Tripada Education Trust, Ahmedabad V. The ITO, Ward-2 ,Exemption, Ahmedabad

ITA 168/AHD/2023

AI Insights

The case involves Tripada Education Trust, which is exclusively engaged in educational activities, appealing against the order of the Commissioner of Income Tax (Appeals) at the National Faceless Appeal Center, Delhi. The appeal was concerning the assessment year 2018-19, where the trust's return of income declared a total income of Rs. NIL. The Income Tax Officer had disallowed depreciation of Rs. 49,53,466 on fixed assets, which was confirmed by the CIT(A). The trust contended that they were not given a reasonable opportunity to present their case, as no notice of hearing was issued by the NFAC/CIT(A). The tribunal noted the absence of any mention of a hearing notice in the order and remanded the case back to the CIT(A) for a fair hearing.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 299919 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-06-2023
• Appeal Filed By: Assessee
• Order Result: PartlyAllowed
• Bench Allotted: SMC
• Next Hearing Date: 13-06-2023
• Assessment Year: 2018-2019
• Appeal Filed On: 15-03-2023
• Laws Referred To: Section 11(6) of the Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Depreciation; Principle of natural justice; Cost of acquisition
• Section: 2

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL “SMC” BENCH, AHMEDABAD BEFORE MS. SUCHITRA KAMBLE, JUDICIAL MEMBER I .T .A . N o . 1 6 8/ A h d /2 0 2 3 ( A s se ss m e nt Y e a r : 20 18- 19 ) Tr i pa d a E d u ca t io n Tru st , 1, Tr ip a d a Sch o ol, N r . N il ka nt h Ma h a d ev M an di r , R ann ap ar k, Gh atl o d i ya , A h me d a ba d-38 0 0 61 V s . The I nc o me Ta x Of f ic er , War d - 2 ( Ex e m pt io n s ), A h me da ba d [ P AN N o. A A BT T0 18 8 M ] (Appellant) .. (Respondent) Appellant by : Shri M. K. Patel, A.R. Respondent by : Shri Suraj Bhan Garwal, Sr. D.R. D a t e of H ea r i ng 14.06.2023 D a t e of P r o no u n ce me nt 16.06.2023 O R D E R The appeal filed by the assessee is against the order passed by the Ld. Commissioner of Income Tax (Appeals), (in short “Ld. CIT(A)”), National Faceless Appeal Center, (in short “NFAC”), Delhi on 17.01.2023 for A.Y. 2018-19. 2. The grounds of appeal raised by the assessee are as under: “1. That on facts, and in law, the learned NFAC has grievously erred in not providing reasonable opportunity, not considering the submissions, and in confirming the addition of Rs. 49,53,466/- in respect of Depreciation. 2. That on facts, and in law, it ought to have been held that there is no double claim of the appellant in terms of Section 11(6) of the Act of Depreciation and application of income in respect of cost of acquisition of assets. 3. The appellant craves liberty to add, alter, amend any ground of appeal.” 3. The assessee trust is exclusively into educational activity. The assessee trust filed its return of income on 31.10.2018 declaring total income at Rs. NIL. The case was selected for complete scrutiny assessment on the issue of receipts of trust. The trust has been granted the approval ITA No. 168/Ahd/2023 Tripada Education Trust vs. ITO Asst.Year–2018-19 - 2 - under Section 80G(5) of the Act. During the course of assessment proceedings, the Assessing Officer notice that the trust has evaded total depreciation of Rs. 49,53,466/- in the consolidated income expenditure account of the trust. After taking cognizance of the details and submissions of the assessee the Assessing Officer made disallowance of Rs. 49,53,466/- in respect of depreciation of on fixed assets. 4. Being aggrieved by the assessment order assessee filed appeal before the CIT(A). The CIT(A) dismiss the appeal of the assessee. 5. The Ld. A.R. submitted that from the order of National Faceless Appeal Centre (CIT(A)) it appears that no notice has been issued to the assessee and in fact the assessee has also not received any notice of hearing or for submissions of the issues contested by the assessee as per Form No. 35 filed by the assessee. Therefore, the Ld. A.R. submitted that the matter may be remanded back to the CIT(A) for proper adjudication of the issues after giving hearing. 6. The Ld. D.R. relied upon the assessment order and the order of the CIT(A). 7. Heard both the parties and perused all the relevant material available on record. It is pertinent to note that there is no mention of the notice of hearing to the assessee by the NFAC/CIT(A) in the entire order. In fact, the entire order is passed on Form No. 35 and quoting the provision of Section 11(6). The CIT(A) has not taken cognizance of the submissions made by the assessee before the Assessing Officer as well. Therefore, in the interest ITA No. 168/Ahd/2023 Tripada Education Trust vs. ITO Asst.Year–2018-19 - 3 - of justice it will be appropriate to remand back the issues contested by the assessee to the file of the CIT(A) for proper adjudication of the issues on merit. Needless to say the assessee be given opportunity of hearing by following principle of natural justice. It is pertinent to note that the assessee will cooperate with hearing before the CIT(A) otherwise, the CIT(A) after giving due notice will take appropriate measures to conclude the appellate proceedings. 8. In result, the appeal of the assessee is partly allowed for statistical purposes. This Order pronounced in Open Court on 16/06/2023 Sd/- (SUCHITRA KAMBLE) JUDICIAL MEMBER Ahmedabad; Dated 16/06/2023 TANMAY, Sr. PS TRUE COPY आदेश क त ल प अ े षत/ Copy of the Order forwarded to : 1. अपीलाथ / The Appellant 2. यथ / The Respondent. 3. संबं धत आयकर आय ु त / Concerned CIT 4. आयकर आय ु त(अपील) / The CIT(A)- 5. वभागीय त न ध, आयकर अपील!य अ धकरण, अहमदाबाद / DR, ITAT, Ahmedabad 6. गाड' फाईल / Guard file. आदेशान ु सार/ BY ORDER, उप/सहायक पंजीकार (Dy./Asstt.Registrar) आयकर अपील य अ धकरण, अहमदाबाद / ITAT, Ahmedabad 1. Date of dictation 14.06.2023 2. Date on which the type draft is placed before the Dictating Member 14.06.2023 3. Other Member..................... 4. Date on which the approved draft comes to the Sr.P.S./P.S .06.2023 5. Date on which the fair order is placed before the Dictating Member for pronouncement .06.2023 6. Date on which the fair order comes back to the Sr.P.S./P.S 16.06.2023 7. Date on which the file goes to the Bench Clerk 16.06.2023 8. Date on which the file goes to the Head Clerk.......................................... 9. The date on which the file goes to the Assistant Registrar for signature on the order.......................... 10. Date of Despatch of the Order..........................................