THE IMMACULATE HEART OF MARY'S SOCIETY,MADURAI vs. ITO EXEMPTIONS, MADURAI

The assessee is a trust and has not filed its return of income for year under consideration i.e. A.Y.2014-15. Subsequently, the case has been reopened after receiving information from Income tax officer, Non corporate ward, Madurai vide its letter dated

The AO issued notices U/s.142(1) of the Act, to the assessee during the assessment proceedings and as the being non-complaint to the notices, the AO passed an order U/s.147 r.w.s. 144 r.w.s. 144B of the Act on 29.03.2022 by making an addition of Cash deposits made to the bank account as unexplained money U/s.69A of the Act to the tune of Rs.1,03,03,465/-.

Further the notice under section 274 r.w.s. 271(1)(c) of the Act was issued on 29/3/2022 to the assessee in consonance with the order U/s.147 r.w.s. 144 of the Act for levying penalty. Since the assessee trust has not participated in the penalty proceedings, the exparte order has been passed by the AO on 28/09/2022 by levying

Further, the notice under section 274 r.w.s. 271F of the Act was issued on 29/3/2022 to the assessee in consonance with the order U/s.147 r.w.s. 144 of the Act for levying penalty. Since the assessee trust has not participated in the penalty proceedings, the exparte order has been passed by the AO on 16/09/2022 by levying penalty Rs.5,000/- U/s. 271F of the Act. Aggrieved by the orders of the AO, assessee preferred three separate appeals before the ld.CIT(A)/ NFAC, on 09.12.2022. Order of the AO Date of Date of Delay in order appeal filed filing the Passed with CIT appeal (A) Assessment order 29/03/2022 09.12.2022 225 Days U/s.147 r.w.s. 144 Penalty order U/s. 28/09/2022 09.12.2022 42 days 271(1)(c) penalty U/s. 271F 16/09/2022 09.12.2022 54 days

The Ld.CIT(A)/ NFAC, Delhi, without giving any opportunity to the assessee or issuing notices for hearing, dismissed the appeal of the assessee by passing three separate orders even dated 23/02/2024, by rejecting the reasons stated in the affidavit filed by the assessee for condoning the delay filing the appeals, stating that the appellant is not having ‘sufficient cause’ for delay in filing the aforesaid appeals.

The ld.AR stated that the Ld.CIT(A)/ NFAC, Delhi, has erred in dismissing the assessee’s appeals by exparte orders, by not considering the affidavit filed by the assessee for condonation of delay in filing the appeals and without giving any opportunity to the assessee on merits of the case, is erroneous in law.

Further, the counsel for the assessee stated that, the Society has maintained all the books and other records and filed its return of income on regular basis with the original PAN - AAAAT5075D. The counsel brought to our notice that, the second PAN – AAATT7531M, has been obtained later has created the issue on hand and hence prayed for remanding the matter back to AO for fresh assessment, as the order passed by him was exparte.

The ld.DR did not raise any objections for the same.

We have heard both the parties and gone through the order of the Ld.CIT(A) / NFAC. It is noted that the Ld.CIT(A) / NFAC has passed the impugned order exparte without

The orders passed by the AO by levying penalty U/s.271(1)(c) and 271F are consequential to the quantum assessment, we set aside these orders of the AO, since the assessment proceedings are remitted back to AO for denovo assessment.