SHREE SADGURU SENESHWARA SEWA SAMITHI,MUMBAI V. THE INCOME TAX OFFICER, EXEMPTION WARD 2(3), MUMBAI, MUMBAI

ITA 1009/MUM/2025

AI Insights

The case involves Shree Sadguru Seneshwara Sewa Samithi Bhagyalaxmi CHS, a trust registered under section 12A of the Income Tax Act, which appealed against the order of the Commissioner of Income Tax (Appeals) at the National Faceless Appeal Centre, Delhi. The primary grievances included the ex-parte nature of the CIT(A)'s order, the confirmation of an addition of Rs. 84,55,962 as unexplained cash credit under section 68, and the denial of exemption under section 11 of the Act. The Tribunal found procedural lapses in the notice issuance process by the CIT(A), leading to the decision to remand the case for a fresh hearing.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 793392 (ITAT-MUMBAI)
• Duration Of Justice: 7 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-09-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: B
• Assessment Year: 2014-2015
• Appeal Filed On: 14-02-2025
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: LEYAQAT ALI AAFAQUI; DR
• Assessee Lawyers: KUMAR KALE; AR VIRTUALLY APPEARED
• Keywords: Set aside; Opportunity of being heard; Unexplained cash credit; Principle of natural justice
• Section: 147; 148; 144; 12A

Judgement Text

" | आयकर अपीलीय अिधकरण ा यपीठ, मुंबई | IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH, MUMBAI BEFORE SHRI SAKTIJIT DEY, HON’BLE VICE PRESIDENT & SHRI NARENDRA KUMAR BILLAIYA, HON’BLE ACCOUNTANT MEMBER I.T.A. No. 1009/Mum/2025 Assessment Year: 2014-15 Shree Sadguru Seneshwara Sewa Samithi Bhagyalaxmi CHS 5th Cross Road Singh Estate Kandivli (E) Mumbai - 400101 [PAN: AACTS3876L] Vs Income Tax Officer, Exemption, Ward – 2(3), Mumbai अपीला थ\u0016/ (Appellant) \u0017\u0018 यथ\u0016/ (Respondent) Assessee by : Shri Kumar Kale, A/R (virtually appeared) Revenue by : Shri Leyaqat Ali Aafaqui, Sr. D/R सुनवाई की तारीख/Date of Hearing : 18/09/2025 घोषणा की तारीख /Date of Pronouncement: 22/09/2025 आदेश/O R D E R PER NARENDRA KUMAR BILLAIYA, AM: This appeal by the assessee is preferred against the order of the ld. dated 10/07/2024 by NFAC, Delhi [hereinafter the ‘ld. CIT(A)’] pertaining to AY 2014-15. 2. The grievance of the assessee reads as under:- “Being aggrieved by the order dated 10.07.2024 passed by the learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi (\"CIT(A)\"] u/s 250 of the Income-tax Act, 1961 (\"Act\", your appellant prefers this appeal, among others, on the following grounds of appeal, each of which is without prejudice to, and independent of, the other: 1. On the facts and in the circumstances of the case, and also in law, the Ld. CIT(A) erred in passing ex-parte order in gross violation of natural justice. Your appellant, therefore, prays that the impugned order be set aside. 2. On the facts and in the circumstances of the case, and in law, the Ld. CIT(A) erred in confirming the addition of Rs.84,55,962/- u/s. 68 made by the Ld. AO being total credits to the appellant's bank account holding the same as unexplained cash credit. Printed from counselvise.com I.T.A. No. 1009/Mum/2025 2 Your appellant, therefore, prays that the Ld. AO be directed to delete the aforesaid addition of Rs.84,55,962/-. 3. On the facts and in the circumstances of the case, and in law, the Ld. CIT(A) erred in not directing the Ld. AO to allow exemption us. 11 of the Act as claimed by the appellant in its return of income. Your appellant, therefore, prays that the Ld. AO be directed to allow exemption u/s. 11 in accordance with law. 4. Your appellant craves leave to alter, modify, amend or delete any of the above grounds of appeal, or to add one or more new ground(s), as may be necessary.” 2. There is a delay in filing the appeal. The assessee has furnished the affidavit explaining the cause for delay. The contents of the affidavit have been duly considered and we are satisfied that the assessee was prevented by sufficient cause for not filing the appeal on time. The delay is condoned. 3. Briefly stated the facts of the case are that, as per the information available with the Department, the AO came to know that the assessee has made cash deposit of Rs. 65,24,002/- in its bank account. Since no return was filed, notice u/s 148 of the Act was issued and served upon the assessee. Several opportunities were given to the assessee but the assessee did not comply to the notice issued by the AO and the AO framed the assessment order ex-parte u/s 144 r.w.s. 147 of the Act and assessed the income at Rs. 84,55,960/-. 3.1. The assessee carried the matter before the ld. CIT(A) and in its statement of facts filed along with the appeal before the ld. CIT(A), the assessee mentioned that it is a Trust registered u/s 12A of the Act and the return of income was filed on 27/05/2016. Before the ld. CIT(A), none appeared and all the notices issued by the ld. CIT(A) went unresponded. The ld. CIT(A) was compelled to dismiss the appeal ex- parte. Printed from counselvise.com I.T.A. No. 1009/Mum/2025 3 4. Before us, the ld. Counsel strongly contended that no notice was issued by the ld. CIT(A) on the given e-mail address mentioned in Form 35. Therefore, the assessee could not attend the appellate proceedings. The ld. Counsel once again stated that the Trust is registered u/s 12A of the Act and is eligible for exemption u/s 11 of the Act. The ld. Counsel prayed for one more opportunity. 5. We have carefully considered the underlying facts in the issue. We are of the considered view that since there is no evidence on record to show that the notices were issued on the given e-mail id, therefore, in the interest of justice, we deem it fit to restore the issue to the file of the ld. CIT(A). The ld. CIT(A) is directed to serve notice on the given e-mail address in Form 35 and decide the issue afresh after affording reasonable and adequate opportunity of being heard to the assessee. 6. In the result, appeal of the assessee is allowed for statistical purposes. Order pronounced in the Court on September, 2025 at Mumbai. (SAKTIJIT DEY) (NARENDRA KUMAR BILLAIYA) VICE PRESIDENT ACCOUNTANT MEMBER Mumbai, Dated /09/2025 *SC *SC *SC *SC SrPs SrPs SrPs SrPs Printed from counselvise.com I.T.A. No. 1009/Mum/2025 4 आदेश की \u0015ितिलिप अ\u001aेिषत/Copy of the Order forwarded to : 1. अपीलाथ / The Appellant 2. \u0015 थ / The Respondent 3. संबंिधत आयकर आयु\" / Concerned Pr. CIT 4. आयकर आयु\" ) अपील ( / The CIT(A)- 5. िवभागीय \u0015ितिनिध ,आयकर अपीलीय अिधकरण, मुंबई /DR,ITAT, Mumbai, 6. गाड& फाई/ Guard file. आदेशानुसार/ BY ORDER TRUE COPY Assistant Registrar आयकर अपीलीय अिधकरण ITAT, Mumbai Printed from counselvise.com "