Institute of Modern Education, Sindhudurg V. Income-Tax Officer, Exemption Ward, Kolhapur

ITA 745/PUN/2022

AI Insights

The case involves the Institute of Modern Education, which appealed against the order of the National Faceless Appeal Centre (NFAC), Delhi, for the assessment year 2020-21. The primary issue was the confirmation of an intimation passed under section 143(1) of the Income Tax Act without the issuance of a mandatory show cause notice. The assessee challenged the jurisdiction of the Central Processing Centre (CPC), Bangalore, regarding the disallowance of exemption claimed under section 11 of the Act. The CIT(A) initially did not address the jurisdictional challenge and disposed of the appeal on merits. The Tribunal found that the legal issue of non-issuance of a statutory notice was fundamental and required a decision before proceeding on merits.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 132843 (ITAT-PUNE)
• Duration Of Justice: 3 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-02-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 01-02-2023
• Assessment Year: 2020-2021
• Appeal Filed On: 13-10-2022
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 11; 143(1)

Judgement Text

आयकर अपीलीय अधिकरण “ए” न्यायपीठ पुणे में । IN THE INCOME TAX APPELLATE TRIBUNAL “A” BENCH, PUNE BEFORE SHRI INTURI RAMA RAO, ACCOUNTANT MEMBER AND SHRI S.S. VISWANETHRA RAVI, JUDICIAL MEMBER आयकर अपील सं. / ITA No.745/PUN/2022 धििाारण वर्ा / Assessment Year : 2020-21 Institute of Modern Education, Main Road, Devgad, Sindhudurg – 416613, Maharashtra PAN : AAATI0602C .......अपीलार्थी / Appellant बिाम / V/s. The Income Tax Officer, Exemption Ward, Kolhapur ......प्रत्यर्थी / Respondent Assessee by : N O N E Revenue by : Shri Ramnath P. Murkunde सुनवाई की तारीख / Date of Hearing : 02-02-2023 घोषणा की तारीख / Date of Pronouncement : 03-02-2023 आदेश / ORDER PER S.S. VISWANETHRA RAVI, JM : This appeal by the assessee against the order dated 24-08-2022 passed by the National Faceless Appeal Centre (“NFAC”), Delhi for assessment year 2020-21. 2. We find no representation on behalf of the assessee nor any application filed seeking adjournment. Thus, the assessee called absent 2 ITA No.745/PUN/2022, A.Y. 2020-21 and set ex-parte. Therefore, we proceed to dispose of the appeal by hearing the ld. DR and perusing the material available on record. 3. The assessee raised three grounds of appeal amongst which the only issue emanates for our consideration is as to whether the CIT(A), NFAC, Delhi justified in confirming the intimation passed u/s. 143(1) of the Act without issuing the mandatory show cause notice in the facts and circumstances of the case. 4. We note that the assessee raised three grounds of appeal before us as he reiterated the same grounds as raised before the First Appellate proceeding which is clear from page 2 of the impugned order. On perusal of the same, we note that the assessee clearly challenged the jurisdiction of CPC, Bangalore in disallowing exemption claimed u/s. 11 of the Act without issuance of statutory notice as contemplated under the provisions of section 143(1) of the Act. The CIT(A) without deciding the same proceeded to dispose of the appeal on merits of the case. We note that the grounds challenging the non-issuance of statutory notice is a legal issue which goes to the root of the issue, the CIT(A) ought to have decided the said issue. Therefore, in the peculiar facts and circumstances of the case and in the interest of justice, we deem it proper to remand the matter to the file of CIT(A), NFAC, Delhi for its fresh consideration to decide the said issue afresh raised by the assessee challenging the jurisdiction of CPC, Bangalore for non-issuance of mandatory show cause notice as contemplated under the provisions of section 143(1) of the Act. Thus, the grounds raised by the assessee are allowed for statistical purpose. 3 ITA No.745/PUN/2022, A.Y. 2020-21 5. In the result, the appeal of assessee is allowed for statistical purpose. Order pronounced in the open court on 03 rd February, 2023. Sd/- Sd/- (Inturi Rama Rao) (S.S. Viswanethra Ravi) ACCOUNTANT MEMBER JUDICIAL MEMBER पुणे / Pune; दिनाांक / Dated : 03 rd February, 2023. रदव आदेश की प्रधिधलधप अग्रेधर्ि / Copy of the Order forwarded to : 1. अपीलार्थी / The Appellant. 2. प्रत्यर्थी / The Respondent. 3. The CIT(A) concerned. 4. The Pr. CIT concerned. 5. दवभागीय प्रदतदनदि, आयकर अपीलीय अदिकरण, “ए” बेंच, पुणे / DR, ITAT, “A” Bench, Pune. 6. गार्ड फ़ाइल / Guard File. //सत्यादपत प्रदत// True Copy// आिेशानुसार / BY ORDER, वररष्ठ दनजी सदचव / Sr. Private Secretary आयकर अपीलीय अदिकरण ,पुणे / ITAT, Pune