GOPSAI AVINANDAN SANGHA,KOLKATA V. ITO(E), WARD-1(1), KOLKATA. , KOLKATA

ITA 1268/KOL/2023

AI Insights

The case involves Gopsai Avinandan Sangha, a registered Cooperative Society running an educational institution, which was assessed as an Association of Persons (AOP). The initial assessment for the year 2012-2013 under section 143(3) allowed certain exemptions, which were later contested and revised under section 263 by the CIT (Exemption), Kolkata, leading to additional income being assessed. The assessee's appeal against this revision was dismissed ex-parte by the CIT(Appeals) due to non-representation and non-submission of written arguments. Aggrieved by this dismissal, the assessee approached the ITAT, which found merit in providing another opportunity for the assessee to present its case, thus setting aside the CIT(Appeals)'s order and remitting the matter back for re-evaluation.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 26949 (ITAT-KOLKATA)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-02-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2012-2013
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Set aside; Charitable institution
• Section: 143(3); 263; 11

Judgement Text

" ITA No. 1268/KOL/2023 (A.Y. 2012-2013) Gopsai Avinandan Sangha 1 IN THE INCOME TAX APPELLATE TRIBUNAL, ‘D’ BENCH, KOLKATA Before Shri Duvvuru RL Reddy, Vice-President (KZ) & Shri Rakesh Mishra, Accountant Member I.T.A. No. 1268/KOL/2023 Assessment Year: 2012-2013 Gopsai Avinandan Sangha,……….......……Appellant C/o. S.N. Ghosh & Associates, Advocates, 2, Garstin Place, 2nd Floor, Suite No. 203, Off. Hare Street, Kolkata-700001 [PAN:AAATG8930F] -Vs.- Income Tax Officer (Exemption),…………....Respondent Ward-1(1), Kolkata, Income Tax Office, Middleton Row, 10B, Sir William Jones Sarani, 5th Floor, Kolkata-700071 Appearances by: Shri Somnath Ghosh, Advocate, appeared on behalf of the assessee N o n e, appeared on behalf of the Revenue Date of concluding the hearing: January 7, 2025 Date of pronouncing the order: February 26, 2025 O R D E R Per Duvvuru RL Reddy, Vice-President (KZ):- The present appeal is directed at the instance of assessee against the order of ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi dated 26th September, 2023 passed for Assessment Year 2012-13. ITA No. 1268/KOL/2023 (A.Y. 2012-2013) Gopsai Avinandan Sangha 2 2. None appeared on behalf of the Revenue at the time of hearing. Therefore, we have decided to dispose of the appeal after hearing the ld. Counsel for the assessee and on the basis of material available on record. 3. Brief facts of the case are that the assessee is a registered Cooperative Society and is running an Educational Institution and assessed as an AOP. The assessment of income of the appellant under section 143(3) was completed on 27.03.2015 and the total income assessed was Rs.1,77,46,310/-. The assessment under section 143(3) dated 27.03.2015 was revised under section 263 by the ld. CIT (Exemption), Kolkata directing the ld. Assessing Officer to compute the income without allowing exemption under section 11 of the Income Tax Act, 1961 on 09.03.2017. Pursuant to the order under section 263 dated 09.03.2017, the ld. Assessing Officer passed the assessment order under section 143(3)/263 dated 06.09.2017 by making addition of Rs.86,18,353/- disallowing exemption under section 11 being accumulation of income for charitable purpose to the extent not exceeding 15% of the income. On being aggrieved, the assessee preferred an appeal before the ld. CIT(Appeals). 4. The ld. CIT(Appeals) has given several opportunities to the assessee to substantiate its claim, but the appellant did not file the written submissions and did not represent the case before the ld. CIT(Appeals). Thereafter the ld. CIT(Appeals) dismissed the appeal ex-parte on 26th September, 2023. ITA No. 1268/KOL/2023 (A.Y. 2012-2013) Gopsai Avinandan Sangha 3 5. On being aggrieved, the assessee preferred an appeal before the ITAT. 6. At the time of hearing, it was the submission of the ld. Counsel for the assessee that ld. CIT(Appeals) did not consider the case on merit, rather he just upheld the order passed by the ld. Assessing Officer. Therefore, he pleaded to delete the addition made by the ld. Assessing Officer as confirmed by the ld. CIT(Appeals). 7. We have heard the rival submissions and perused the material available on record. Considering the facts and circumstances of the case, we are inclined to set aside the order passed by the ld. CIT(Appeals) in order to meet the principle of natural justice, and remit the matter back to the file of ld. CIT(Appeals) with a direction to provide one more opportunity of being heard to the assessee. At the same breath, we also hereby caution the assessee to promptly co-operate with the proceedings before the Ld. CIT(Appeals) failing which the Ld. CIT(Appeals) shall be at liberty to pass appropriate order in accordance with law and merits based on the materials available on the record. Thus, the grounds raised by the assessee are allowed for statistical purposes. 8. In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced in the open Court on 26/02/2025. Sd/- Sd/- (Rakesh Mishra) (Duvvuru RL Reddy) Accountant Member Vice-President (KZ) Kolkata, the 26th day of February, 2025 ITA No. 1268/KOL/2023 (A.Y. 2012-2013) Gopsai Avinandan Sangha 4 Copies to :(1) Gopsai Avinandan Sangha, C/o. S.N. Ghosh & Associates, Advocates, 2, Garstin Place, 2nd Floor, Suite No. 203, Off. Hare Street, Kolkata-700001 (2) Income Tax Officer (Exemption), Ward-1(1), Kolkata, Income Tax Office, Middleton Row, 10B, Sir William Jones Sarani, 5th Floor, Kolkata-700071 (3) CIT(Appeals), NFAC, Delhi; (4) CIT - ; (5) The Departmental Representative; (6) Guard File TRUE COPY By order Assistant Registrar, Income Tax Appellate Tribunal, Kolkata Benches, Kolkata Laha/Sr. P.S. "