G.RAMASWAMY NAIDU MATRIC HR.SEC. SCHOOL,COIMBATORE V. .ACIT, EXEMPTIONS, COIMBATORE

ITA 2625/CHNY/2024

AI Insights

The case involves G. Ramaswamy Naidu Matric Hr. Sec. School, an unregistered Association of Persons (AOP), which appealed against the order of the Commissioner of Income Tax (Appeals) confirming an ex-parte assessment order by the Assessing Officer. The assessment was based on substantial cash deposits in the school's bank account, which were not reported for taxation. The Tribunal noted the principles of natural justice and granted another opportunity for the assessee to present its case, emphasizing the need for a fair hearing.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 29383 (ITAT-CHENNAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-12-2024
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: B
• Assessment Year: 2015-2016
• Laws Referred To: Income Tax Act
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: D. KOMALI KRISHNA; IRS
• Assessee Lawyers: N. ARJUN RAJ
• Keywords: Set aside; Principle of natural justice
• Section: 147; 144; 142(1); 12A

Judgement Text

" आयकर अपीलीय अिधकरण ‘’बी’ Ɋायपीठ चेɄई मŐ। IN THE INCOME TAX APPELLATE TRIBUNAL ‘B’ BENCH, CHENNAI माननीय ŵी मनोज क ुमार अŤवाल ,लेखा सद˟ एवं माननीय ŵी मनु क ुमार िगįर, Ɋाियक सद˟ क े समƗ। BEFORE HON’BLE SHRI MANOJ KUMAR AGGARWAL, ACCOUNTANT MEMBER AND HON’BLE SHRI MANU KUMAR GIRI, JUDICIAL MEMBER आयकरअपील सं./ ITA No.2625/Chny/2024 (िनधाŊरणवषŊ / Assessment Year: 2015-2016) G. Ramaswamy Naidu Matric Hr. Sec. School, Secondary School Campus, Avanashi Road, Civil Aerodrome P.O. Race Course, Coimbatore 641 018. [PAN: AABTG 4164C] Vs. The Assistant Commissioner of Income Tax (Exemptions) Coimbatore (अपीलाथȸ/Appellant) (Ĥ×यथȸ/Respondent) अपीलाथȸ कȧ ओर से/ Appellant by : Shri. N. Arjun Raj, Advocate Ĥ×यथȸ कȧ ओर से /Respondent by : Ms. D. Komali Krishna, IRS, CIT. सुनवाई कȧ तारȣख/Date of Hearing : 17.12.2024 घोषणा कȧ तारȣख /Date of Pronouncement : 19.12.2024 आदेश / O R D E R PER MANU KUMAR GIRI (Judicial Member) This appeal filed by the assessee is directed against the order of the Ld. Commissioner of Income Tax(Appeals)(NFAC) Delhi [CIT(A)] dated 12.09.2024 for Assessment Year 2015-16. 2. Brief facts of the case are that the appellant is an AOP and not registered u/s 12A of the Act and the said trust is running a school by the 2 ITA No.2625 /Chny/2024 name G Ramaswamy Naidu Matric Higher Secondary School and not filed any return of income. Notice u/s 148A(b) of the Act was issued and duly served. In response to the same, the appellant had filed the return of income declaring total income at Rs. 4,09,230/-. During the course of assessment proceedings, the AO issued notice u/s 142(1) & show-case notice. In response to the same, the appellant has not compliance any details. On perusal of the documents furnished the AO came to the conclusion that the appellant had deposited cash amounting to Rs. 2,48,11,359/- in bank account and not offered any taxation for the said transitions. The Assessing Officer completed the assessment u/s 147 r.w.s. 144 r.w.s. 144B of the Act by assessing the total Income Rs. 2,52,20,590/- thereby raising the tax demand of Rs. 2,34,11,007/-. Assessee further challenged the ex-parte order of assessment u/s 147 r.w.s 144 r.w.s. 144B of the Act before the ld.CIT(A) who proceeded ex-parte and confirmed the order of the AO on merits. Aggrieved, assessee is in appeal before us. 3. Before the ld. Counsel for assessee submitted that the AO has not given sufficient time to file evidence and documents to substantiate his explanation. The ld.DR stated that the assessee is habitual defaulter in appearing before the appellate authority hence no lenient view is to be taken in this case and prayed for dismissal of appeal. 4. Though we concur with the submissions of Ld. Sr. DR however, keeping in mind the principle of natural justice and grant another opportunity of hearing 3 ITA No.2625 /Chny/2024 to the assessee. We also find that assessee has not represented before the ld.CIT(A) despite notices. Accordingly, the impugned order is set aside and the appeal is restored back to the file of Ld. CIT(A) for denovo appeal hearing on legal issues as well as on merits.The Ld.CIT(A) shall proceed for denovo appeal hearing after affording proper opportunity of hearing to the assessee. The assessee is directed to substantiate its case with all evidence, confirmations and documents, if any, forthwith without any fail, failing which Ld. CIT(A) shall be at liberty to proceed disposal of appeal on merits as per law. We make it clear that all legal issues are kept open before the ld.CIT(A). 5. In the result, appeal filed by the assessee is allowed for statistical purpose. Order pronounced in the open court on 19th day of December, 2024 Sd/- Sd/- (मनोज क ुमार अŤवाल) (मनु क ुमार िगįर) (MANOJ KUMAR AGGARWAL) लेखा सद˟ / ACCOUNTANT MEMBER (MANU KUMAR GIRI) Ɋाियक सद˟ / JUDICIAL MEMBER चेɄई Chennai: िदनांक Dated : 19-12-2024 KV आदेश कȧ ĤǓतͧलͪप अĒेͪषत /Copy to : 1. अपीलाथŎ/Appellant 2. ŮȑथŎ/Respondent 3. आयकरआयुƅ/CIT, Chennai/Coimbatore/Madurai/Salem. 4. िवभागीयŮितिनिध/DR 5. गाडŊफाईल/GF "