COMMANDANT CENTRAL POLICE FORCE MASTER CANTEEN,KARERA, SHIVPURI V. NATIONAL FACELESS ASSESSMENT CENTRE, DELHI, DELHI

ITA 294/AGR/2024

AI Insights

The case involves the Commandant Central Police Force Master Canteen, a government department under the Ministry of Home Affairs, which operates a canteen for police personnel at the India-Tibet border. For the Assessment Year 2018-19, the canteen was assessed under sections 147 and 144B of the Income-tax Act, 1961, due to unfiled income tax returns and significant cash deposits reported. The NFAC dismissed the canteen's appeal as not maintainable due to a 225-day delay in filing, which the canteen attributed to a lack of awareness of tax obligations. The Tribunal found the reasons for the delay sufficient to warrant a re-examination of the case on its merits.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 34742 (ITAT-AGRA)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-02-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2018-2019
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SHALENDRA SRIVASTAVA
• Assessee Lawyers: DEEPENDRA MOHAN
• Keywords: Opportunity of being heard
• Section: 147; 148; 144; 69A

Judgement Text

"Page | 1 INCOME TAX APPELLATE TRIBUNAL AGRA BENCH “DB”: AGRA SHRI SATBEER SINGH GODARA, JUDICIAL MEMBER AND BEFORE SHRI M. BALAGANESH, ACCOUNTANT MEMBER (Through virtual hearing) ITA No. 294/AGR/2024 (Assessment Year: 2018-19) Commandant Central Police Force Master Canteen, Support BN TT BBP Force, Karera, Shivpuri- 473 662 Vs. National Faceless Assessment Centre, Delhi (Appellant) (Respondent) PAN: ANLPM0292N Assessee by : Shri Deependra Mohan, CA Revenue by: Shri Shalendra Srivastava, Sr. DR Date of Hearing 04/02/2025 Date of pronouncement 04/02/2025 O R D E R PER M. BALAGANESH, A. M.: 1. The appeal in ITA No.294/AGR/2024 for AY 2018-19, arises out of the order of the National Faceless Appeal Centre (NFAC), Delhi [hereinafter referred to as ‘ld. NFAC’, in short] dated 20.06.2024 against the order of assessment passed u/s 147 r.w.s. 144B of the Income-tax Act, 1961 (hereinafter referred to as ‘the Act’) dated 21.03.2023 by the Assessing Officer, NeAC, Delhi (hereinafter referred to as ‘ld. AO’). 2. Though the assessee has raised several grounds of appeal before us, the crucial ground raised by the assessee is with regard to disposal of the appeal by the NFAC as not maintainable by not condoning the delay in filing of appeal before it with a delay of 225 days. ITA No. 294/AGR/2024 Commandant Central Police Force Master Canteen Page | 2 3. We have heard the rival submissions and perused the material available on record. The assessee is a Govt department falling under the Ministry of Home Affairs (Resettlement & Welfare Directorate), Govt. of India. The assessee is an Association Of Persons (AOP) running a canteen under the aegis of Tibet Border Force, for the welfare of police personnel of India Tibet border police as per Karera headed by a Commandant. The canteen as per regulation of Head Quarters of Tibet Border Force master canteen Delhi provides items to the police personnel at no profit basis. The sale proceeds to various items of the canteen was deposited in bank account maintained with State Bank of India during the year under consideration. Since, no return of income was filed by the assessee for AY 2018-19 and since, there was information available in the portal that there was cash deposit in the sum of Rs. 1,69,86,568/- made in State Bank of India, the case of the assessee was reopened u/s 147 of the Act. There was no response by the assessee even for the notice issued u/s 148 of the Act. Accordingly, after issuing relevant show cause, the assessment stood completed u/s 147 read with Section 144 read with Section 144B of the Act on 21.03.2023 determining the total income of the assessee at Rs. 1,69,86,568/- adding the cash deposit u/s 69A of the Act. Since, the assessee was not conversant with the income tax laws, the appeal was filed before NFAC with a delay of 225 days. It was pleaded that person heading canteen was not aware of the provisions of the Income Tax and was maintaining a bona fide belief that since the canteen is running on cost to cost basis, there is no obligation for payment of income tax and filing income tax returns etc. However, this reason was not found satisfactory by the ld NFAC and the ld NFAC dismissed the appeal of the assessee as not admissible by not condoning the delay. ITA No. 294/AGR/2024 Commandant Central Police Force Master Canteen Page | 3 4. Considering the reasons adduced by the assessee for the delay, we deem it fit and appropriate to restore this appeal to the file of ld NFAC for de novo adjudication in accordance with law with a direction to condone the delay, admit the appeal of the assessee and adjudicate the grounds on merits. Needless to mention that the assessee be given reasonable opportunity of being heard by serving a notice in the manner known to law. The assessee is also directed to cooperate with ld NFAC for expeditious disposal of the appeal by not taking unwanted adjournments. With these directions, the grounds raised by the assessee are allowed for statistical purposes. 5. In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced in the open court on 04/02/2025. -Sd/- -Sd/- (SATBEER SINGH GODARA) (M. BALAGANESH) JUDICIAL MEMBER ACCOUNTANT MEMBER Dated: 04/02/2025 A K Keot Copy forwarded to 1. Applicant 2. Respondent 3. CIT 4. CIT (A) 5. DR:ITAT ASSISTANT REGISTRAR ITAT, New Delhi "