Women & Child Welfare Centre, Vizianagaram V. Income Tax Officer, Exemption Ward, Visakhapatnam

ITA 236/VIZ/2021

• Counselvise Citation: [2022] 105 COUNSELVISE.COM (IT) 5062 (ITAT-VISAKHAPATNAM)
• Duration Of Justice: 4 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-04-2022
• Appeal Filed By: Assessee
• Order Result: PartlyAllowed
• Bench Allotted: SMC
• Assessment Year: 2017-2018
• Appeal Filed On: 15-11-2021
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: SUSEEL KUMAR AGARWAL
• Section: 12; 154; 11; 12A

Judgement Text

आयकर अपीऱीयअधिकरण, विशाखापटणम पीठ, विशाखापटणम IN THE INCOME TAX APPELLATE TRIBUNAL, VISAKHAPATNAM BENCH, VISAKHAPATNAM श्री द ु व्ि ू रु आर एऱ रेड्डी, न्याययक सदस्य एिं श्री एस बाऱाक ृ ष्णन, ऱेखा सदस्य के समक्ष BEFORE SHRI DUVVURU RL REDDY, HON’BLE JUDICIAL MEMBER & SHRI S BALAKRISHNAN, HON’BLE ACCOUNTANT MEMBER आयकर अऩीऱ सं./ I.T.A. No.236/Viz/2021 (ननधधारण वषा / Assessment Year :2017-18) Women & Child Welfare Centre, Garividi, Vizianagaram. PAN: AAATW 0407 H Vs. Income Tax Officer, Exemption Ward, Visakhapatnam. (अऩीऱधथी/ Appellant) (प्रत्यथी/ Respondent) अऩीऱधथी की ओर से/ Appellant by : Sri Suseel Kumar Agarwal प्रत्यधथी की ओर से / Respondent by : Sri SPG Mudaliar, Sr. AR स ु नवधई की तधरीख / Date of Hearing : 15/03/2022 घोषणध की तधरीख/Date of Pronouncement : 06/04/2022 O R D E R PER DUVVURU RL REDDY, Judicial Member : This appeal filed by the assessee is against the order of the Ld. CIT (A), National Faceless Appeal Centre (NFAC), Delhi in DIN & Order No. ITBA/NFAC/S/250/2021-22/1035752476(1), dated 21/09/2021 passed U/s. 154 r.w.s 250(6) of the Act for the AY 2017-18. 2 2. The assessee has raised three grounds in its appeal and they are extracted herein below for reference: “1. The order of the Ld. CIT(A), National Faceless Appeal Centre (NFAC), Delhi is contrary to law and facts of the case. 2. The CIT (A), NFAC, Delhi is not justified in arriving at the total income of Rs. 24,22,150/- which is not in accordance with law when the appellant is a Charitable Trust and filed the return declaring taxable income at NIL. The CIT(A) disposed off the appeal without ascertaining the facts of the case. The Appellant relied upon the ITAT, Visakhapatnam Bench decision in the case of Rambhukta Appa Rao in ITA No. 27/Viz/2020, dated 14/06/2021 in favour of the appellant. Hence, the appellant prays for relief. 3. The appellant, Women and Child Welfare Centre is a public charitable Trust, engaged in Charitable activities and registered under section 12A of the IT Act with registration No. II/37/94-95. The appellant for the AY 2017-18, while filing the return of income, ie ITR 7, has by mistake mentioned income of Rs. 84,000/- and Rs. 23,38,150/- as income from house property and income from other sources respectively, instead of showing them as income referred to in section 11 & 12 derived during the year excluding voluntary contributions. However, the total receipts for the trust for the AY 2017-18 is Rs. 37,99,385/- (including the addition of Rs. 24,22,150/-) and the total payments applied for charitable purposes for the AY 2017-18j is Rs. 39,98,622/-j as correctly mentioned in the ITR. Hence for the AY 2007-08, the entire amount of income received has been fully applied for charitable purpose and there was no surplus. As the mistake of mentioning the income under wrong heads of the ITR, is neither intentional nor deliberate and is only because of lack of knowledge of the tax return preparer, we request the Hon’ble Members of the Tribunal to kindly condone the mistake and delete the addition made by the Assessing Authority. 4. For these and other grounds that may be urged at the time of appeal hearing the appellants prays for belief.” 3 3. Before us, at the outset the Ld. AR submitted that in the case of the assessee the Ld. DCIT, CPC, Bengaluru vide his order passed U/s.154 of the Act determined the taxable income of the assessee-trust at Rs. 24,22,150/- against the NIL income declared by the assessee in its return of income and raised demand of Rs. 7,17,714/-. Aggrieved by the order of the Ld. DCIT, CPC, Bengaluru the assessee went on appeal before the Ld. CIT(A). On appeal, the Ld. CIT (A), National Faceless Appeal Centre (NFAC), Delhi had passed ex-parte order without providing proper opportunity to the assessee of being heard. It was therefore pleaded that the matter may be remitted back to the file of the Ld CIT (A) in order to provide one more opportunity to the assessee of being heard. Ld. DR, on the other hand, vehemently opposed to the submissions of the Ld. AR and argued that sufficient opportunities had been provided to the assessee however, on the given dates of hearing none appeared before the Ld. CIT (A). Therefore the Ld. CIT (A) had no other option but to pass ex-parte order based on the materials available on record. Hence, it was pleaded that the order passed by the Ld. CIT(A) does not call for any interference. 4. We have heard the rival submissions and carefully perused the materials on record. On examining the facts of the case, we find that the Ld. CIT (A), NFAC had posted the case and issued notices of hearing. 4 However, none appeared on behalf of the assessee before the CIT(A) on the given dates of hearing. Therefore, the Ld. CIT (A) was left with no other option except to adjudicate the appeal ex-parte. In this situation, considering the prayer of the Ld. AR, in the interest of justice, we hereby remit the matter back to the file of Ld. CIT (A) in order to consider the appeal afresh on merits by providing one more opportunity to the assessee of being heard as per the principles of natural justice. At the same breath, we also hereby caution the assessee to promptly co-operate before the Ld. CIT (A) in the proceedings failing which the Ld. CIT (A) shall be at liberty to pass appropriate order in accordance with law and merits based on the materials on record. It is ordered accordingly. 5. In the result, appeal filed by the assessee is allowed for statistical purposes as indicated hereinabove. Pronounced in the open Court on the 06 th April, 2022. Sd/- Sd/- (एस बाऱाक ृ ष्णन) (द ु व्ि ू रु आर.एऱ रेड्डी) (S.BALAKRISHNAN) (DUVVURU RL REDDY) ऱेखा सदस्य/ACCOUNTANT MEMBER न्याययकसदस्य/JUDICIAL MEMBER Dated : 06.04.2022 OKK - SPS 5 आदेश की प्रतिलिपि अग्रेपिि/Copy of the order forwarded to:- 1. ननधधाररती/ The Assessee– Women & Child Welfare Centre, Shreeramnagar, Garividi Mandal, Vizianagaram, Andhra Pradesh – 535101. 2. रधजस्व/The Revenue –(i) Income Tax Officer, Exemption Ward, Infinity Towers, Shankaramatham Road, Visakhapatnam – 530016. (ii) Income Tax Officer, Ward-3(2), Visakhapatnam. 3. The Principal Commissioner of Income Tax, 4. आयकर आय ु क्त (अऩीऱ)/ The Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi. 5. ववभधगीय प्रनतननधध, आयकर अऩीऱीय अधधकरण, ववशधखधऩटणम/ DR, ITAT, Visakhapatnam 6. गधर्ा फ़धईऱ / Guard file आदेशधन ु सधर / BY ORDER Sr. Private Secretary ITAT, Visakhapatnam