Academy of General Education Chikmagalur Vs ITO (ITAT Bangalore)
ITAT Bangalore held that there was no proper response during the assessment proceedings as well as in the appellate proceedings. Accordingly, issue remanded back to the file of AO subject to payment of costs of Rs. 5,000.
Facts- The case of the assessee was selected for limited scrutiny of substantial deduction under the head income from other sources u/s. 57. Statutory notices were issued to the assessee. The AO granted various opportunities, but the assessee did not respond. Finally a physical copy of notice was served to the Secretary of the assessee on 26.02.2021 to which the assessee did not comply. Therefore a draft assessment order proposing to disallow deduction of Rs.1,55,02,561 u/s. 57 was issued vide show cause dated 23.03.2021. The assessee submitted response. The AO after considering the submissions assessed total income of Rs.42,22,369. Aggrieved, the assessee filed appeal before the First Appellate Authority (FAA).
FAA issued various notices on 12.08.2021, 28.03.2024, 15.04.2024 and 30.04.2024 but there was no response from the assessee’s side. Accordingly, FAA dismissed the appeal of the assessee. Being aggrieved, the present appeal is filed.
Conclusion- Held that there was no proper response during the assessment proceedings as well as in the appellate proceedings and the reasons for the same submitted by the assessee in the affidavit noted supra. Considering the prayer of the assessee and in the interest of justice, we remit the issues to the file of Assessing Officer for fresh consideration and decision as per law, subject to payment of costs of Rs.5,000/- (Rupees Five Thousand Only) by the assessee and producing the proof of same before the AO.
