HOINA HOMES OF THE INDIAN NATION,VIZIANAGARAM V. INCOME TAX OFFICER (EXEMPTION WARD), VISAKHAPATNAM

ITA 537/VIZ/2024

AI Insights

The case involves Hoina Homes of the Indian Nation, which appealed against the order of the CIT(A) that dismissed their claim for exemption under Section 11 of the Income Tax Act, 1961, for the assessment year 2021-22. Initially, the assessee filed a return declaring nil income and claimed exemption under Section 11, which was not allowed by the Assessing Officer (AO). The CIT(A) upheld the AO's decision, leading to the current appeal. The Tribunal had previously set aside another CIT(A) order on a related issue and remitted the matter back, which is still pending. The Tribunal decided to dismiss the current appeal as infructuous, referencing the ongoing proceedings and the identical nature of the issues.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 46538 (ITAT-VISAKHAPATNAM)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-03-2025
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: SMC
• Assessment Year: 2021-2022
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: APARNA VILLURI
• Assessee Lawyers: GVN HARI
• Keywords: Opportunity of being heard; Principle of natural justice; Rectification of order
• Section: 154; 143(1); 11; 12A

Judgement Text

"आयकर अपीलीय अधिकरण, धिशाखापटणम पीठ, धिशाखापटणम IN THE INCOME TAX APPELLATE TRIBUNAL, VISAKHAPATNAM BENCH, VISAKHAPATNAM श्री क े नरधिम्हाचारी, न्याधयक िदस्य एिं श्री एि बालाक ृष्णन, लेखा िदस्य क े िमक्ष BEFORE SHRIK NARASIMHA CHARY, HON’BLE JUDICIAL MEMBER & SHRI S BALAKRISHNAN, HON’BLE ACCOUNTANT MEMBER आयकर अपीलसं./ I.T.A. 537/Viz/2024 (ननधधारणवर्ा/ Assessment Year :2021-22) Hoina Homes of the Indian Nation, Kotha Sunkarapalem, Vizianagaram. PAN: AAATH3676B Vs. Income Tax Officer (Exemption Ward), Visakhapatnam. (अपीलधथी/ Appellant) (प्रत्यथी/ Respondent) अपीलधथी की ओर से/ Assessee by : Sri GVN Hari, AR प्रत्यधथी की ओर से/ Revenue by : Dr. Aparna Villuri, Sr. AR सुनवधई की तधरीख/ Date of Hearing : 13/02/2025 घोर्णध की तधरीख/Date of Pronouncement : 07/03/2025 O R D E R PERS. BALAKRISHNAN, Accountant Member : This appeal filed by the assessee is against the order of the Learned Addl/JCIT (Appeals)-1, Pune (“Ld. CIT(A)”) vide DIN & Order No. ITBA/APL/S/250/2024-25/1070554464(1), dated 22/11/2024 for the AY 2021-22 arising out of the intimation passed U/s. 143(1) of the Income Tax Act, 1961 (“the Act”) dated 26/10/2022. 2 2. Briefly stated the facts of the case are that the assessee filed its return of income for the AY 2021-22 on 10/01/2022 admitting a total income of Rs. NIL and claimed exemption U/s. 11 of the Act. The Ld. AO while processing the return of income U/s.143(1) of the Act computed the total income of the assessee at Rs.1,09,34,810/- and raised a demand of Rs. 43,17,510/-. Thereafter, based on the assessee’s request, the Ld. AO passed an order U/s. 154 of the Act on 02/02/2023 and reduced the amount of adjustment to the tune of Rs. 23,95,154/- and thereby raised a demand of Rs. 5,96,280/-. Thus, the assessee claim of exemption U/s. 11 of the Act to tune of Rs. 23,95,154/- was not allowed by the Ld. AO. The assessee filed two separate appeals before the Ld. CIT(A) against the order U/s. 154 and 143(1) of the Act passed by the CPC dated 02/02/2023 and 26/10/2022 respectively. However, on appeal of the assessee against the Ld. AO’s order U/s. 154 of the Act, the Ld. CIT(A) vide order dated 30/10/2023 rejected the assessee’s claim of exemption and dismissed the appeal. Aggrieved by the Ld.CIT(A)’s order, the assessee filed an appeal before the Tribunal. The Tribunal vide ITA No. 313/Viz/2023 (AY 2021-22), dated 21/03/2024 set-aside the order of the Ld. CIT(A) and remitted the matter back to the file of the Ld. CIT(A) and thus allowed the 3 appeal of the assessee for statistical purposes. Further, on the assessee’s appeal against the order of the Ld. AO passed U/s.143(1) of the Act, the Ld. CIT(A) vide order dated 22/11/2024 dismissed assessee’s appeal as infructuous since all the grounds raised by the assessee have already been adjudicated by the Ld. CIT(A)-NFAC, Delhi vide order dated 30/10/2023 dismissing the assessee’s appeal. Aggrieved by the order of the Ld. CIT(A), dated 22/11/2024, vide the present appeal, the assessee raised the following grounds of appeal: “1. The order of the Ld. CIT(A) is contrary to the facts and also the law applicable to the facts of the case. 2. The Ld. CIT(A) ought to have held that the addition of Rs. 23,95,154/- made towards disallowance of exemption claimed U/s. 11 of the act is outside the scope of adjustments that can be made in the Intimation U/s. 143(1) of the Act. 3. Without prejudice to the above, the Ld. CIT(A) ought to have directed the Assessing Officer to allow the exemption of Rs. 23,95,154/- claimed by the appellant U/s. 11 of the Act. 4. Any other ground that may be urged at the time of hearing.” 3. At the outset, the Ld. AR submitted before us that the present appeal is against the Ld. CIT(A)’s order arising out of the Ld. AO’s order passed U/s. 143(1) of the Act, dated 26/10/2022. However, against the order of the Ld. CIT(A), arising out of the Ld. AO’s order passed U/s. 154 of the Act, dated 02/02/2023, 4 the assessee preferred an appeal before the Tribunal and the Tribunal vide ITA No. 313/Viz/2023 (AY 2021-22), dated 21/03/2024 set-aside the order of the Ld. CIT(A) and remitted the matter back to the file of the Ld. CIT(A). The Ld. AR further submitted that the consequential order giving effect to the Tribunal’s order dated 21/03/2024 is still pending, the present appeal which arises from the order of the Ld. CIT(A), dated 22/11/2024 may also be remitted back to the Ld. CIT(A). 4. On the other hand, Learned Departmental Representative vehemently opposed to the submissions of the Ld. AR and submitted that since the Tribunal has already adjudicated the assessee’s appeal in ITA No. 313/Viz/2023 (AY 2021-22) on the same issue, the question of adjudication of the present appeal does not arise. The Ld. DR supported the order of the Ld. CIT(A). 5. We have heard both the sides and perused the material available on record as well as the orders of the Ld. Revenue Authorities. It is a fact that the assessee has filed two separate appeals before the Ld. CIT(A), first against the rectification order passed by the Ld.AO U/s. 154 and secondly against the intimation passed by the CPC U/s. 143(1) of the Act dated 02/02/2023 and 26/10/2022 respectively. However, on appeal of 5 the assessee against the Ld. AO’s order U/s. 154 of the Act, the Ld. CIT(A) vide order dated 30/10/2023 rejected the assessee’s claim of exemption and dismissed the appeal. Aggrieved by the Ld.CIT(A)’s order, the assessee filed an appeal before the Tribunal. The Tribunal vide ITA No. 313/Viz/2023 (AY 2021-22), dated 21/03/2024 set-aside the order of the Ld. CIT(A) and remitted the matter back to the file of the Ld. CIT(A) and thus allowed the appeal of the assessee for statistical purposes. The relevant findings of Tribunal are as under: “7. I have heard both the parties and perused the material placed on record. It is an undisputed fact that the assessee is a society, registered u/s 12A of the Act is eligible to claim exemption u/s 11 of the Act. The Ld.AR pleaded before me that the adjustment made in the intimation by denying exemption of accumulated income of Rs.23,95,154/- is not at all warranted and such adjustment is not within the purview of the said section. The Ld.AR filed paper book before me and submitted that the assessee has all material evidences in support of it’s claim. He pleaded for an opportunity of being heard to substantiate it’s claim before the Ld.CIT(A). In view of the foregoing facts and circumstances of the case and keeping in view the principles of natural justice, I am inclined to set aside the order passed by the Ld.CIT(A) and remit the matter back to the file of the Ld.CIT(A) to afford an opportunity of being heard to the assessee before the Ld.CIT(A). The assessee is also directed to adhere to the notices issued by the department and cooperate with the proceedings of the revenue authorities. Accordingly, the grounds raised by the assessee are allowed for statistical purpose.” 6. From the above, it is clear that the core issue raised by the assessee in the present appeal is identical to that of the issue raised by the assessee in its appeal ITA No. 313/Viz/2023 (AY 2021-22). Further, while adjudicating the assessee’s appeal, the 6 Ld. CIT(A) has categorically mentioned by observing that “since all the grounds raised in this appeal have already been adjudicated by the Ld. CIT(A)-NFAC, Delhi vide order dated 30/10/2023, dismissing the appellant’s appeal. Hence, the present appeal is treated as infructuous since the cause of action for filing the appeal, no more exists”. Therefore, in our considered opinion, the adjudication of the present appeal becomes mere academic exercise and becomes infructuous since the appeal of the assessee on the same issue has already been adjudicated and remitted back to the file of the Ld. CIT(A). Therefore, we hereby dismiss the grounds raised by the assessee as infructuous. 7. In the result, appeal of the assessee is dismissed. Pronounced in the open Court on 07th March, 2025. Sd/- Sd/- (श्रीक ेनरधिम्हाचारी) (एि बालाक ृष्णन) (K NARASIMHA CHARY) (S.BALAKRISHNAN) न्याधयकिदस्य/JUDICIAL MEMBER लेखािदस्य/ACCOUNTANT MEMBER Dated : 07/03/2025 OKK - SPS 7 आदेशकीप्रनतनलनपअग्रेनर्त/Copy of the order forwarded to:- 1. ननधधाऩरती/ The Assessee–The Hoina Homes of the Indian Nation, The Hoina Campus, Kotha Sunkarapalem, Vizianagaram District, Andhra Pradesh – 535183. 2. रधजस्व/The Revenue – Income Tax Officer (Exemption Ward), O/o. ITO, Infinity Tower, Shankaramatham Road, Santhipuram Visakhapatnam, Andhra Pradesh-530016. 3. The Principal Commissioner of Income Tax, 4. आयकरआयुक्त (अपील)/ The Commissioner of Income Tax 5. नवभधगीयप्रनतनननध, आयकरअपीलीयअनधकरण, नवशधखधपटणम/ DR,ITAT, Visakhapatnam 6. गधर्ाफ़धईल / Guard file आदेशधनुसधर / BY ORDER Sr. Private Secretary ITAT, Visakhapatnam "