2018 (1) TMI 663 - AT - Income Tax

Exemption u/s. 11 and 12 eligibility - Held that - We find that a number of opportunities were given to the assessee to explain and furnish necessary information for completing the assessment, but the assessee continued to take adjournments and also on certain occasions avoided to attend the proceedings. The order passed by the Assessing Officer narrates various instances on which the assessee was required to attend the proceedings, but he did not attend the same. AO had specifically asked for furnishing all information regarding particulars or nature of services provided and professional receipts shown at ₹ 96,00,000/- but the assessee did not file the same. The ld. CIT(A), relying on certain case laws and without commenting upon the observations of the Assessing Officer, has allowed relief to the assessee. Therefore, we deem it proper to remit the issue back to the file of ld. CIT(A) with the direction to pass a speaking and reasoned order after meeting out the observations made by the Assessing Officer. - Decided in favour of revenue for statistical purposes.

Summary

Issues:
Appeal against order of ld. CIT(A) allowing exemption u/s. 11 and 12 of the IT Act without proper explanation and cooperation from the assessee.

Analysis:
The appeal was filed by the Revenue against the order of ld. CIT(A) dated 27.01.2015. Despite due notice, the assessee did not appear for the hearing. The Bench decided to proceed ex parte and heard the arguments of the ld. DR. The main contention was that the ld. CIT(A) wrongly allowed exemption to the assessee without elaborating on the eligibility criteria, especially since the assessee did not cooperate during the assessment proceedings. The Assessing Officer had requested specific information regarding professional receipts, which the assessee failed to provide. The ld. CIT(A) passed a brief order without addressing the Assessing Officer's objections. The ITAT, New Delhi decision in a similar case was cited in support.

The Tribunal noted that the assessee had been given multiple opportunities to explain and provide necessary information during the assessment process. However, the assessee either sought adjournments or failed to attend the proceedings. The Assessing Officer's order highlighted instances where the assessee did not comply with requests for information, particularly regarding professional receipts. The ld. CIT(A) granted relief to the assessee without adequately addressing the Assessing Officer's concerns or providing a detailed rationale. Consequently, the Tribunal decided to remit the issue back to the ld. CIT(A) with instructions to deliver a comprehensive and reasoned order, taking into account the Assessing Officer's observations. The assessee was to be granted a fair opportunity to present their case during the reassessment.

In conclusion, the appeal filed by the Revenue was allowed for statistical purposes, emphasizing the need for a thorough and reasoned decision by the ld. CIT(A) in accordance with the Assessing Officer's concerns.