Digamber Jain Swadhyay Mandir Trust Vs DCIT (ITAT Ahmedabad)
In the case of Digamber Jain Swadhyay Mandir Trust Vs DCIT (ITAT Ahmedabad), the trust appealed against a rectification order issued by the Commissioner of Income Tax (Appeals) concerning the Assessment Year 2016-17. The appeal was filed with an 82-day delay, which the trust attributed to a misunderstanding about the requirement for a separate appeal against the rectification order. The court condoned this delay, allowing the appeal to proceed. The trust had previously filed its return with nil income but faced scrutiny due to substantial cash deposits totaling ₹1,34,40,611. The Assessing Officer deemed these deposits unexplained and imposed tax at a rate of 60% under Section 115BBE of the Income Tax Act. The trust contested this rectification order, asserting that the CIT(A) made legal errors by confirming the order without acknowledging any apparent mistakes and improperly applying Section 292B to address procedural defects. The trust argued that its original assessment appeal was still pending, suggesting the rectification should not have been adjudicated independently. The tribunal agreed, deciding to set aside the CIT(A)’s order and instructing that the appeal be addressed alongside the original assessment appeal, ensuring the trust would receive a proper hearing on all related issues.
