2025 (5) TMI 1310 - AT - Income Tax

Tax Exemption Claim Reinstated: Medical Evidence Validates 33-Day Delay, Order Sent Back for Fair Hearing

ITAT Pune allowed an appeal regarding tax exemption for AY 2019-20, condoning a 33-day delay with medical evidence. The Tribunal found the lower ... Denial of benefit of exemption u/s. 10(23C)(iiiad) - assessee preferred appeal before CIT(A) who has dismissed the assessee’s appeal for non-compliance - HELD THAT:- 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 CIT(A) for denovo adjudication. 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 CIT(A) shall be free to proceed in accordance with law. Assessee appeal allowed for statistical purposes. The Appellate Tribunal (ITAT Pune) heard an appeal by the assessee for AY 2019-20 against the order dated 11.09.2024 of the Addl. JCIT(A) under section 250 of the Income Tax Act, arising from an intimation under section 143(1). There was a 33-day delay in filing the appeal, for which condonation was sought with medical evidence. Relying on Collector, Land Acquisition vs. Mst. Katiji (1987) 2 SCC 107, the Tribunal found a 'reasonable cause' and condoned the delay.The primary issue was denial of exemption under section 10(23C)(iiiad). The CIT(A) dismissed the appeal for non-compliance, allegedly without providing a 'fair opportunity' or a 'speaking order.' The assessee had claimed exemption of Rs. 65,30,914/-, resulting in nil income, but the exemption was denied in the processed return under section 143(1)(a).The Tribunal observed that the CIT(A) gave inadequate time for compliance, thus failing to afford a fair hearing. In the 'larger interest of justice,' the matter was restored to the file of the CIT(A) for de novo adjudication. The assessee was directed to update contact details and warned against unnecessary adjournments, with liberty given to the CIT(A) to proceed if the assessee fails to comply.Accordingly, the Tribunal set aside the CIT(A)'s findings and allowed the appeal 'for statistical purposes,' emphasizing procedural fairness and opportunity to be heard. The order was pronounced on 02 May 2025.