KHADI GRAMOUDYOG VIKAS TRUST,VALSAD V. .ITO, EXEMPTION WARD, SURAT

ITA 941/SRT/2024

AI Insights

The case involves Khadi Gramoudyog Vikas Trust, which appealed against the order of the National Faceless Appeal Centre (NFAC), Delhi, for the assessment year 2019-20. The appeal was directed against an ex parte assessment order passed by the National Faceless Assessment Centre (NFAC), Delhi, under sections 144 and 144B of the Income Tax Act, 1961. The trust, which aims at the upliftment of SC/ST communities in tribal areas, contested that they did not receive proper notice for the assessment proceedings, thus were unable to comply or present their case. The tribunal found that the appeal was dismissed without merit discussion and restored the case for a fresh assessment.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 469630 (ITAT-SURAT)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-12-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2019-2020
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MINAL KAMBLE
• Assessee Lawyers: RAJESH UPADHYAY
• Section: 144

Judgement Text

"आयकर अपीलȣय अͬधकरण, सुरत Ûयायपीठ, सुरत IN THE INCOME TAX APPELLATE TRIBUNAL, SURAT “SMC” BENCH, SURAT BEFORE SHRI PAWAN SINGH, JUDICIAL MEMBER आ.अ.सं./ITA No.941/SRT/2024 (AY 2019-20) (Hearing in Physical Court) Khadi Gramoudyog Vikas Trust Samdi Chawk, Vishnu Talkies, Dharampur, Valsad-396 050 [PAN No: AABTK 1914 C] बनाम Vs Income Tax Officer, Exemption Ward, Surat [2], NFAC, Delhi अपीलाथȸ/Appellant Ĥ×यथȸ /Respondent िनधाŊįरती की ओर से /Assessee by Shri Rajesh Upadhyay, AR राजˢ की ओर से /Revenue by Shri Minal Kamble, Sr-DR अपील पंजीकरण/Appeal instituted on 06.09.2024 सुनवाई की तारीख/Date of hearing 19.12.2024 उद ्घोषणा की तारीख/Date of pronouncement 19.12.2024 Order under section 254(1) of Income Tax Act PER PAWAN SINGH, JUDICIAL MEMBER: 1. This appeal by assessee is directed against the order of National Faceless Appeal Centre, Delhi [for short to as “NFAC/Ld. CIT(A)”] dated 31.07.2024 for assessment year 2019-20, which in turn arises out of assessment order passed by the National Faceless Assessment Centre, Delhi/Assessing Officer under section 144 r.w.s. 144B of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) dated 22.09.2021. The assessee has raised the following grounds of appeal:- “1. Ld. CIT[A], NFAC, Delhi has erred in law and on facts to dismiss appellant’s appeal ex parte and that too without going into merits of the case as per the mandate of Section 250[6] the I.T. Act. 2. Ld. CIT[A], NFAC, Delhi has erred in law and on facts in upholding AO’s ex parte order ignoring the fact that no notice was received by the appellant and therefore assessment proceedings could not be complied. 3. Ld. CIT[A], NFAC, Delhi has erred in law and on facts confirm ex parte order of NFAC, Delhi ignoring the fact that order passed by them is not a best judgment assessment under the scheme provided under the law. ITA No.941/SRT/2024 (A.Y 19-20) Khadi Gramoudyog Vikas Trust 2 4. Ld.CIT[A], NFAC, Delhi has erred in law and on facts to confirm assessment order of NFAC; Delhi who assessed appellant’s income atRs.35,49,128/- ignoring the statutory position of law that even in absence of registration certificate u/s 12AA of the Act, income of the trust has to be taxed under normal provisions of the Act based on the commercial accounting principle.” 2. Rival submission of both the parties heard. Record perused. The Ld. Authorized Representative (Ld.AR) for the assessee submits that both the lower authorities have passed ex-party order without allowing reasonable and fair opportunity to the assessee. The assessee- trust is set up with the object to upliftment of SC/ST communities in Tribal area. The assessee was given grant by the Government which has been taxed by revenue authorities without giving fair and reasonable opportunities. The Ld AR for the assessee submits that the assessee filed first appeal in 2021, however, the notices for hearing was issued only in 2024, that too in quick succession of each other. All three notices were issued within span of 45 days. 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 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. On the other hand, Ld. Senior Departmental Representative (Ld. Sr-DR) for the Revenue though supported the order of Ld. CIT(A). In alternative submission, Ld. Sr-DR for the Revenue submits that assessee should be more vigilant in making timely compliance and not to seek adjournment without valid reason. The system has issued notice to the assessee as per the details provided by the assessee and now the assessee cannot take the plea the such ITA No.941/SRT/2024 (A.Y 19-20) Khadi Gramoudyog Vikas Trust 3 email, on which the notices were served does not belong to them. Ld. Sr-DR for the Revenue submits that before Assessing Officer assessee has not made any compliance despite giving numerous opportunities. Thus, Assessing Officer has no option but to complete assessment under section 144 of the Act. 4. I have considered the submissions of both the parties and have gone through the orders of lower authorities carefully. Considering the fact that Ld. CIT(A) has dismissed the appeal in ex parte order without discussing the merit of the case. The impugned order passed by ld. CIT(A) is not in accordance with mandate of Section 250(6) of the Act. The assessment order was also passed under section 144 for the want of proper compliance. Therefore, I deem it appropriate to restore the appeal back to the file of Assessing Officer to pass the assessment order afresh. Needless to direct that before passing order afresh, the Assessing Officer shall provide reasonable opportunity to the assessee. The assessee is also directed to be more vigilant and to make timely compliance of the notice issued by Assessing Officer. With these directions, the grounds of appeal of assessee is allowed for statistical purposes. 5. In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced in open court on 19th December, 2024. Sd/- (PAWAN SINGH) [Ɋाियक सद˟ JUDICIAL MEMBER] सूरत /Surat, Dated: 19/12/2024 Dkp Outsourcing Sr.P.S ITA No.941/SRT/2024 (A.Y 19-20) Khadi Gramoudyog Vikas Trust 4 आदेश कȧ ĤǓतͧलͪप अĒेͪषत/ Copy of the order forwarded to :  अपीलाथȸ/ The Appellant  Ĥ×यथȸ/ The Respondent  आयकर आयुÈत/ CIT  ͪवभागीय ĤǓतǓनͬध, आयकर अपीलȣय आͬधकरण, सूरत/ DR, ITAT, SURAT  गाड[ फाईल/ Guard File By order/आदेश से, // True Copy // सहायक पंजीकार आयकर अपीलȣय अͬधकरण, सूरत "