Happy Science Bodhgaya India Vs Principle Chief Commissioner, Income Tax (Patna High Court)
Patna High Court held that passing of order by CIT(A) without following the directions given vide judgements of Hon’ble Supreme Court and High Court amounts to gross negligence if not a case of dereliction in duty. Accordingly, order set aside and matter restored back.
Facts- The petitioner is a charitable trust and its main aims and objects are to act for charity and religious purposes. The return was selected for scrutiny u/s. 143(2) of the Income Tax Act. AO passed an order of assessment against the petitioner and a demand of Rs.45,43,423/- has been raised.
Thereafter, the petitioner filed a writ application before this Court wherein the validity of assessment and creation of demand were questioned. While disposing of the writ application, this Hon’ble Court noticed that during pendency of the matter, the period of limitation had expired, therefore, the Hon’ble Division Bench held that if the petitioner chooses to file an appeal within four weeks together with a petition for condonation of delay, the Appellate Authority i.e. the Commissioner, Income Tax (Appeal) shall consider and dispose of the same in accordance with law on its own merits bearing in mind the pendency of matter before this Court.
