SARVAJANIK KELAVNI MANDAL,SURAT V. THE DY.CIT, CIRCLE-2, EXEMPTION WARD, AHMEDABAD

ITA 2104/AHD/2024

AI Insights

The case involves Sarvajanik Kelavni Mandal, a trust registered under section 12A of the Income-tax Act, 1961, which filed an appeal against the order of the Commissioner of Income-tax (Appeals), National Faceless Appeal Centre, Delhi. The appeal was initially dismissed ex-parte by the CIT(A) due to non-compliance from the assessee. However, it was later revealed that the assessee did not receive the notice of hearing due to an error in the email address used by the CIT(A). The Tribunal, considering the principles of natural justice and the error in communication, decided to set aside the CIT(A)'s order and remand the case for a fresh hearing.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 126627 (ITAT-AHMEDABAD)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-04-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2022-2023
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ALPESH PARMAR
• Assessee Lawyers: SAPNESH SHETH
• Keywords: Set aside; Opportunity of being heard; Principle of natural justice; Grounds of appeal; Dismissed; National Faceless Appeal; Commissioner; Statistical purposes; Restored; Section 143(1) of the Act; Exempt; Deleted; Adjudication on merits; Department; Proper opportunity of being heard; E-mail; Claim of deduction; Rectification proceeding
• Section: 154; 143(1); 12A

Judgement Text

" आयकर अपीलीय अिधकरण, अहमदा बा द \u0012ा यपीठ “ए“, अहमदा बा द । IN THE INCOME TAX APPELLATE TRIBUNAL “A” BENCH, AHMEDABAD सु\u0018ी सुिच\u001aा का \u001bले, \u0012ा ियक सद एवं \u0018ी मकरंद वसंत महा देवकर, लेखा सद क े सम\"। ] ] BEFORE MS. SUCHITRA KAMBLE, JUDICIAL MEMBER AND SHRI MAKARAND V. MAHADEOKAR, ACCOUNTANT MEMBER आयकर अपील सं /ITA No.2104/Ahd/2024 िनधा \u0010रण वष\u0010 /Assessment Year : 2022-23 Sarvajanik Kelavni Mandal Amroli Station Utran Choryasi, Surat – 394 107 बनाम/ v/s. The Dy.CIT Cirtcle-2,Exemption Ward Ahmedabad – 380 015 \u0014थायी लेखा सं./PAN: AABTS 4579 B अपीलाथ%/ (Appellant) &' यथ%/ (Respondent) Assessee by : Shri Sapnesh Sheth, CA Revenue by : Shri Alpesh Parmar, CIT-DR सुनवाई की तारीख/Date of Hearing : 22/04/2025 घोषणा की तारीख /Date of Pronouncement: 23/04/2025 आदेश/O R D E R PER MAKARAND V. MAHADEOKAR, AM: This appeal by the assessee is directed against the order passed by the learned Commissioner of Income-tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [hereinafter referred to as “CIT(A)”], dated 21.10.2024, for the assessment year 2022-23, arising out of rectification proceedings under section 154 of the Income-tax Act, 1961 [hereinafter referred to as \"the Act\"]. Facts in brief: 2. The assessee, a trust registered under section 12A of the Act and the Bombay Public Trust Act, had filed its return of income declaring NIL income ITA No.2104/Ahd/2024 Sarvajanik Kelavni Mandal vs. DCIT Cir-2, Exemption Ward Asst. Year : 2022-23 2 for the year under consideration. In the said return, the assessee claimed deduction of expenditure incurred towards the objects of the trust amounting to Rs.8,99,61,404/- and statutory deduction under section 11(1)(a) amounting to Rs.1,09,02,771/-. The Centralized Processing Centre (CPC), while processing the return of income under section 143(1) of the Act, did not allow the aforesaid claims. The assessee thereafter filed an application for rectification under section 154 of the Act, which was also rejected by the CPC. Aggrieved by the same, the assessee filed an appeal before the learned CIT(A). The appeal was fixed for hearing on multiple occasions; however, the learned CIT(A) proceeded to decide the appeal ex-parte in absence of any compliance from the assessee and dismissed the same. 3. The assessee, therefore, preferred an appeal before us and raised following grounds of appeal: 1. On the facts and circumstances of the case as well as law on the subject, Ld. CIT(A), NFAC has erred in passing ex-parte order without providing reasonable opportunity of being heard. 2. On the facts and circumstances of the case as well as law on the subject, Ld. CITA), NFAC has erred in confirming the action of A.O in not allowing the claim of deduction of expenditure incurred for the object of trust amounting to Rs.8,99,61,404/- 3. On the facts and circumstances of the case as well as R law on the subject, Ld. CIT(A), NFAC has erred in not allowing statutory deduction u/s 11(1)(a) of the act while processing application u/s 154 of the act amounting Rs.1,09,02, 771/-. 4. It is therefore prayed that above addition made by assessing officer and confirmed by Commissioner of Income-tax (Appeals), NFAC may please be deleted. 5. Appellant craves leave to add, alter or delete any grounds) either before or in the course of hearing of the appeal. ITA No.2104/Ahd/2024 Sarvajanik Kelavni Mandal vs. DCIT Cir-2, Exemption Ward Asst. Year : 2022-23 3 4. During the course of hearing before us, the learned Authorized Representative (AR) submitted that the assessee did not receive any notice of hearing from the learned CIT(A) as the notices were sent to an e-mail address ([e-mail]) which was different from the e-mail address mentioned in Form No. 35 filed by the assessee ([e-mail]). The learned AR submitted that due to this mismatch in e-mail communication, the assessee was deprived of an opportunity to present its case before the learned CIT(A) and prayed that the matter be restored to the file of the learned CIT(A) for fresh adjudication after granting a proper opportunity of being heard. 5. The learned Departmental Representative (DR) did not raise any serious objection to the prayer made by the learned AR for restoration of the matter. 6. We have carefully considered the rival submissions and perused the material available on record. It is evident from the record that the learned CIT(A) has disposed of the appeal ex-parte on the ground that the assessee had failed to comply with the notices issued for hearing. However, considering the specific contention raised by the learned AR that the assessee had not received the notices due to the error in the e-mail address, and in the absence of any contrary material placed on record by the Revenue to disprove the claim of the assessee, we are inclined to accept the submission that the assessee was deprived of effective opportunity of being heard. 6.1. It is settled law that no person should be condemned unheard, as enshrined in the principles of natural justice. The Hon’ble Supreme Court and ITA No.2104/Ahd/2024 Sarvajanik Kelavni Mandal vs. DCIT Cir-2, Exemption Ward Asst. Year : 2022-23 4 various High Courts have consistently held that reasonable opportunity of being heard must be afforded to the assessee before passing any adverse order. 6.2. In the interest of substantial justice, we are of the considered view that the assessee deserves one more opportunity to present its case before the learned CIT(A). Accordingly, we set aside the impugned order of the learned CIT(A) and restore the matter back to his file for fresh adjudication on merits, after affording reasonable and effective opportunity of being heard to the assessee. 6.3. The assessee is also directed to extend full cooperation and actively participate in the appellate proceedings before the learned CIT(A) without seeking unnecessary adjournments, failing which the learned CIT(A) shall be at liberty to decide the appeal in accordance with law and based on material available on record. 7. In the result, the appeal filed by the assessee is treated as allowed for statistical purposes. Order pronounced in the Open Court on 23 April, 2025 at Ahmedabad. Sd/- Sd/- (SUCHITRA KAMBLE) JUDICIAL MEMBER (MAKARAND V. MAHADEOKAR) ACCOUNTANT MEMBER अहमदाबाद/Ahmedabad, िदनांक/Dated 23/04/2025 टी.सी.नायर, व.िन.स./T.C. NAIR, Sr. PS आदेश की #ितिलिप अ$ेिषत/Copy of the Order forwarded to : ITA No.2104/Ahd/2024 Sarvajanik Kelavni Mandal vs. DCIT Cir-2, Exemption Ward Asst. Year : 2022-23 5 1. अपीलाथ% / The Appellant 2. #&थ% / The Respondent. 3. संबंिधत आयकर आयु' / Concerned CIT 4. आयकर आयु' ) अपील ( / The CIT(A)-(NFAC), Delhi 5. िवभागीय #ितिनिध , आयकर अपीलीय अिधकरण , अहमदाबाद /DR,ITAT, Ahmedabad. 6. गाड\u0010 फाईल / Guard file. आदेशानुसार/ BY ORDER, स&ािपत #ित //True Copy// सहायक पंजीकार (Asstt. Registrar) आयकर अपीलीय अिधकरण, ITAT, Ahmedabad 1. Date of dictation (word processed by Hon’ble AM in his laptop) : 22.4.2025 2. Date on which the typed draft is placed before the Dictating Member. : 22.4.2025 3. Date on which the approved draft comes to the Sr.P.S./P.S : 4. Date on which the fair order is placed before the Dictating Member for pronouncement. : 5. Date on which fair order placed before Other Member : 6. Date on which the fair order comes back to the Sr.P.S./P.S. : 23.4.25 7. Date on which the file goes to the Bench Clerk. : 23.4.25 8. Date on which the file goes to the Head Clerk. : 9. The date on which the file goes to the Assistant Registrar for signature on the order. : 10. Date of Despatch of the Order : "