AGRA COLLEGE,AGRA V. EXEMPTION CIRCLE, GZB, GHAZIABAD

ITA 4761/DEL/2025

AI Insights

The case involves Agra College appealing against an order passed by the Commissioner of Income Tax (Exemption), Lucknow, under Section 263 of the Income Tax Act, 1961. The appeal was filed late by 75 days, for which a separate application for condonation of delay was submitted. The primary contention was the erroneous setting aside of an assessment order that declared NIL income, based on cash deposits during the demonetization period, which the CIT considered prejudicial to the interest of revenue. The tribunal found that the initial assessments and the subsequent order under Section 263 were passed ex-parte without any compliance or submission from the assessee, leading to a decision to remand the case for a fresh assessment.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 786600 (ITAT-DELHI)
• Duration Of Justice: 3 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-11-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2015-2016
• Appeal Filed On: 02-08-2025
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: DAYAINDER SINGH SIDHU
• Assessee Lawyers: R.C. SHARMA; HIMANSHU JAIN
• Keywords: Condonation of delay; Principle of natural justice; Revision of order
• Section: 147; 144; 263

Judgement Text

"P a g e | 1 ITA No. 4761/Del/2025 Agra College (AY: 2015-16) IN THE INCOME TAX APPELLATE TRIBUNAL “C” BENCH, DELHI BEFORE SHRI ANUBHAV SHARMA, JUDICIAL MEMBER & SHRI KRINWANT SAHAY, ACCOUNTANT MEMBER ITA No. 4761/Del/2025 (Assessment Year 2015-16) Agra College MG Road Agra, Uttar Pradesh Agra – 282001 Vs. Exemption Circle, GZB CGO, Complex-II, Purani Hapur Chungi, Ghaziabad – 201001 \u0001थायीलेखासं./जीआइआरसं./PAN/GIR No: AADTA0397D Appellant .. Respondent Appellant by : Sh. R.C. Sharma, Adv. & Sh. Himanshu Jain, CA Respondent by : Sh. Dayainder Singh Sidhu, CIT, DR Date of Hearing 17.11.2025 Date of Pronouncement 19.11.2025 O R D E R PER KRINWANT SAHAY, AM: Appeal in this case has been filed against the order dated 19.03.2025 passed by the CIT Exemption, Lucknow under Section 263 of the Act for A.Y. 2015-16. The grounds of appeal are as under: Printed from counselvise.com P a g e | 2 ITA No. 4761/Del/2025 Agra College (AY: 2015-16) “1. That the Commissioner of income Tax, Exemption, Lucknow has erred in law and on facts in passing order u/s 263 of the Income Tax Act, 1961 bearing DIN & Order No. ITBA/COM/F/17/2024-25/1074680105(1) dated 19.03.2025. 2. That the present appeal is filed late by 75 days for which separate application for condonation of delay has been filed. 3. That the Commissioner of income Tax Exemption, Lucknow has grossly erred in law and on facts in setting aside the order of assessment passed u/s 147 r.w.s144 read with section 144B of the Income tax Act, 1961 dated 22.02.2023 at NIL income. 4. That the Commissioner of Income Tax, Exemption, Lucknow has grossly erred in law and on facts in holding the order of assessment dated 22.02.2023 being erroneous and prejudicial to the interest of revenue on the basis of cash deposited during the period of demonetization. 5. That the Commissioner of Income Tax, Exemption, Lucknow has unlawfully and illegally considered the cash deposited during the period of demonetization for setting the order of Assessment for the Asstt. Year 2015-16. 6. That the Appellant craves to leave, add or alter any or all the grounds of appeal during or before hearing of the appeal under reference. 2. From the order passed under Section 263 of the Act, it is seen that the order passed by the AO was an ex-parte order under Section 144 of the Act, even during the course of proceedings under Section 263 of the Act there was no compliance by the assessee before the Commissioner. Therefore, the order under Section 263 has also been passed by the Ld. CIT, Exemption as an ex-parte order. 3. We have gone through the order of the AO and the order under Section 263 passed by the CIT Exemption. We find that since Printed from counselvise.com P a g e | 3 ITA No. 4761/Del/2025 Agra College (AY: 2015-16) there is no compliance and no written submission filed by the assessee, therefore, nothing has been dealt on merit which is against the element of natural justice. Therefore, we are of the view that the matter should be remanded back to CIT Exemption, for giving fresh opportunity to the assessee as required under law to pass fresh order. Accordingly, the case is remanded back to the CIT Exemption. 4. In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced in the open court on 19.11.2025 Sd/- (Anubhav Sharma) Sd/- (Krinwant Sahay) JUDICIAL MEMBER ACCOUNTANT MEMBER Dated 19.11.2025 Rohit, Sr. PS Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR ITAT NEW DELHI Printed from counselvise.com "