KRISHI UTPADAN MANDI SAMITI CHARRA,CHARRA V. DEPUTY COMMISSIONER OF INCOME TAX - CIRCLE 4(1)(1) ALIGARH, ALIGARH

ITA 119/AGR/2025

AI Insights

The case involves the Krishi Utpadan Mandi Samiti, Charra Mandi, Charra (Aligarh) appealing against an order that confirmed the Assessing Officer's decision to assess the total receipts of the assessee-trust, amounting to Rs.6,41,66,317, on the grounds that the trust failed to spend 85% of its total receipts for charitable purposes. The first appellate authority dismissed the appeal ex parte, leading to this appeal. The tribunal noted the absence of a response from the assessee to multiple notices and the failure of the first appellate authority to decide on merits, as required under section 250(6) of the Income-tax Act, 1961.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 396737 (ITAT-AGRA)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-05-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2018-2019
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Matter Remanded
• Court: TRIBUNAL
• Department Lawyers: SUKESH KUMAR JAIN
• Keywords: Set aside; Principle of natural justice; Charitable institution
• Section: 11

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL, AGRA BENCH, AGRA BEFORE : SHRI SUNIL KUMAR SINGH, JUDICIAL MEMBER AND SHRI MANISH AGARWAL, ACCOUNTANT MEMBER ITA No. 119/Agr/2025 Assessment Year: 2018-19 Krishi Utpadan Mandi Samiti, Charra Mandi, Charra (Aligarh). Vs. DCIT, Circle 4(1)(1), Aligarh. PAN : AAALK0565A (Appellant) (Respondent) ORDER Per Sunil Kumar Singh, Judicial Member: This appeal has been preferred by assessee against the impugned order dated 06.09.2024 passed in Appeal No. CIT (A), Aligarh/10726/2019-20 by the Ld. ADDL./JCIT(A) Thiruvanantpuram u/s. 250 of the Income-tax Act, 1961 (hereinafter referred to as “the Act”), wherein the learned first appellate authority has dismissed assessee’s first appeal ex parte, confirming the action of the Assessing Officer for assessing the total receipts of the assessee-trust amounting to Rs.6,41,66,317/- on the premise that the assessee failed to spend 85% of the total receipts for charitable purposes. 2. None responded for the assessee. Perused the records and heard the ld. Departmental Representative, who has supported the impugned order. Assessee by None Department by Sh. Sukesh Kumar Jain, CIT/DR Date of hearing 20.05.2025 Date of pronouncement 29.05.2025 ITA No.119/Agr/2025 2 | P a g e 3. At the very outset, it appears that this appeal has been filed on 28.02.2025 against the impugned order dated 06.09.2024 by a delay of about 113 days. In the interest of justice, we condone the delay in filing this appeal. 4. This appeal has been preferred on the ground that the ld. First appellate authority, while dismissing the appeal, has violated the principles of natural justice without considering the fact that the appellant-trust, being registered u/s. 12AA, was eligible for blanket exemption u/s. 10(26AAB) and section 11 of the Act. 6. Perusal of the impugned order shows that notices were issued by the ld. First appellate authority on 05.08.2024 and 14.08.2024 as also a show cause notice dated 29.08.2024, but the assessee neither responded to any of the notices nor filed any submission before the first appellate proceedings. Such irresponsive conduct of the assessee cannot be appreciated. However, it is seen that the first appellate authority has passed ex parte impugned order, but not on merits, whereas she was expected to state the points for determination, decision thereon and the reasons for the decision as provided u/s. 250(6) of the Act. In the circumstances and in the interest of justice and fair play, we deem it just and appropriate to afford last opportunity to the assessee and remit the matter back to the file of learned CIT(Appeals) for adjudication on merits. We order accordingly. We further direct the assessee to be diligent and cooperative in attending the hearings and making ITA No.119/Agr/2025 3 | P a g e submissions before the learned CIT(Appeals) for the expeditious and effective disposal. Assessee shall refrain from seeking any adjournment but for compelling and unavoidable reasons. Needless to say that learned CIT(Appeals) shall ensure the observance of the principles of natural justice. The appeal is liable to be allowed accordingly. 7. In the result, the appeal is allowed for statistical purposes. The impugned order dt. 06.09.2024 is set aside. Order pronounced in the open court on 29.05.2025. Sd/- Sd/- (MANISH AGARWAL) (SUNIL KUMAR SINGH) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated: 29.05.2025 *aks/- Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(A) 5. DR Asst. Registrar, ITAT, Agra "