2024 (10) TMI 1662 - AT - Income Tax

Charitable Trust Wins Tax Appeal: Fresh Chance to Present Evidence Granted After Procedural Review

B. Narayana Das Shyam Sunder Loya Cure Thalassemia Welfare Trust, Hyderabad Versus The Income Tax Officer, (Exemption) Ward 1 (1) Hyderabad

ITAT Hyderabad allowed an appeal by a charitable trust challenging a tax assessment order. Despite initial non-compliance, the Tribunal granted the ... Intimation u/s 143(1) - As argued CIT(A) did not provide sufficient opportunity to the assessee to submit explanations/evidence in support of their claim - HELD THAT:- It could be seen from the orders of the Ld. CIT(A) that in spite of many opportunities given, the assessee failed to produce the explanations/evidence in support of their claim, which resulted in passing the orders without consideration thereof. It is a fact that the assessee does not stand to gain by not producing such documents. Be that as it may, now the assessee is ready to produce all such documentary evidence in support of their contentions and get the matter disposed of on merits. We set aside the impugned order and restore the issue to the file of the Ld. CIT(A) with whom the appeal of the assessee against the intimation u/s 143(1) of the Act for the same year is still pending, for passing a fresh order on merits after affording the opportunity of hearing to the assessee. Appeal of the assessee is allowed for statistical purpose. The Appellate Tribunal (ITAT Hyderabad) considered the appeal filed by B. Narayana Das Shyam Sunder Loya Cure Thalassemia Welfare Trust ('the assessee') against the order of the Commissioner of Income Tax (Appeals) ('Ld. CIT(A)') dated 10.07.2024 for A.Y. 2018-19. The Ld. CIT(A) had dismissed the assessee's appeal due to non-compliance with notices and failure to produce explanations/evidence, following the order under section 143(3) of the Income Tax Act, 1961.The assessee contended that the Ld. CIT(A) did not provide 'proper opportunity' to submit evidence and that non-compliance was due to reasons beyond their control. The assessee expressed readiness to produce all relevant documents if granted a fresh opportunity and requested remand of the matter to the Ld. CIT(A), who also had a pending appeal for the same assessment year under section 143(1).The Revenue opposed further opportunity, asserting that 'sufficient opportunity has already been given' and the assessee failed to avail it.The Tribunal observed that despite multiple chances, the assessee failed to produce evidence, resulting in dismissal. However, recognizing that the assessee now seeks to produce documentary evidence and that 'the highest that would happen by allowing an opportunity is that a cause would be decided on merits,' the Tribunal held that a fresh opportunity should be granted.Accordingly, the Tribunal set aside the impugned order and remanded the matter to the Ld. CIT(A) for a fresh adjudication on merits after affording the assessee a hearing. The appeal was allowed for statistical purposes.