SATYAM EDUCATION AND SOCIAL WELFARE SOCIETY,BHOPAL V. DCIT-CENTRAL-I, BHOPAL, BHOPAL

ITSSA 102/IND/2024

AI Insights

The case involves M/s Satyam Education and Social Welfare Society, a charitable society, which faced a search operation under section 132 of the Income-tax Act on August 4, 2017. Following the search, assessments for eleven years (2008-09 to 2018-19) were made under sections 153A/143(3) of the Act by the DCIT, Central-I, Bhopal. The society appealed these assessments, which were partly allowed and enhanced by the CIT(A) in a consolidated order dated September 20, 2024. The society, represented by a new chartered accountant after the sudden death of their previous representative, sought a remand of the case due to management deadlocks and the impact of the COVID-19 pandemic on their ability to comply with procedural requirements. The tribunal, acknowledging the substantial issues arising from the search and the need for a thorough re-examination, decided to remand the case for fresh adjudication, imposing a cost on the assessee for the delays.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 792399 (ITAT-INDORE)
• Duration Of Justice: 1 year(s) 8 day(s)
• Appeal Type: Income Tax (Search & Seizure) Appeal
• Pronouncement Date: 04-12-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2015-2016
• Appeal Filed On: 26-11-2024
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: FORREVENUEOPPOSEDTHEREQUESTOFLD.; FORASSESSEEANDRESTORETHESECASESATTHELEVELOFCIT E; SHRIANUPSINGH
• Assessee Lawyers: SHRIP.K.JAINANDSHRIM.K.KHARE; ARS; REMANDINGTHESEMATTERSTOTHEFILEOFCIT A FORADJUDICATION
• Section: 144; 143(3); 12AA; 132

Judgement Text

"Page 1 of 12 आयकरअपीलीयअिधकरण, इंदौरɊायपीठ, इंदौर IN THE INCOME TAX APPELLATE TRIBUNAL INDORE BENCH, INDORE BEFORE SHRI B.M. BIYANI, ACCOUNTANT MEMBER AND SHRI PARESH M. JOSHI, JUDICIAL MEMBER IT(SS)A No.96 & 106/Ind/2024 Assessment Years: 2008-09 to 2018-19 M/s Satyam Education and Social Welfare Society, 228, Zone-II, M.P. Nagar, Bhopal बनाम/ Vs. DCIT-Central -I Bhopal (Assessee/Appellant) (Revenue/Respondent) PAN: AADAS0900K Assessee by Shri P.K. Jain and Shri M.K. Khare, ARs Revenue by Shri Anup Singh, CIT-DR Date of Hearing 03.12.2025 Date of Pronouncement 04.12.2025 आदेश/ O R D E R Per Bench: This bunch of eleven (11) appeals has been filed by assessee against a consolidated order of first-appeals dated 20.09.2024 passed by learned Commissioner of Income-Tax (Appeals)-3, Bhopal [“CIT(A)”], which in turn arises out of a consolidated assessment-order dated 30.12.2019 passed by learned DCIT, Central-I, Bhopal [“AO”] u/s 153A/143(3) of Income-tax Act, 1961 for eleven (11) assessment years from 2008-09 to 2018-19. Printed from counselvise.com Satyam Education & Social Welfare Society IT(SS)A Nos.96 to 106/Ind/2024 Page 2 of 12 2. We have heard learned Representatives of both sides and carefully perused the case record including the orders of lower authorities. 3. Very precisely stated, the facts of case are such that the assessee is a charitable society. A search u/s 132 was conducted by Income-tax Authorities upon assessee on 04.08.2017 and pursuant to search, the assessments of eleven (11) assessment years from 2008-09 to 2018-19 were framed u/s 153A/143(3) and the AO passed a consolidated assessment- order dated 30.12.2019 after making certain additions. Aggrieved, the assessee carried matters in first-appeals whereupon the CIT(A) passed a consolidated order of first-appeal dated 20.09.2024 wherein the appeals were partly allowed and enhanced. Now, the assessee has come in next appeals before us. 4. Mr. P.K. Jain, Senior Chartered Accountant and Authorised Representative of assessee made submissions before us. At first, he invited our attention to the following affidavit filed by Secretary of assessee-society: Printed from counselvise.com Satyam Education & Social Welfare Society IT(SS)A Nos.96 to 106/Ind/2024 Page 3 of 12 Printed from counselvise.com Satyam Education & Social Welfare Society IT(SS)A Nos.96 to 106/Ind/2024 Page 4 of 12 Printed from counselvise.com Satyam Education & Social Welfare Society IT(SS)A Nos.96 to 106/Ind/2024 Page 5 of 12 Printed from counselvise.com Satyam Education & Social Welfare Society IT(SS)A Nos.96 to 106/Ind/2024 Page 6 of 12 5. He submitted that all facts relating to assessee are adequately noted in the averments made by deponent/Secretary of assessee-society. Referring to contents of affidavit and also referring to certain paras of orders of lower- authorities, he submitted that there was one “Shri M.K. Sharma” of Bhopal, another Chartered Accountant practicing at Bhopal, who represented assessee in assessment-proceedings relating to search before AO and also filed first-appeals on 31.01.2020/01/02.2020 to CIT(A). Subsequently, “Shri M.K. Sharma” expired suddenly on 13.12.2020 and his partners and staff Printed from counselvise.com Satyam Education & Social Welfare Society IT(SS)A Nos.96 to 106/Ind/2024 Page 7 of 12 continued to run office. But then there was a deadlock in his office/management due to disputes in partners/successors and his office/management could not heed to the various notices sent by CIT(A). He submitted that he himself is a senior Chartered Accountant from Bhopal and can make a submission in the court about the deadlock in office/management of “Shri M.K. Sharma” post-death and his statement can be taken on record by this bench. 6. Thereafter, Ld. AR carried us to Para 1.2 of impugned order of first- appeal passed by CIT(A) wherein the CIT(A) has noted various opportunities of hearing given to assessee on 20.03.2020, 29.06.2020, 30.07.2020, 30.09.2020, 21.10.2020, 25.11.2020, 16.12.2020, 20.07.2021, 08.11.2021, 10.02.2022, 11.04.2022, 08.11.2023, 07.08.2024, 29.08.2024 and 17.09.2024. He submitted that the hearings fixed on 20.03.2020 to 25.11.2020 were before death of “Shri M.K. Sharma” but those were initial hearings and during high period of Covid-19 pandemic. Thereafter the hearings during 16.12.2020 to 10.02.2022 were post-death as well as during Covid-19 pandemic. Thereafter, the hearings during 11.04.2022 to 17.09.2024 were though not covered during Covid-19 pandemic and the assessee also filed adjournment applications on 09.02.2022 & 28.08.2024 but the assessee could not make submissions due to deadlock in the office/management of “Shri M.K. Sharma”. 7. Having narrated thus, Ld. AR submitted that the present cases have involvement of search and there is a strong necessity of apt adjudications of Printed from counselvise.com Satyam Education & Social Welfare Society IT(SS)A Nos.96 to 106/Ind/2024 Page 8 of 12 the issues by Ld. CIT(A). Therefore, having regard to the facts of case, nature of issues and in the interest of justice, one more opportunity must be given to assessee by remanding these matters to the file of CIT(A) for adjudication afresh. Ld. AR requested to remand these cases to CIT(A) and assured in open court that the assessee will be making full co-operation and representation to CIT(A) for a proper disposal of cases in accordance with law. 8. Replying to same, Ld. DR for revenue opposed the request of Ld. AR. He submitted that the CIT(A) has given sufficient opportunities to assessee but it is the assessee who remained non-compliant. He submitted that the first-appeals before CIT(A) were filed by assessee and the assessee was required to file details/documents for resolution of his grievances. He submitted that even if there was death of counsel, the assessee could file at least some basic details to CIT(A) but that was also not done. He submitted that it was a failure of assessee and the CIT(A) has rightly passed impugned order on the basis of material held on record, hence there is no infirmity in the action or order of CIT(A). He also referred Para 9.2 of assessment-order to show that even during assessment-proceedings, the assessee has remained non-compliant to some extent as noted by AO. He submitted that during Covid-19 pandemic, the departmental authorities were working regularly and the assessee is wrongly pushing the excuse of Covid-19 pandemic. He raised one more contention that the assessee must have made regular compliances like filing of returns to income-tax department, audit of Printed from counselvise.com Satyam Education & Social Welfare Society IT(SS)A Nos.96 to 106/Ind/2024 Page 9 of 12 accounts, etc. from time to time and the failure is only in prosecuting these matters before CIT(A), therefore the failure is deliberate and not attributable to anyone except assessee itself. Finally, Ld. DR submitted that the assessee does not deserve any sympathy and the order passed by CIT(A) must be upheld and these appeals of assessee must be dismissed. 9. In re-joinder, Ld. AR re-emphasized that the non-compliances before CIT(A) had occurred due to the deadlock in the office/management of “Shri M.K. Sharma” and non-availability of the documents/records of search to assessee since the same were in the custody of “Shri M.K. Sharma”. He submitted that owing to his personal relation with the partners/successors of “Shri M.K. Sharma”, he is somehow able to obtain death certificate of “Shri M.K. Sharma” and make it available to the Secretary of society. He submitted that the regular compliances done by assessee, if any, are nothing to do with the search proceedings because in search proceedings, the documents of earlier years were involved which remained in possession of “Shri M.K. Sharma” and not available to assessee. 10. We have considered rival submissions of both sides and carefully perused the orders of lower-authorities as well as the affidavit submitted by Secretary of assessee-society re-produced above. The assessee is a charitable society engaged in imparting education and social welfare activities. At the relevant time, the assessee was having registration granted by Income-tax Department u/s 12AA and claiming exemption u/s 11/12. Then, there was a search u/s 132 upon assessee on 04.08.2017 and Printed from counselvise.com Satyam Education & Social Welfare Society IT(SS)A Nos.96 to 106/Ind/2024 Page 10 of 12 substantial issues have surfaced/emerged during search operations and those issues were part of assessment proceedings framed by AO u/s 153A/143(3). The assessee was represented by “Shri M.K. Sharma” during assessment-proceedings and compliances to the notices issued by AO were duly made; this fact is very much acknowledged by AO in Para 6.0 of assessment-order. Ultimately, the AO has passed assessment-order u/s 143(3) and not ex-parte u/s 144 although there might be non-furnishing of details qua some of the issues/queries raised by AO. Thereafter, first- appeals were also filed by “Shri M.K. Sharma” on 31.01.2020/01.02.2020. The CIT(A) fixed first hearing on 20.03.2020 at the time when Covid-19 pandemic was in full swing. Thereafter, the hearings fixed during 29.06.2020 to 10.02.2022 were also during Covid-19 pandemic. A further unfortunate happening was that the assessee’s counsel “Shri M.K. Sharma” expired on 13.12.2020. The assessee sought adjournments from CIT(A) on 09.02.2022 & 28.08.2024 on the footing that it was in the process of collecting and gathering information required to make submissions; this fact is very much noted by CIT(A) in Para 1.2 of impugned order and this reflects the assessee’s willingness to make submissions to CIT(A). However, as per assessee’s averment in affidavit/Ld. AR’s submission, there was a deadlock in the office/management of “Shri M.K. Sharma” rendering the assessee unable to make submissions. Thus, considering entire conspectus of case; having regard to the point that the assessee is a charitable society and that the present matters involve substantial issues emanating from search- Printed from counselvise.com Satyam Education & Social Welfare Society IT(SS)A Nos.96 to 106/Ind/2024 Page 11 of 12 proceedings which require a bi-party adjudication by CIT(A) and also in order to grant substantial justice to assessee, we agree to the request made by Ld. AR for assessee and re-store these cases at the level of CIT(E) for adjudication afresh. We, however, impose a consolidated cost of Rs. 20,000/- for all years upon assessee for any lethargy which might have occurred on the part of assessee in making compliances before CIT(A) and also to offset the revenue’s efforts in dealing assessee’s case. The assessee shall pay such cost to Income-tax Department through a suitable challan and submit proof of payment to CIT(A). Needless to mention that the CIT(A) shall give necessary opportunities to assessee and the assessee shall avail those opportunities and the CIT(A) shall pass a judicious order without being influenced by his earlier order in any manner. 11. Resultantly, these appeals are allowed for statistical purpose. Order pronounced in open court on 04/12/2025 Sd/- sd/- (PARESH M JOSHI) (B.M. BIYANI) JUDICIAL MEMBER ACCOUNTANT MEMBER Indore िदनांक/Dated : 04/12/2025 Patel/Sr. PS Printed from counselvise.com Satyam Education & Social Welfare Society IT(SS)A Nos.96 to 106/Ind/2024 Page 12 of 12 Copies to: (1) The appellant (2) The respondent (3) CIT (4) CIT(A) (5) Departmental Representative (6) Guard File By order UE COP Sr. Private Secretary Income Tax Appellate Tribunal Indore Bench, Indore Printed from counselvise.com "