SATVARA GNATI SAMAJ SEVA MANDAL,MORBI V. COMMISSIONER OF INCOME-TAX (APPEALS), RAJKOT

ITA 436/RJT/2025

AI Insights

The case involves Satvara Gnati Samaj Seva Mandal, which appealed against the orders of the Learned Commissioner of Income Tax (Appeals) and the assessment order passed by the Income Tax Department under sections 143(3) r.w.s 144B of the Income Tax Act, 1961. The primary contention was regarding the incorrect treatment of certain income and disallowances made by the Assessing Officer. The appeal to the CIT(A) was dismissed due to non-compliance by the assessee in providing necessary documents and submissions. The tribunal found that the CIT(A) did not adequately address the issue of notice service to the assessee and thus remanded the case for a fresh hearing.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 791615 (ITAT-RAJKOT)
• Duration Of Justice: 5 month(s) 12 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-12-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2022-2023
• Appeal Filed On: 27-06-2025
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ABHIMANYU SINGH YADAV; LD.
• Assessee Lawyers: DARSHAK THAKKAR; LD
• Keywords: Business income; Competent authority
• Section: 143(3); 142(1)

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL, RAJKOT BENCH, RAJKOT BEFORE DR. ARJUN LAL SAINI, ACCOUNTANT MEMBER AND SHRI DINESH MOHAN SINHA, JUDICIAL MEMBER आयकरअपीलसं./ITA No.436/RJT/2025 Assessment Year: (2022-23) Satvara Gnati Samaj Seva Mandal Ashapura Nivas Near Meldi Mata Temple, Sundarvan Society, Samala Road, Morbi, Rajkot-363641 Vs. Commissioner of Income-tax (Appeals) Rajkot-360001 ˕ायीलेखासं./जीआइआरसं./PAN/GIR No.: ABBTS5898L (Appellant) (Respondent) Appellant by : Shri Darshak Thakkar, Ld. AR Respondent by : Shri Abhimanyu Singh Yadav, Ld. Sr. DR Date of Hearing : 17/11/2025 Date of Pronouncement : 09/12/2025 आदेश/ O R D E R Per, Dinesh Mohan Sinha, JM: Captioned the appeal filed by the assessee, pertaining to Assessment Years (AY)-2022-23, is directed against the order u/s. 250 passed by the Learned Commissioner of Income Tax, and National Faceless Appeal Centre [(in short “NFAC/Ld. CIT(A)”] vide order dated 24.06.2025, which in turn assessment order passed by Income Tax Department / Assessing Officer under section 143(3) r.w.s 144B of the Income Tax Act, 1961 (in short “the Act”), vide order dated 07.03.2024. 2. The Grounds of appeals raised by the assessee, are as follows: 1. That the learned assessing officer has erred in treating Rs. 353687/- as business income of the assessee. 2. That the order passed by the learned assessing officer is bad in law. Printed from counselvise.com ITA No.436/RJT/2025 Sh. Satvara Gnati Samaj Seva Mandal Page 2 of 4 3. That the learned Assessing Officer has erred in disallowing Rs. 106560/- being 15% of total income. 4. That the learned Assessing Officer has erred in disallowing of 4 Rs. 247127/- boing claim of option allowed u/s 11(1) as deemed application of income. 5. That the learned Assessing Officer has erred in initiating penalty proceedings u/s 270A. 6.That the appellant craves leave to add, amend, alter, DLEETE, 6 change and / OR raise further grounds of appeal during the pendency of these proceedings. 3. Brief facts of the case, that the application for registration of the trust u/s. 12AB of the I.T. Act, 1961 was filed electronically on 24/11/2022 by the assessee in Form No. 10AB under Rule 17A of the I.T. Rule, 1962. The Assessee has filed its return of income u/s 139(1) of the Income Tax Act, 1961 (hereinafter referred to as the 'Act') on 11.08.2022 declaring total income at Rs. Nil/-. The return of income was processed u/s. 143(1) of the Act. However the registration application of the assessee was rejected. Later on, the case was selected under 'Compulsory Selection' by the Income Tax department. That Compulsory Selection for scrutiny was based on the issue to verify that registration/approval under various sections of the Act, such as section 12A, 12AB, 35(1)(ii)/(iia)/(iii), 10(23C), etc. have not been granted or have been cancelled/withdrawn by the Competent Authority, notice u/s 143(2) of the Act dated 29.06.2023 and other notices u/s 142(1) of the Act were issued to the assessee along-with questionnaire. In compliance to the notice, the assessee has filed the copy of return of income and computation of income for AY 2022-23, audit report, Profit & Loss account, balance-sheet and accompanying enclosures and other details as required by the notice. the assessee was found to be claiming tax exemption/deduction in the return while the application of the assesse filed in Form No. 10AB for the registration u/s. 12AB of the Act was rejected. However, as admitted by the assessee does not have a valid registration till date. Printed from counselvise.com ITA No.436/RJT/2025 Sh. Satvara Gnati Samaj Seva Mandal Page 3 of 4 The assessment computed, as per details given below: Sr.No. Description Amount(in Rs.) 1. Income as per Return of Income filed Nil/- 2. Income as computed u/s 143(1)(a) Nil/- 3. Variation Rs. 3,53,687/- 4. Total Income determined Rs. 3,53,687/- 4. The assessee filed the appeal against the assessment order dated 07.03.2024 of before the Ld.CIT(A), which was dismissed by the Ld.CIT(A), with following remarks: “1. It is pertinent that in order to decide this appeal in a timely manner, a number of notices/ communications/correspondences were made through ITBA portal to the appellant, viz., communications dated 01.05.2024, 26.03.2025, 08.04.2025 & 17.06.2025. However, there has been no compliances from the part of the appellant till date.. There is no gainsaying that once the appeal is filed by the appellant, it is obligatory on its part to purposefully and co-operatively pursue the same in a worthwhile manner, which the appellant has evidently failed to do. Hence, in view of the aforesaid total non-compliance of the instant appeal on the part of the appellant, the instant appeal is adjudicated and disposed of, ex-parte, primarily on the basis of documentation available on record. The appellant has failed to avail the opportunity to file / furnish the submissions / documents in support of the grounds of appeal though the appellant was offered for sufficient opportunity to file / furnish the submissions during the course of appellate proceedings. Furthermore, it is pertinent that the appellant has not sought any adjournment during the appellate proceedings. On the other hand, the Assessing Officer has passed a well-reasoned and speaking order. The Assessee has not rebutted the reasoning given by the Assessing Officer in the Assessment Order while assessing the total income. Therefore, the appeal deserves to be dismissed. Accordingly, it is dismissed.” 5. That the assessee challenged the legality and validity of the impugned both the orders dated 24.06.2025 and filed an appeal before us. 5.1. During the course of hearing, the Ld. AR of the assessee prayed to one more opportunity may kindly be given to the assessee to explain the case before the Lower Authority. 5.2. On the contrary, the Ld. Sr. DR for the revenue and relied on the order of the Ld.CIT(A). However, Ld. Sr. DR has not objected to the prayer of the assessee. Printed from counselvise.com ITA No.436/RJT/2025 Sh. Satvara Gnati Samaj Seva Mandal Page 4 of 4 6. We have heard both the parties and perused the material available on record. We note that the order of the Ld. CIT(A) speaks about the issue of the notice to the assessee, but not talked about the service of the notice upon the assessee. After considering the facts and circumstances of the case, we are of the view that, in the interest of justice, one more opportunity should be given to the assessee to present his case before the Ld.CIT(A) and remand the matter back to the file of the Ld. CIT(A) for fresh adjudication on merits. After giving due opportunity to the assessee and the assessee is further directed to comply with the notices and submit all the required documents un support of the return of income as and when called for by the Ld. CIT(A) for hearing. 7. In the result, the appeal of the assessee is allowed, for statistical purposes. Order is pronounced in the open court on 09/12/2025. Sd/- Sd/- (Dr. Arjun Lal Saini) (Dinesh Mohan Sinha) Accountant Member Judicial Member Rajkot //True Copy// िदनांक/ Date: 09/12/2025 Copy of the Order forwarded to 1. The Assessee 2. The Respondent 3. The CIT(A) 4. Pr. CIT 5. DR/AR, ITAT, Rajkot 6. Guard File By order Assistant Registrar/Sr. PS/PS ITAT, Rajkot Printed from counselvise.com "