SHREE SWAMI SEVA PRAKASHAN,NASHIK V. NATIONAL FACELESS ASSESSMENT CENTRE, DELHI

ITA 1152/PUN/2024

AI Insights

The case involves Shree Swami Seva Prakashan, a trust, which filed an appeal against the order of the CIT(A)/NFAC for the assessment year 2016-17. The trust had declared nil income in its return after claiming exemption under section 10(23)(iiiad) of the IT Act. However, the Assessing Officer found the trust ineligible for exemption under section 10(23C)(iv) and assessed its income at Rs.20,54,000. The CIT(A)/NFAC dismissed the trust's appeal in its absence, leading to the current appeal before the Income Tax Appellate Tribunal. The Tribunal found that the CIT(A)/NFAC had not addressed the merits of the case and thus remanded the matter for a fresh assessment.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 474159 (ITAT-PUNE)
• Duration Of Justice: 6 month(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-11-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 01-10-2024
• Assessment Year: 2016-2017
• Appeal Filed On: 23-05-2024
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: B. S. RAJPUROHIT
• Assessee Lawyers: NIKHIL PATHAK

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH “SMC”, PUNE BEFORE SHRI R. K. PANDA, VICE PRESIDENT AND SHRI VINAY BHAMORE, JUDICIAL MEMBER आयकर अपील सं. / ITA No.1152/PUN/2024 िनधाᭅरण वषᭅ / Assessment Year: 2016-17 Shree Swami Seva Prakashan, 304/3 BND Government Rest House Opp A. B. Shri Swami Samarth Gurupeeth, Ring Road, Trimbakeshwar, Nashik- 422212. PAN : AAKTS2192K Vs. National Faceless Assessment Centre, Delhi. Appellant Respondent आदेश / ORDER PER VINAY BHAMORE, JM: This appeal filed by the assessee is directed against the order dated 30.03.2024 passed by Ld. CIT(A)/NFAC for the assessment year 2016-17. 2. Facts of the case, in brief, are that the assessee is a trust and filed its return of income declaring Nil income after claiming Assessee by : Shri Nikhil Pathak Revenue by : Shri B. S. Rajpurohit Date of hearing : 01.10.2024 Date of pronouncement : 27.11.2024 ITA No.1152/PUN/2024 2 exemption u/s 10(23)(iiiad) of the IT Act. A survey was conducted in the premises of the trust on 17.09.2018. During the course of assessment proceedings, it was found by the Assessing Officer that the trust is not eligible for exemption u/s 10(23C)(iv) of the IT Act and accordingly the assessment was completed at a total income of Rs.20,54,000/- as against the income returned by the assessee trust at Rs. Nil. 3. Since the assessee remained absent, Ld. CIT(A)/NFAC dismissed the appeal of the assessee. It is this order against which the assessee is in appeal before this Tribunal. 4. Ld. AR appearing for the assessee submitted before us that the order passed by Ld. CIT(A)/NFAC is not justified. It was submitted that Ld. CIT(A)/NFAC was required to pass order on merits of the case by deciding each ground of appeal separately but the ex-parte order passed by Ld. CIT(A)/NFAC without going into the merits of the case is in complete disregard of section 250(6) of the IT Act, which mandates that Ld. CIT(A)/NFAC has to decide the appeal on merits. Accordingly, it was requested before the Bench to set-aside the ex-parte order passed by Ld. CIT(A)/NFAC ITA No.1152/PUN/2024 3 and further requested to provide one opportunity so that the assessee can substantiate the grounds of appeal before Ld. CIT(A)/NFAC. 5. Ld. DR appearing from the side of the Revenue relied on the order passed by Ld. CIT(A)/NFAC and requested to confirm the same. 6. We have heard Ld. Counsels from both the sides and perused the material available on record. We find that the Ld. CIT(A)/NFAC has decided the appeal ex-parte without going into the merits of the case. It is the sole contention of the counsel of the assessee that proper opportunity has not been allowed to the assessee to support the grounds of appeal and Ld. CIT(A)/NFAC ought to have decided the appeal on merits. We find some force in the arguments of Ld. Counsel of the assessee that even in the absence of assessee Ld. CIT(A)/NFAC was required to decide each and every ground raised in the memo of appeal by a speaking order. We therefore set-aside the impugned ex-parte order and remand the matter back to the file of Ld. CIT(A)/NFAC to decide the appeal afresh on merits as per fact and law after providing ITA No.1152/PUN/2024 4 reasonable opportunity of hearing to the assessee. The assessee is hereby also directed to respond to the notices issued by Ld. CIT(A)/NFAC in this regard and produce relevant documents/evidences in support of grounds of appeal raised in the memo of appeal, otherwise Ld. CIT(A)/NFAC shall be at liberty to pass appropriate order as per law. Thus, the grounds of appeal raised by the assessee are partly allowed. 7. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced on this 27th day of November, 2024. Sd/- Sd/- (R. K. PANDA) (VINAY BHAMORE) VICE PRESIDENT JUDICIAL MEMBER पुणे / Pune; ᳰदनांक / Dated : 27th November, 2024. Sujeet आदेश कᳱ ᮧितिलिप अᮕेिषत / Copy of the Order forwarded to : 1. अपीलाथᱮ / The Appellant. 2. ᮧ᭜यथᱮ / The Respondent. 3. The Pr. CIT concerned. 4. िवभागीय ᮧितिनिध, आयकर अपीलीय अिधकरण, “SMC” बᱶच, पुणे / DR, ITAT, “SMC” Bench, Pune. 5. गाडᭅ फ़ाइल / Guard File. आदेशानुसार / BY ORDER, // True Copy // Senior Private Secretary आयकर अपीलीय अिधकरण, पुणे / ITAT, Pune. "