SHREE SUBHASH CHAND JAIN MEMORIAL EDUCATION SOCIETY,MUZAFFARNAGAR V. INCOME TAX OFFICER, GHAZIABAD

ITA 5513/DEL/2025

AI Insights

The case involves the Shree Subhash Chand Jain Memorial Education Society appealing against the order of the National Faceless Appeal Centre (NFAC), which had dismissed their appeal for non-prosecution without considering the merits. The original assessment by the AO included an addition of Rs. 37,54,260 as capital expenditure and 50% as revenue expenditure for the Assessment Year 2018-19. The Tribunal found that the CIT(A) erred in dismissing the appeal solely on the grounds of non-prosecution and not addressing the substantive issues raised by the assessee.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 785491 (ITAT-DELHI)
• Duration Of Justice: 1 month(s) 20 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-10-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2018-2019
• Appeal Filed On: 06-09-2025
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MANOJ KUMAR
• Keywords: Set aside; Revenue expenditure; Capital expenditure
• Section: 144; 2

Judgement Text

" ITA No.- 5513/Del/2025 Shree Subhash Chand Jain Memorial EducaƟon Society 1 IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH: ‘SMC’: NEW DELHI) BEFORE SHRI MAHAVIR SINGH, VICE PRESIDENT ITA No:- 5513/Del/2025 (Assessment Year- 2018-19) Shree Subhash Chand Jain Memorial Education Society, Charthawal, Main Road, Near Mahadev Mandir, Muzaffarnagar. Vs. Income Tax Officer, Aaykar Bhawan Hapur Chungi Ghaziabad, Ghaziabad. PAN No: AALAS3864N APPELLANT RESPONDENT Assessee by : None Revenue by : Shri Manoj Kumar, Sr. DR Date of Hearing : 27.10.2025 Date of Pronouncement : 27.10.2025 ORDER PER MAHAVIR SINGH, VP: This appeal by the Assessee is arising out of the order of National Faceless Appeal Centre (NFAC) [hereinafter referred to as ‘CIT(A)’], Delhi, in appeal no. NFAC/2017-18/10078692 vide order dated 30.06.2025. Assessment was framed by AO, National e-Assessment Centre, Delhi for the Assessment Year 2018-19 under Printed from counselvise.com ITA No.- 5513/Del/2025 Shree Subhash Chand Jain Memorial EducaƟon Society 2 Section 144 r.w.s. 144B of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) vide his order dated 20.04.2021. 2. During the course of hearing, none appeared on behalf of the assessee, nor was any application for adjournment placed on record. 3. At the outset, it is noticed that the assessee has raised a ground that the order passed by the CIT(A) is ex-parte and even the assessment order was passed ex-parte. The CIT(A) has dismissed the appeal in a simpliciter for non-prosecution, without going into the merits. For this purpose, the assessee has raised the following ground no. 1 as under: “ 1. That the CIT (Appeal) rejecting/ignoring the detailed submissions and explanations filed during hearing of appeal and passed his appeal order before the time given in his last notice, even the assesse had already filed his reply along with written submissions and annexures within given time as on last notice of CIT(Appeal).? The CIT (Appeal) had passed appeal order without considering written submissions and annexures filed with in time as on 30.06.2025. 4. I have heard the Ld. Sr. DR and gone through the facts and circumstances of the case. I noticed from the order of the CIT(A), that the CIT(A) simpliciter dismissed the appeal merely for non-prosecution, and not even discussed the merits of the case. The issue under dispute pertains to the addition made by the AO of Rs. 37,54,260/- as capital expenditure and 50% as revenue expenditure, without considering the submissions made by the assessee. Printed from counselvise.com ITA No.- 5513/Del/2025 Shree Subhash Chand Jain Memorial EducaƟon Society 3 5. In view of the facts, that the CIT(A) has no power to dismiss the appeal for non-prosecution simpliciter, and is required to decide the appeal on merits by passing a speaking order. Hence, I set aside the order of the Ld. CIT(A) and restore the matter to his file with a direction to decide the issue afresh on merits, by passing a speaking order. 6. In the result, appeal filed by the assessee is allowed for statistical purposes. Order pronounced in the Open Court on 27.10.2025 Sd/- (MAHAVIR SINGH) VICE PRESIDENT Dated: 30/10/2025. Pooja/- Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR ITAT NEW DELHI Printed from counselvise.com "