Case Law Details
Aastha Educational Society Vs CIT (ITAT Delhi)
In the case of Aastha Educational Society Vs CIT (ITAT Delhi), the Income Tax Appellate Tribunal (ITAT) addressed an appeal for the assessment year 2015-16, stemming from a National Faceless Appeal Centre (NFAC) order. The primary issue was the disallowance of the assessee’s claim for exemption under section 11(1A) of the Income-tax Act, 1961, leading to a capital gains addition of Rs. 1.81 crore. The CIT(DR) argued that both the lower authorities were correct in upholding the addition, and presented findings that suggested the disallowance was justified.
However, the ITAT noted that the CIT(A)-NFAC’s decision lacked a structured point of discussion and detailed reasoning, as required under section 250(6) of the Act. Specifically, the order did not sufficiently address the legal aspects of the exemption claim or provide a detailed adjudication of the case. Given this, the ITAT found it necessary to remand the case back to the CIT(A) for a fresh and proper examination, with the condition that the taxpayer must present all relevant facts and prove them during the process. The remand includes three effective opportunities for the taxpayer to submit their case and arguments. The ITAT’s ruling is aimed at ensuring a more comprehensive and legally sound review of the facts and the exemption claim.
The case was allowed for statistical purposes, and the order was pronounced on November 20, 2024, in an open court session.
FULL TEXT OF THE ORDER OF ITAT DELHI
This assessee’s appeal for assessment year 2015-16, arises against the National Faceless Appeal Centre [in short, the “NFAC”] Delhi’s DIN and Order No. ITBA/NFAC/S/250/2023-24/1061751710(1), dated 29.02.2024, involving proceedings under section 143(3) of the Income-tax Act, 1961 (hereinafter referred to as ‘the Act’).
2. Case called twice. None appeared at the behest of the assessee. We accordingly proceeded ex-parte.
3. Learned CIT(DR) vehemently argued during the course of hearing that both the lower authorities herein have rightly disallowed the assesee’s section 11(1A) exemption claim in the course of assessment framed on 13.12.2017 as upheld in the lower appellate proceedings. He takes us to pages 4 to 5 of the lower appellate findings running from paras 6 to 7 confirming the impugned addition of Rs. 1,81,71,431/- representing capital gains.
4. We, however, note that the CIT(A)-NFAC’s impugned lower appellate discussion has neither framed any point of discussion nor it gives detailed adjudication thereupon as contemplated under section 250(6) of the Act. We thus deem it as a fit case to be restored back to the CIT(A)-NFAC for its fresh and appropriate adjudication as per law subject to a rider that tax payer shall plead and prove all the relevant facts at its own risk and responsibility within three effective opportunities in consequential proceedings.
5. This assessee’s appeal is allowed for statical purposes in above terms.
Order pronounced in the open court on 20th November, 2024
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