SWARNIM GUJARAT SPORTS UNIVERSITY,VADODARA V. THE ITO, WARD-1 (EXMP.), AHMEDABAD

ITA 1646/AHD/2024

AI Insights

The case involves Swarnim Gujarat Sports University appealing against the order of the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, which had dismissed their appeal ex-parte. The university had initially claimed an exemption under Section 10(23C) of the Income Tax Act for the assessment year 2018-19, declaring a 'NIL' income. Due to the COVID-19 pandemic, the university was unable to respond to multiple notices from the Assessing Officer, leading to an assessment order under Section 144 of the Act, which included an addition of Rs. 4,73,55,430. The Tribunal's decision to restore the matter for re-assessment was supported by both parties, acknowledging the exceptional circumstances that led to the university's non-compliance.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 25515 (ITAT-AHMEDABAD)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-02-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Assessment Year: 2018-2019
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: PRATHVI RAJ MEENA
• Assessee Lawyers: MANOJ KUMAR MAKHANIA
• Keywords: Principle of natural justice
• Section: 144; 10(23C)

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL “D” BENCH, AHMEDABAD BEFORE DR. BRR KUMAR, VICE PRESIDENT & SHRI SIDDHARTHA NAUTIYAL, JUDICIAL MEMBER I.T.A. No.1646/Ahd/2024 (Assessment Year: 2018-19) Swarnim Gujarat Sports University Opp. Taluka Seva Sadan Desar, Nr. Valavav Cross Road, At. Post- Desar, Taluka, Desar, District- Vadodara-391774 Vs. Income Tax Officer, Ward-1 (Exemption), Ahmedabad [PAN No.AAALS4041F] (Appellant) .. (Respondent) Appellant by : Shri Manoj Kumar Makhania, C.A. Respondent by: Shri Prathvi Raj Meena, CIT DR Date of Hearing 19.02.2025 Date of Pronouncement 25.02.2025 O R D E R PER SIDDHARTHA NAUTIYAL - JUDICIAL MEMBER: This appeal has been filed by the Assessee against the order passed by the Ld. Commissioner of Income Tax (Appeals), (in short “Ld. CIT(A)”), National Faceless Appeal Centre (in short “NFAC”), Delhi vide order dated 18.07.2024 passed for A.Y. 2018-19. 2. The assessee has taken the following grounds of appeal:- “1. The Commissioner Income Tax (Appeal), National Faceless Appeal Centre was not justified in passing ex-parte order defying natural justice to the appellant. 2. On facts and under the circumstances of case as well as in law, the Learned Commissioner of Income Tax (Appeals), NFAC was not justified in passing ex-parte order dismissing the appeal of the appellant on the ground that the appellant has been given proper opportunities and is not aggrieved with the assessment order impugned herein and is not interested in prosecuting the same. ITA No. 1646/Ahd/2024 Swarnim Gujarat Sports University vs. ITO(Exemp.) Asst.Year –2018-19 - 2– 3. On the facts and circumstances of the case as well as in law, the Learned Commissioner of Income Tax (Appeal), NFAC is not justified in holding that the assessee was not entitled to the exemption of Rs. 4,73,55,430/- under section 10(23C) of the Act. 4. Without prejudice to the above, the CIT-(A), NFAC dismissed the appeal without dealing with even basic facts of the matter. 5. It is therefore, prayed that the CIT-(A), NFAC not having dealt with any of the grounds of appeal in the right earnest the matter may be restored to the file of the CIT-(A), NFAC. 6. Your appellant reserves his right to add, amend, alter, and/or withdraw any ground of appeal at the time of hearing of the appeal.” 3. The brief facts of the case are that the assessee filed it’s return of income for A.Y. 2018-19 on 31.10.2018, declaring total income at Rs. “NIL” claiming exemption under Section 10(23C) of the Act. The assessee received notices dated 27.01.2020, 21.01.2021, 26.02.2021 and 19.03.2021 with a request to provide certain details as called for. However, due to Covid pandemic, the University was closed and the office accountant of the assessee was unavailable. The assessee was unable to submit the requested documents as called for by the Assessing Officer. Subsequently, the assessee furnished the documents and explanation on 22.04.2021, however, by that time the Assessing Officer had passed the assessment order inalizing the assessment under Section 144 of the Act after making addition of Rs. 4,73,55,430/-. 4. In appeal, Ld. CIT(A) observed that despite multiple opportunities to the assessee, no submissions were filed by the assessee. Accordingly, Ld. CIT(A) dismissed the appeal of the assessee. 5. The assessee is in appeal before us, against the aforesaid order passed by Ld. CIT(A). ITA No. 1646/Ahd/2024 Swarnim Gujarat Sports University vs. ITO(Exemp.) Asst.Year –2018-19 - 3– 6. Before us, the Counsel for the assessee submitted that the assessee is a University and is entitled to claim of exemption under Section 10(23C) of the Act. However, due to unavoidable circumstances, since the office of the assessee was closed during the Covid pandemic period, it was unable to comply with various notices issued by the Assessing Officer. Accordingly, it was requested that in the interest of justice, the matter may be restored to the file of Assessing Officer for de-novo consideration. 7. In response, Ld. D.R. has also not objected to the matter being restored to the file of Assessing Officer, in the interest of justice and also looking into the quantum of additions made in the hands of the assessee. 8. Accordingly, looking into the instant facts, in the interest of justice, the matter is hereby restored to the file of Assessing Officer for de-novo consideration after giving due opportunity of hearing to the assessee. 9. In the result, the appeal of the assessee is allowed for statistical purposes. This Order is pronounced in the Open Court on 25/02/2025 Sd/- Sd/- (DR. BRR KUMAR) (SIDDHARTHA NAUTIYAL) VICE PRESIDENT JUDICIAL MEMBER Ahmedabad; Dated 25/02/2025 TANMAY, Sr. PS TRUE COPY आदेश की Ůितिलिप अŤेिषत/Copy of the Order forwarded to : 1. अपीलाथŎ / The Appellant 2. ŮȑथŎ / The Respondent. 3. संबंिधत आयकर आयुƅ / Concerned CIT 4. आयकर आयुƅ(अपील) / The CIT(A)- 5. िवभागीय Ůितिनिध, आयकर अपीलीय अिधकरण, अहमदाबाद / DR, ITAT, Ahmedabad 6. गाडŊ फाईल / Guard file. आदेशानुसार/ BY ORDER, उप/सहायक पंजीकार (Dy./Asstt.Registrar) आयकर अपीलीय अिधकरण, अहमदाबाद / ITAT, Ahmedabad "