M/S. RAMAKRISHNA EDUCATIONAL CHARITABLE TRUST,CHENNAI V. ITO, EXEMPTIONS 4, , CHENNAI

ITA 2922/CHNY/2024

AI Insights

The case involves appeals by M/s. Ramakrishna Educational Charitable Trust against orders from the Commissioner of Income Tax (Appeals), National Faceless Appeal Center, Delhi, concerning the assessment year 2018-19. The appeals challenged additions made under section 144 read with section 143(3) and penalties under section 270A of the Income Tax Act. The primary contention was the imposition of unexplained receipts amounting to Rs.1,85,86,442 and the subsequent penalties. The Tribunal noted the ex-parte nature of the lower authorities' decisions and the lack of a speaking order, leading to the decision to remit the case for a fresh examination.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 470333 (ITAT-CHENNAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-02-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2018-2019
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ANITHA
• Assessee Lawyers: K.GOPALAKRISHNAN
• Keywords: Set aside; Charitable institution
• Section: 144; 143(3); 250

Judgement Text

"Page - 1 - of 4 आयकर अपीलीय अधिकरण,’सी’ न्यायपीठ, चेन्नई। IN THE INCOME TAX APPELLATE TRIBUNAL ‘C’ BENCH: CHENNAI श्री यस यस विश्वनेत्र रवि, न्यावयक सदस्य एवं श्री अविताभ शुक्ला, लेखा सदस्य क े समक्ष BEFORE SHRI SS VISWANETHRA RAVI, JUDICIAL MEMBER AND SHRI AMITABH SHUKLA, ACCOUNTANT MEMBER आयकर अपील सं./ITA No.2923/Chny/2024, Assessment Years: 2018-19 आयकर अपील सं./ITA No.2922/Chny/2024, Assessment Years: 2018-19 M/s.Ramakrishna Educational Charitable trust, No.53, South Bazaar Street, Pattabiram, Chennai-72. [PAN: AAGTS0203H] Income Tax Officer Exemptions-4, Chennai. (अपीलार्थी/Appellant) (प्रत्यर्थी/Respondent) अपीलार्थी की ओर से/ Assessee by : Shri K.Gopalakrishnan, Advocate प्रत्यर्थी की ओर से /Revenue by : Ms.Anitha, Addl.CIT सुनवाई की तारीख/Date of Hearing : 21.01.2025 घोषणा की तारीख /Date of Pronouncement : 07.02.2025 आदेश / O R D E R PER AMITABH SHUKLA, A.M : These appeal are filed by the assessee against the order bearing DIN & Order No.ITBA/NFAC/S/250/2024-25/1069777560(1) dated 18/10/2024 and No.ITBA/NFAC/S/250/2023-24/106977779(1) dated 18/10/2024 of the Learned Commissioner of Income Tax [herein after “CIT(A), National Faceless Appeal Center[NFAC], Delhi, for the assessment years 2018-19 Through the aforesaid appeal the assesse has challenged order u/s 250 dated 18/10/2024 passed by NFAC, Delhi. . ITA No.2922 and 2923/Chny/2024 Page - 2 - of 4 2.0 The appeal vide ITA No.2922/Chny/2024 is against quantum addition under section 144 r.w.s. 143(3) dated 07.04.2021 and ITA No.2923/Chny/2024 is against order u/s. 270A dated 31.12.2021 for AY- 2018-19 in assessee’s case. For the purposes of convenience both appeals are adjudicated by way of this common order. 3.0 At the outset, the Ld. Counsel for the assessee submitted that both the lower authorities the Ld.AO as well as Ld.CIT(A) has passed ex- parte orders in case of the assessee trust engaged in the activity of providing education. It was submitted that the only issue under consideration in ITA No.2922 is an addition of Rs.1,85,86,442/- made on account of unexplained receipts of the trust and its confirmation by the Ld.CIT(A). Similarly the only issue under consideration in ITA No.2923 is the action of the Ld. AO in imposing penalty u/s 270A of the act and its confirmation by the Ld.CIT(A). The Ld. Counsel for the assessee submitted that both the Ld. AO and the Ld. First Appellate Authority have passed ex-parte orders without giving sufficient opportunity of being heard. It was accordingly pleaded that in the interest of justice the matter may be restored back to the file of the Ld.CIT(A) for re- adjudication. The assessee has assured that it shall make full compliance to the statutory notices issued by the Ld.CIT(A). The Ld. DR would like to make us believe on the correctness of the order of lower authorities. It was submitted that the assessee has not responded to ITA No.2922 and 2923/Chny/2024 Page - 3 - of 4 notices sent by the twin statutory authorities and therefore no case of any relief is made out. The Ld. DR submitted that in the event of remitting the case back to the Ld. CIT(A), cost be imposed upon the assessee for wasting the precious time of statutory authorities. 4.0 We have heard rival submissions in the light of material available on records. As per facts recorded by the Ld. AO in his order, he had given opportunities to the assessee for filing the required details which were not satisfactorily filed by the assessee leading to his making the impugned addition. We have however noted that the order passed by the Ld. AO is not a speaking order and clear facts have not been brought on records before making the impugned addition. Before the Ld.First Appellate Authority also the conduct of the assessee was far from satisfactory as far as compliance to statutory notices are concerned leading to dismissal of the appeal for want of adequate prosecution by the assessee. The order of the Ld.CIT(A) is also based upon only the mis- conduct of the assessee of non-compliance. 5.0 We therefore set aside the order of lower authorities on this issue and we direct the Ld. CIT(A) to readjudicate the matter de novo by examining the matter afresh in accordance with law and by passing a speaking order. The Ld. . CIT(A) shall give opportunities of being heard to the assesse and it shall be bounden upon the assesse to comply with the notices issued by the Ld. . CIT(A). Any non-compliance on the part of ITA No.2922 and 2923/Chny/2024 Page - 4 - of 4 the assesse can be adversely viewed. We however also find force in the argument of the Ld. DR that assessee’s repeated non-compliance has indeed caused loss of precious time of the statutory authorities. Consequently, the decision to remit the matter to the Ld. CIT(A) is however subject to payment of cost of Rs.10,000/- each for ITA No.2922 & 2923, by the assessee to the Tamil Nadu State Legal Services Authority at Hon’ble High Court of Madras within 30 days of the receipt of this order. Accordingly, all the grounds of appeal raised by the assesse in ITA No.2922 & 2923 are allowed for statistical purposes. 6.0 In the result, the appeals of the assesse for ITA No.2922 / Chny / 2024 & 2923 / Chny / 2024 are allowed for statistical purposes Order pronounced on 7th , February-2025 at Chennai. Sd/- (यस यस ववश्वनेत्र रवव) (SS VISWANETHRA RAVI) न्यावयक सदस्य / Judicial Member Sd/- (श्री अवमताभ शुक्ला) (AMITABH SHUKLA) लेखा सदस्य /Accountant Member चेन्नई/Chennai, वदनांक/Dated: 7th , February-2025 . KB/- आदेश की प्रतितिति अग्रेतिि/Copy to: 1. अिीिार्थी/Appellant 2. प्रत्यर्थी/Respondent 3. आयकर आयुक्त/CIT – Chennai. 4. तिभागीय प्रतितिति/DR 5. गार्ड फाईि/GF "