Birsa Gramin Vikash Evam Prashikshan Sanstha Vs DCIT (ITAT Ranchi)
The Income Tax Appellate Tribunal (ITAT), Ranchi bench, has set aside both the ex parte assessment order and the ex parte appellate order concerning Birsa Gramin Vikash Evam Prashikshan Sanstha, a non-governmental organization. The tribunal’s decision, delivered on February 6, 2025, remands the case back to the Commissioner of Income Tax (Appeals) [CIT(A)] for a fresh adjudication, granting the NGO one final opportunity to present its case. The ruling highlights the application of principles of natural justice in tax proceedings, even in instances of prior non-compliance by the taxpayer.
The case pertains to the assessment year 2017-18. The initial assessment for this year was completed ex parte by the Assessing Officer (AO) on November 7, 2019, under Section 144 of the Income Tax Act, 1961. An ex parte assessment is carried out when a taxpayer fails to comply with notices issued by the tax department or fails to file a return. In this specific assessment, the AO made an addition to the NGO’s income on account of unexplained cash deposits. The details and basis for this addition were determined solely by the AO in the absence of the assessee’s participation.
