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

ITA 2281/PUN/2024

AI Insights

The case involves Bible Fellowship Center, a Trust registered under the Bombay Public Trust Act, 1950 and the Societies Registration Act, 1860, which filed an appeal against the order of the ld. Addl/JCIT(A)-10, Delhi. The appeal was initially dismissed in limine for non-prosecution without discussing the merits. The Trust had filed a return declaring nil income for the assessment year 2016-17, which was scrutinized under CASS, leading to issues regarding the approval under section 80G and discrepancies in the financial statements related to deductions claimed under sections 11(1)(a) and 11(1)(d). The Assessing Officer disallowed these deductions due to non-compliance with the filing requirements of Form No.10B and the audit report. The Tribunal found that the CIT(A) had not adjudicated the issues on merits and thus set aside the findings, allowing the appeal for statistical purposes and directing a re-examination of the case on its merits.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 474115 (ITAT-PUNE)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-12-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2016-2017
• Other Referred Cases: Pr.CIT(Central) Vs. Premkumar Arjundas Luthra (HUF)
• Laws Referred To: Income-tax Act, 1961, Bombay Public Trust Act, 1950, Societies Registration Act, 1860
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SOURABH NAYAK
• Assessee Lawyers: ASHOK G. RATHOD
• Keywords: Set aside; Reasonable cause

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCHES “SMC”, PUNE BEFORE DR.MANISH BORAD, ACCOUNTANT MEMBER आयकर अपील सं. / ITA No.2281/PUN/2024 Assessment Year : 2016-17 Bible Fellowship Center, Flat 10, Hari Om Apartment, Plot-6, Ravindra Nagar, S.No.111/1, Yerwada, PUNE – 411 006. Maharashtra PAN : AABTB6774B Vs. The Income Tax Officer, Exemption Ward-1(2), Pune Appellant Respondent आदेश / ORDER PER DR. MANISH BORAD, ACCOUNTANT MEMBER : 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. Assessee by : Shri Ashok G. Rathod (party in person) Revenue by : Shri Sourabh Nayak, Addl.CIT Date of hearing : 16.12.2024 Date of pronouncement : 24.12.2024 ITA No.2281 /PUN/2024 Bible Fellowship Centre 2 2. 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. 3. 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 ITA No.2281 /PUN/2024 Bible Fellowship Centre 3 per provisions of section 12A(1)(b) of the Act, the assessee was required to get its accounted audited and was required to file its return of income in Form No.10B before the due date specified u/s.139(1) of the Act. 4. 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. 5. Now the assessee is in appeal before the Tribunal. 6. 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 ITA No.2281 /PUN/2024 Bible Fellowship Centre 4 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. 7. In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced on this 24th day of December, 2024. Sd/- (MANISH BORAD) ACCOUNTANT MEMBER पुणे / Pune; \u0001दनांक / Dated : 24th December, 2024. Satish ITA No.2281 /PUN/2024 Bible Fellowship Centre 5 आदेश क\u0002 \u0003ितिलिप अ ेिषत / Copy of the Order forwarded to : 1. अपीलाथ / The Appellant. 2. \u000eयथ / The Respondent. 3. The Pr. CIT concerned. 4. िवभागीय ितिनिध, आयकर अपीलीय अिधकरण, “SMC” ब\u0014च, पुणे / DR, ITAT, “SMC” Bench, Pune. 5. गाड\u0004 फ़ाइल / Guard File. आदेशानुसार / BY ORDER, // True Copy // Senior Private Secretary आयकर अपीलीय अिधकरण, पुणे / ITAT, Pune. "