Rose Bud Muslim Educational Society Vs ITO (ITAT Kolkata)
Assessee, a society registered under Societies Act & holding registration u/s 12AA, filed NIL income. Scrutiny was selected under CASS. Statutory notices remained uncomplied; no books, bills or vouchers were produced. AO completed best-judgment assessment u/s 144, treated entire gross receipts of ₹60,54,326 as taxable income & ignored claimed application of ₹90,47,790.
Before CIT(A), Assessee filed partial replies in remand proceedings but failed to produce supporting documents. CIT(A) noted repeated non-compliance, held that no corroborative evidence for expenditure was placed, & confirmed the AO’s action of taxing entire gross receipts.
Before Tribunal, Assessee submitted that books existed but could not be produced due to serious local disturbances & arbitration proceedings; AO made a pure ex-parte assessment without allowing any expenditure; society now has full documentation to substantiate application of income. AR prayed for remand.
Tribunal observed that there was lack of proper opportunity at both assessment & appellate stages. In the interest of justice, ITAT set aside both orders, restored matter to AO for de novo reassessment with directions to give adequate opportunity & for Assessee to avoid unnecessary adjournments.
FULL TEXT OF THE ORDER OF ITAT KOLKATA
This appeal filed by the assessee is against the order of the ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [hereinafter referred to as Ld. ‘CIT(A)’] passed u/s 250 of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) for AY 2016-17 dated 25.10.2024.
