Acharya Dharamchandradeo Medical & Research Trust, Allahabad V. DCIT(CPC), , Bangalore

ITA 58/ALLD/2023

AI Insights

The case involves the Acharya Dharamchandradeo Medical & Research Trust, which appealed against the order of the CIT(A) dismissing their appeal for non-prosecution and not considering the merits of the case. The Trust had initially been denied exemption under section 11 of the Income-tax Act, 1961, by the AO/CPC due to late filing of form no. 10B, which was not mandatory for the assessment year in question. The CIT(A) dismissed the Trust's appeal for non-prosecution after multiple notices were issued but no compliance was received from the Trust. The Tribunal noted the procedural lapses and restored the matter back to the CIT(A) for a decision on merits, emphasizing the need for a fair hearing and proper consideration of the Trust's claims.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 108281 (ITAT-ALLAHABAD)
• Duration Of Justice: 3 month(s) 26 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-09-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 12-09-2023
• Assessment Year: 2016-2017
• Appeal Filed On: 18-05-2023
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Assessment record; Set aside
• Section: 154; 11; 80G; 12A; 10B; 143(1)

Judgement Text

1 IN THE INCOME TAX APPELLATE TRIBUNAL ALLAHABAD BENCHES, ALLAHABAD BEFORE SHRI ABY T. VARKEY, JUDICIAL MEMBER AND SHRI RAMIT KOCHAR, ACCOUNTANT MEMBER ITA No. 58/Alld/2023 Assessment Year: 2016-17 Acharya Dharamchandradeo Medical & Research Trust, Maharishi Sadafal Deo Ashram , Chhatnag Road, Jhunsi, Allahabad-211019,U.P. v. DCIT (CPC), Bangalore-560500 PAN:AACTA3794K (Appellant) (Respondent) Assessee by: None (Application) Revenue by: Sh. A.K. Singh, Sr. DR Date of hearing: 04.09.2023 & 13.09.2023 Date of pronouncement: 14.09.2023 O R D E R PER SHRI RAMIT KOCHAR, ACCOUNTANT MEMBER: This appeal, filed by assessee, arising out of the appellate order dated 28.02.2023 passed by the learned CIT(A) (National Faceless Appeal Centre (NFAC)) in DIN & Order No. ITBA/NFAC/S/250/2022-23/1050179844(1) for the assessment year 2016-17,which in turn has arisen from intimation dated 06.05.2018 passed by learned DCIT, CPC, Bangalore u/s 154 of the Income-tax Act, 1961. 2. The assessee has raised following grounds of appeal in memo of appeal filed with Income Tax Appellate Tribunal, Allahabad Bench, Allahabad:- “1. That in any view of the matter order passed under section 154 of the act dated 06.05.2018 is bad both on the facts and in law. 2. That in any view of the matter the learned C.I.T (Appeal) was wrong in passing the order ex-parte without providing reasonable opportunity to the assessee nor ITA No.58/Alld/2023 A.Y. 2016-17 Acharya Dharamchandradeo Medical & Research Trust 2 assessee was aware about fixation of appeal hence the order passed is not speaking order in the eyes of law. 3. That in any view of the matter the learned CIT (Appeal) was wrong in deciding the appeal one sided without going through the merit of the case and more so when form no.10B was filed along with the return and not online which was not mandatory for the said year hence simply because form no.10B was filed online beyond time limit that does not mean that assessee trust be debarred from allowing genuine exemption u/s 11 of the Act hence the entire finding of the both the two lower authorities are in correct. 4. That in the any view of the matter the said trust is registered under section 12A and 80G of the Act which is not in dispute, return along with audit report was filed in time, merely because due to technical reason form 10B was uploaded beyond time therefore benefit of section 11 was denied by DCIT CPC Banglore which action is highly unjustified. 5. That in the any view of the matter both the two lower authority was wrong in not considering the genuine claim of the trust which is purely charitable in nature and the activities are being carried out as per rules and bylaws of the trust hence the action of the assessing officer and learned CIT (Appeal) is bad in law. 6. That in any view of the matter the appellant reserves her right to take any fresh ground before hearing of the appeal.” 3. The brief facts of the case are that the assessee filed its return of income on 15.10.2016. The return of income was processed under section 143(1) vide order dated 21.02.2018 , and exemption under section 11 were denied by the AO/CPC. The assessee filed rectification application u/s 154 on 05.04.2018 , which stood dismissed vide order dated 06.05.2018 by AO/CPC. The assesse filed first appeal with ld. CIT(A) against order of rejection of rectification application u/s 154, and ld. CIT(A) observed that the assesse has filed form no. 35 , but statement of fact has not been filed. During the appellate proceedings , notice of hearings were issued by ld. CIT(A) from time to time through ITBA through email, but there was no compliance by the assesse. The ld. CIT(A) dismissed the appeal of the assesse for non prosecution. On merits also the ld. CIT(A) dismissed the appeal of the assesse as the assesse did not furnished any reply/evidences before ld. CIT(A). ITA No.58/Alld/2023 A.Y. 2016-17 Acharya Dharamchandradeo Medical & Research Trust 3 4. Still Aggrieved, the assessee filed second appeal with Tribunal . The appeal was heard ex-parte on 04.09.2023 after hearing ld. Sr. DR as none appear for the assesse. While studying file, it transpired that the assesse has deposited appeal fee of Rs. 500/- while the required appeal fee was Rs. 10,000/-(Refer Section 253(6)(c)) and hence the appeal fee paid was short by Rs. 9,500/- . The matter was kept for clarification , for hearing in Open Court on 13.09.2023. The assesse has now deposited Rs. 9,500/- vide challan number 23091300007881UTIB /Bank Reference No. 29532608,dated 13.09.2023(Axis Bank), placed on record in file. The ld. Sr. DR had submitted during the hearings that department has no objection if the matter is restored back to the file of learned CIT(A) for fresh adjudication . 5. After going through the material on record and in the interest of justice and fair play, we are of the considered view that the matter is required to be restored back to file of ld. CIT(A) for fresh adjudication, as we have observed that ld. CIT(A) has passed an ex parte order dismissing in limine appeal of the assesse without discussing the issues on merits , for the want of evidences/replies which were not forthcoming from the assessee. Thus, the ld. CIT(A) has not adjudicated the matter on merits as is required under section 250(6) , as ld. CIT(A) could have called for assessment records, remand report from the AO as well made enquiries as were required to be made keeping in view facts and circumstances of the case, before adjudicating appeal which was not done by ld. CIT(A) , thus infringing Section 250(6) . The matter is now set aside and restored back to the file of ld. CIT(A) for adjudicating afresh on merits on all issues which arises in this case, in accordance with law after complying with provisions of Section 250(6) of the Act , and after giving opportunity to both the assesse as well as the AO. The assessee is directed to submit all the necessary explanations/evidences called for by ld. CIT(A) in the de novo adjudicating proceedings. Needless to say that powers of ld. CIT(A) are co- terminus with the powers of the AO. We clarify that we have not commented on the ITA No.58/Alld/2023 A.Y. 2016-17 Acharya Dharamchandradeo Medical & Research Trust 4 merits , and all the issues/contentions are kept open. Thus, the appeal of the assessee is allowed for statistical purposes. We order accordingly. 6. In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced in Open Court on 14/09/2023. Sd/- Sd/- [ABY T. VERKEY] [RAMIT KOCHAR] JUDICIAL MEMBER ACCOUNTANT MEMBER DATED:14/09/2023 sh Copy forwarded to: 1. Appellant – 2. Respondent – 3. CIT DR , 4. CIT, 5. The CIT(A)