DERMATOLOGICAL SOCIETY,SADASHIV PETH PUNE CITY V. COMMISSIONER OF INCOME-TAX (APPEALS), NATIONAL FACELESS APPEAL CENTRE (NFAC) DELHI

ITA 1488/PUN/2024

AI Insights

The case involves the Dermatological Society, which appealed against the order of the CIT(A)/NFAC that confirmed the addition of Rs.58,78,332 to the assessee's income for the Assessment Year 2017-18. This addition was initially made by the ITO, Ward-3(4), Pune, due to non-compliance by the assessee in the assessment proceedings, specifically regarding the large deduction claimed under section 57 of the Income Tax Act. The Tribunal noted that the assessee had not been able to present their case before the lower authorities due to unavoidable circumstances and thus did not have the opportunity to explain the expenditures claimed.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 24514 (ITAT-PUNE)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-02-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2017-2018
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SHILPA N. C
• Assessee Lawyers: JAYWANT GANPAT BHUMKAR
• Keywords: Reasonable cause
• Section: 144

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH “A”, PUNE BEFORE SHRI MANISH BORAD, ACCOUNTANT MEMBER AND SHRI VINAY BHAMORE, JUDICIAL MEMBER आयकर अपील सं. / ITA No.1488/PUN/2024 िनधाᭅरण वषᭅ / Assessment Year : 2017-18 Dermatological Society, 1330, Bendre Niwas, Sadashiv Peth, Pune City, Pune- 411030. PAN : AACAD4146M Vs. ITO, Ward-3(4), Pune. Appellant Respondent आदेश / ORDER PER MANISH BORAD, AM: This appeal filed at the instance of assessee is directed against the order of Ld. CIT(A)/NFAC dated 22.05.2024 which is arising out of the assessment order for Assessment Year 2017-18 framed on 26.12.2019 by the ITO, Ward-3(4), Pune. 2. At the outset, Ld. Counsel of the assessee submitted that the assessee due to unavoidable circumstances could not appear before the lower authorities and an ex-parte order u/s 144 of the Act has been passed by the Assessing Officer and even before Ld. Assessee by : Shri Jaywant Ganpat Bhumkar Revenue by : Ms. Shilpa N. C. Date of hearing : 21.01.2025 Date of pronouncement : 10.02.2025 ITA No.1488/PUN/2024 2 CIT(A)/NFAC thought the assessee has been given multiple opportunities to reply/file any submission but the assessee failed to avail any of them. He further submitted that for lack of necessary reply the total deduction u/s 57 of the Act at Rs.58,78,332/- has been denied and the gross receipts has been subjected to tax. He therefore prayed that an opportunity may be provided to go before Ld. Assessing Officer so that all the relevant details can be filed to explain the expenditure of Rs.58,78,332/- incurred by the assessee society which works for the education and training of dermatologists located in the city of Pune. He also submitted that surplus of Rs.11,69,330/- earned by the assessee during the year was from conducting of Study Conference (ASICON 2016) jointly with the Association of Cutaneous Surgeons of India (ACSI). 3. On the other hand, Ld. Departmental Representative supported the orders of the lower authorities but did not oppose to the request of the assessee if the matter is restored to the file of the Jurisdictional Assessing Officer for necessary verification. 4. We have heard rival submissions and perused the record placed before us. The assessee is aggrieved with the addition of Rs.58,78,332/- confirmed by Ld. CIT(A)/NFAC which was made by the Assessing Officer by denying the claim of deduction u/s 57 ITA No.1488/PUN/2024 3 of the Act solely on account of non-compliance by the assessee during the course of assessment proceedings. It is an admitted fact that though the assessee has e-filed the return of income on 31.03.2018 declaring income of Rs.11,69,330/-, but failed to appear in the scrutiny proceedings which were initiated for limited purpose of examining the large deduction claimed u/s 57 of the Act. The records indicate that the assessee which is a society and working for the education and training of dermatologists in the city of Pune conducted a Study Conference (ASICON 2016) jointly with the Association of Cutaneous Surgeons of India (ACSI) and against the gross receipts of Rs.70,47,662/- including the receipts from members attending the conference, the expenditure of Rs.58,78,332/- were claimed to have been incurred for organizing the conference which included the expenses for venue, food, travelling, etc.. Before us, Ld. Counsel for the assessee stated that the assessee has all necessary evidences to explain the genuineness of expenditure of Rs.58,78,332/- and if an opportunity is granted, the details can be placed before Ld. Assessing Officer for necessary examination. We therefore in the interest of justice and being fair to both the parties set-aside the finding of Ld. CIT(A)/NFAC and direct the Jurisdictional Assessing Officer (JAO) to carry out the ITA No.1488/PUN/2024 4 assessment de novo and afford reasonable opportunity to the assessee to provide the details of expenses of Rs.58,78,332/- and if the same are found to be correct then no addition will be called for in the hands of the assessee. The assessee is also directed to remain vigilant and not to take adjournment unless otherwise required for reasonable cause, failing which Ld. JAO shall be free to proceed in accordance with law. Grounds of appeal raised by the assessee are allowed for statistical purposes. 5. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced on 10th day of February, 2025. Sd/- Sd/- (VINAY BHAMORE) (MANISH BORAD) JUDICIAL MEMBER ACCOUNTANT MEMBER पुणे / Pune; ᳰदनांक / Dated : 10th February, 2025. Sujeet आदेश कᳱ ᮧितिलिप अᮕेिषत / Copy of the Order forwarded to : 1. अपीलाथᱮ / The Appellant. 2. ᮧ᭜यथᱮ / The Respondent. 3. The Pr. CIT concerned. 4. िवभागीय ᮧितिनिध, आयकर अपीलीय अिधकरण, “A” बᱶच, पुणे / DR, ITAT, “A” Bench, Pune. 5. गाडᭅ फ़ाइल / Guard File. आदेशानुसार / BY ORDER, // True Copy // Senior Private Secretary आयकर अपीलीय अिधकरण, पुणे / ITAT, Pune. "