INCOME TAX OFFICER,EXEMPTIONS WARD, TIRUNELVELI V. THE SREE AYYAPPA EDUCATIONAL SOCIETY, KANYAKUMARI

ITA 2968/CHNY/2024

AI Insights

The case involves appeals by the Revenue against the orders of the First Appellate Authority concerning the Sree Ayyappa Educational Society for the assessment years 2016-17 and 2019-20. The primary issue was the utilization of building fund contributions and UGC grants by the assessee, which were not satisfactorily evidenced during the assessment proceedings. The Revenue contended that the CIT(A) had admitted new evidences during the appellate proceedings without providing an opportunity to the AO, thus violating Rule 46A. The Tribunal agreed with the Revenue's contention, setting aside the CIT(A)'s order and remitting the matter back to the AO for further verification and a decision in accordance with the law.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 36961 (ITAT-CHENNAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-04-2025
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2019-2020
• Laws Referred To: Income Tax Act
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: I.ROOPA
• Assessee Lawyers: ABHISHEK MURALI
• Keywords: Set aside; Opportunity of being heard
• Section: 250; 68; 13

Judgement Text

"Page - 1 - of 4 आयकर अपीलीय अधिकरण, ‘‘ए’ न्यायपीठ, चेन्नई। IN THE INCOME TAX APPELLATE TRIBUNAL ‘A’ BENCH: CHENNAI श्री एबी टी. वर्की, न्यायिर्क सदस्य एवं श्री अयिताभ शुक्ला, लेखा सदस्य क े समक्ष BEFORE SHRI ABY T VARKEY, JUDICIAL MEMBER AND SHRI AMITABH SHUKLA, ACCOUNTANT MEMBER आयकर अपील सं./ITA No. 2967/Chny/2024, Assessment Years: 2016-17 आयकर अपील सं./ITA No. 2968/Chny/2024, Assessment Years: 2019-20 The Income Tax Officer, Exemptions Ward, Tirunelveli Tamil Nadu-627011. The Sree Ayyappa Educational Society, Sree Ayyappa College for Women, Chunkankadai, Kanyakumari, Tamil Nadu-629003. [PAN: AACTT0234D] (अपीलार्थी/Appellant) (प्रत्यर्थी/Respondent) अपीलार्थी की ओर से/ Assessee by : Mr. Abhishek Murali, CA प्रत्यर्थी की ओर से /Revenue by : Dr. I.Roopa, Addl. CIT सुनवाई की तारीख/Date of Hearing : 26.02.2025 घोषणा की तारीख /Date of Pronouncement : 04.04.2025 आदेश / O R D E R PER AMITABH SHUKLA, A.M : The below mentioned appeals have been filed by the appellant Revenue for AY-2016-17 and 2019-20 contesting the order of Ld. First Appellate Authority indicated Column-E, herein below:- S. No. Appeal Nos. AYs Appellant CIT(A) Order Details Respondent A B C D E F 1 ITA-2967/Chny/2024 2016-17 The Income Tax Officer, Exemption ward, Tirunelveli. DIN & Order No.ITBA / NFAC / S / 250 / 2024-25 / 1069773793(1) dated 18.10.2024 The Sree Ayyappa Educational Society, Sree Ayyappa College for Women, Chunkankadai, Kanyakumari, Tamil Nadu-629003. [PAN: AACTT0234D] 2 ITA-2968/Chny/2024 2019-20 DIN & Order No.ITBA / NFAC / S / 250 / 2024-25 / 1069774827(1) dated 18.10.2024 ITA No. 2967 & 2968 /Chny/2024 Page - 2 - of 4 2.0 As the two appeals are centering around a common issue and hence for the purposes of convenience were heard together and are being adjudicated by this common order together. For the purposes of this adjudication the facts and figures for AY-2016-17 have been taken. As facts have been reported to be identical in AY-2016-17 and 2019-20, the decision for AY-2016-17 shall apply mutatis mutandis for appeal of AY-2019-20. 3.0 In ITA No.2967 for AY-2016-17, appellant Revenue has contested that the assessee had not furnished any evidences during the course of assessment proceedings but filed the same before the appellate authority. It was contended that the issue in dispute was utilization of building fund contributions and UGC grant by the assessee which is a society in educational sector. It is the case of the Revenue that the Ld.CIT(A), as evident from page 13 to 19 of his order, admitted evidences which were not available to the Ld.AO. The Ld.DR has argued that the Ld.CIT(A) has violated clear provisions of Rule 46A of providing an opportunity of being heard to the Ld.AO before giving any relief to the assessee. The Ld. AR placed reliance upon the order of Ld.CIT(A). ITA No. 2967 & 2968 /Chny/2024 Page - 3 - of 4 4.0 We have heard rival submissions in the light of material available on records. The order of Ld.AO shows that the assessee could not provide any satisfactory evidence to the extent of Rs. 2,75,57,842/- and hence he proceeded to add the same u/s 68 of the Act. It was noted that the assessee had obtained unsecured loans of Rs. 2,76,35,842/-, out of which it could provide documentary evidence to the Ld.AO of only Rs.78,000/-. For the balance, it was simply submitted that the same pertained to UGC grant and building fund. The latter received from the students and guardians as voluntary contributions. The assessee however did not provide any specific details. From the perusal of order of Ld.First Appellate Authority, we have noted that the relief was accorded by relying upon the evidences filed during appellate proceedings. Consequently, we find sufficient force in the argument of the Revenue that its rights under Rule 46A have been adversely impacted. Accordingly, we set aside the order of lower authorities and remit the issue back to the Ld.AO for limited verification of the evidences produced by the assessee before the Ld.First Appellate Authority. He will decide the matter in accordance with law by affording due opportunity of being heard and passing a speaking order. The grounds of appeal raised by the Revenue are allowed for statistical purposes. ITA No. 2967 & 2968 /Chny/2024 Page - 4 - of 4 5.0 In the result the Revenue’s appeal for ITA No.2967 is allowed for statistical purposes. 6.0 The decision taken herein above shall apply in Revenue’s appeal vide ITA No.2968 for AY-2019-20, mutatis mutandis. Order pronounced on 4th , April-2025 at Chennai. Sd/- ( एबी टी. वकी) (ABY T VARKEY) न्याययक सदस्य / Judicial Member Sd/- (अयिताभ शुक्ला) (AMITABH SHUKLA) लेखा सदस्य /Accountant Member चेन्नई/Chennai, यदनांक/Dated: 4th , April-2025. KB/- आदेश की प्रयतयलयप अग्रेयषत/Copy to: 1. अपीलार्थी/Assessee: 2. प्रत्यर्थी/Revenue 3. आयकर आयुक्त/CIT - Madurai 4. यवभागीय प्रयतयनयि/DR 5. गार्ड फाईल/GF "