BIBLE FELLOWSHIP CENTER,PUNE vs. INCOME TAX OFFICER,EXEMPTION, WARD-1(2), PUNE, PUNE

The assessee has instituted the instant appeal against the order of the ld. Addl/JCIT(A)-10, Delhi dated 11.10.2024 passed u/s.250 of the Income-tax Act, 1961 (hereinafter also called ‘the Act’) in relation to the assessment year 2016- 17 which inturn is arising out of the Assessment Order passed u/s.143(3) dated 29.11.2018.

Briefly stated, the facts of the case are that the assessee is a Trust registered under the Bombay Public Trust Act, 1950 and also under the Societies Registration Act, 1860. It filed the return of return for the A.Y. 2016-17 on 29.10.2016 declaring Nil income. After the case selected for complete scrutiny under CASS for verification of approval obtained u/s.80G and increase in total voluntary contributions followed by notices u/s.143(2)/142(1) of the Act, the assessee made its submissions. Based on the financial statements furnished by the assessee trust, the Assessing Officer noticed that the assessee trust had claimed deemed application of Rs.8,09,074/- under clause(2) of Explanation to section 11(1) of the Act but has not furnished copy of Form No.9A. A notice was sent to the assessee requiring him to furnish the same. However, there was no compliance by the assessee.

The AO also noticed that the assessee has claimed deduction of Rs.4,82,850/- u/s.11(1)(a) and u/s.11(1)(d) of the Act. However, the assessee filed Form No.10B after the stipulated due date of filing the Audit Report and the return of income. The assessee was called upon to furnish its say on the issue to which there was no response. In the circumstances, the AO disallowed the deduction claimed by assessee holding that as

Aggrieved assessee challenged the additions before the ld.Addl./JCIT(A) who vide impugned order dismissed the appeal in limine for non-prosecution without discussing anything on merits of the issues.

Now the assessee is in appeal before the Tribunal.

I have heard the parties and perused the record placed before me. It is an admitted position that the assessee trust made partial compliance in the proceedings before the Assessing Officer and did not participate in the First Appellate proceedings. It is also a fact that the ld.CIT(A)/NFAC has dismissed the assessee’s appeal in limine without discussing the issue on merits as contemplated u/s.250(6) of the Act, which provides that for adjudicating the appeal, the ld.CIT(A)/NFAC should dispose of the same in writing and shall state the points for determination, the decision thereon and the reason for that decision. In view thereof, without dwelling into merits of the issue, the issues on merits are being remitted to the file of ld.CIT(A)/NFAC for denovo adjudication. The settled position of law mandates the NFAC to dispose of the appeal by adjudicating the issues raised in appeal on merits. In this regard, reference is being made to a decision of the Hon’ble Bombay High Court in the case of Pr.CIT(Central) Vs. Premkumar Arjundas Luthra (HUF) Bombay)/[2017] 297 CTR 614 (Bombay) wherein it was held that NFAC is obliged to dispose of the appeal on merits. The assessee is also directed to remain vigilant and not to take adjournment unless otherwise required for reasonable cause, failing which the ld.CIT(A)/NFAC shall be free to proceed in accordance with law. Finding of the CIT(A)/NFAC is set aside and Grounds of appeal raised by the assessee are allowed for statistical purposes.

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