Sree Jain Shiksha Samiti, Bangalore V. The Income Tax Officer (Exemption) Ward- 3, Bangalore

ITA 693/BANG/2020

• Counselvise Citation: [2021] 109 COUNSELVISE.COM (IT) 9962 (ITAT-BANGALORE)
• Duration Of Justice: 1 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 01-01-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 31-12-2020
• Assessment Year: 2017-2018
• Appeal Filed On: 09-11-2020
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: KANNAN NARAYAN
• Keywords: Opportunity of being heard; Set aside
• Section: 12A; 11

Judgement Text

ITA NO.693/BANG/2020 SREE JAIN SHIKSHA SAMITI, BANGALORE IN THE INCOME TAX APPELLATE TRIBUNAL ABENCH: BANGALORE BEFORE SHRI GEORGE GEORGE K., JUDICIAL MEMBERAND SHRI B.R. BASKARAN, ACCOUNTANT MEMBER ITA NO.693/BANG/2020 ASSESSMENT YEAR: 2017-18 SREE JAIN SHIKSHA SAMITI NO.20, PRIME ROSE ROAD M.G. ROAD CROSS BANGALORE-560 025 PAN NO :AAATS7975G VS. ITO (EXEMPTION) WARD-3 BANGALORE APPELLANT RESPONDENT APPELLANT BY : SMT. SUMAN LUNKAR, A.R. RESPONDENT BY : SHRI KANNAN NARAYAN, D.R. DATE OF HEARING : 31.12.2020 DATE OF PRONOUNCEMENT : 01.01.2021 O R D E R PER B.R. BASKARAN, ACCOUNTANT MEMBER: THE ASSESSEE HAS FILED THIS APPEAL CHALLENGING THE ORDER DATED 16.9.2020 PASSED BY LD. CIT(A)-14, BENGALURU AND IT RELATES TO THE ASSESSMENT YEAR 2017-18. THE ASSESSEE IS AGGRIEVED BY THE DECISION OF LD. CIT(A) IN CONFIRMING THE REJECTION OF EXEMPTION CLAIMED BY THE ASSESSEE U/S 11 OF THE INCOME-TAX AC T,1961 ['THE ACT' FOR SHORT]. 2. THE LD. A.R. SUBMITTED THAT THE ASSESSEE IS A CH ARITABLE TRUST DULY REGISTERED U/S 12A OF THE ACT. IT FILED ITS RETURN OF INCOME FOR THE YEAR UNDER CONSIDERATION DECLARING N IL INCOME ON ITA NO.693/BANG/2020 SREE JAIN SHIKSHA SAMITI, BANGALORE PAGE 2 OF 4 7.11.2017, WITHIN THE PERIOD OF EXTENDED DUE DATE G RANTED FOR THE YEAR UNDER CONSIDERATION. THE RETURN OF INCOME WAS FILED ELECTRONICALLY. HOWEVER, THE ASSESSEE INADVERTENTLY OMITTED TO UPLOAD AUDIT REPORT IN FORM NO.10B ALONG WITH RETUR N OF INCOME. HENCE, DURING THE COURSE OF ASSESSMENT PROCEEDINGS, THE A.O. REJECTED THE CLAIM FOR EXEMPTION U/S 11 OF THE ACT ON ACCOUNT OF NON-FURNISHING OF AUDIT REPORT IN FORM NO.10B. 3. THE LD. A.R. SUBMITTED THAT THE ASSESSEE CHALLEN GED THE ASSESSMENT ORDER SO PASSED BY THE A.O. BY FILING AP PEAL BEFORE LD. CIT(A). THE LD. A.R. SUBMITTED THAT THE LD. CIT(A) POSTED THE APPEAL FOR HEARING ON 4.9.2020. ON THAT DATE, THE ASSESSEE SOUGHT ADJOURNMENT OF THE MATTER. SUBSEQUENTLY, THE ASSES SEE FILED ITS WRITTEN SUBMISSIONS BEFORE LD. CIT(A) ON 30.9.2020. IT WAS NOTICED LATER THAT THE LD. CIT(A), HOWEVER, HAD PASSED THE ORDER ON 16.9.2020 ITSELF WITHOUT GIVING AN OPPORTUNITY OF B EING HEARD TO THE ASSESSEE. THE LD. A.R. ALSO SUBMITTED THAT EVEN TH OUGH THE ORDER OF LD. CIT(A) IS DATED 16.9.2020, YET IT WAS DIGITALLY SIGNED BY LD. CIT(A) ONLY ON 21.9.2020. THE LD A.R SUBMITTED THA T THE ASSESSEE RECEIVED THE ORDER OF LD CIT(A) ON 14.10.2020 AND T HE WRITTEN SUBMISSIONS WERE FILED PRIOR TO THE DISPATCH OF ORD ER OF LD. CIT(A). 4. THE LD. A.R. ALSO SUBMITTED THAT THE LD. CIT(A), IN PARAGRAPH 4.2.3 OF THE ORDER HAS MENTIONED THAT THE DUE DATE FOR FILING FORM NO.10B IS 30.6.2017. SHE SUBMITTED THAT THE LD. CI T(A) WAS NOT CORRECT IN MENTIONING SO, SINCE THE DUE DATE FOR FI LING FORM NO.10B FOR THE YEAR UNDER CONSIDERATION WAS 30.11.2017. AC CORDINGLY, SHE SUBMITTED THAT THIS OBSERVATION OF THE LD. CIT(A) A LSO NEEDS TO BE SET ASIDE. ITA NO.693/BANG/2020 SREE JAIN SHIKSHA SAMITI, BANGALORE PAGE 3 OF 4 5. THE LD. A.R. ALSO SUBMITTED THAT THE ASSESSEE H AS UPLOADED FORM NO.10B SUBSEQUENTLY ON 17.12.2019 AND IT HAS ALSO F ILED A PETITION BEFORE CBDT FOR CONDONATION OF THE DELAY IN FURNISH ING FORM NO.10B. SHE SUBMITTED THAT THE SAID PETITION IS ST ILL PENDING BEFORE CBDT. ACCORDINGLY, THE LD. A.R. SUBMITTED THAT THE ASSESSEE MAY BE PROVIDED WITH AN OPPORTUNITY TO PRESENT ITS CASE BEFORE LD. CIT(A). 6. WE HEARD LD. D.R., WHO SUBMITTED THAT THE A.O. H AS REJECTED EXEMPTION CLAIMED U/S 11 OF THE ACT SINCE THE ASSES SEE DID NOT FURNISH AUDIT REPORT IN FORM NO.10B ALONG WITH RETU RN OF INCOME. ACCORDINGLY, HE SUBMITTED THAT THE LD. CIT(A) WAS J USTIFIED IN CONFIRMING THE REJECTION OF EXEMPTION CLAIMED BY TH E ASSESSEE. 7. WE HEARD THE PARTIES AND PERUSED THE RECORD. IT IS THE CASE OF THE LD. A.R. THAT THE ASSESSEE SOUGHT ADJOURNMENT B EFORE LD. CIT(A) WHEN THE APPEAL WAS POSTED FOR HEARING FOR THE FIRS T TIME ON 4.9.2020. THEREAFTER, THE ASSESSEE WAS NOT GIVEN A N OPPORTUNITY OF BEING HEARD BY LD CIT(A). IT IS SUBMITTED THAT THE ASSESSEE FILED WRITTEN SUBMISSIONS BEFORE LD. CIT(A) ON 30.9.2020. HOWEVER, BY THAT TIME, THE LD. CIT(A) HAD ALREADY PASSED THE OR DER. ACCORDINGLY, WE NOTICE THAT THE ORDER PASSED BY LD. CIT(A), IN E FFECT, IS AN EX- PARTE ORDER, WITHOUT GIVING TO THE ASSESSEE OPPORTU NITY OF BEING HEARD. ACCORDINGLY, IN THE INTEREST OF NATURAL JUS TICE, WE ARE OF THE VIEW THAT THE ASSESSEE SHOULD BE PROVIDED WITH AN O PPORTUNITY TO PRESENT ITS CASE BEFORE LD. CIT(A). IN FACT, AFFOR DING ONE MORE OPPORTUNITY TO THE ASSESSEE WOULD PROMOTE THE CAUSE OF JUSTICE. ACCORDINGLY, WE SET ASIDE THE ENTIRE ORDER PASSED B Y THE LD. CIT(A) AND RESTORE ALL THE ISSUES TO HIS FILE FOR ADJUDICA TING THEM AFRESH, AFTER AFFORDING ADEQUATE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. ITA NO.693/BANG/2020 SREE JAIN SHIKSHA SAMITI, BANGALORE PAGE 4 OF 4 8. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS TREATED AS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 1 ST JAN, 2021 SD/- (GEORGE GEORGE K.) JUDICIAL MEMBER SD/- (B.R. BASKARAN) ACCOUNTANT MEMBER BANGALORE, DATED 1 ST JAN, 2021. VG/SPS COPY TO: 1. THE APPLICANT 2. THE RESPONDENT 3. THE CIT 4. THE CIT(A) 5. THE DR, ITAT, BANGALORE. 6. GUARD FILE BY ORDER ASST. REGISTRAR, ITAT, BANGALORE.