IN THE INCOME TAX APPELLATE TRIBUNAL “SMC” BENCH, MUMBAI BEFORE SHRI PAVAN KUMAR GADALE, JUDICIAL MEMBER ITA No. 2738/Mum/2023 (A.Y: 2016-17) Maxell Foundation, 402-A, Sumer Trinity Towers, Bldg No.2, New Prabhadevi Road, Mumbai-400025. Vs. ITO, Ward 21(2)(2), Piramal Chambers, Lalbaug, Parel, Mumbai-400012. PAN/GIR No. : AADTM1077A Appellant .. Respondent Assessee by : Shri Atul Suraiya & Shri Sukhsagar Syal.AR Revenue by : Shri G.J. Ninawe, Sr. DR Date of Hearing 31.10.2023 Date of Pronouncement 01.11.2023 आदेश / O R D E R PER PAVAN KUMAR GADALE JM: This appeal is filed by the assessee against the order of the National Faceless Appeal Centre (NFAC),Delhi/CIT(A) passed u/sec143(3) and U/sec 250 of the Ac. The assessee has raised the following grounds of appeal: 1 The Ld. CIT(A) erred in passing ex-parte order without appreciating the fact that notices of hearing were sent to email ids of persons who were not in the system due to change in employment and the ex-consultants. Theref ore, the notice have been received by the Appellant, despite the f act that the Trustee, ITA No. 2738/Mum/2023 Maxell Foundation, Mumbai. - 2 - while signing the appeal memo, had given his email address on Form -35. 2. The Ld. C IT(A) sent f or the f irst time, a notice on 15.06.2013, on the email address given by the trustee on Form No. 35 when the consultants partner concerned Mr. T.P Ostwal was travelling to Coimbatore to attend residential conference on international Taxation 2023 of Chamber of Tax Consultants, as he was panelist and chairman of two sessions of the said conference. The time at disposal was absolutely not adequate even to gather the papers and prepare reply. 3. The appellant prays that ex-parte order of CIT(A) be set aside and matter be restored to the f ile of CIT(A) for f resh opportunity of being heard af ter serving the notice of hearing on email id-nitinpotdar@Yahoo.com or through post. 4. The Ld. CIT(A) erred in not appreciating the all the f acts and contentions of the appellant in respect of the merits of the case, which were available on the e-f iling portal and therefore, did not warrant an ex-parte order. 5. The appellant craves leave to add to, alter, amend and / or delete in all the foregoing grounds of appeal. 2. The brief facts of the case are that, the assessee is a nonprofit making registered trust formed to confer Maharashtra Corporate Excellence Awards (Maxell).The assessee has filed the return of income for the A.Y 2016-17 on 20.06.2016 disclosing a total income of Rs. Nil and the return of income was processed u/sec 143(1) of the Act. Subsequently the case was selected for scrutiny under the CASS and notice u/sec 143(2) and u/sec 142(1) of the Act ITA No. 2738/Mum/2023 Maxell Foundation, Mumbai. - 3 - along with the questionnaire are issued. In compliance to the notice, the assessee has submitted the details online from time to time. The Assessing Officer (AO) on perusal of the profit and loss account found that the assessee has disclosed total credits of Rs.20,60,605/- and the assessee has claimed/ debited expenses of Rs. 25,06,089/- and the net loss is Rs.4,45,484/- The AO observed that there is no clarity on granting of exemption u/s 12AA of the Act to the assessee and the objects of the trust for claiming the expenditure is not approved. The assessee was issued a show cause notice U/sec 142(1) of the Act for disallowance of expenditure claimed in the profit & Loss account. In compliance to the notice, the assessee has filed reply vide letter dated 29.11.2016 referred Para 4.2 of the order. Whereas the AO was not satisfied with the explanations and observed that the expenses of Rs.25,06,089/- are disallowed and made addition of credits in the profit & Loss account of Rs 20,60,605/-. Finally the A.O has assessed the total income of Rs.20,60,160/- and passed the order u/s 143(3) of the Act dated 19.12.2018. 3. Aggrieved by the order, the assessee has filed an appeal before the CIT(A), whereas the CIT(A) has considered the grounds of appeal, statement of facts and findings of the ITA No. 2738/Mum/2023 Maxell Foundation, Mumbai. - 4 - AO and has issued notices of hearing and since there was no compliance by the assessee to notices. Therefore the CIT(A) considering the information on record has confirmed the action of the A.O and dismissed the appeal. Aggrieved by the order of the CIT(A), the assessee has filed an appeal before the Hon'ble Tribunal. 4. At the time of hearing, the Ld. AR submitted that the CIT(A) has erred in confirming the action of the Assessing officer overlooking the submissions made in the assessment proceedings. The CIT(A) has sent notices to email id/ account, of persons who were not in the system due to change in employment and hence no communication is received by the assessee and the non appearance before the appellate authority is not an wanton act and the circumstances are explained. Further the assessee has a good case on merits and shall substantiate with the material evidences and prayed for an opportunity to explain before the lower authorities. Contra, the Ld. DR supported the order of the CIT(A). 5. Heard the rival submissions and perused the material on record. Prima-facie the CIT(A) has passed the order considering the fact that there is no appearance in spite of ITA No. 2738/Mum/2023 Maxell Foundation, Mumbai. - 5 - providing adequate opportunity of hearing and the notices were issued. Therefore, the CIT(A) was of the opinion that the assessee is not interested in prosecuting the appeal and dismissed the appeal ex-parte confirming the action of the assessing officer. The Ld CIT(A) has issued the notices of hearing on 30-12-2020,02-11-2022,18-04-2023,28-04-2023 & 15-06-2023 referred at Page 3 Para 5 of the order, but there was no response and thus the Ld.CIT(A) came to a conclusion that the assessee is not interested and decided the appeal based on the information available on record. The Ld.AR submissions are that the CIT(A) has sent notices to email id/ account, of persons who were not in the system due to change in employment and hence no communication is received by the assessee and the non appearance before the appellate authority is not an wanton act. Whereas the assessee has raised grounds of appeal challenging the additions of the A.O and there could be various reasons for non appearance which cannot be overruled. Therefore, considering the principles of natural justice shall provide with one more opportunity of hearing to the assessee to substantiate the case with evidences and information. Accordingly, set aside the order of the CIT(A) and remit the entire disputed issues to the file of the CIT(A) to adjudicate ITA No. 2738/Mum/2023 Maxell Foundation, Mumbai. - 6 - afresh and the assessee should be provided adequate opportunity of hearing and shall cooperate in submitting the information for early disposal of the appeal. Accordingly, allow the grounds of appeal of the assessee for statistical purposes. 6. In the result, the appeal filed by assessee is allowed for statistical purposes. Order pronounced in the open court on 01.11.2023. Sd/- (PAVAN KUMAR GADALE) JUDICIAL MEMBER Mumbai, Dated 01.11.2023 KRK, PS Copy of the Order forwarded to : 1. The Appellant 2. The Respondent 3. The CIT (Judicial) 4. The PCIT 5. DR, ITAT, Mumbai 6. Guard File आदेशान ु सार/ BY ORDER, //True Copy// 1. ITA No. 2738/Mum/2023 Maxell Foundation, Mumbai. - 7 - ( Asst. Registrar) ITAT, Mumbai