ARBOR CHARITABLE FOUNDATION, KHAMMAM V. ITO., EXEMPTION WARD-1(3), HYDERABAD

ITA 252/Hyd/2024

• Counselvise Citation: [2024] 100 COUNSELVISE.COM (IT) 0457 (ITAT-HYDERABAD)
• Duration Of Justice: 4 month(s) 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-08-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB-A
• Next Hearing Date: 15-07-2024
• Assessment Year: 2013-2014
• Appeal Filed On: 14-03-2024
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Opportunity of being heard; Set aside
• Section: 250

Judgement Text

आयकर अपीलीय अधिकरण, हैदराबाद पीठ में IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCHES “A”, HYDERABAD BEFORE SHRI K.NARASIMHA CHARY, JUDICIAL MEMBER & SHRI MADHUSUDAN SAWDIA, ACCOUNTANT MEMBER आ.अपी.सं / ITA No. 252/Hyd/2024, 261/Hyd/2024 & 262/Hyd/2024 (निर्धारण वर्ा / Assessment Year: 2013-14 to 2015-16) ARBOR Charitable Foundation, 2-35, Karunagiri Khammam Seetharampuram B.O Agraharam Khammam [PAN : AAGCA7070D] Vs. Income Tax Officer Exemption, Ward-1(3) Hyderabad अपीलधर्थी / Appellant प्रत्‍यर्थी / Respondent निर्धाररती द्वधरध/Assessee by: Shri S.Rama Rao, Adv. रधजस्‍व द्वधरध/Revenue by: Shri Shakeer Ahamed, DR सुिवधई की तधरीख/Date of hearing: 16 /07/2024 घोर्णध की तधरीख/Pronouncement on: 06/08/2024 आदेश / ORDER PER K. NARASIMHA CHARY, J.M: Aggrieved by the order dated 30/01/2024 passed by the learned Commissioner of Income Tax (Appeals)- National Faceless Appeal Centre (NFAC), Delhi (“Ld. CIT(A)”), in the case of ARBOR Charitable Foundation (“the assessee”) for the assessment year 2013-14 to 2015-16, assessee preferred these appeals. 2 I.T.A.Nos.252 & 261 & 262/Hyd/2024, A.Y.2013-14 TO 2015-16 Arbor Charitable Foundation 2. At the outset Ld. AR submits that the learned CIT(A) recorded that so many notices were issued and because of the non-cooperation of the assessee, he had no option but to proceed ex-parte and dismissed the appeal in limine. It is the submission on behalf of the assessee that due to Covid-19, most of the staff members left employment and the foundation was running with the bare minimum personnel and that is the reason why the assessee could not advance to produce all the documents before the authorities. His main plank of argument is that even in the absence of the assessee, since the assessment order is available before the learned CIT(A), learned CIT(A) could have proceeded to advert to the merits of the case and disposed of by referring to the various aspects of merits. He, therefore, submits that the provisions under section 250 (6) of the Income Tax Act, 1961 (for short “the Act”) are not complied with. 4. Though the learned DR vehemently relied on the orders of the Revenue authorities, the fact remains that the learned CIT(A) did not refer to the facts nor did he dispose of the appeal on merits. Even in the absence of the assessee, it is always open for the learned CIT(A) to deal with the matter on merits, instead of dismissing the same. 5. As could be seen from the record, we find that the learned CIT(A) disposed-of the appeal ex-parte and dismissed it in limine, observing that various notices have been issued to the assessee, but the assessee failed to comply with any of such notices nor did the assessee produce any documents, explanation and evidence to substantiate the grounds raised. 6. Requirement of law under section 250 (6) of the Act is that the order of the Commissioner (Appeals) disposing of the appeal shall be in writing and shall state the points for determination, the decision thereon and the reason for the decision. Even in the absence of the assessee, it is always open for the learned CIT(A) to deal with the matter on merits instead of dismissing the same in limine. 3 I.T.A.Nos.252 & 261 & 262/Hyd/2024, A.Y.2013-14 TO 2015-16 Arbor Charitable Foundation 7. Having regard to the facts and circumstances of the case, we are of the considered opinion that the impugned order does not comply with the requirement of Section 250(6) of the Act and cannot be sustained. learned AR submitted that since the learned Assessing Officer also finalized the assessment exparte, affording an opportunity to the assessee to prosecute it’s case before the learned Assessing Officer, by submitting the documents/evidences, the highest that would happen is that a cause could be decided on merits. we consider this request reasonable, and it would be in the interest of justice to remit the issue to the file of the learned Assessing Officer for considering the submissions of the assessee and take a fresh view in the matter. 8. With this view of the matter, we set aside the impugned order and restore the issue to the file of the learned Assessing Officer to decide the issue afresh. We direct the assessee to co-operate with the learned Assessing Officer in getting the matter disposed of on merits, without seeking any adjournments and the learned Assessing Officer to take a fresh look at the matter, after affording a reasonable opportunity of being heard to the assessee. Grounds are accordingly treated as allowed for statistical purposes. 9. In the result, all the three appeals of the assessee are treated as allowed for statistical purposes. Order pronounced in the open court on this the 6 th day of August, 2024. Sd/- Sd/- (MADHUSUDAN SAWDIA) (K. NARASIMHA CHARY) ACCOUNTANT MEMBER JUDICIAL MEMBER Hyderabad, Dated: 06/08/2024 4 I.T.A.Nos.252 & 261 & 262/Hyd/2024, A.Y.2013-14 TO 2015-16 Arbor Charitable Foundation Copy forwarded to: 1. M/s ARBOR Charitable Foundation,2-35, Karunagiri Khammam, Seetharampuram B.O, Agraharam, Khammam 2. The Income Tax Officer, Exemption, Ward-1(3), Hyderabad. 3. The Pr.CIT, Hyderabad. 4. DR, ITAT, Hyderabad. 5.GUARD FILE TRUE COPY ASSISTANT REGISTRAR ITAT, HYDERABAD