Facts of the Case

The assessee, Swami Vivekanand Seva Trust, Jamshedpur, filed an appeal against the order dated 20.09.2024 passed by the Commissioner of Income Tax (Exemption), Patna for Assessment Year 2024-25. During the proceedings before the CIT (Exemption), the assessee failed to furnish the documents and details as called for. The CIT (Exemption) passed an adverse order due to non-compliance. Aggrieved, the assessee approached the Tribunal.

Issues Involved

Whether the Commissioner of Income Tax (Exemption) was justified in passing the impugned order due to non-furnishing of documents, and whether the matter deserved restoration to provide the assessee an opportunity to place the requisite material on record.

Petitioner’s Arguments

None appeared on behalf of the assessee before the Tribunal.

Respondent’s Arguments

The Revenue submitted that adequate opportunities were provided by the CIT (Exemption) and the assessee failed to produce the required documents. It was therefore contended that the order passed by the CIT (Exemption) deserved to be upheld.

Court Order / Findings

The ITAT Ranchi observed that a perusal of the record clearly indicated that the assessee had not furnished the requisite details before the CIT (Exemption). However, considering the nature of the matter and in the interest of justice, the Tribunal held that the issues deserved to be restored to the file of the Commissioner of Income Tax (Exemption) for fresh adjudication after granting the assessee adequate opportunity of being heard and to furnish all relevant documents.

Important Clarification

The Tribunal clarified that while failure to furnish documents may justify an adverse order, principles of natural justice require that a reasonable opportunity be provided where the assessee is willing to substantiate its claim and place relevant material on record.

Final Outcome

The appeal filed by the assessee was partly allowed for statistical purposes, and the matter was restored to the file of the Commissioner of Income Tax (Exemption), Patna for fresh adjudication in accordance with law after granting adequate opportunity of hearing to the assessee.

Link to Download Order- https://www.mytaxexpert.co.in/uploads/1769081068_SWAMIVIVEKANANDSEVATRUSTJAMSHEDPURVS.COMMISSIONOFINCOMETAXEXEMPTIONCIRCLEPATNA.pdf

 

Disclaimer

This content is shared strictly for general information and knowledge purposes only. Readers should independently verify the information from reliable sources. It is not intended to provide legal, professional, or advisory guidance. The author and the organisation disclaim all liability arising from the use of this content. The material has been prepared with the assistance of AI tools.