SOCIETY FOR TRAINING AND CARING, GUNTUR V. INCOME TAX OFFICER, EXEMPTION WARD, GUNTUR

ITA 63/VIZ/2024

• Counselvise Citation: [2024] 101 COUNSELVISE.COM (IT) 6739 (ITAT-VISAKHAPATNAM)
• Duration Of Justice: 3 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-05-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 27-05-2024
• Assessment Year: 2018-2019
• Appeal Filed On: 22-02-2024
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: APARNA VILLURI
• Keywords: Opportunity of being heard; Condonation of delay
• Section: 143(2)

Judgement Text

आयकरअपीलीयअधिकरण, धिशाखापटणम पीठ, धिशाखापटणम IN THE INCOME TAX APPELLATE TRIBUNAL, VISAKHAPATNAM BENCH, VISAKHAPATNAM श्री द ु व्वूरु आर एल रेड्डी, न्याधयक सदस्य एिं श्री एस बाला कृ ष्णन, लेखा सदस्य के समक्ष BEFORE SHRI DUVVURU RL REDDY, HON’BLE JUDICIAL MEMBER & SHRI S BALAKRISHNAN, HON’BLE ACCOUNTANT MEMBER आयकर अपील सं./I.T.A.No.63/Viz/2024 (ननधधारण वर्ा / Assessment Year : 2018-19) Society for Training and Caring E-1, Ganapathi Homes 6 th Line, Pandaripuram Guntur [PAN : AACAS9356E] Vs. Income Tax Officer Exemption Ward Guntur (अपीलार्थी/ Appellant) (प्रत्यर्थी/ Respondent) अपीलधथी की ओर से/ Appellant by : Shri G.V.N.Hari, AR प्रत्यधथी की ओर से / Respondent by : Dr.Aparna Villuri,DR सुनवधई की तधरीख / Date of Hearing : 07.05.2024 घोर्णध की तधरीख/Date of Pronouncement : 31.05.2024 आदेश /O R D E R Per Shri Duvvuru RL Reddy, Judicial Member : Condonation of Delay : This appeal is filed by the assessee against the order of Commissioner of Income Tax (Appeals) [CIT(A)], National Faceless Appeal Centre (NFAC) in DIN & Order No.ITBA/NFAC/S/250/2023- 24/1055147251(1) dated 16.08.2023, arising out of order passed u/s 143(3) of the Income Tax Act, 1961 (in short ‘Act’) dated 29.04.2021 for the Assessment Year (A.Y.) 2018-19 with the delay of 131 days. The 2 I.T.A. No.63/Viz/2024, A.Y.2018-19 Society for Training and Caring, Guntur assessee filed petition for condonation of delay and submitted that the appeal against the order of the Ld.CIT(A) dated 16.08.2023 ought to have been filed on or before 15.10.2023, but the appeal could be filed only on 22.02.2024 with the delay of 131 days due to the fact that Sr Ambati Gopi Chand, authorized signatory of the assessee Trust suffered from jaundice and spondylitis from a long time and was under treatment and best rest during the period from 01.10.2023 to 15.02.2024 and he could not attend to any other affairs. As soon as he recovered, he resumed attending to his duties and took necessary steps for filing the appeal and filed the appeal on 22.02.2024. The assessee produced medical certificate as proof and submitted that the delay in filing the appeal was due to the reasons explained, which were beyond the control of the assessee, which was neither intentional nor deliberate. He, therefore, pleaded for condoning the delay of 131 days and admit the appeal in the interest of rendering substantial justice. 2. We have gone through the condonation petition filed and examined the medical certificate filed by the assessee and find that the assessee was suffering from ill health, therefore, it is a valid reason for non-filing of the appeal before the Tribunal within time. In view of the same, the 3 I.T.A. No.63/Viz/2024, A.Y.2018-19 Society for Training and Caring, Guntur condonation petition filed by the assessee is allowed and the appeal filed by the assessee admitted for hearing. 3. Brief facts of the case are that the case of the assessee was selected for scrutiny assessment under the e-assessment scheme, 2019 and notice u/s 143(2) of the Act was issued on 22.09.2019 and duly served on the assessee. The assessment was completed on 29.04.2021 and the income of the assessee was assessed at Rs.2,03,82,240/- on account of anonymous donations u/s 115BBC of the Act and added back to the income of the assessee. 4. Aggrieved by the order of the AO, the assessee preferred an appeal before the CIT(A) and the Ld.CIT(A) dismissed the appeal of the assessee ex-parte. 5. Aggrieved by the order of the Ld.CIT(A), the assessee preferred an appeal before the Tribunal by raising the following grounds of appeal : 1. The order of the learned Commissioner of Income Tax (Appeals) is contrary to the facts and also the law applicable to the facts of the case. 2. The learned Commissioner of Income Tax (Appeals) is not justified in dismissing the appeal ex-parte without providing sufficient opportunity to the appellant. 3. The learned Commissioner of Income Tax (Appeals) is not justified in sustaining the addition of Rs.2,03,82,240 made by the 4 I.T.A. No.63/Viz/2024, A.Y.2018-19 Society for Training and Caring, Guntur assessing officer by erroneously treated Government Grants as anonymous donations u/s 115BBC(3) of the Act. 4. Any other grounds may be urged at the time of hearing. 6. At the outset, the only contention of the Ld.AR is that the AO is not justified in treating the donations as anonymous donations u/s 115BBC(3) of the Act as they were shown under Voluntary Contributions other than Corpus category especially under Government Grants. The Ld.CIT(A) is also not justified in dismissing the appeal of the assessee ex- parte without giving sufficient opportunity of being heard. He, therefore pleaded for affording an opportunity of being heard before the Ld.CIT(A) to controvert the findings of the revenue authorities with cogent material evidences. 7. Per contra, the Ld.DR submitted that the assessee was given sufficient opportunities before the revenue authorities, but the assessee did not avail the same. Hence, the Ld.CIT(A) is justified in sustaining the addition made by the AO by dismissing the appeal of the assessee ex- parte. The Ld.DR therefore, pleaded to uphold the order passed by the Ld.CIT(A) and dismiss the appeal of the assessee. 8. We have heard both the parties and perused the material available on record. In the instant case, assessment in the case of the assessee was 5 I.T.A. No.63/Viz/2024, A.Y.2018-19 Society for Training and Caring, Guntur completed and the income of the assessee was assessed at Rs.2,03,82,340/- as anonymous donations, which was upheld by the Ld.CIT(A). As contended by the assessee that the assessee was not given sufficient opportunity to substantiate the donations in support of the grounds raised and therefore, pleaded for an opportunity of being heard before the Ld.CIT(A). In view of the foregoing facts and circumstances of the case and keeping in view the principles of natural justice, we are inclined to remit the matter back to the file of the Ld.CIT(A) with a direction to afford an opportunity of being heard to the assessee to present it’s case. The assessee is also directed to adhere to the notices issued by the revenue authorities and cooperate during the proceedings. 9. In the result, appeal of the assessee is allowed for statistical purpose. Order pronounced in the open court on 31 st May, 2024. Sd/- Sd/- (एस बाला कृ ष्णन) (द ु व्वूरु आर.एल रेड्डी) (S.BALAKRISHNAN) (DUVVURU RL REDDY) लेखा सदस्य/ACCOUNTANT MEMBER न्याधयक सदस्य/JUDICIAL MEMBER Dated : 31.05.2024 L.Rama, SPS 6 I.T.A. No.63/Viz/2024, A.Y.2018-19 Society for Training and Caring, Guntur आदेश की प्रतितिति अग्रेतिि/Copy of the order forwarded to:- 1. ननधधाऩरती/ The Assessee– Society for Training and Caring, E-1, Ganapathi Homes, 6 th Line, Pandaripuram, Guntur 2. रधजस्व/The Revenue – The Income Tax Officer, Exemption Ward, Guntur 3. The Principal Commissioner of Income Tax,Guntur 4. नवभधगीय प्रनतनननध, आयकर अपीलीय अनधकरण, नवशधखधपटणम / DR,ITAT, Visakhapatnam 5..गधर्ा फ़धईल / Guard file आदेशधनुसधर / BY ORDER Sr. Private Secretary ITAT, Visakhapatnam