The Delhi Bench of Income Tax Appellate Tribunal ( ITAT ) restored the case back to the National Faceless Appeal Centre ( NFAC ) for fresh adjudication of its section 11(1A) exemption claim, highlighting the inadequate discussion in the impugned order.
Aastha Educational Society, the appellant-assessee, was engaged in educational activities and had claimed exemption under Section 11(1A) of the Income Tax Act. For the Assessment Year 2015-16, the assessee’s exemption claim was disallowed by the lower authorities, resulting in an addition of Rs. 1,81,71,431, representing capital gains.
Despite being called twice, none appeared on behalf of Aastha Educational Society, leading the Tribunal to proceed ex-parte and ultimately restore the case back to the CIT(A)-NFAC for fresh adjudication.
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Appellant argued that the lower authorities failed to consider its exemption claim, and submitted that the CIT(A)-NFAC’s order did not provide detailed adjudication as required under section 250(6) of the Act. However, the Tribunal noted that the CIT(A)-NFAC’s order lacked proper discussion and adjudication, and thus restored the case back to the CIT(A)-NFAC for fresh adjudication.
The tribunal found that the CIT(A)-NFAC had erred by not framing any point of discussion and not giving detailed adjudication as contemplated under section 250(6) of the Act.
The two-member bench comprising Satbeer Singh Godara ( Judicial Member ) and M. Balaganesh ( Accountant Member ) remanded the matter back to the CIT(A)-NFAC for fresh adjudication, directing the CIT(A)-NFAC to provide detailed adjudication and frame points of discussion as contemplated under section 250(6) of the Act.
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