Sai Shikshan Prasarak Mandal Vs ITO (ITAT Pune)
Income Tax Appellate Tribunal (ITAT) Pune has remanded the case of Sai Shikshan Prasarak Mandal back to the Commissioner of Income Tax (Appeals) [CIT(A)] for a fresh assessment. The appeal, pertaining to Assessment Year 2019-20, challenged the denial of exemption under Section 10(23C)(iiiad) of the Income Tax Act, 1961.
The Tribunal first addressed a 33-day delay in filing the appeal. Relying on the Supreme Court’s judgment in Collector, Land Acquisition vs. Mst. Katiji & Ors. (1987) 2 SCC 107, which advocates a liberal approach to condonation of delay when “reasonable cause” is shown, ITAT condoned the delay.
Regarding the merits, Sai Shikshan Prasarak Mandal had filed its income tax return claiming nil income by deducting Rs. 65,30,914/- under Section 10(23C)(iiiad). However, this exemption was denied in the intimation processed under Section 143(1)(a) of the Act. The assessee’s subsequent appeal to the CIT(A) was dismissed due to non-compliance.
The ITAT observed that the CIT(A) had provided a “very short time” for the assessee to furnish details, suggesting that a fair opportunity of hearing was not given. In the interest of justice, the Tribunal decided to restore the issue of exemption denial to the CIT(A) for a de novo (fresh) assessment. The assessee has been directed to provide updated contact information and to remain vigilant, avoiding unnecessary adjournments. The CIT(A)’s findings were set aside, and the appeal was allowed for statistical purposes.
