SUBHADRA EDUCATION & RESEARCH CENTRE,PUNE V. CIT EXEMPTION, PUNE

ITA 40/PUN/2025

AI Insights

The case involves Subhadra Education & Research Centre, a trust engaged in providing education, which appealed against the order of the CIT(A)/NFAC for the assessment year 2020-21. The appeal was initially delayed by 50 days, for which a condonation request was accepted. The primary issue arose from the disallowance of depreciation claimed on assets amounting to Rs.70,76,164, which the Assessing Officer disallowed under section 11(6) of the IT Act, completing the assessment under section 143(3) with a determined income of Rs.70,76,164. The CIT(A) dismissed the appeal due to the absence of the assessee, leading to the current appeal before the Tribunal. The Tribunal found that the assessee was not given a proper opportunity of hearing and thus remanded the case back to the CIT(A) for a fresh decision.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 315849 (ITAT-PUNE)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-05-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2020-2021
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ARVIND DESAI
• Assessee Lawyers: DIGAMBAR SURWASE; LD. A NFAC; IT WOULD BE
• Keywords: Reasonable cause; Depreciation
• Section: 143(3); 142(1)

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH “B”, PUNE BEFORE SHRI MANISH BORAD, ACCOUNTANT MEMBER AND SHRI VINAY BHAMORE, JUDICIAL MEMBER आयकर अपील सं. / ITA No.40/PUN/2025 िनधाᭅरण वषᭅ / Assessment Year : 2020-21 Subhadra Education & Research Centre, B-102, Landmark Garden, Near Bishop School, Kalyaninagar, Pune- 411014. PAN : AARTS8054P Vs. Assessment Unit, Income Tax Department, NFAC. Appellant Respondent आदेश / ORDER PER VINAY BHAMORE, JM: This appeal filed by the assessee is directed against the order dated 20.09.2024 passed by Ld. CIT(A)/NFAC for the assessment year 2020-21. 2. There is a delay of 50 days in filing of the present appeal. In this regard, the assessee has filed an application for condonation of Assessee by : Shri Digambar Surwase Revenue by : Shri Arvind Desai Date of hearing : 05.03.2025 Date of pronouncement : 16.05.2025 ITA No.40/PUN/2025 2 delay along with an affidavit. We are satisfied with the explanation of the assessee that he was prevented by reasonable cause for not filing the present appeal within prescribed time limit. Ld. DR raised no serious objection to the condonation request made by the assessee. Accordingly, the delay of 50 days is condoned and the appeal is admitted for adjudication. 3. Facts of the case, in brief, are that the assessee is a trust engaged in providing pre-primary and primary education for the benefit of all sections of society and has furnished its return of income on 16.12.2020 declaring Nil income. The case was selected for scrutiny and notices u/s 143(2) and 142(1) were issued respectively. Not being satisfied with the reply of the assessee trust on the issue of depreciation claimed on assets the Assessing Officer disallowed the depreciation claimed at Rs.70,76,164/- u/s 11(6) of the IT Act and completed the assessment u/s 143(3) by determining the total income at Rs.70,76,164/- as against the income returned by the assessee at Rs.Nil. 4. Since the assessee remained absent, Ld. CIT(A)/NFAC dismissed the appeal and consequently confirmed the order passed ITA No.40/PUN/2025 3 by the Assessing Officer. It is this order against which the assessee is in appeal before this Tribunal. 5. Ld. AR appearing from the side of the assessee submitted before us that the ex-parte order passed by Ld. CIT(A)/NFAC is unjustified. Ld. AR submitted before the Bench that the Chartered Accountant who was looking after the income tax matter was busy in treatment of his family member who was suffering from cancer and in the month of September, 2024 was continuously admitted in the hospital and due to this reason the hearing notices issued by Ld. CIT(A)/NFAC could not be attended by him. Accordingly, Ld. AR prayed before the Bench to set-aside the order passed by Ld. CIT(A)/NFAC and further requested to provide one opportunity of hearing to the assessee so that the assessee can substantiate its grounds of appeal before him. 6. Ld. DR appearing from the side of the Revenue relied on the orders passed by the subordinate authorities and requested to confirm the same. 7. We have heard Ld. Counsels from both the sides and perused the material available on record including the paper books furnished ITA No.40/PUN/2025 4 by the assessee along with written submission. It was the main prayer of the assessee that Ld. CIT(A)/NFAC has decided the appeal ex-parte i.e. without hearing the appellant and therefore one opportunity may kindly be provided to the assessee to substantiate the grounds of appeal before Ld. CIT(A)/NFAC. Considering the totality of the facts of the case, we find force in the arguments of Ld. Counsel of the assessee that proper opportunity of hearing was not provided to the assessee by Ld. CIT(A)/NFAC and it would be in the interest of justice, if the assessee is allowed one opportunity to produce supporting documents/evidences/explanation in support of grounds of appeal before Ld. CIT(A)/NFAC. Accordingly, without going into merits of the case, we deem it appropriate to set- aside the ex-parte order passed by Ld. CIT(A)/NFAC and remand the mater back to him with a direction to decide the appeal afresh as per fact & law after providing reasonable opportunity of hearing to the assessee. The assessee is also hereby directed to respond to the notices issued by Ld. CIT(A)/NFAC in this regard and produce documents/evidences/explanation in support of grounds of appeal without taking any adjournment under any pretext, otherwise Ld. ITA No.40/PUN/2025 5 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. 8. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced on this 16th day of May, 2025. Sd/- Sd/- (MANISH BORAD) (VINAY BHAMORE) ACCOUNTANT MEMBER JUDICIAL MEMBER पुणे / Pune; ᳰदनांक / Dated : 16th May, 2025. 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, “B” बᱶच, पुणे / DR, ITAT, “B” Bench, Pune. 5. गाडᭅ फ़ाइल / Guard File. आदेशानुसार / BY ORDER, // True Copy // Senior Private Secretary आयकर अपीलीय अिधकरण, पुणे / ITAT, Pune. "