SOCIETY FOR TRAINING AND CARING,GUNTUR vs. INCOME TAX OFFICER, EXEMPTION WARD, GUNTUR

We have gone through the condonation petition filed and examined the medical certificate filed by the assessee and find that the assessee was suffering from ill health, therefore, it is a valid reason for non-filing of the appeal before the Tribunal within time. In view of the same, the Society for Training and Caring, Guntur condonation petition filed by the assessee is allowed and the appeal filed by the assessee admitted for hearing.

Brief facts of the case are that the case of the assessee was selected for scrutiny assessment under the e-assessment scheme, 2019 and notice u/s 143(2) of the Act was issued on 22.09.2019 and duly served on the assessee. The assessment was completed on 29.04.2021 and the income of the assessee was assessed at Rs.2,03,82,240/- on account of anonymous donations u/s 115BBC of the Act and added back to the income of the assessee.

Aggrieved by the order of the AO, the assessee preferred an appeal before the CIT(A) and the Ld.CIT(A) dismissed the appeal of the assessee ex-parte.

Aggrieved by the order of the Ld.CIT(A), the assessee preferred an appeal before the Tribunal by raising the following grounds of appeal :

The order of the learned Commissioner of Income Tax (Appeals) is contrary to the facts and also the law applicable to the facts of the case.

At the outset, the only contention of the Ld.AR is that the AO is not justified in treating the donations as anonymous donations u/s 115BBC(3) of the Act as they were shown under Voluntary Contributions other than Corpus category especially under Government Grants. The Ld.CIT(A) is also not justified in dismissing the appeal of the assessee ex- parte without giving sufficient opportunity of being heard. He, therefore pleaded for affording an opportunity of being heard before the Ld.CIT(A) to controvert the findings of the revenue authorities with cogent material evidences.

Per contra, the Ld.DR submitted that the assessee was given sufficient opportunities before the revenue authorities, but the assessee did not avail the same. Hence, the Ld.CIT(A) is justified in sustaining the addition made by the AO by dismissing the appeal of the assessee ex- parte. The Ld.DR therefore, pleaded to uphold the order passed by the Ld.CIT(A) and dismiss the appeal of the assessee.

We have heard both the parties and perused the material available on record. In the instant case, assessment in the case of the assessee was Society for Training and Caring, Guntur completed and the income of the assessee was assessed at Rs.2,03,82,340/- as anonymous donations, which was upheld by the Ld.CIT(A). As contended by the assessee that the assessee was not given sufficient opportunity to substantiate the donations in support of the grounds raised and therefore, pleaded for an opportunity of being heard before the Ld.CIT(A). In view of the foregoing facts and circumstances of the case and keeping in view the principles of natural justice, we are inclined to remit the matter back to the file of the Ld.CIT(A) with a direction to afford an opportunity of being heard to the assessee to present it’s case. The assessee is also directed to adhere to the notices issued by the revenue authorities and cooperate during the proceedings.

In the result, appeal of the assessee is allowed for statistical purpose.