DCIT, CC-II, Ludhiana V. M/s Guru Nanak Public School Committee, Ludhiana

ITA 184/CHANDI/2023

AI Insights

The case involves an appeal by the Department against the order of the CIT(A)-5, Ludhiana, which had allowed the appeal of the Guru Nanak Public School Committee without delving into the merits, solely based on the restoration of the assessee's registration under section 12AA(3) of the Income Tax Act, 1961. The Department contended that the CIT(A) erred by not considering the merits of the case, despite previous ITAT decisions. The Tribunal agreed with the Department's view and remitted the case back to the CIT(A) for a thorough examination on merits, emphasizing the need for a detailed adjudication as per legal standards.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 128408 (ITAT-CHANDIGARH)
• Duration Of Justice: 5 month(s) 12 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-09-2023
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 10-09-2023
• Assessment Year: 2015-2016
• Appeal Filed On: 30-03-2023
• Other Referred Cases: S. Velu Palandar Vs. DCIT
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Assessee Lawyers: P.K.GOEL
• Keywords: Cancellation of registration
• Section: 12A; 12AA

Judgement Text

आयकर अपीलȣय अͬधकरण,चÖडीगढ़ Ûयायपीठ, चÖडीगढ़ IN THE INCOME TAX APPELLATE TRIBUNAL DIVISION BENCH, ‘A’, CHANDIGARH BEFORE SHRI A.D. JAIN, VICE PRESIDENT & SHRI VIKRAM SINGH YADAV, ACCOUNTANT MEMBER आयकर अपील सं./ ITA No. 184/CHD/2023 Ǔनधा[रण वष[ / Assessment Year : 2015-16 The DCIT, CC-II, Ludhiana Vs. बनाम M/s Guru Nanak Public School Committee, Sarabha Nagar, Ludhiana èथायी लेखा सं./ PAN No.: AAAAG4584E अपीलाथȸ/Appellant Ĥ×यथȸ/Respondent Ǔनधा[ǐरती कȧ ओर से/Assessee by : Sh. P.K.Goel, CA and Shri Sunil Arora, Advocate राजèव कȧ ओर से/ Revenue by : Shri Rohit Sharma, CIT DR स ु नवाई कȧ तारȣख/Date of Hearing : 11.09.2023 उदघोषणा कȧ तारȣख/Date of Pronouncement : 13.09.2023 आदेश/Order Per A.D. Jain, Vice President: This is Department’s appeal against the order of the ld. CIT(A)-5, Ludhiana, dated 31.01.2023, for the Assessment Year 2015- 16, taking the following ground of appeal: “Whether of on the facts and in the circumstance of the case, ld. CIT(A) has erred in law in allowing the appeal of the assessee without going into merits of 184-Chd-2023 – Guru Nanak Public School Committee, Ludhiana 2 the case and deletion the impugned addition only on the ground that the registration of the assessee, which was cancelled under section 12AA(3) of the Income Tax Act, 1961, has been restored by the Tribunal in appeal.” 2. At the outset, it has been submitted by the ld. Departmental Representative (DR) that the sole grievance of the Revenue is that the ld. CIT(A) has erred in allowing the appeal of the Assessee without going into the merits of the case and the impugned addition in his case was deleted on the ground by the ld. CIT(A) that the registration of the Assessee, which was cancelled under section 12AA(3) of the Income Tax Act, 1961 has been restored by the Tribunal. 3. The ld. DR further submitted that the observation of the ld. CIT(A), that the issue involved is squarely covered in favour of the Assessee, in Assessee’s own case, by the decision of the ITAT, Chandigarh Bench, quashing the order of the A.O. vide order dated 20.12.2019 in ITA No.619/Chd/2013, is not in order. It is submitted that the ld. CIT(A) has decided the issue simply by allowing the grounds of appeal, without considering the issue in detail, on the sole basis that the cancellation of registration u/s 12A of the Act has been quashed by the ITAT. 184-Chd-2023 – Guru Nanak Public School Committee, Ludhiana 3 3. The ld. Counsel for the Assessee, on the other hand, has strongly relied on the order of the First Appellate Authority. 4. Heard. We have gone through the order of the ld. CIT (A) and find that the ld. CIT(A) has dismissed the appeal of the Revenue without going into the merits of the case by simply making the observation that the cancellation of registration u/s 12AA has been quashed by the ITAT. As such, the matter requires to be remitted to the file of the CIT(A) for decision on the merits of the case. Even otherwise, it is trite [‘S. Velu Palandar Vs. DCIT’ 83 ITR 683 (Mad.)] and incumbent on the authority to decide an appeal on merit. The ld. A.R., though, has placed reliance on the order of the CIT(A), but has no objection if the matter is remanded to the CIT(A) for adjudication afresh. 5. In view of the above, in the interest of justice, the matter is remitted to the file of the CIT(A), to be decided afresh, on merit, in accordance with law, on affording due and adequate opportunity of hearing to the Assessee. All pleas available under the law shall remain so available to the assessee. The Assessee, no doubt, shall cooperate in the fresh proceedings before the CIT(A). The ld. CIT(A) shall pass afresh order expeditiously preferably within two months of the receipt of the present order. Ordered accordingly. 184-Chd-2023 – Guru Nanak Public School Committee, Ludhiana 4 6. In the result, for statistical purposes, the appeal is treated as allowed. Order pronounced on 13.09.2023. Sd/- Sd/- (VIKRAM SINGH YADAV) ( A.D. JAIN ) Accountant Member Vice President Dated : 13.09.2023 “आर.के.” आदेश कȧ ĤǓतͧलͪप अĒेͪषत / Copy of the order forwarded to : 1. अपीलाथȸ/ The Appellant 2. Ĥ×यथȸ/ The Respondent 3. आयकर आय ु Èत/ CIT 4. ͪवभागीय ĤǓतǓनͬध, आयकर अपीलȣय आͬधकरण, चÖडीगढ़/ DR, ITAT, CHANDIGARH 5. गाड[ फाईल/ Guard File आदेशान ु सार/ By order, सहायक पंजीकार/ Assistant Registrar