ORISSA ROAD SAFETY SOCIETY,CUTTACK V. INCOME TAX OFFICER, EXEMPTION, CUTTACK

ITA 109/CTK/2025

AI Insights

The case involves the Orissa Road Safety Society appealing against the orders of the CIT (A), which denied them registration under Section 12AA of the Income Tax Act and taxed their incomes under the head of Association of Persons (AOP). The appeals for various assessment years were initially found to be time-barred, but the delay was condoned. The society argued that they did not receive notices for the hearings and that their officials, being on deputation, could not represent them timely. The Revenue supported the original orders, emphasizing the society's lack of registration under Section 12A, which necessitated their assessment as an AOP. The Tribunal decided to wait for the High Court's decision on the registration issue before finalizing the appeals.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 711500 (ITAT-CUTTACK)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-07-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Assessment Year: 2015-2016
• Laws Referred To: Section 12AA of the Act, Section 143(1) of the Act, Section 143(3) of the Act, Section 12A of the Act
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: NISHANTH RAO B
• Assessee Lawyers: NATABAR PANDA
• Section: 143(3); 12AA; 12A

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL “CUTTACK” BENCH, CUTTACK BEFORE SHRI GEORGE MATHAN, JM AND SHRI RAJESH KUMAR, AM ITA Nos. 350, 108,109, 351 & 352/CTK/2025 & SA Nos. 01 to 05/CTK/2025 (Assessment Years: 2010-11, 14-15, 15-16, 18-19 & 19-20) Orissa Road Safety Society 7th Floor, Rajaswa Bhawan, Chandinichowk, Odisha-753002 Vs. Income Tax Officer, Exemption, Cuttack, Odisha-753008 (Appellant) (Respondent) PAN No. AAAAO0839N Assessee by : Shri Natabar Panda, AR Revenue by : Shri Nishanth Rao B, DR Date of hearing: 23.07.2025 Date of pronouncement: 23.07.2025 O R D E R PER PENCH: These are the appeals filed by the assessee against the orders of ld. CIT (A), NFAC, dated 22.10.2024, 07.04.2025 for A.Ys. 2010-11, 2014-15, 2015-16, 2018-19, 2019-20. 02. Shri Natabar Panda represented on behalf the assessee and Shri Nishanth Rao B represented on behalf of the Revenue. 03. The appeals of the assessee in ITA Nos. 108 & 109/CTK/2025 are time barred by 45 days. Considering the facts and circumstances of the case, we find that there is plausible reason to condone the delay and the delay of filing the appeal is hereby condoned. 04. At the time of hearing, it was submitted by the Learned AR that the assessee had been unable to appear before the Learned CIT (A) as the assessee had not received the hearing notices. It was a submission that the assessee is a society funded by the government and run by the Printed from counselvise.com Page | 2 ITA No. 350, 108,109, 351 & 352/CTK/2025 & SA No. 1-5/CTK/25 Orissa Road Safety Society; A.Ys.2010-11, 2014-15, 2015-16, 2018-19, 2019-20 officials of the state government on deputation. It was a further submission that the assessments in the case of the assessee came to be completed wherein the assessee has been denied the registration under Section 12AA of the Act and the incomes of the assessee have been brought to tax under the head AOP (Association of Persons). It was a submission that for the assessment year 2010-11, 2018-19 & 2019-20, the intimations under Section 143(1) of the Act have been issued and for the A.Ys. 2014-15, 2015-16, the assessment orders are under Section 143(3) of the Act. It was a submission that the issue of registration under Section 12A of the Act is pending before the Honourable Jurisdictional High Court of Orissa. It was a prayer that the issues of the appeal may be restored to the file of the AO for re- adjudication after the decision of the Honourable Jurisdictional High Court in regard to the registration under Section 12A of the Act. 05. In reply, the Learned Senior DR vehemently supported the order of the AO and CIT(A). It was a submission that the assessee does not have registration under Section 12A of the Act and therefore, the assessee at the present moment is liable to be assessed only as an AOP. It was the submission that it was the assessee’s duty to represent its case before the Learned CIT(A) and the assessee having failed to do so, further opportunity should not be granted. 06. We have heard the rival consideration. A perusal of the facts of the present case, clearly show that the assessee’s petition against the non- granting of the registration under Section 12A of the Act, is pending before the Honourable Jurisdictional High Court of Orissa. The registration under Section 12A will have a substantial bearing on the facts of the present case. This being so, in the interest of justice, the issues in this appeal are restored to the file of the Learned AO for re- Printed from counselvise.com Page | 3 ITA No. 350, 108,109, 351 & 352/CTK/2025 & SA No. 1-5/CTK/25 Orissa Road Safety Society; A.Ys.2010-11, 2014-15, 2015-16, 2018-19, 2019-20 adjudication after the decision of the Honourable Jurisdictional High Court of Orissa in respect of the registration under Section 12A of the Act. The assessee shall keep the learned AO updated in regard to the outcome of its petition before the Honourable Jurisdictional High Court of Orissa in regard to the registration under Section 12A of the Act. 07. In the result, the appeals of the assessee are partly allowed for statistical purposes. 08. The assessee has also filed Stay Petitions No. 1 to 5/CTK/2025. As we have already disposed off the appeals of the assessee by restoring the issues to the file of the AO, the Stay Petitions filed by the assessee become infructuous and are dismissed as infructuous. Order pronounced in the open court on 23.07.2025. Sd/- Sd/- (RAJESH KUMAR) (GEORGE MATHAN) (ACCOUNTANT MEMBER) (JUDICIAL MEMBER) Kolkata, Dated: 23.07.2025 Sudip Sarkar, Sr.PS Copy of the Order forwarded to: 1. The Appellant 2. The Respondent 3. CIT 4. DR, ITAT, 5. Guard file. BY ORDER, True Copy// Sr. Private Secretary/ Asst. Registrar Income Tax Appellate Tribunal, Cuttack Printed from counselvise.com "