronounced on 3rd July, 2024 Sd/- Sd/- (MAHAVIR SINGH) (MANOJ KUMAR AGGARWAL) उपा45 / VICE PRESIDENT लेखा सद7 / ACCOUNTANT MEMBER चे9ई Chennai; िदनांक Dated : 03-07-2024 DS आदेशकीHितिलिपअ%ेिषत/Copy of the Order forwarded to : 1. अपीलाथ�/Appellant 2. � थ�/Respondent 3. आयकरआयुA/CIT Chennai. 4. िवभागीय�ितिनिध/DR 5. गाडFफाईल/GF
More judgments on Section 11(2)
- Kammavari Sangham (Regd), Bengaluru vs Deputy Commissioner of Income Tax…ITA 1181/BANG/2026[2015-16]Status: Disposed30 Sept 2026AY 2015-16
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- Imc Society of Iti Govt Central Crafts… vs Income Tax Officer, Exemption Ward…ITA 1850/CHANDI/2025[2017-18]Status: Disposed24 Sept 2026AY 2017-18
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