Monarch Society of Art And Technology, Murshidabad V. I.T.O.,Ward-42(3(, Murshidabad

ITA 2284/KOL/2019

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 2071 (ITAT-KOLKATA)
• Duration Of Justice: 6 month(s) 20 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-05-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 18-02-2020
• Assessment Year: 2014-2015
• Appeal Filed On: 15-10-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: SHOBHANTANU BHATTACHARYYA
• Keywords: Opportunity of being heard; Set aside
• Section: 143(3); 250

Judgement Text

ITA NO. 2284/KOL/2019 ASSESSMENT YEAR: 2014-2015 MONARCH SOCIETY OF ART AND TECHNOLOGY 1 IN THE INCOME TAX APPELLATE TRIBUNAL, KOLKATA C(SMC) BENCH, KOLKATA BEFORE SHRI P.M. JAGTAP, VICE-PRESIDENT I.T.A. NO. 2284/KOL/2019 ASSESSMENT YEAR: 2014-2015 MONARCH SOCIETY OF ART AND TECHNOLOGY,............. ....................APPELLANT 166, VIVEKANANDA PALLY, CHUANPUR, BERHAMPORE, MURSHIDABAD-742101 [PAN: AAALM0880C] -VS.- INCOME TAX OFFICER,................................ ..................................RESPONDENT WARD-42(3), MURSHIDABAD, AAYAKAR BHAWAN, 39, R.N. TAGORE ROAD, P.O. BERHAMPORE, MURSHIDABAD-742101 APPEARANCES BY: SHRI SHOBHANTANU BHATTACHARYYA, ADVOCATE, FOR THE A PPELLANT SHRI BAIJNATH SINGH, JCIT, SR. D.R., FOR THE RESPON DEN T DATE OF CONCLUDING THE HEARING : FEBRUARY 18, 2020 DATE OF PRONOUNCING THE ORDER : MAY 04, 2020 O R D E R THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAI NST THE ORDER OF LD. COMMISSIONER OF INCOME TAX (APPEALS)-12, KOLKATA DA TED 30.11.2017 PASSED EX-PARTE, WHEREBY HE DISMISSED THE APPEAL OF THE ASSESSEE FOR NON-PROSECUTION. 2. THE ASSESSEE IN THE PRESENT CASE IS A REGISTERED SOCIETY, WHICH IS ENGAGED IN PROVIDING EDUCATIONAL SERVICES TO THE ST UDENTS. THE RETURN OF INCOME FOR THE YEAR UNDER CONSIDERATION WAS FILED B Y IT ON 25.03.2016 DECLARING TOTAL INCOME AT NIL AFTER CLAIMING EXEM PTION UNDER SECTION 10(23)(IIIAD) OF THE INCOME TAX ACT, 1961. DURING T HE COURSE OF ITA NO. 2284/KOL/2019 ASSESSMENT YEAR: 2014-2015 MONARCH SOCIETY OF ART AND TECHNOLOGY 2 ASSESSMENT PROCEEDINGS, THE CLAIM OF THE ASSESSEE F OR EXEMPTION UNDER SECTION 10(23)(IIIAD) WAS EXAMINED BY THE ASSESSING OFFICER AND THE SAME WAS DISALLOWED BY HIM IN THE ASSESSMENT COMPLETED U NDER SECTION 143(3) VIDE AN ORDER DATED 26.09.2016 ON THE GROUND THAT T HE ASSESSEE WAS ENGAGED IN THE BUSINESS OF PROVIDING EDUCATIONAL SE RVICES TO THE STUDENTS AND IT WAS CARRYING ON THE SAID ACTIVITY FOR THE PU RPOSE OF PROFIT. 3. AGAINST THE ORDER PASSED BY THE ASSESSING OFFICE R UNDER SECTION 143(3), AN APPEAL WAS PREFERRED BY THE ASSESSEE BEF ORE THE LD. CIT(APPEALS) AND SINCE THERE WAS NO SATISFACTORY CO MPLIANCE ON THE PART OF THE ASSESSEE TO THE NOTICES ISSUED BY HIM FIXING THE SAID APPEAL FOR HEARING FROM TIME TO TIME, THE LD. CIT(APPEALS) DIS MISSED THE APPEAL OF THE ASSESSEE FOR NON-PROSECUTION VIDE AN APPELLATE ORDER DATED 30.11.2017 PASSED EX-PARTE. AGGRIEVED BY THE ORDER OF THE LD. CIT(APPEALS), THE ASSESSEE HAS PREFERRED THIS APPEA L BEFORE THE TRIBUNAL. 4. AT THE OUTSET, IT IS NOTED THAT THERE IS A DELAY OF 575 DAYS ON THE PART OF THE ASSESSEE IN FILING THIS APPEAL BEFORE T HE TRIBUNAL. IN THIS REGARD, THE ASSESSEE HAS FILED AN APPLICATION SEEKI NG CONDONATION OF THE SAID DELAY AND KEEPING IN VIEW THE REASONS GIVEN TH EREIN, I AM SATISFIED THAT THERE WAS A SUFFICIENT CAUSE FOR THE DELAY OF 575 DAYS ON THE PART OF THE ASSESSEE IN FILING THIS APPEAL BEFORE THE TRIBU NAL. EVEN THE LD. D.R. HAS NOT RAISED ANY OBJECTION IN THIS REGARD. THE SAID D ELAY ON THE PART OF THE ASSESSEE IN FILING THIS APPEAL BEFORE THE TRIBUNAL IS ACCORDINGLY CONDONED. 5. I HAVE HEARD THE ARGUMENTS OF BOTH THE SIDES AND ALSO PERUSED THE RELEVANT MATERIAL AVAILABLE ON RECORD. IN SUPPORT O F THE PRELIMINARY ISSUE RAISED BY THE ASSESSEE IN THIS APPEAL CHALLENGING T HE IMPUGNED ORDER PASSED BY THE LD. CIT(APPEALS) EX-PARTE, THE LD. CO UNSEL FOR THE ASSESSEE HAS SUBMITTED THAT THE APPEAL OF THE ASSESSEE WAS F IXED FOR HEARING BY THE LD. CIT(APPEALS) ON FOUR DIFFERENT DATES DURING THE PERIOD OF THREE MONTHS AND DUE TO UNAVOIDABLE CIRCUMSTANCES, ADJOURNMENT W AS SOUGHT BY THE ITA NO. 2284/KOL/2019 ASSESSMENT YEAR: 2014-2015 MONARCH SOCIETY OF ART AND TECHNOLOGY 3 ASSESSEE BY FILING APPLICATIONS IN WRITING ATLEAST ON TWO OCCASIONS. HE HAS SUBMITTED THAT THE LD. CIT(APPEALS), HOWEVER, DID N OT GIVE ANY FURTHER OPPORTUNITY TO THE ASSESSEE AND PROCEEDED TO DISMI SS THE APPEAL OF THE ASSESSEE VIDE HIS IMPUGNED ORDER PASSED EX-PARTE. H E HAS CONTENDED THAT PROPER AND SUFFICIENT OPPORTUNITY THUS WAS NOT GIVE N BY THE LD. CIT(APPEALS) TO THE ASSESSEE BEFORE DISMISSING ITS APPEAL FOR NON- PROSECUTION VIDE HIS IMPUGNED ORDER PASSED EX-PARTE AND THIS POSITION WHICH IS EVIDENT FROM RECORD IS NOT DISPUTED EVEN B Y THE LD. D.R. MOREOVER, THE LD. CIT(APPEALS) AS PER THE PROVISION S OF SUB-SECTION (6) OF SECTION 250 WAS REQUIRED TO DISPOSE OF THE APPEAL O F THE ASSESSEE VIDE AN ORDER IN WRITING STATING THE POINTS FOR DETERMINATI ON, THE DECISION THEREON AND THE REASONS FOR THE DECISION. IT IS OBS ERVED THAT THE IMPUGNED ORDER PASSED BY THE LD. CIT(APPEALS) DOES NOT COMPLY WITH THESE REQUIREMENTS. I, THEREFORE, CONSIDER IT FAIR AND PROPER AND IN THE INTEREST OF JUSTICE TO SET ASIDE THE IMPUGNED ORDER PASSED BY THE LD. CIT(APPEALS) EX-PARTE DISMISSING THE APPEAL OF THE ASSESSEE FOR NON- PROSECUTION AND REMIT THE MATTER BACK TO HIM FOR DI SPOSING OF THE APPEAL OF THE ASSESSEE AFRESH ON MERIT IN ACCORDANCE WITH LAW AFTER GIVING PROPER AND SUFFICIENT OPPORTUNITY OF BEING HEARD TO THE AS SESSEE. AS UNDERTAKEN BY THE LD. COUNSEL FOR THE ASSESSEE, THE ASSESSEE S HALL MAKE DUE COMPLIANCE BEFORE THE LD. CIT(APPEALS) AND SHALL EX TEND ALL THE POSSIBLE COOPERATION IN ORDER TO ENABLE THE LD. CIT(APPEALS) TO DISPOSE OF THE APPEAL AFRESH EXPEDITIOUSLY. 6. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS TRE ATED AS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON MAY 04, 2020. SD/- (P.M. JAGTAP) VICE- PRESIDENT) KOLKATA, THE 4 TH DAY OF MAY, 2020 ITA NO. 2284/KOL/2019 ASSESSMENT YEAR: 2014-2015 MONARCH SOCIETY OF ART AND TECHNOLOGY 4 COPIES TO : (1) MONARCH SOCIETY OF ART AND TECHNOLOGY, 166, VIVEKANANDA PALLY, CHUANPUR, BERHAMPORE, MURSHIDABAD-742101 (2) INCOME TAX OFFICER, WARD-42(3), MURSHIDABAD, AAYAKAR BHAWAN, 39, R.N. TAGORE ROAD, P.O. BERHAMPORE, MURSHIDABAD-742101 (3) COMMISSIONER OF INCOME TAX (APPEALS)-12, K OLKATA; (4) COMMISSIONER OF INCOME TAX- , KOLKATA (5) THE DEPARTMENTAL REPRESENTATIVE (6) GUARD FILE BY ORDER ASSISTANT REGISTRAR, INCOME TAX APPELLATE TRIBUNAL, KOLKATA BENCHES, KOLKATA LAHA/SR. P.S.