Vidya Mandir Public Educational Trust, Valsad V. Income Tax Officer, Exemption Ward, Surat, Surat

ITA 80/SRT/2024

• Counselvise Citation: [2024] 101 COUNSELVISE.COM (IT) 8035 (ITAT-SURAT)
• Duration Of Justice: 2 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-03-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 27-03-2024
• Assessment Year: 2020-2021
• Appeal Filed On: 24-01-2024
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: RAJESH M. UPADHAYAY
• Section: 144; 12AA

Judgement Text

आयकरअपीलीयअिधकरण,सुरतɊायपीठ,सुरत IN THE INCOME TAX APPELLATE TRIBUNAL, SURAT BENCH, SURAT BEFORE SHRI PAWAN SINGH, JUDICIAL MEMBER AND Dr ARJUN LAL SAINI, ACCOUNTANT MEMBER आ.अ.सं./ITA No.80 & 118/SRT/2024 (AY 2020-21) (Hybrid hearing) Vidya Mandir Public Education Trust, Saran Road, Rentlav St. Udwada -396 185 [PAN AAATV 9970 G] Vs Assessment Unit, Income tax Department / ITO [Exemption], Surat, 105, Income Tax Office, Anavil Business Centre, Adajan, Surat-395007 अपीलाथŎ/Appellant ŮȑथŎ /Respondent िनधाŊįरती की ओरसे /Assessee by Shri Rajesh M. Upadhayay, AR राजˢ की ओरसे /Revenue by Shri Vinod Kumar, Sr-DR अपील पंजीकरण/Appeal instituted on 29.01.2024 & 01.02.2024 सुनवाई की तारीख/Date of hearing 28.03.2024 उद्घोषणाकीतारीख/Date of pronouncement 28.03.2024 Order under section 254(1) of Income Tax Act PER PAWAN SINGH, JUDICIAL MEMBER: 1. These two appeals by assessee are directed against the separate orders of National Faceless Appeal Centre, Delhi [for short to as “NFAC/Ld. CIT(A)”] dated 28.12.2023 for the same assessment years i.e., 2020-21. In ITA No.80/SRT/2024 assessee has challenged the penalty levied under section 270A and in ITA No.118/SRT/2024 assessee has also challenged the action of Assessing Officer in making additions in quantum assessment. Since the facts in both the appeals are certain common arising out of same assessment year (2015-16) therefore both the appeals were clubbed, heard together and are decided by common order to avoid conflicting decision. 2. Rival submission of parties heard and record perused. The Ld. Authorized Representative (Ld. AR) for the assessee submits that no fair and proper ITA Nos.80 & 118/SRT/2024 (A.Y 20-21) Vidya Mandir Public Education Trust 2 opportunity was given to the assessee by the lower authorities before passing the order. The assessee filed complete details and their submissions before assessing officer, however the assessing officer recorded that no compliance was made by the assessee. The ld AR for the assessee filed the screen shot of ITBA portal showing the filing of such details, consisting balance sheet, copy of registration under section 12AA and 80G, bank statement, details of income and expenditure and note on activities. The ld CIT(A) confirmed the action of assessing officer in ex-party order without discussing merits of the case. Before ld CIT(A), the assessee filed complete details in statement of facts. No such fact was discussed. The assessee furnished e-mail address as “ [e-mail]” for service of notice of appeal in Form-35. The ld AR for the assessee that on coming to know about the hearing notice, the assessee tried to upload the submissions, however, the contents of the notice dated 16.10.2013 was not available on the portal. The assessee approached assessing officer to redress their grievance, but the assessing officer expressed his inability to help the assessee on such issue. The assessee immediately filed his grievance, which was duly acknowledged vide No. 15961342. However, till passing of order in quantum as well as in penalty appeal the grievances of assessee was not redressed, copy of such complaint filed with the system of ITBA is filed and copy supplied to the revenue. The Ld. AR for the assessee submits that assessee has good case on merit and is likely to succeeds, if one more opportunity and to decide the appeal on merit. The assessee fulfilled all the condition for availing the entire deduction claimed in the return of income. ITA Nos.80 & 118/SRT/2024 (A.Y 20-21) Vidya Mandir Public Education Trust 3 The ld AR for the assessee prayed for restoring the appeal to the file of assessing officer instead of ld CIT(A) and to decide it afresh on merit, after giving opportunity of hearing to the assessee. 3. Against the grounds of appeal raised in ITA No. 80/Srt/2024, the ld AR for the assessee submits that complete details were filed before assessing officer to substantiate the deduction claimed in the return of income and again in penalty proceedings, however the assessing office failed to consider such submissions, the ld AR for the assessee again filed screen shot of ITBA portal showing the acknowledgement. Before ld CIT(A) the assessee could not upload his submissions as explained earlier. The ld AR for the assessee submits that in case, the quantum appeal is restored to the assessing officer, the penalty levied under section 270A would not survive. 4. On the other hand, Ld. Senior Departmental Representative (Ld. Sr-DR) for the Revenue though supported the order of Ld. CIT(A). The ld Sr DR for the revenue submits that in case this bench is convinced, then the issue involved in the present appeal may be restored to the file of assessing officer with the direction to the assessee to make timely compliance to the show case notices of the lower authorities. 5. We have considered the rival submissions of both the parties and have gone through the orders of lower authorities carefully. We find that the assessee is educational trust and while filing return of income claimed deduction of Rs. 88,41,591/-. We further find that Assessing Officer while passing assessment order under section 144 rws 144B on 30.08.2022 by taking view that assessee has not filed any documents to substantiate deduction, hence, ITA Nos.80 & 118/SRT/2024 (A.Y 20-21) Vidya Mandir Public Education Trust 4 entire deduction was disallowed and added back to the income of assessee and initiated penalty under section 270A for under reporting income. The Ld. CIT(A) dismissed the appeal for want of submission. Before me the ld. AR for the assessee vehemently argued that before assessing officer the assessee furnished complete details to substantiate such deduction. The assessee filed copy of registration under section 12AA and 80G, bank statement, details of income and expenditure and note on activities. The ld AR for the assessee further argued that before ld CIT(A), the assessee filed complete details in statement of facts. No such fact was discussed. On service of notice of appeal t e ld AR for the assessee that on coming to know about the hearing notice, the assessee tried to upload the submissions as the contents of the notice dated 16.10.2013 was not available on the portal, the assessee could not upload their submissions. On considering the submissions of the ld AR for the assessee and the evidences filed on record, we find merit in his submissions that the assessee filed required details to substantiate the deduction claimed in the return of income but the same was not considered, rather the assessing officer recorded otherwise. We further find that the ld. CIT(A) has dismissed the appeal in ex parte order without discussing the merit of the case. Before ld CIT(A) the assessee could not upload their submissions as explained before us. The impugned order passed by ld. CIT(A) is not in accordance with mandate of Section 250(6) of the Act. Therefore, the additions in the assessment order is set- aside and the matter is restored the appeal back to the file of assessing officer to pass the assessment order afresh and in accordance with law. ITA Nos.80 & 118/SRT/2024 (A.Y 20-21) Vidya Mandir Public Education Trust 5 Needless to direct that before passing the order, the assessing officer shall grant reasonable opportunity to the assessee to file their submissions and the required evidence to support their claim in the return of income. In the result, the grounds of appeal raised by the assessee in quantum assessment in is allowed for statistical purpose. 6. In the result, assessee’s appeal No. ITA No. 118/SRT/2024 is allowed for statistical purpose. ITA No.No.118/SRT/2024. 7. Considering the facts that the addition/ disallowance made in the quantum assessment is set-aside and the matter is restored back to the file of assessing officer, the penalty levied under section 270A for under reporting of income will not survive. The assessing officer will be at liberty to initiate penalty as per law. In the result, the ground of appeal raised by the assessee is allowed. 8. In the result, the appeal of the assessee is allowed. Order pronounced in open court at the time of hearing on 28 th March, 2024. Sd/- Sd/- (Dr ARJUN LAL SAINI) (PAWAN SINGH) [लेखा सद˟/ACCOUNTANT MEMBER] [Ɋाियक सद˟ JUDICIAL MEMBER] Surat, Dated: 28/03/2023 Dkp. Out Sourcing Sr.P.S Copy to: 1. Appellant- 2. Respondent- 3. CIT 4. DR By order 5. Guard File True copy/ // TRUE COPY // Sr. Private Secretary/Private Secretary/Assistant Registrar, ITAT, Surat