PRAN SUKH MEMORIAL EDUCATIONAL FOUNDATION CHARITABLE TRUST,NOIDA V. .ITO, WARD (EXEMPTION) 2(4), DELHI

ITA 2820/DEL/2024

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 23631 (ITAT-DELHI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-12-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: F
• Assessment Year: 2017-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: HARPREET KAUR HANSRA
• Assessee Lawyers: MANU MONGA
• Keywords: Charitable institution; Benefit of exemption
• Section: 144; 143(3); 142(1); 143(2); 201; 11; 12

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH ‘F’ NEW DELHI BEFORE SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER AND SHRI VIMAL KUMAR, JUDICIAL MEMBER ITA No. 2820/Del/2024 (Assessment Year : 2017-18) Pran Sukh Memorial Educational Foundation Charitable Trust G-11, P-3, Krishna Apra Plaza, Sector – 18, Noida Uttar Pradesh – 201 301 PAN : AAATP 6359 D Vs. ITO Ward (Exemption)-2(4) Delhi (Appellant) (Respondent) Assessee by Shri Manu Monga, AR Respondent by Ms. Harpreet Kaur Hansra, Sr. D.R. Date of Hearing 17.12.2024 Date of Pronouncement 17.12.2024 O R D E R PER VIMAL KUMAR, JM: 1. The appeal filed by assessee is against order dated 17.05.2024 of Learned Commissioner of Income Tax (Appeals)-National Faceless Appeal Centre (NFAC), Delhi [hereinafter referred to as ‘Ld. CIT(A)’] arising out of assessment order dated 19.12.2019 of the Income Tax Officer, Ward Exemption – 2(4), Delhi (hereinafter referred as ‘Ld. -2- ITA No.2820/Del/2024 Pran Sukh Memorial Educational Foundation Charitable Trust vs. ITO A.Y. 2017-18 AO’) under section 144 of the Income Tax Act, 1961 [hereinafter referred to as “the Act”] for the Assessment Year 2017-18. 2. Brief facts of case are that the assessee is a charitable trust and filed its e-return of income for A.Y. 2017-18 on 05.08.2017 declaring total income of Rs. Nil claiming benefit of exemption under section 11 and 12 (or 1023C etc) of the Income Tax Act, 1961. Assessment proceedings under section 143(3) of the Act were initiated vide notice under section 143(2) of the Act on 14.08.2018. The case was selected for complete scrutiny under CASS for the reason “taxability of accreted income of the trust”. No response was received. Further notice under section 142(1) of the Act was issued on 28.06.2019 requiring assessee to file reply/information in respect of ongoing proceedings on 15.07.2019. No response was received by assessee. A show-cause notice dated 07.10.2019 was issued but no compliance was made. Accordingly, ex-parte assessment proceedings were completed and addition of Rs.66,66,071/- was made vide order dated 19.12.2019 by learned AO. 3. Aggrieved, appellant/assessee preferred appeal before learned CIT(A). Despite several notices, assessee failed to appear before learned CIT(A). Learned CIT(A) vide an ex parte order dated 17.05.2024 dismissed the appeal. -3- ITA No.2820/Del/2024 Pran Sukh Memorial Educational Foundation Charitable Trust vs. ITO A.Y. 2017-18 4. Being aggrieved, appellant/assessee preferred present appeal. 5. Learned Authorized Representative for the appellant/assessee submitted that learned CIT(A) failed to appreciate that learned AO had passed an ex parte order making an addition of Rs. 66,66,071/-. Learned CIT(A) had dismissed the appeal in absence of appearance of assessee. Appellant/assessee could not appear before the learned CIT(A) as all notices sent to e-mail of the Chartered Accountant, who failed to respond and inform the representative of the assessee. Moreover, son/director of the trust after illness died on 29.04.2024. 6. Learned Departmental Representative for the Department of Revenue relied on the order of the learned CIT(A). 7. From examination of record in light of above submission, it is crystal clear that appellant/assessee had failed to file reply or submission and appear before the learned AO. Learned AO had passed an ex parte assessment order. Appellant/assessee had filed an appeal before the learned CIT(A). Four notices sent through e- mail were not replied by Chartered Accountant of appellant/assessee. Learned CIT(A) in ex parte proceedings had dismissed the appeal of the assessee. Appellant/assessee claims that due to illness and death of son, he could not attend the departmental proceedings. In view of the above material facts, in -4- ITA No.2820/Del/2024 Pran Sukh Memorial Educational Foundation Charitable Trust vs. ITO A.Y. 2017-18 interest of justice, it is considered expedient to restore the matter to the file of the learned AO for fresh decision in accordance with law. 8. In the result, appeal filed by the assessee is allowed for statistical purposes. Order was pronounced in the open court on 17th December, 2024 Sd/- Sd/- (PRADIP KUMAR KEDIA) (VIMAL KUMAR) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated: 17.12.2024 Pr i ti Y adav, S r. PS * Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR ITAT, NEW DELHI "