SRI SARADA VIDYA PEETHAM,NALGONDA vs. INCOME TAX OFFICER, WARD-15(2), HYDERABAD

O R D E R PER LALIET KUMAR, J.M.

This appeal is filed by the assessee, feeling aggrieved by the order passed by the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi dated 25.07.2023 for the AY 2012-13 on the following grounds :

2. The grounds raised by the assessee reads as under :

“1. On the facts and in the circumstances of the case, the order of ld.CIT(A) is erroneous and unstainable in law apart from being passed in violation of principles of natural justice.

3. The ld.CIT(A) erred in sustaining the addition made by the Assessing Officer of Rs.56,70,705/- by disallowing the student fee refund, which the Assessing Officer did not consider in proper perspective.

4. The Id. CIT(A) erred in sustaining the addition made by the AO of Rs.32,49,752 by disallowing the depreciation on library books, which the Assessing Officer did not consider in proper perspective.”

3.1. Subsequently, the Pr. Commissioner of Income Tax-7, Hyderabad, by invoking the powers vested with him u/s 263 of the Act, set aside the assessment order dt. 23.3.2015 and directed the AO to re-do the assessment. Accordingly, notice u/s 143(2) of the Act dt. 11.9.2017 was issued and served on the assessee. In response to the notice issued, assessee appeared on 22.9.2017 and verbally reiterated the submissions already made. However, the assessee was asked to furnish books of account along with necessary evidence in support of the submissions. However, neither the AR of the assessee nor the assessee appeared nor filed any details as catted for. Therefore, the assessee was issued show cause notice dt. 26.10.2017 requesting the assessee to furnish details as called for. Thereafter, the AR for the assessee appeared on 23.11.2017 and filed some of the details with respect to the issues raised in the show-cause notice. After verification of the details filed by the AR, the assessment was completed inter-alia making certain additions / disallowances and thereafter passed assessment order dt.29.12.2017 u/s 143(3) r.w.s. 263 of the Act, determining the total income at Rs.15,34,767/-.

6.1 Before us, ld.AR submitted that the learned lower authorities have decided the issue without considering the explanation offered by the assessee and that assessee failed to appear before the ld.CIT(A) due to unavoidable circumstances. It was submitted that the e-mail given by the assessee was not functional and the assessee was not regularly seeing the same and therefore, the mistake has been committed by the assessee in not giving reply to the ld.CIT(A). Ld.AR further submitted that as the assessee has sufficient cause from not putting up appearance before the ld.CIT(A), matter may kindly be remitted back to the authorities below for afresh adjudication.

8 We have heard the rival contentions of both the parties and perused the material available on record and also the order passed by the lower authorities. On perusal of the impugned order passed by ld.CIT(A), we found that ld.CIT(A) passed an order confirming the action of the Assessing Officer in his assessment order passed u/s 143(3) r.w.s. 263 of the Act. The merits of the assessee’s appeal before the ld.CIT(A) have neither been discussed nor decided by the ld.CIT(A). From para 5 at page 4 of the order of ld.CIT(A), it is clear that ld.CIT(A) was forced to decide the appeal on the basis of material available on record, as there was no representation on behalf of the assessee in the remand proceedings. In view of the above reasons, in our view, the ends of justice will be met if the matter is remanded back to the file of ld.CIT(A) with a direction to decide the issue after considering the documents available on record and affording one more opportunity of hearing to the assessee in accordance with law subject to payment of costs of Rs.5,000/- (Rupees Five Thousand only) in favour of Prime Minister National Relief Fund which shall be payable within one month or from the date of receipt of this order or whichever is earlier.