PSN EDUCATIONAL AND CHARITABLE TRUST,NAGERCOIL vs. ITO, NAGERCOIL

The assessee has raised several grounds of appeal on merits i.e. reopening of assessment, addition sustained on account of tuition fee and training charges collected from EC, IT and CSE students and levy of interest under section 234A and 234B of the Act. The assessee was also challenging the order of the Commissioner of Income Tax (Appeals) on violation of principles of equity and natural justice. The Commissioner of Income Tax (Appeals) passed ex-parte order.

Counsel for the assessee submits that the assessee could not represent before the Commissioner of Income Tax (Appeals) due to unavoidable circumstances and therefore the matter may be remitted back to the Commissioner of Income Tax (Appeals) for fresh adjudication. Counsel for the assessee undertakes that assessee shall co-operate in the proceedings before the Commissioner of Income Tax (Appeals) and will not seek adjournments without just and cause.

Departmental Representative has no serious objection in sending back the matter to the file of the Commissioner of Income Tax (Appeals).

On hearing both sides, we are inclined to restore the matter back to the file of the Commissioner of Income Tax (Appeals) to decide the appeal afresh in accordance with law, after providing adequate opportunity of being heard to the assessee. We also make it clear that assessee shall co- operate in the proceedings before the Commissioner of Income Tax (Appeals) without seeking adjournments unless there is just and cause.

Since the appeal of the assessee itself is disposed off, the stay petition filed by the assessee becomes infructuous and the same is dismissed accordingly.

In the result, appeal of the assessee is allowed for statistical purposes and that of the stay petition is dismissed.