Loading judgment…
No AI summary yet for this case.
Income Tax Appellate Tribunal, NAGPUR BENCH, NAGPUR
Before: SHRI V. DURGA RAO & SHRI K.M. ROY, ACCOUNTANT, MEMBER
Date of Hearing – 03/10/2024 Date of Order – 03/10/2024
O R D E R PER K.M. ROY, A.M.
The present appeal has been filed by the assessee challenging the impugned order dated 17/01/2024, passed by the learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi, [“learned CIT(A)”], for the assessment year 2013–14.
The assessee has raised following grounds:–
“1. Whether on the facts and circumstances of the case, the learned Assessing Officer was justified in making an addition of Rs.1,00,00,000/- under section 69. 2. Whether on the facts and circumstances of the case, the learned Assessing Officer erred in not allowing the exemption under section 10(23C)(vi) on the addition made under section 69.
2 Narayana Educational Society ITA no.153/Nag./2024
3. The appellant craves leave to add or alter any other grounds that may be taken at the time of hearing.”
Facts in Brief:– The assessee is registered as a Public Trust under the Bombay Public trust Act, 1950, and Societies Registration Act, 1860, filed its return of income 27/09/2013, declaring total income at ` zero. The assessee runs schools and colleges in various disciplines and also registered under section 10(23C)(vi) of the Income Tax Act, 1961 ("the Act"). During the year under consideration, a search and seizure operation under section 132 of the Act was conducted at residential premises of Shri Roshan Diwakar Dhore, on 03/04/2019. During the course of search & seizure proceedings various incriminating documents/material related to assessee were found. The document also found was an agreement to sale. During the financial 2012-13, the assessee trust entered into an agreement to sale with Shri Sanjiv Kumar Srivastava, and others (Vendors) for purchase of land worth ` 3,80,00,000, against which cash of ` 1,00,00,000, was paid by the assessee on various dates. Further, to note here that the assessee’s case was selected for scrutiny through CASS and assessment was completed on 04/09/2015, by accepting the returned income. The case was re–opened under section 147 and notice u/s 148 of the Act was issued and served to the assessee. In response to this notice, the assessee filed its return of income on 13/06/2020. Further notice under section 143(2) and 142(1) of the Act were issued and served to the assessee. The Assessing Officer has made assessment under section 147 of the Act on 23/04/2021, and determine the total assessed income at `
3 Narayana Educational Society ITA no.153/Nag./2024 1,00,00,000, after making addition of ` 1,00,00,000, on account of undisclosed income under section 69 of the Act.
When the matter was carried before the first appellate authority, the learned CIT(A) dismissed the assessee’s appeal by recording following observations:–
“The appellant has raised three grounds of appeal out of which ground no.3, is general in nature and not adjudicated hence ground no.3, is hereby dismissed. Ground no.1, and ground no.2,:– I have perused the assessment order and the submissions of the appellant. The source of ` 1,00,00,000/– paid by cash has not been explained and has been made out of undisclosed source. Considering the above facts, I confirm addition made by the A.O. of ` 1,00,00,000. Hence ground no.1 and 2, of the appeal filed by the appellant is hereby dismissed.”
The learned Authorised Representative appearing for the assessee pointed out that the learned CIT(A) has passed a cryptic order and has not adjudicated the issue on merits. He accordingly prayed that the matter may be set aside to the learned CIT(A) for fresh adjudication.
The learned Departmental Representative supported the order passed by the authorities below.
Having given a thoughtful consideration to the arguments made by the rival parties and having perused the material available on record, we are in consonance with the submissions of the learned Authorised Representative for the assessee that the learned CIT(A) has not dealt the issue on merit. Hence, we are of the opinion that the issue needs to be adjudicated afresh by the learned CIT(A) in a detailed manner on merit. The learned Departmental
4 Narayana Educational Society ITA no.153/Nag./2024 Representative fairly accepted the view of the Bench. Accordingly, we set aside the impugned order passed by the learned CIT(E) and restore the matter to the file of the learned CIT(A) for denovo adjudication on merit and issue a speaking order after providing reasonable opportunity of being herd the assessee. Accordingly, grounds raised by the assessee are allowed for statistical purposes.
In the result, appeal filed by the assessee is allowed for statistical purposes. Order pronounced in the open Court on 03/10/2024