Tax Tribunal grants relief for missing form, directs review of evidence. Penalty appeal dismissed post success.

The ITAT allowed the assessee's appeal for statistical purposes in ITA No.903/Ahd/2015 regarding the denial of exemption and addition to total income due to a blank Form No.10, directing the first appellate authority to consider the rectified form and additional evidence. The penalty appeal in ITA No.717/Ahd/2017 became infructuous following the quantum appeal's success and was dismissed accordingly.

---

---

Issues:
1. Appeal against orders passed by the Commissioner of Income Tax (Appeals) under sections 143(3) and 271(1)(c) of the Income Tax Act, 1961 for Assessment Year 2011-12.
2. Filing of Form No.10 with unspecified trust objectives leading to denial of exemption and addition to total income.
3. Discrepancy in Form No.10 filing, rectification efforts, and rejection by the first appellate authority.
4. Appeal against penalty based on the quantum order being quashed.

Analysis:
1. The appeals were directed against orders passed by the Commissioner of Income Tax (Appeals) for the Assessment Year 2011-12. The assessee, a charitable trust, declared total income of Rs. 1,63,420. Subsequently, a scrutiny notice was issued, and during the proceedings, it was observed that Form No.10 filed by the assessee was blank, leading to denial of exemption of Rs. 17,50,000 and addition to total income. The contention regarding the blank form was disputed, stating it was a mistake by the computer operator, and rectification efforts were made by submitting additional evidence and resolution details. The first appellate authority upheld the addition based on the insufficiently filled Form No.10, leading to the appeal before the ITAT.

2. During the appeal hearing, it was argued that the defect in Form No.10 was curable and rectified by the assessee, but the first appellate authority did not consider the rectified form and additional evidence provided. The ITAT found that the assessee should have been given an opportunity to be heard on the rectified form and additional evidence. To prevent a miscarriage of justice, the ITAT set aside the issue to the file of the first appellate authority with directions to consider the rectified Form No.10 and additional evidence, providing a hearing opportunity to the assessee. The appeal was allowed for statistical purposes.

3. As the quantum appeal was allowed by the ITAT, the penalty appeal lost its basis and was deemed infructuous. Consequently, the penalty appeal was dismissed as infructuous. In the combined result, the assessee's appeal in ITA No.903/Ahd/2015 was allowed for statistical purposes, while the appeal in ITA No.717/Ahd/2017 was dismissed as infructuous.

---