Sri Chenna Keshava Educational Society, Vikarabad, Hyderabad V. ADIT, Exemptions-1, Hyderabad, Hyderabad

ITA 334/HYD/2017

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 2616 (ITAT-HYDERABAD)
• Duration Of Justice: 7 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-09-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2013-2014
• Appeal Filed On: 24-02-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: K J RAO
• Assessee Lawyers: S RAMA RAO
• Keywords: Opportunity of being heard

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH A, HYDERABAD BEFORE SMT. P. MADHAVI DEVI, JUDICIAL MEMBER AND SHRI S. RIFAUR RAHMAN, ACCOUNTANT MEMBER ITA NO. 334/HYD/2017 ASSESSMENT YEAR: 2013-14 SRI CHENNA KESHAVA EDUCATIONAL SOCIETY, VIKARABAD. PAN AAGTS 3337T VS. ASST. DIRECTOR OF INCOME-TAX, (EXEMPTIONS) 1, HYDERABAD. (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI S. RAMA RAO REVENUE BY : SHRI K.J. RAO DATE OF HEARING : 21-09-2017 DATE OF PRONOUNCEMENT : 27-09-2017 O R D E R PER S. RIFAUR RAHMAN, A.M.: THIS APPEAL IS PREFERRED BY THE ASSESSEE AGAINST TH E ORDER OF LD. CIT(A) -9 HYDERABAD, DATED 21 ST NOVEMBER, 2016. WITH RESPECT TO THE AY 2013-14. 2. THE BRIEF FACTS OF THE CASE ARE, THE ASSESSEE I S A EDUCATIONAL SOCIETY FILED ITS RETURN OF INCOME ON 30.07.2013. T HE RETURN OF INCOME WAS PROCESSED BY CPC U/S 143(1) OF THE INCOME TAX A CT, 1961 (IN SHORT ACT) DATED 13.03.2015. THE ASSESSMENT WAS COM PLETED BY DETERMINING THE INCOME AT RS.97,77,810. AGGRIEVED W ITH THE ABOVE ORDER, THE ASSESSEE PREFERRED AN APPEAL BEFORE CIT( A). THE LD. CIT(A) FIXED THE HEARING DATE IN MANY OCCASIONS AND THE AUTHORIZED REPRESENTATIVE IN ALL THE OCCASIONS PREFERRED TO SE EK ADJOURNMENTS. HOWEVER, THE ASSESSEE FILED A WRITTEN SUBMISSION ON 20.06.2016. 2 ITA NO. 334/H/17 SRI CHENNA KESHAVA EDUCATIONAL SOCIETY 3. LD. CIT(A) EVEN THOUGH CONDONED THE DELAY OF 33 DAYS IN FILING THE APPEAL BEFORE HIM, DUE TO NON-REPRESENTATION FR OM THE ASSESSEE, LD. CIT(A) DISMISSED THE APPEAL AFTER GIVING OPPORT UNITIES TO THE ASSESSEE IN THE MONTH OF NOVEMBER 2016, AS NOT INTE RESTED IN PURSUING THE APPEAL AND ONLY INTERESTED IN SEEKING ADJOURNMENTS. 3. AGGRIEVED WITH THE ABOVE ORDER, THE ASSESSEE PRE FERRED AN APPEAL BEFORE RAISING FOLLOWING GROUNDS OF APPEAL. 1. THE ORDER OF THE LEARNED COMMISSIONER OF INCOME -TAX (APPEALS) IS ERRONEOUS BOTH ON FACTS AND IN LAW. 2. THE LEARNED COMMISSIONER OF INCOME-TAX (APPEALS ) ERRED IN DECIDED THE APPEAL EX PARTE WITHOUT CONSIDERING THE WRITTEN SUBMISSIONS FILED ON 206-2016. 3. THE LEARNED COMMISSIONER OF INCOME-TAX (APPEALS) EVEN WHEN DECIDING THE APPEAL EX PARTE OUGHT TO HAVE DEC IDED THE APPEAL ON MERITS. 4. THE LEARNED COMMISSIONER OF INCOME-TAX (APPEALS ) OUGHT TO HAVE CONSIDERED THE FACT THAT THE APPELLANT IS A CH ARITABLE INSTITUTION RUNNING EDUCATIONAL INSTITUTION; THAT T HE TOTAL RECEIPTS ARE LESS THAN RS. 1 CRORE AND THAT THEREFORE, THE A PPELLANT IS ENTITLED FOR EXEMPTION UNDER SEC. 0(23C)(IIIAD) OF THE LT. ACT. 5. AS AN ALTERNATE, THE LEARNED COMMISSIONER OF INC OME-TAX (APPEALS) OUGHT TO HAVE CONSIDERED THE FACT THAT AS PER THE REGULAR PROVISIONS ALSO, LOSS WOULD BE WORKED AS TH E EXPENDITURE CLAIMED IS MORE THAN THE RECEIPT AND TH EREFORE OUGHT TO HAVE ALLOWED THE APPEAL. 6. THE LEARNED COMMISSIONER OF INCOME-TAX (APPEALS) OUGHT TO HAVE HELD THAT SUCH AN ADDITION SHOULD NOT HAVE BEE N MADE WHILE PROCESSING THE RETURN OF INCOME UNDER SEC. 14 3(1) OF THE ACT. 4. LD. AR OF THE ASSESSEE SUBMITTED THAT DUE TO SO ME PREOCCUPATION OF THE AUTHORIZED REPRESENTATIVE DURI NG THE FIRST APPEAL PROCEEDINGS COULD NOT APPEAR BEFORE LD. CIT(A). HE SUBMITTED THAT THE ASSESSEE HAS SUBMITTED WRITTEN SUBMISSION BEFOR E HIM AND LD. CIT(A) SHOULD HAVE GIVEN ONE MORE OPPORTUNITY TO TH E ASSESSEE. EVEN OTHERWISE, HE COULD HAVE DECIDED THE ISSUES ON MERI TS BY CONSIDERING 3 ITA NO. 334/H/17 SRI CHENNA KESHAVA EDUCATIONAL SOCIETY THE WRITTEN SUBMISSION OF THE ASSESSEE. HE FURTHER SUBMITTED THAT THE BENCH MAY DIRECT THE LD. CIT(A) TO ADJUDICATE THE A PPEAL OF THE ASSESSEE ON MERITS. 4. LD. DR SUPPORTED THE ORDER OF CIT(A). 5. CONSIDERED THE RIVAL SUBMISSIONS AND MATERIAL F ACTS ON RECORD. IT IS CLEAR FROM THE RECORDS THAT LD. CIT(A) HAS GI VEN MANY OPPORTUNITIES TO THE ASSESSEE TO PRESENT THEIR CASE . LD. CIT(A) HAS A RIGHT TO DISMISS THE CASE WHEN THERE IS NO RESPONSE FROM THE ASSESSEE. BUT IN THE GIVEN CASE, THE AR FILED ADJOU RNMENT LETTERS AND ALSO FILED A WRITTEN SUBMISSION. LD. CIT(A) SHOULD HAVE CONSIDERED THE WRITTEN SUBMISSION AND ADJUDICATED THE APPEAL ON ME RITS INSTEAD OF DISMISSING IT MERELY FOR NON-APPEARANCE. CONSIDERIN G THE FACT THAT THE ASSESSEE IS RUNNING A EDUCATIONAL SOCIETY AND THE G ROSS INCOME IS BELOW 1 CRORE FOR WHICH THE PROVISION OF SEC 10(23C ) IS APPLICABLE. FOR THE SAKE OF JUSTICE AND EQUITY, WE REMIT THIS MATTE R BACK TO FILE OF LD. CIT(A) WITH THE DIRECTION TO ADJUDICATE THE MATTER BY CONSIDERING THE WRITTEN SUBMISSIONS OF THE ASSESSEE, AT THE SAME TI ME, THE ASSESSEE MAY ALSO BE GIVEN AN OPPORTUNITY OF BEING HEARD. AC CORDINGLY GROUNDS RAISED BY THE ASSESSEE ARE ALLOWED. 6. IN THE RESULT, APPEAL OF THE ASSESSEE IS TREATE D AS ALLOWED FOR STATISTICAL PURPOSES. PRONOUNCED IN THE OPEN COURT ON 27 TH SEPTEMBER, 2017. SD/- SD/- (P. MADHAVI DEVI) (S. RIFAUR RA HMAN) JUDICIAL MEMBER AC COUNTANT MEMBER HYDERABAD, DATED: 27 TH SEPTEMBER, 2017. KV 4 ITA NO. 334/H/17 SRI CHENNA KESHAVA EDUCATIONAL SOCIETY COPY TO:- 1) SRI CHENNA KESAVA EDUCATIONAL SOCIETY, C/O SRI S . RAMA RAO, ADVOCATE, FLAT NO. 102, SHRIYAS ELEGANCE, 3-6- 643, STREET NO. 9, HIMAYATNAGAR, HYDERABAD 500 029. 2) ADIT (EXEMPTIONS) 1, AAYAKAR BHAVAN, BASHEERBA GH, HYD. 3) CIT(A) 9, HYDERABAD. 4) PR. CIT (EXEMPTIONS), HYD. 5) DR, ITAT, HYD. 6) GUARD FILE