2023 (3) TMI 344

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....cts of the trust are creating awareness for the society about the virtues of using cycle and to make cycle as a popular mode of transportation that would lessen global warming, air pollution. The assessee has also object of making people understand the need for uncontaminated environment which in turn will lead to good quality of health. The assessee filed return of income declaring Nil income after claiming exemption under section 11 of the Act. The AO noticed that the assessee organizes trips and camps by way of "Cycle Rally" to tourist places such as Kalapetta, Ooty, Palakkad,, Valparai, Mysore, etc., and the participants pay for the cycle rides and for food and lodgings at designated places. According to the AO, the assessee was doing a....

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....icipating fee, the same are collected and spent in the course of carrying on charitable activity and not any commercial activity. The learned assessing officer failed to give any finding or corroborative evidence that the application and receipt of participation fee is not towards any charitable activity. Wherefore, where the receipt and application are in line with the definition of Section 2(15) of the Act, provisions of Section 11 & 12 of the Act have to be considered and applied to the facts on hand. [ix] Hence, it is prayed that the provisions of Section 11 & 12 be applied and the income be computed accordingly." 4. The CIT(A) noticed that the case was fixed for hearing on 8 occasions and the assessee did not respond or par....

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.... The said staff of the Petitioner / Appellant due to certain miscommunication and due to inadvertence could not provide the requisite papers to the present counsel as instructed by the Managing Trustee of Petitioner / Appellant. The Managing Trustee of the Petitioner / Appellant was under a bonafide belief that the papers have been handed over to the present counsel for preparation of papers and when the Managing Trustee of the Petitioner / Appellant enquired about the filing of appeal to the Hon'ble Tribunal with the staff, it came to the knowledge that the said papers were not sent to the present counsel for preparation of appeal papers to the Tribunal. Soon after learning the fact that the papers were not sent to the p....

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....tice should prevail over technicalities, I condone the delay of 20 days in filing the appeal by the assessee. 7. In so far as the merits of the appeal is concerned, it is no doubt true that notices were issued to the assessee on several occasions. The assessee had requested for adjournment in the hearing fixed on 25.05.2022 and the case was adjourned to 10.08.2022. On that date also, the assessee did not appear before CIT(A) and the case was adjourned to 16.10.2022 on which date also neither the assessee nor his Authorized Representative appeared before CIT(A). I am of the view that the order of the CIT(A) has to be set aside and the issue remanded to CIT(A) for a decision on merits. The applicability of the proviso to 2(15) of the Act c....