Sacred Trust Registered Vs ITO (ITAT Bangalore)
Bangalore ITAT: CIT(A) Cannot Rely on Portal Delivery Report Without Giving Assessee an Opportunity to Respond
The assessee, a charitable trust running educational institutions, declared nil income after claiming exemption under section 10(23C)(iiiad). However, while processing the return under section 143(1), CPC denied the exemption and computed taxable income at ₹13,06,552.
The CIT(A) treated the appeal as delayed by 2,120 days, relying upon a system-generated report showing that the intimation had been electronically delivered through the Income-tax portal on 11 May 2018. The assessee contended that the delay was only six days based on the date on which it became aware of or received the intimation.
The ITAT observed that the assessee was not given an opportunity to examine and respond to the system-generated delivery report relied upon by the CIT(A). Reliance on such material without confronting the assessee violated the principles of natural justice.
Accordingly, the Tribunal set aside the appellate order and restored the matter to the CIT(A) for fresh consideration of the condonation petition. It specifically directed that no information or document should be relied upon without first granting the assessee a reasonable opportunity of hearing. The appeal was allowed for statistical purposes.
