Vidya Prakash Mahavidyla , Kannauj V. ITO 4(2)(3), Kannauj

ITA 104/AGR/2023

AI Insights

The case involves Vidya Prakash Mahavidyala, an educational institution, appealing against the orders of the Income Tax Officer (ITO) and the Commissioner of Income-tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi. The appeal pertains to the assessment year 2017-18, where the assessee contested an exparte assessment order under section 144 of the Income Tax Act, 1961, and subsequent appellate order, both of which treated the institution as a separate legal entity despite being a limb of a public charitable educational society. The assessee argued that the additions made to their income were unjust and that they were not given a fair opportunity to contest the assessments due to procedural lapses.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 113596 (ITAT-AGRA)
• Duration Of Justice: 2 month(s) 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-09-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 12-09-2023
• Assessment Year: 2017-2018
• Appeal Filed On: 11-07-2023
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: P.K. SAHGAL
• Keywords: Opportunity of being heard; Principle of natural justice
• Section: 144; 69A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL (AGRA BENCH ‘SMC’ : AGRA) (THROUGH VIDEO CONFERENCE) SHRI SHAMIM YAHYA, ACCOUNTANT MEMBER and SHRI ANUBHAV SHARMA, JUDICIAL MEMBER ITA No.104/AGR/2023 (ASSESSMENT YEAR : 2017-18) Vidya Prakash Mahavidyala, vs. ITO 4 (2)(3), Udharnpur, Khubariyapur, Kannauj. Kannauj – 209 721 (Uttar Pradesh). (PAN : AABAV4602M) (APPELLANT) (RESPONDENT) ASSESSEE BY : Shri P.K. Sahgal, Advocate Shri Utsav Sahgal, CA REVENUE BY : Shri Shailendra Srivastava, Sr. DR Date of Hearing : 13.09.2023 Date of Order : 20.09.2023 ORDER PER SHAMIM YAHYA, ACCOUNTANT MEMBER : This appeal by the assessee is directed against the order of the ld. Commissioner of Income-tax/National Faceless Appeal Centre (NFAC) dated 22.02.2023 pertaining to assessment year 2017-18. 2. Grounds of appeal taken by the assessee read as under :- “1. That Vidya Prakash Mahavidyala (PAN: AABAV4602M) (hereinafter referred to as 'the Appellant') being simply one of the LIMB of the Public Charitable Educational Society styled as 'Sarvajanik Sanatan Dharm Vidyalaya, Kannauj (PAN: AAEAS8803L), thus has no separate legal entity and therefore the exparte assessment order u/s 144 of the ITA No.104/AGR/2023 2 Income Tax Act, 1961 (hereinafter referred to as 'the Act') dated 28-11- 2019 as well as exparte appellate order of learned CIT (A), NFAC, Delhi treating such LIMB as separate legal entity are illegal, bad in law and abinitio void, hence liable to be quashed/annulled/ vitiated. 2. That as the Authorised Representative, whose e- mail ID was furnished on the portal of Income Tax Department neither informed about the notices received from the learned AO and learned CIT (A), NFAC, Delhi nor he had made any compliance thereof resulting into exparte assessment and appellate orders, thus the appellant was prevented from defending its case properly and judiciously before the authorities below. Therefore in view of the principles of equity and natural justice the case of the appellant be kindly restored back to the file of learned AO. 3. That the money credited in the bank account maintained in the name of Vidya Prakash Mahavidyala (PAN: AABAV4602M), one of the LIMB of the Public Charitable Educational Society styled as Sarvajanik Sanatan Dharm Vidyalaya, Kannauj (PAN: AAEAS8803L) being genuine fee and other receipts from students, educational activities and interest from bank account, which were duly recorded/disclosed in the books of accounts and other relevant records, thus the arbitrary and unjust addition of Rs.26,96,090 made by treating the same as unexplained money in bank account under section 69A of the Act and taxed thereafter under section 115BE of the Act is unsustainable and thus liable to be deleted. 4. That in any view of the facts and circumstances of the case of the appellant the arbitrary and unjust addition of Rs.27,03,242 by unlawfully treating the genuine money credited made in its bank accounts as unexplained money U/S 69A of the Act is unsustainable and thus be kindly deleted. 5. That the exparte appellate order dated 22-02-2023 passed by learned CIT (A), NFAC, Delhi, is illegal, bad in law and completely against the facts of appellant's case.” 3. At the outset, it is noted that there is a delay of 79 days in filing the appeal. Ld. Counsel of the assessee has given a statement in this regard that due to the non-cooperation of the old consultant, the delay has occurred. Upon careful consideration, we condone the delay. 4. As regards merits of the case, the ld. Counsel of the assessee pleaded that order was passed under section 144 of the Income-tax Act, ITA No.104/AGR/2023 3 1961 (for short 'the Act'). Assessee could not comply with the same as the PAN number quoted in the notices was not correct. Furthermore, he submitted that proper opportunity was also not given for canvassing the appeal properly before the ld. CIT (A). Hence, he submitted that the matter may be remitted to the file of AO to enable the assessee to proper canvass the case. 5. Ld. DR for the Revenue did not have any serious objection to this proposition. 6. We have heard both the parties and perused the records. In the interest of justice, we remit the file to AO to consider afresh after giving the assessee proper opportunity of being heard. Assessee is also directed to duly cooperate with the Revenue authorities. 7. In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced in the open court on this 20 th day of September, 2023. Sd/- sd/- (ANUBHAV SHARMA) (SHAMIM YAHYA) JUDICIAL MEMBER ACCOUNTANT MEMBER Dated the 20 th day of September, 2023 TS ITA No.104/AGR/2023 4 Copy forwarded to: 1.Appellant 2.Respondent 3.CIT 4.CIT (A) 5.CIT(ITAT), New Delhi. AR, ITAT NEW DELHI.