AI Insights
The case involves Shramik Serva Seva Trust, which appealed against the order of the National Faceless Appeal Centre (NFAC), Delhi, concerning an addition of Rs.12.50 lakh to their income, which was tax deducted at source under section 194C of the Income-tax Act, 1961. The Trust argued that the amount was received from sugarcane companies and was intended for distribution among laborer families, thus should not be considered as income. The initial appeal was dismissed by the ld.CIT(A) due to non-compliance by the Trust in responding to the notice of hearing. The Tribunal found merit in the Trust's request for a fresh adjudication on the merits of the case, leading to the setting aside of the previous order.
Appeal Details
Counselvise Citation
[2025] 140 COUNSELVISE.COM (IT) 716724 (ITAT-PUNE)
Assessee PAN
Bench
Appeal Number
Duration Of Justice
1 month(s) 29 day(s)
Appellant
Respondent
Appeal Type
Income Tax Appeal
Pronouncement Date
22-08-2025
Appeal Filed By
Assessee
Order Result
Allowed
Bench Allotted
SMC
Assessment Year
2013-2014
Appeal Filed On
24-06-2025
Judgement Text
" IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCHES “SMC”, PUNE BEFORE DR.MANISH BORAD, ACCOUNTANT MEMBER आयकर अपील सं. / ITA No.1553/PUN/2025 Assessment Year : 2013-14 Shramik Serva Seva Trust A/p.Shrigonda Factory, Tal.Shrigonda, Dist.Ahmednagar, 413726 Maharashtra PAN: AABTS1964L Vs . ITO, Exemption Ward-1, Nashik Appellant Respondent आदेश / ORDER PER DR. MANISH BORAD, ACCOUNTANT MEMBER : The captioned appeal at the instance of assessee pertaining to A.Y. 2013-14 is directed against the order dated 16.04.2024 of National Faceless Appeal Centre (NFAC), Delhi passed u/s.250 of the Income-tax Act, 1961 (hereinafter also called ‘the Act’) arising out of Assessment Order dated 21.12.2018 passed u/s.143(3) r.w.s147 of the Act. 2. The sole grievance of the assessee is against the addition of Rs.12.50 lakh which is the tax deducted at source u/s.194C of the Act in the name of the assessee. 3. At the outset, ld. Counsel for the assessee submitted that the impugned addition is uncalled for because the assessee is a trust which receives the funds from the sugarcane companies and the same is utilised for distributing amongst Appellant by : Shri Pramod S Shingte Respondent by : Shri Sanjay Dhivare Date of hearing : 13.08.2025 Date of pronouncement : 22.08.2025 Printed from counselvise.com ITA No.1553/PUN/2025 Shramik Serva Seva Trust 2 the labourer families and other social benefits. He submitted that the alleged sum is tax deducted at source on the gross receipts but that is also meant for being distributed to the labourers and their families. He however failed to controvert the fact that no proper response was given to the show cause notice issued by ld.CIT(A). At this juncture, ld. Counsel for the assessee requested for setting the issues to the file of ld.CIT(A) for necessary adjudication. Ld. DR is fair enough in not opposing this request made by ld. Counsel for the assessee. 4. I have heard the rival contentions and perused the record placed me. A perusal of the impugned order reveals that ld.CIT(A) merely dismissed the appeal for non-compliance to the notice of hearing on the part of assessee observing as under : “2. The facts of the case are that assessee Trust is generating receipts from working as middle man between labourer contractor of sugarcane harvesters and sugar cane crushed karkhana. The karkhana making payment to the trust on behalf of labour contractors then the trust distributes the amount to the labour contactors. In lieu of the work as middle man the assessee trust receives payment. The amount received is utilized for the purpose of charity. Documents available on record reveals that amount of TDS which is claimed by the assessee and is neither utilized as per the triparty agreement nor is transferred back to the sugar factory. That means that the amount is retained by the assessee trust. In this period under consideration it is noticed that TDS is at Rs.12,50,000/-. There is no response to the show cause notice issued. Therefore, it is presumed that appellant doesn't have anything to explain in the matter. Since, as per the provisions of section 198 tax deducted is income received the TDS retained by the appellant is treated as income of the appellant.” 5. Considering the fact that the assessee failed to make proper compliance to the notices of hearing issued by ld.CIT(A), therefore I deem it proper to restore the issue raised on merits to the file of ld.CIT(A) for afresh adjudication and pass a speaking order as contemplated u/s.250(6) of the Act. Printed from counselvise.com ITA No.1553/PUN/2025 Shramik Serva Seva Trust 3 Needless to mention that ld.CIT(A) in the set aside proceedings shall afford reasonable opportunity of hearing to the assessee. Assessee is directed to update latest email id and contact detail on ITBA portal. Assessee is also directed to remain vigilant and not to take adjournment unless otherwise required for reasonable cause. Impugned order is hereby set aside and effective grounds of appeal raised by the appellant are allowed for statistical purposes. 6. In the result, appeal of the assessee is allowed for statistical purposes. Order pronounced on this 22nd day of August, 2025. Sd/- (MANISH BORAD) ACCOUNTANT MEMBER पुणे / Pune; \u0001दनांक / Dated : 22nd August, 2025. Satish आदेश क\u0002 \u0003ितिलिप अ ेिषत / Copy of the Order forwarded to : 1. अपीलाथ / The Appellant. 2. \u000eयथ / The Respondent. 3. The Pr. CIT concerned. 4. िवभागीय ितिनिध, आयकर अपीलीय अिधकरण, “SMC” ब\u0014च, पुणे / DR, ITAT, “SMC” Bench, Pune. 5. गाड\u0004 फ़ाइल / Guard File. आदेशानुसार / BY ORDER, // True Copy // Senior Private Secretary आयकर अपीलीय अिधकरण, पुणे / ITAT, Pune. Printed from counselvise.com "
