THE PROPERTY ASSOCIATION OF BAPTIST CHURCHES PVT. LTD.,CHENNAI V. ITO, EXEMPTIONS, WARD-3, CHENNAI

ITA 2354/CHNY/2024

AI Insights

The case involves The Property Association of Baptist Churches Pvt. Ltd., which appealed against the orders of the A.O and CIT(A) concerning the assessment year 2004-05. Initially, the CIT(A) directed the A.O to examine the compliance of the assessee with Sections 11 & 12 of the Income Tax Act, after recognizing it as a religious institution under Section 12AA and exempt under Section 11. However, both the A.O and CIT(A) passed ex-parte orders due to non-compliance by the assessee, leading to the current appeal. The Tribunal, considering the principles of natural justice, decided to remand the case back to the A.O for a fresh hearing on merits, provided the assessee complies with the stipulated costs.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 29873 (ITAT-CHENNAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-01-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2004-2005
• Laws Referred To: Companies Act, 1956, Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: G. SARATHA
• Assessee Lawyers: A. NIKITHA
• Keywords: Set aside; Principle of natural justice
• Section: 119; 11; 12AA; 12

Judgement Text

" आयकर अपीलीय अिधकरण, ‘ए’ \u0011ा यपीठ, चे\u0016ई। IN THE INCOME TAX APPELLATE TRIBUNAL ‘A’ BENCH: CHENNAI \u0019ी एबी टी. वक\u001e, \u0011ा ियक सद! एवं \u0019ी जगदीश, लेखा सद! क े सम( BEFORE SHRI ABY T. VARKEY, JUDICIAL MEMBER AND SHRI JAGADISH, ACCOUNTANT MEMBER आयकर अपील सं./ITA No.2354/Chny/2024 िनधा9रण वष9 /Assessment Year: 2004-05 The Property Association of Baptist Churches Pvt. Ltd., 903, Tower E2 Ekanta North Town, Stephension Road, Perambur, Chennai – 600 012. Vs. The Income Tax Officer (Exemptions), Ward-3, Chennai. [PAN: AABCT 2815J] (अपीलाथ\u0007/Appellant) (\b\tयथ\u0007/Respondent) अपीलाथ\u001e की ओर से/ Appellant by : Ms. A. Nikitha, Advocate FGथ\u001e की ओर से /Respondent by : Mrs. G. Saratha, Addl. CIT सुनवाई की तारीख/Date of Hearing : 21.11.2024 घोषणा की तारीख /Date of Pronouncement : 31.01.2025 आदेश / O R D E R PER JAGADISH, A.M : Aforesaid appeal filed by the assessee for Assessment Year (AY) 2004-05 arises out of the order of Learned Commissioner of Income Tax, National Faceless Appeal Centre (NFAC), Delhi [hereinafter “CIT(A)”] dated 14.03.2024. ITA No.2354/Chny/2024 :- 2 -: 2. There is a delay of 119 days in filing the appeal by the assessee. The assessee has filed condonation petition stating the reasons for delay in filing the appeal. We have considered the petition of delay in filing the appeal and satisfied that there was sufficient cause for not filing the appeal within the prescribed time limit. Hence, the delay is condoned accordingly. 3. The assessee is a company registered u/s. 25 of the Companies Act, 1956. In the first round of appeal, the Ld. CIT(A) has directed the A.O to examine whether the application of income is in compliance with the provisions of Section 11 & 12 of the Act and to grant relief accordingly, after holding that the assessee is a religious institution registration u/s. 12AA of the Act and exempt u/s. 11 of the Act. The A.O passed ex-parte order, rejecting claim of the assessee. Aggrieved by this, the assessee filed an appeal before Ld. CIT(A). The Ld. CIT(A) also passed ex-parte order as there was non-compliance by the assessee. 4. At the outset, The Ld. Authorized Representative (A.R) of the assessee has requested that both the assessment order and the order ITA No.2354/Chny/2024 :- 3 -: of Ld. CIT(A) were passed ex-parte, and therefore, one more opportunity be provided in the interests of justice. 5. The Ld. Departmental Representative (DR), on the other hand, has relied on the orders of lower authorities. 6. We have heard the rival submissions, and perused the materials available on record. On perusal of the orders of A.O as well as Ld. CIT(A), we find that both the orders were passed ex-parte due to non- compliance by the assessee. The Ld. A.R has submitted that the Ld. CIT(A) has not decided the issue on merits, and therefore the case should be remanded back to the A.O for adjudication on merits. We are of the opinion that keeping in view the principles of natural justice, the assessee be provided with another opportunity of hearing to substantiate its case before the A.O subject to payment of costs of Rs.25,000/-. The same shall be paid by the assessee to Tamil Nadu State Legal Services Authority at Hon’ble High Court of Madras within a period of one month from the date of receipt of this order and produce the receipt before the A.O. Accordingly, we set aside the orders passed by the A.O and the Ld. CIT(A) and remit the matter back to the file of the A.O to adjudicate this appeal afresh in ITA No.2354/Chny/2024 :- 4 -: accordance with law. We also direct the assessee to appear before the A.O on the date of hearing without fail and furnish complete details for his fresh consideration. In view of the above, the appeal filed by the assessee is allowed for statistical purposes only. 7. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced on 31st January, 2025. Sd/- Sd/- (एबी टी. वक\u001e) (ABY. T. Varkey) \u0011ाियक सद! / Judicial Member (जगदीश) (Jagadish) लेखा सद! /Accountant Member चे\u0010नई/Chennai, \u0013दनांक/Dated: 31st January, 2025. EDN/- आदेश क\u0016 \bितिल\u0019प अ\u001aे\u0019षत/Copy to: 1. अपीलाथ\b/Appellant 2. \t थ\b/Respondent 3. आयकर आयु\u0010/CIT, Chennai 4. िवभागीय \tितिनिध/DR 5. गाड\u0019 फाईल/GF "