Case Law Details
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.
FULL TEXT OF THE ORDER OF ITAT PUNE
The captioned appeal at the instance of assessee pertaining to assessment year 2019-20 is directed against the order dated 11.09.2024 passed by ld. Addl. JCIT(A), Thiruvanantpuram u/s.250 of the Income Tax Act, 1961 ( in short ‘the Act’) arising out of the Intimation order dated 05.02.2021 passed u/s.143(1) of the Act.
2. Registry has informed that there is a delay of 33 days in filing the appeal before this Tribunal. Application for condonation along with affidavit and Medical certificate has been filed giving reasons for delay.
3. After hearing both the sides and considering the reasons giving rise to the delay and also placing reliance on the judgment of Hon’ble Supreme Court in the case of Collector, Land Acquisition vs. Mst. Katiji & Ors. (1987) 2 SCC 107) we find that there was ‘reasonable cause’ which prevented the assessee in filing the appeal within the stipulated time. We therefore condone the delay of 33 days and proceed for adjudication of appeal.
4. The issue raised by the assessee in the grounds of appeal is mainly regarding the denial of exemption u/s.10(23C)(iiiad) of the Act. Along with this ground it is stated that ld.CIT(A) has not provided fair opportunity and has dismissed the appeal without passing a speaking order
5. We have heard the rival contentions and perused the record placed before us. We notice that the assessee filed the return of income for A.Y. 2019-20 claiming deduction u/s.10(23C)(iiiad) at Rs.65,30,914/- thereby declaring Nil income. But in the return processed u/s.143(1)(a) of the Act dated 05.02.2021 benefit of exemption u/s.10(23C)(iiiad) was denied against which the assessee preferred appeal before ld.CIT(A) who has dismissed the assessee’s appeal for non-compliance. We notice that ld.CIT(A) gave very short time to the assessee to furnish the details and prima-facie it shows that fair opportunity of hearing was not given to the assessee. We therefore considering the prayer of the assessee and also in the larger interest of justice deem it proper to restore the issue raised on merits to the file of ld.CIT(A) for denovo Assessee is directed to provide latest email id and contact detail to the department for receiving the notices from ITBA portal. Assessee is further directed to remain vigilant and not to take adjournment unless otherwise required for reasonable cause, failing which the ld.CIT(A) shall be free to proceed in accordance with law. Findings of ld.CIT(A) is set aside and effective grounds of appeal raised by the assessee are allowed for statistical purposes.
6. In the result, appeal of the assessee is allowed for statistical purposes.
Order pronounced on this 02nd day of May, 2025.
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