MADHYA PRADESH BUILD WELFARE BOARDING AND OTHER CONSTRUCTION ,BHOPAL V. DCIT(EXEMPTION), BHOPAL

ITA 382/IND/2024

AI Insights

The case involves the Madhya Pradesh Building and Other Construction Welfare Board, which appealed against the ex-parte assessment order passed by the AO under sections 147, 144, and 144B of the Income-tax Act, 1961, for the Assessment Year 2017-18. The AO had issued notices based on various financial activities of the assessee, which remained uncomplied, leading to a substantial income assessment of Rs. 260,38,02,571. The CIT(A) upheld this order after the assessee failed to comply with notices and also delayed the filing of the first appeal. The ITAT, considering the principles of natural justice and the submissions of both parties, decided to remand the case back to the AO for a fresh assessment.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 712561 (ITAT-INDORE)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-07-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Assessment Year: 2017-2018
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Matter Remanded
• Court: TRIBUNAL
• Department Lawyers: FORASSESSEEATFIRSTSUBMITTEDTHATTHEASSESSEEISABOARD; FORREVENUEAGREEDWITHTHESUBMISSIONANDPRAYEROF; SHRIASHISHPORWAL
• Assessee Lawyers: SHRIASHISH GOYAL; SHRIN.D.PATWA; ARS
• Keywords: Principle of natural justice; TDS
• Section: 147; 148; 144

Judgement Text

"Page 1 of 6 आयकरअपीलीयअिधकरण, इंदौरɊायपीठ, इंदौर IN THE INCOME TAX APPELLATE TRIBUNAL INDORE BENCH, INDORE BEFORE SHRI B.M. BIYANI, ACCOUNTANT MEMBER AND SHRI PARESH M. JOSHI, JUDICIAL MEMBER ITA No.382/Ind/2024 Assessment Year:2017-18 Madhya Pradesh Building and Other Construction Welfare Board, 82- Harshvardhan Nagar, Bhopal बनाम/ Vs. DCIT (Exemption), Bhopal (Assessee/Appellant) (Revenue/Respondent) PAN:AAALM0795N Assessee by Shri Ashish Goyal & Shri N.D. Patwa, ARs Revenue by Shri Ashish Porwal, Sr. DR Date of Hearing 23.07.2025 Date of Pronouncement 28.07.2025 आदेश/ O R D E R Per B.M. Biyani, A.M.: Feeling aggrieved by order of first-appeal dated 15.03.2024 passed by learned Commissioner of Income-Tax (Appeals)-NFAC, Delhi [“CIT(A)”] which in turn arises out of assessment-order dated 30.03.2022 passed by learned National Faceless Assessment Centre, Delhi [“AO”] u/s 147 r.w.s. 144 & 144B of the Income-tax Act, 1961 [“the Act”] for Assessment-Year [“AY”] 2017-18, the assessee has filed this appeal on the grounds mentioned in Appeal Memo (Form No. 36). Printed from counselvise.com Madhya Pradesh Building and Other Construction Welfare Board ITA No. 382/Ind/2024 - AY 2017-18 Page 2 of 6 2. The backgrounds facts leading to this appeal are such that the assessee is a board constituted by State Govt. of Madhya Pradesh for welfare of construction labours and engaged in running various Govt. schemes. The AO, on the basis of information available in ITBA Portal and also in his possession regarding refund of duty drawback received by assessee, investment made by assessee in time deposits with bank, interest income earned by assessee on such time deposits and TDS having been deducted out of same, issued notice u/s 148 dated 30.03.2021 to take up assessee’s case for assessment u/s 147. The AO also issued notices u/s 142(1)/144 from time to time. However, all notices issued by AO remained uncompiled by assessee. Ultimately, the AO passed ex-parte assessment-order u/s 144 dated 30.03.2022 determining total income as high as Rs. 260,38,02,571/-. Aggrieved, the assessee carried matter in first-appeal before CIT(A). 2.1 During first-appeal, the CIT(A) issued three notices to assessee but the same also remained uncompiled. Ultimately, the CIT(A) also passed ex-parte order upholding the AO’s order. In his order, the CIT(A) precisely observed that there were non-compliances by assessee before AO. He further observed that there was a delay of 260 days in filing first-appeal also. He considered the reasoning of delay mentioned by assessee in Form No. 35 but did not accept the same as sufficient. Finally, the CIT(A) dismissed assessee’s first appeal. Printed from counselvise.com Madhya Pradesh Building and Other Construction Welfare Board ITA No. 382/Ind/2024 - AY 2017-18 Page 3 of 6 2.2 Now, the assessee has come in next appeal before us. 3. Ld. AR for assessee at first submitted that the assessee is a Board constituted by State Govt. of Madhya Pradesh for welfare of construction labours and engaged in running various Govt. schemes. The assessee is registered u/s 10(23C)(vi) granted by Income-tax Department. Then, he invited our attention to the following Written-Synopsis dated 21.04.2025 filed by assessee to the office of ITAT: Printed from counselvise.com Madhya Pradesh Building and Other Construction Welfare Board ITA No. 382/Ind/2024 - AY 2017-18 Page 4 of 6 Printed from counselvise.com Madhya Pradesh Building and Other Construction Welfare Board ITA No. 382/Ind/2024 - AY 2017-18 Page 5 of 6 4. Ld. AR deliberated the submissions made by assessee in above Written-Synopsis and requested to condone the delay which had occurred in filing first appeal before CIT(A) and also restore the present matter to the file of AO for a fresh adjudication. 5. Ld. DR for revenue agreed with the submission and prayer of assessee/Ld. AR but makes a request to direct the assessee to stay diligent and represent its case before AO without seeking unnecessary adjournments. 6. Considering the Written-Synopsis of assessee as re-produced above; the submissions of learned Representatives of both sides noted above; having regard to the principle of natural justice and also bearing in mind that no prejudice would be caused to revenue if the present matter is restored at the level of AO for a fresh adjudication, we condone the delay in filing first-appeal and remand this matter back to the file of AO for adjudication afresh, at the risk and responsibility of assessee. The AO shall give necessary opportunity of hearing to assessee and pass an appropriate order uninfluenced by his earlier order. The assessee is also directed to remain vigilant and ensure participation in the hearings as may be fixed by AO and do not seek unnecessary adjournments failing which the AO shall be at liberty to pass appropriate order in accordance with law. Ordered accordingly. Printed from counselvise.com Madhya Pradesh Building and Other Construction Welfare Board ITA No. 382/Ind/2024 - AY 2017-18 Page 6 of 6 7. Resultantly, this appeal is allowed for statistical purpose. Order pronounced in open court on 28/07/2025 Sd/- Sd/- (PARESH M. JOSHI) (B.M. BIYANI) JUDICIAL MEMBER ACCOUNTANT MEMBER Indore िदनांक/Dated : 28/07/2025 Patel/Sr. PS Copies to: (1) The appellant (2) The respondent (3) CIT (4) CIT(A) (5) Departmental Representative (6) Guard File By order UE COPYSr. Private Secretary Income Tax Appellate Tribunal Indore Bench, Indore Printed from counselvise.com "