MUSLIM EDUCATIONAL SOCIETY,KANYAKUMARI V. INCOME TAX OFFICER, EXEMPTION WARD, TIRUNELVELI , INCOME TAX OFFICE, TIRUNELVELI

ITA 3030/CHNY/2024

AI Insights

The case involves the Muslim Educational Society, which appealed against the order of the Commissioner of Income Tax (Appeals) at the National Faceless Appeal Center, Delhi. The appeal was concerning the assessment year 2015-16, where an addition of Rs.1,02,48,544 was made to the assessee's income, attributed to deposits in the assessee's bank account from fees collection. Both the lower authorities had passed ex-parte orders, leading to the assessee's challenge in the tribunal. The tribunal noted the lack of a speaking order and insufficient evidence on record to support the addition made by the Assessing Officer. Consequently, the tribunal decided to set aside the lower authorities' orders and remand the case back to the Assessing Officer for a fresh examination and decision.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 470335 (ITAT-CHENNAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-02-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Assessment Year: 2015-2016
• Other Referred Cases: TIN box 249 ITR 216
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ESWARAN
• Assessee Lawyers: T.VASUDEVAN
• Keywords: Set aside; Opportunity of being heard
• Section: 250

Judgement Text

"Page - 1 - of 4 आयकर अपीलीय अधिकरण,’डी’ न्यायपीठ, चेन्नई। IN THE INCOME TAX APPELLATE TRIBUNAL ‘D’ BENCH: CHENNAI श्री जॉजज जॉजज क े, उपाध्यक्ष एवं श्री अमिताभ शुक्ला, लेखा सदस्य क े समक्ष BEFORE SHRI GEORGE GEORGE K, VICE PRESIDENT AND SHRI AMITABH SHUKLA, ACCOUNTANT MEMBER आयकर अपील सं./ITA No.3030/Chny/2024 निर्धारण वर्ा /Assessment Year: 2015-16 Muslim Educational Society, Jalal Building Thiruvithancode, Kanyakumari, Tamil Nadu-629174. [PAN: AACTM7128D] Vs. Income Tax Officer, Exemption Ward, Tirunelveli. (अपीलधर्थी/Appellant) (प्रत्यर्थी/Respondent) अपीलधर्थी की ओर से/ Assessee by : Shri T.Vasudevan, Advocate प्रत्यर्थी की ओर से /Revenue by : Shri Eswaran, JCIT सुिवधई की तधरीख/Date of Hearing : 22.01.2025 घोर्णध की तधरीख /Date of Pronouncement : 05.02.2025 आदेश / O R D E R PER AMITABH SHUKLA, A.M : This appeal is filed against the order bearing DIN & Order No.ITBA/NFAC/S/250/2024-25/1069689973(1) dated 15.10.2024 of the Learned Commissioner of Income Tax [herein after “CIT(A), National Faceless Appeal Center[NFAC], Delhi, for the assessment years 2015-16. Through the aforesaid appeal the assesse has challenged order u/s 250 dated 15.10.2024 passed by NFAC, Delhi. ITA No.3030/Chny/2024 Page - 2 - of 4 2.0 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 is an addition of Rs.1,02,48,544/- on account of deposits in assessee’s bank account qua fees collection made by the Ld.AO. The Ld. Counsel for the assessee submitted that the Ld.First Appellate Authority has also confirmed the addition by passing an ex-parte order 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 Ld.AO for readjudication. The Ld. DR would like to make us believe on the correctness of the order of lower authorities. 3.0 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. There are also indications of no ITA No.3030/Chny/2024 Page - 3 - of 4 enquiries conducted by the Ld.AO. 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 persecution by the assessee. 3.1 We have thus noted that inadequate submission of details and evidences, before the lower authorities qua sources of deposits in assessee’s bank account lies at the core of the controversy. We are therefore of the view that ends of justice would be met if the assessee is given one last opportunity to present its case and file all supporting evidences before the Ld.AO. The assessing officer is the primary authority under the income tax act to be examine facts of a case in the light of available evidences before determining correct taxable income of a tax payer. We therefore set aside the order of lower authorities on this issue and we direct the Ld. AO to readjudicate the matter de novo by examining the matter afresh in accordance with law and by passing a speaking order. Reliance in this regard is placed upon the decision of Hon’ble Apex Court in the case of TIN box 249 ITR 216. The Ld. AO 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. AO. Any non-compliance on the ITA No.3030/Chny/2024 Page - 4 - of 4 part of the assesse can be adversely viewed. Accordingly, all the grounds of appeal raised by the assesse on this issue are allowed for statistical purposes. 4.0 In the result, the appeal of the assesse is allowed for statistical purposes Order pronounced on 5th , February-2025 at Chennai. Sd/- Sd/- (जॉजज जॉजज क े) (GEORGE GEORGE K) उपधध्यक्ष / Vice President (श्री अनितधभ शुक्लध) (AMITABH SHUKLA) लेखध सदस्य /Accountant Member चेन्नई/Chennai, नदिधंक/Dated: 5th , February-2025. KB/- आदेश की प्रनतनलनप अग्रेनर्त/Copy to: 1. अपीलधर्थी/Appellant 2. प्रत्यर्थी/Respondent 3. आयकर आयुक्त/CIT - Madurai 4. नवभधगीय प्रनतनिनर्/DR 5. गधर्ा फधईल/GF "