KAYANAT WELFARE ASSOCIATION,PATNA V. .ITO, EXEMPTION WARD-1,PATNA, PATNA

ITA 228/PAT/2024

AI Insights

The case involves the Kayanat Welfare Association, a society registered under the Societies Registration Act, 1980, engaged in charitable activities. For the assessment year 2016-17, the association filed a return declaring a total income of Rs.6,050. The case was selected for scrutiny, but notices under sections 143(2) and 142(1) of the Income Tax Act were not served to the assessee. Consequently, the Assessing Officer made an assessment under section 144, disallowing an expenditure of Rs.38,51,539 and assessing income at Rs.38,57,585. The CIT(Appeals) also dismissed the appeal due to non-submission of evidence by the assessee. The ITAT found that the assessee was not given sufficient opportunity to present its case and thus remitted the matter back to the CIT(Appeals).

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 473195 (ITAT-PATNA)
• Duration Of Justice: 10 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-12-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2016-2017
• Appeal Filed On: 29-01-2024
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Opportunity of being heard; Principle of natural justice
• Section: 144; 142(1); 143(2)

Judgement Text

" ITA No. 228/PAT/2024 (A.Y. 2016-2017) Kayanat Welfare Association 1 IN THE INCOME TAX APPELLATE TRIBUNAL, KOLKATA-PATNA ‘e-COURT’, KOLKATA [Hybrid Court Hearing] Before Shri Duvvuru RL Reddy, Vice-President (KZ) & Shri Sanjay Awasthi, Accountant Member I.T.A. No. 228/PAT/2024 Assessment Year: 2016-2017 Kayanat Welfare Association,………..…………Appellant East Lohanipur, Sarswati Lane, Kadamkuan, Patna-800001, Bihar [PAN:AAAAK8246K] -Vs.- Income Tax Officer,…..………………………...Respondent Exemption Ward-1, Patna, Bihar Appearances by: N o n e, appeared on behalf of the assessee Shri Ajay Kr. Shukla, JCIT, Sr. D.R., appeared on behalf of the Revenue Date of concluding the hearing: November 25, 2024 Date of pronouncing the order: December 12, 2024 O R D E R Per Duvvuru RL Reddy, Vice-President (KZ):- The present appeal is directed at the instance of assessee against the order of ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi dated 11th January, 2024 passed for Assessment Year 2016-17. ITA No. 228/PAT/2024 (A.Y. 2016-2017) Kayanat Welfare Association 2 2. The assessee is a Society, registered under the Societies Registration Act, 1980 and engaged in the charitable activities. The appellate-Society filed its return of income for the assessment year 2016-17 declaring total income of Rs.6,050/-. The case was selected for scrutiny. Accordingly, notice dated 19.07.2017 under section 143(2) of the Act was issued to the assessee. The said notice was not served upon the assessee. However, on 12.04.2018, notice under section 142(1) was issued to the assessee, but it was not served on the assessee. Thereafter a show-cause notice was issued to the assessee, but there was no response from the assessee. Thereafter ld. Assessing Officer concluded the assessment under section 144 of the Act by disallowing the expenditure of Rs.38,51,539/- and assessed income at Rs.38,57,585/-. 3. On being aggrieved, the assessee preferred an appeal before the ld. CIT(Appeals). During the appellate proceedings, ld. CIT(Appeals) also issued several notices but there was no response from the assessee. Thereafter ld. CIT(Appeals) has considered the material available on record and dismissed the appeal filed by the assessee since the assessee has not filed any evidence before him to substantiate its case. 4. On being aggrieved, the assessee preferred an appeal before the ITAT. ITA No. 228/PAT/2024 (A.Y. 2016-2017) Kayanat Welfare Association 3 5. The main grievance of the assessee is that the appellant was not given any opportunity to put forth its contention and place evidences before the ld. CIT(Appeals). Before the Tribunal, none appeared on behalf of the assessee. However, considering the facts and circumstances of the case and perusing the material placed on record, we are of the considered view that both the revenue authorities have not given sufficient opportunity to the assessee to substantiate its case. 6. The ld. Departmental Representative submitted that many number of opportunities have given to the assessee but there was no response from the assessee. Therefore, Revenue Authorities have no option except passing of the order based on the material available on record. He, therefore, pleaded to uphold the order passed by the ld. CIT(Appeals). 7. We have heard the ld. D.R. and perused the material available on record. Considering the facts and circumstances of the case, in order to meet the principle of natural justice, we are inclined to set aside the order passed by the ld. CIT(Appeals) and remit the matter back to the file of ld. CIT(Appeals) with a direction to provide one more opportunity of being heard to the assessee. At the same breath, we also hereby caution the assessee to promptly co-operate with the proceedings before the Ld. CIT(Appeals) failing which the Ld. CIT(Appeals) shall be at liberty to pass appropriate order in accordance with law and merits based on the materials available on the record. Thus, the grounds raised by the assessee are allowed for statistical purposes. ITA No. 228/PAT/2024 (A.Y. 2016-2017) Kayanat Welfare Association 4 8. In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced in the open Court on 12/12/2024. Sd/- Sd/- (Sanjay Awasthi) (Duvvuru RL Reddy) Accountant Member Vice-President (KZ) Kolkata, the 12th day of December, 2024 Copies to :(1) Kayanat Welfare Association, East Lohanipur, Sarswati Lane, Kadamkuan, Patna-800001, Bihar (2) Income Tax Officer, Exemption Ward-1, Patna, Bihar (3) Commissioner of Income Tax (Appeals); National Faceless Appeal Centre (NFAC), Delhi; (4) CIT - , Patna; (5) The Departmental Representative; (6) Guard File TRUE COPY By order Assistant Registrar, Income Tax Appellate Tribunal, Kolkata Benches, Kolkata Laha/Sr. P.S. "