JAYA EDUCATIONAL TRUST, CHENNAI V. DCIT CENTRL CIRCLE 1 (2), CHENNAI

ITA 533/CHNY/2018

• Counselvise Citation: [2020] 110 COUNSELVISE.COM (IT) 2588 (ITAT-CHENNAI)
• Duration Of Justice: 2 year(s) 8 month(s) 26 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-11-2020
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: C
• Assessment Year: 2013-2014
• Appeal Filed On: 14-02-2018
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Keywords: Opportunity of being heard; Set aside

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH: CHENNAI . , . , BEFORE SHRI V. DURGA RAO, JUDICIAL MEMBER AND SHRI S. JAYARAMAN, ACCOUNTANT MEMBER ./ ITA NO.533/CHNY/2018 /ASSESSMENT YEAR: 2013-14 M/S.JAYA EDUCATIONAL TRUST, 8, 2 ND MAIN ROAD, KRISHNAPURAM, THIRUNINRAVUR, CHENNAI-602 024. VS. THE PRINCIPAL COMMISSIONER OF INCOME TAX, CENTRAL-1, CHENNAI. [PAN: AAATJ 0369 D] ( /APPELLANT) ( /RESPONDENT) / APPELLANT BY : NONE /RESPONDENT BY : MR. ABANI KANTA NAYAK, CIT /DATE OF HEARING : 05.11.2020 /DT. OF PRONOUNCEMENT : 10.11.2020 / O R D E R PER SHRI S. JAYARAMAN, ACCOUNTANT MEMBER: THE ASSESSEE FILED THIS APPEAL AGAINST THE ORDER O F THE PRINCIPAL COMMISSIONER OF INCOME TAX, CENTRAL-1, CHENNAI, PAS SED U/S.263 OF IT ACT, IN C.NO.1523/PCIT/C-1/3/2017-18 DATED 21.12.2017 FO R THE AY 2013-14. 2. THE PRINCIPAL COMMISSIONER OF INCOME TAX (PCIT) EXAMINED THE RECORDS OF THE ASSESSEE, M/S.JAYA EDUCATIONAL TRUST AND FOUND THAT THE ASSESSING OFFICER IN THE SCRUTINY ASSESSMENT MADE F OR THE AY 2012-13 FOUND THAT THE TRUST HAS AVAILED LOANS FROM BANKS B Y PLEDGING ITS FIXED DEPOSITS AND ADVANCED INTEREST FREE LOANS TO CERTAI N PERSONS IN ITA NO.533/CHNY/2018 :- 2 -: CONTRAVENTION OF SEC.13(2) OF THE IT ACT AND HENCE DENIED EXEMPTION U/S.11 OF THE IT ACT. SINCE THE ABOVE VIOLATION CONTINUED TO EXIST IN THE AY 2013- 14, THE AO OUGHT TO HAVE DENIED THE EXEMPTION AND T AXED THE SURPLUS. HOWEVER, IN THE ASSESSMENT MADE FOR THE AY 2013-14, THE AO HAS NOT CONSIDERED THIS ASPECT. THEREFORE, THE PCIT ISSUED A SHOW CAUSE NOTICE U/S.263 OF THE IT ACT. SINCE THE ASSESSEE HAS NEIT HER ATTENDED THE HEARING NOR FILED THE WRITTEN SUBMISSIONS TO THE SHOW CAUSE NOTICE, SET ASIDE THE ASSESSMENT ORDER FOR THE AY 2013-14 U/S.263 OF THE IT ACT AND DIRECTED THE AO TO RE-DO THE ASSESSMENT DENYING EXEMPTION U/ S.11 AND TO TREAT THE ENTIRE SURPLUS AS INCOME. 3. AGGRIEVED AGAINST THAT ORDER, THE ASSESSEE FILED THIS APPEAL. THE CASE WAS POSTED FOR HEARING THROUGH VIDEO CONFERENCING. NONE APPEARED ON BEHALF OF THE ASSESSEE. THE LD.DR SUPPORTED THE OR DER OF THE LD.PCIT. 4. WE HEARD THE LD.DR AND GONE THROUGH THE RELEVANT MATERIALS. IT IS CLEAR FROM THE ORDER U/S.263 OF THE IT ACT THAT THE ASSESSEE HAS NOT BEEN GRANTED ADEQUATE OPPORTUNITY OF BEING HEARD. THERE FORE, WE SET ASIDE THE ORDER U/S.263 AND REMIT THE ISSUES BACK TO THE PCIT FOR AFFORDING EFFECTIVE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE AND THEN DECIDE THE ISSUES ON MERITS IN ACCORDANCE WITH LAW. ITA NO.533/CHNY/2018 :- 3 -: 5. IN THE RESULT, THE ASSESSEES APPEAL IS TREATED AS PARTLY ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED ON THE 10 TH DAY OF NOVEMBER, 2020, IN CHENNAI. SD/- SD/- ( . ) ( V. DURGA RAO ) /JUDICIAL MEMBER ( . ) (S. JAYARAMAN) /ACCOUNTANT MEMBER /CHENNAI, /DATED: 10 TH NOVEMBER, 2020. TLN /COPY TO: 1. /APPELLANT 4. ' /CIT 2. /RESPONDENT 5. /DR 3. ' ( ) /CIT(A) 6. /GF