PRACHEEN KARIGAR ASSOCIATION,BAHADURGARH V. ITO WARD - 3, ROHTAK, ROHTAK

ITA 2968/DEL/2025

AI Insights

The case involves the Pracheen Karigar Association, which appealed against an ex-parte order by the Commissioner of Income Tax (Appeals) dated 05.03.2025 for the Assessment Year 2015-16. The primary contention was the CIT(A)'s decision on an issue not raised by the assessee in their appeal, specifically the denial of benefit under section 12A of the Income Tax Act due to a delay in filing Form 10B. The assessee argued that the CIT(A) incorrectly addressed the delay in filing Form 10B instead of the disallowance of Rs.6,88,660 in revenue expenditure, which was the actual issue of dispute. The Tribunal found that the CIT(A) had erred in addressing an issue not raised in the grounds of appeal and thus set aside the CIT(A)'s order and restored the matter for re-evaluation.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 713045 (ITAT-DELHI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-07-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Assessment Year: 2015-2016
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SUDHA GUPTA
• Assessee Lawyers: NAVIN GUPTA
• Keywords: Set aside; Revenue expenditure
• Section: 12A; 10B

Judgement Text

"आयकर अपीलीय अिधकरण िदʟी पीठ “एस एम सी”, िदʟी ŵी िवकास अव̾थी, Ɋाियक सद˟ IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “SMC”, DELHI BEFORE SHRI VIKAS AWASTHY, JUDICIAL MEMBER आअसं.2968/िदʟी/2025 (िन.व. 2015-16) ITA No.2968/DEL/2025 (A.Y.2015-16) Pracheen Karigar Association, H. No. 4/294, Street No. 4, Nai Basti, Bahadurgarh, District Jhajjar, Haryana 124507 PAN: AAAAH-2502-F ...... अपीलाथᱮ/Appellant बनाम Vs. Income Tax Officer, Ward-3 Rohtak, Haryana 124001 ..... ᮧितवादी/Respondent अपीलाथŎ Ȫारा/ Appellant by : Shri Navin Gupta, Advocate. ŮितवादीȪारा/Respondent by : Ms. Sudha Gupta, SR.DR सुनवाई कᳱ ितिथ/ Date of hearing : 31/07/2025 घोषणा कᳱ ितिथ/ Date of pronouncement : : 31/07/2025 आदेश/ORDER PER VIKAS AWASTHY, JM: This appeal by the assessee is directed against an ex-parte order of Commissioner of Income Tax (Appeals)/Additional/Joint Commissioner of Income Tax(Appeals)-2, Kolkata (hereinafter referred to as 'the CIT(A)') dated 05.03.2025, for Assessment Year 2015-16. 2. Shri Navin Gupta, appearing on behalf of the assessee submits that the assessee has been appearing before the CIT(A) from the very first date of hearing, the CIT(A) after condoning delay in filing the appeal decided the appeal on an issue which was never assailed by the assessee in grounds of appeal raised in Form No. 35. The ld. Counsel for the assessee pointed that specific grounds were raised before the CIT(A) in Form No. 35, assailing addition of Rs.6,88,660/- made while processing return of income u/s. 143(1) of the Act. He further pointed that Printed from counselvise.com 2 ITA No.2968/Del/2025 (AY 2015-16) no ground of appeal relating to denial of benefit u/s. 12A of the Act for delay in filing of Form 10B was raised before the CIT(A). The CIT(A) dismissed the appeal of assessee holding that the CIT(A) is not empowered to condone delay in filing of Form 10B. 3. Per contra, Ms. Sudha Gupta representing the department vehemently defended the impugned order. She submitted that the assessee’s appeal has been rightly rejected by the CIT(A) on account of delay in submission of Form No. 10B. The prescribed authorities under the Act has power to condone delay in filing of Form 10B and not the CIT(A). 4. Both sides heard, orders of the authorities below examined. The issue raised by the assessee in appeal before the CIT(A) was disallowance of revenue expenditure amounting of Rs.6,88,660/-. The CIT(A) has decided appeal of the assessee on the issue of delay in filing of Form 10B, whereas, no such ground was raised by the assessee in Form No. 35 before the CIT(A). This appeal is restored back to the CIT(A) with a direction to adjudicate the grounds raised by the assessee in Form No. 35 after affording reasonable opportunity of making submissions to the assessee, is accordance with law. 5. In the result, impugned order is set aside and appeal of the assessee is allowed for statistical purpose. Order pronounced in the open court on Friday the 31st day July, 2025. Sd/- Sd/- (VIKAS AWASTHY) ᭠याियक सद᭭य/JUDICIAL MEMBER िदʟी/Delhi, ᳰदनांक/Dated 31.07.2025 Printed from counselvise.com 3 ITA No.2968/Del/2025 (AY 2015-16) NV/- ᮧितिलिप अᮕेिषत/Copy of the Order forwarded to : 1. अपीलाथᱮ/The Appellant , 2. ᮧितवादी/ The Respondent. 3. The PCIT/CIT(A) 4. िवभागीय ᮧितिनिध, आय.अपी.अिध., िदʟी /DR, ITAT, िदʟी 5. गाडᭅ फाइल/Guard file. BY ORDER, //True Copy// (Dy./Asstt. Registrar) ITAT, DELHI Printed from counselvise.com "