KUSHAL EDUCATIONAL TRUST,KALLAKURICHI V. ITO, EXEMPTIONS WARD-2, CHENNAI

ITA 3143/CHNY/2024

AI Insights

The case involves Kushal Educational Trust appealing against an order from the CIT(A), National Faceless Appeal Center, Delhi, which confirmed an assessment order under section 143(3) for the assessment year 2012-13. The appeal was initially delayed by 346 days due to the assessee's unfamiliarity with electronic processes and an inactive email account. The Tribunal condoned the delay, considering the circumstances and the lack of serious objections from the Departmental Representative. The main issue was the non-compliance of the assessee with statutory notices during the COVID-19 pandemic, which led to the dismissal of their appeal by the CIT(A). The Tribunal found merit in the assessee's reasons for non-compliance and decided to set aside the CIT(A)'s order for a fresh examination, emphasizing the need for a speaking order after proper hearings.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 46865 (ITAT-CHENNAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-04-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2012-2013
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: R. RAGHUPATHY
• Assessee Lawyers: G.TARUN
• Keywords: Set aside
• Section: 143(3); 250; 201

Judgement Text

"Page - 1 - of 4 आयकर अपीलीय अधिकरण, ‘‘ए’ न्यायपीठ, चेन्नई। IN THE INCOME TAX APPELLATE TRIBUNAL ‘A’ BENCH: CHENNAI श्री एबी टी. वर्की, न्यायिर्क सदस्य एवं श्री अयिताभ शुक्ला, लेखा सदस्य क े समक्ष BEFORE SHRI ABY T VARKEY, JUDICIAL MEMBER AND SHRI AMITABH SHUKLA, ACCOUNTANT MEMBER आयकर अपील सं./ITA No. 3143/Chny/2024 निर्ाारण वर्ा /Assessment Years: 2012-13 Kushal Educational Trust, No.1, Chennai to Salem Main Road, Mellur, Kallakurichi, Tamil Nadu-606 201 [PAN: AAATK6359E] Income Tax Officer, Exemptions, Ward-2, Chennai (अपीलार्थी/Appellant) (प्रत्यर्थी/Respondent) अपीलार्थी की ओर से/ Assessee by : Mr.G.Tarun, Advocate. प्रत्यर्थी की ओर से /Revenue by : Mr.R.Raghupathy, Addl.CIT सुिवाई की तारीख/Date of Hearing : 19.02.2025 घोर्णा की तारीख /Date of Pronouncement : 04.04.2025 आदेश / O R D E R PER AMITABH SHUKLA, A.M : This appeal is filed by the assessee against the order bearing DIN & Order No.ITBA/NFAC/S/250/2023-24/1057534526(1) dated 31.10.2023 of the Learned Commissioner of Income Tax [herein after “CIT(A), National Faceless Appeal Center[NFAC], Delhi, for the assessment years 2012-13. Through the aforesaid appeal the assessee has challenged order u/s 250 dated 31.10.2023 passed by NFAC, Delhi. ITA No.3143/Chny/2024 Page - 2 - of 4 2.0 It has been noted that there is a delay of 346 days in the case, in filing of this appeal before the tribunal. In its affidavit the assesse has pleaded that he is not conversant with the electronic working and that the order of the Ld.CIT(A) had gone to dormant email ID. Contributing to the delay which was neither willful nor wanton. The assesse submitted that there will not be case of any non-compliance now. We have considered the justification put forth by the assesse and we are satisfied with their adequacy. We are also conscious of the fact that no litigant gains by intentionally delaying its own matters. The Ld. DR did not pose any serious objections to the delay. The Ld. DR however argued that cost be imposed upon the assessee for wasting the precious time of the judicial authorities. Accordingly, we hereby condone the delay and proceed to adjudicate this appeal. 3.0 At the outset the Ld. Counsel for the assesse informed that the Ld. First Appellate Authority has passed an ex-parte order thereby confirming the assessment order u/s 143(3) dated 31.03.20215 and that the appeal was dismissed for non-compliance to statutory notices. It was pleaded that admittedly the compliance of the assessee before the Ld.CIT(A) was wanting. It was urged that the non-compliance was majorly attributable to Covid-19 period. The Ld. Counsel for the assesse pleaded for setting aside the case to Ld.CIT(A) and assured that ITA No.3143/Chny/2024 Page - 3 - of 4 full compliance would now be made to the statutory notices of the Ld. CIT(A). 4.0 We have heard the rival submissions in the light of material available on records. It is trite law that no litigant benefits by non- prosecution of its case. We find sufficient force in the pleadings of the assesse as to why it could not prosecute its appeal before Ld CIT(A). We have also noted that apart from merely harping on the issue of non- compliance by the assesse the Ld. CIT(A) has not touched upon merits of the case. 5.0 We are therefore of the view that ends of justice would be met if the case is set aside to the file of the Ld. CIT(A) for readjudication after giving opportunities of being heard to the assesse and to pass a speaking order. The assesse shall be bound to comply to all the notices and details called by the Ld. CIT(A). Any non-compliance from the assesse side shall be adversely viewed. Accordingly, we set aside the order of the Ld. First Appellate Authority and direct him to readjudicate the matter de novo. We have also found sufficient force in the argument of the Ld. DR regarding wastage of time of judicial authorities by the non-compliance of the assessee. Consequently, this order is subject to payment of Rs.5000/- by the assessee to the Tamil Nadu Legal Services Authority of Hon’ble Madras High Court within 30 days of receipt of this order. ITA No.3143/Chny/2024 Page - 4 - of 4 Accordingly, the grounds of appeal raised by the assesse are allowed for statistical purposes. 6.0 In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced on 9th , April-2025 at Chennai. Sd/- ( एबी टी. वकी) (ABY T VARKEY) न्यानयक सदस्य / Judicial Member Sd/- (अयिताभ शुक्ला) (AMITABH SHUKLA) लेखा सदस्य /Accountant Member चेन्नई/Chennai, नदिांक/Dated: 9th , April-2025. KB/- आदेश की प्रनतनलनप अग्रेनर्त/Copy to: 1. अपीलार्थी/Assessee: 2. प्रत्यर्थी/Revenue 3. आयकर आयुक्त/CIT - Chennai 4. नवभागीय प्रनतनिनर्/DR 5. गार्ा फाईल/GF "