9911796707
TMI Blog2024 (9) TMI 1440X X X X Extracts X X X X X X X X Extracts X X X X ..... Such kind of order has to be held perverse, bereft of any findings and bad in law. Since the NFAC has not adjudicated the issue on merits, we are of the considered view that the matter has to be remanded back to the file of the NFAC for denovo adjudication as per law while complying with the principles of natural justice. The NFAC should also call for a report from the AO regarding Form No. 10 filed by the assessee and if on the basis of Form No.10 and consideration thereof, as whatsoever submissions have been made by assessee, the NFAC finds there is merit in the matter, accordingly, the matter should be disposed off as per law at the same time, the assessee is also directed to comply with the hearing notices as and when called for throug ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es, there would not have been any additions in the case of the assessee. 3. We observe from the assessment order that the Assessing Officer has noticed from the income and expenditure account and had referred to some transactions with the 'Constituent Units of the assessee society and the Assessing officer refers that there were certain inter unit transactions. In this regard, the Assessing officer has added Rs.1309627 and Rs.720405/- totalling to Rs.20,30,032/- in the hands of the assessee trust. However, there was no iota of any reasoning given by the Assessing Officer as to what are the 'Constituent Units' and what sort of inter unit transactions, the Assessing Officer is talking about. There is no enquiry conducted in this r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... FAC, NFAC had simply reproduced the submissions of the assessee, wherein, relevant part is para 4 5, which is extracted as follows for the sake of completeness: 4, During the course of assessment proceedings, the assessee had submitted year wise accumulation and utilisation of amount accumulated u/s.11(2). The ld AO has made this submission as an part of assessment order (page 5). In this submission, the assessee has wrongly submitted that a sum of Rs.101619650.00 (Rs.ten crores sixteen lakhs nineteen thousand six hundred only) spent on purchase of land during the year has been utilised out of sum accumulated u/s.11(2) of the income tax Act, 1961. In fact during the last six years the assessee had accumulated a sum of Rs.3,97,62,876.00 (Rs. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... explaining the amount of money, which was yet to be spent and how they planned to spend the remaining amount in the course of next five years and everything is explained in the said Form No.10, which needed to be examined and considered by the Assessing Officer while framing the assessment order, which was not done by him. According to ld counsel for the assessee, it had therefore resulted in the additions. 7. We find that some facts have been brought out in the written submissions filed by the assessee before the NFAC as is evident in the foregoing paras as extracted. The NFAC has simply written that there is no material on record to warrant interference with the order of the AO and accordingly, dismissed the appeal of the assessee. The f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ord into the merits of the case. Such kind of order has to be held perverse, bereft of any findings and bad in law. 9. Considering the entire facts and circumstances of the case, since the NFAC has not adjudicated the issue on merits, we are of the considered view that the matter has to be remanded back to the file of the NFAC for denovo adjudication as per law while complying with the principles of natural justice. The NFAC should also call for a report from the Assessing Officer regarding Form No. 10 filed by the assessee and if on the basis of Form No.10 and consideration thereof, as whatsoever submissions have been made by ld counsel for the assessee, the NFAC finds there is merit in the matter, accordingly, the matter should be dispose ..... X X X X Extracts X X X X X X X X Extracts X X X X
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