CAREER POINT MONTESARI SIKSHA SAMITI,JAIPUR V. EXEMPTION WARD 1, JAIPUR, JAIPUR

ITA 526/JPR/2025

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The case involves Career Point Montesari Siksha Samiti, an educational institution, appealing against an order from the CIT(A) National Faceless Appeal Centre, Delhi, which confirmed an addition of Rs. 44,32,458 to the assessee's income for the Assessment Year 2017-18. The addition was initially made by the Assessing Officer during scrutiny, disallowing certain expenditures claimed by the assessee under the exemption for educational institutions. The assessee failed to appear in previous hearings due to the COVID-19 pandemic and other reasons, leading to a request for a further opportunity to be heard. The Tribunal, considering the circumstances and the principles of justice, decided to remand the matter back to the CIT(A) for a fresh decision.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 713170 (ITAT-JAIPUR)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-07-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Assessment Year: 2017-2018
• Other Referred Cases: Collector, Land Acquisition vs. Master Katiji and Others, Inder Singh Vs State of Madhya Pradesh
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: GAUTAM SINGH
• Assessee Lawyers: R.S. POONIA
• Keywords: Condonation of delay; Reasonable cause
• Section: 143(3); 142(1)

Judgement Text

"आयकर अपीलीय अधिकरण \"एस एम सी\" न्यायपीठ पुणे में । IN THE INCOME TAX APPELLATE TRIBUNAL \"SMC\" BENCH, PUNE BEFORE Dr. MANISH BORAD, ACCOUNTANT MEMBER आयकर अपील सं. /ITA No. 526/JPR/2025 धििाारण वर्ा / Assessment Year: 2017-2018 Career Point Montesari Siksha Samiti, C/o CA R.S. Poonia, D-82B, Siwad Area, Krishna Marg, Bapu Nagar, Jaipur-302015 Rajasthan PAN-AAAAC6169P Vs Exemption Ward 1, Jaipur, Rajasthan Appellant Respondent Assessee by : Shri R.S. Poonia, C.A. Revenue by : Shri Gautam Singh Choudhary, JCIT Date of hearing : 01.07.2025 Date of pronouncement : 29.07.2025 आदेश/ORDER PER DR. MANISH BORAD, ACCOUNTANT MEMBER : This appeal at the instance of assessee pertaining to Assessment Year 2017-18 is directed against the order passed by the Ld. CIT(A) National Faceless Appeal Centre, (NFAC) Delhi u/s 250 of the Income-tax Act, 1961 dated 06.01.2024 which in turn is arising out of the Assessment Order passed u/s 143(3) dated 20.11.2019 of the Income Tax Act, 1961. A. Registry has informed that there is a delay of 365 days in filing of appeal. Assessee has filed an application for Printed from counselvise.com 2 ITA No. 526/JPR/2025 condonation of delay along with affidavit. The assessee society is located at Village Renwal, Phulera, Jaipur. The notice of hearing as well as communication of impugned order were made through e-mail on [e-mail]. Inadvertently this e-mail Id was not operated by the managing person of the appellant society. It was only when the key person of the assessee society visited their Tax consultant and on checking the Income Tax Portal he came to know of passing of impugned order and immediately thereafter the appeal has been filed. After hearing Ld. DR and carefully going through the application for condonation of delay I am of the considered view that the delay is not intentional and delay has arisen due to a reasonable cause. I therefore taking support from the judgement of the Hon’ble Apex Court in the case of Collector, Land Acquisition vs. Master Katiji and Others(1987) 167 ITR 471(SC) & in the case of Inder Singh Vs State of Madhya Pradesh judgement dated 21.03.2025 (2025) INSC 382) and taking a liberal and justice oriented approach, hereby condone the delay and admit the appeal for hearing. 2. Assessee has raised following grounds of appeal:- 1. That on the facts and in the circumstances of the case the Ld. CIT(Appeals), NFAC is wrong, unjust and has erred in law and facts in confirming the addition made by the Ld. A.O. amounting to Rs. 44,32,458/- which is wrong, unwarranted and bad in law. Kindly delete the addition, 2. That the appellant craves permission to add to or amend to any of the above grounds of appeal or to withdraw any of them. 3. At the outset Ld. Counsel for the assessee submitted that on the date of hearing given by Ld. CIT(A) i.e. 29.01.2021 and 27.12.2023, assessee failed to appear and also could not file any written submission. Prayer made for providing one more opportunity of hearing before Ld. CIT(A). Printed from counselvise.com 3 ITA No. 526/JPR/2025 4. On the other hand Ld. Departmental Representative (DR) supported the order of the lower authorities. 5. I have heard rival contentions and perused the record placed before me. I observe that the assessee society is registered with Registrar of societies vide Certificate dated 28.06.2000 with the main object to impart education to the Children. ‘Nil’ income declared in the return of income for A.Y. 2017-18 e-filed on 14.07.2018. Case picked up for scrutiny. Valid notice u/s 142(1) and 143(2) of the Act served on the assessee. During the course of assessment proceedings assessee claimed that it is an Educational Institution and the income is exempt u/s 10(23C)(iiiad) of the Act. However Ld. Assessing Officer (AO) was not satisfied and concluded the proceedings disallowing an expenditure of Rs. 44,32,458/- Thereafter the assessee preferred appeal before Ld. CIT(A) but failed to succeed due to non appearance. 6. I note that out of the two notices of hearing given by Ld. CIT(A) first one was issued during Covid-19 Pandemic and the movement of the general public was restricted to a great extent. Considering this situation I find that the assessee has not been provided reasonable opportunity of hearing. Therefore in the larger interest of justice and being fair to both the parties, I hereby restore all the issues raised in the instant appeal to the file of Ld. CIT(A) for necessary adjudication and to decide in accordance with law by way of passing a speaking order as contemplated u/s 250(6) of the Act. Needless to mention that proper opportunity of hearing shall be granted to the assessee. Assessee is also directed to remain vigilant and not to take unnecessary adjournment unless otherwise required for reasonable cause. Effective grounds of appeal raised by the assessee are allowed for statistical purposes. Printed from counselvise.com 4 ITA No. 526/JPR/2025 7. In the result, appeal of the assessee is allowed for statistical purposes. Order pronounced on this 29th day of July, 2025. Sd/- (MANISH BORAD) ACCOUNTANT MEMBER जयपुर/ Jaipur; दििांक / Dated: 29th July, 2025. Neeta आिेश की प्रधिधलधप अग्रेधर्ि / Copy of the Order forwarded to: 1. अपीलार्थी / The Appellant. 2. प्रत्यर्थी / The Respondent. 3. The Pr. CIT concerned. 4. धवभागीय प्रधिधिधि, आयकर अपीलीय अधिकरण, \"SMC\" बेंच, जयपुर / DR, ITAT, \"SMC\" Bench, Jaipur. 5. गार्ा फाइल / Guard File. आिेशािुसार / BY ORDER, Senior Private Secretary आयकर अपीलीय अधिकरण, पुणे / ITAT, Pune. Printed from counselvise.com "