Prabhat Adarsh Jan Kalyan Samiti v. Income-tax Officer

Parties Involved

Facts Summary

The assessee, Prabhat Adarsh Jan Kalyan Samiti, filed its return of income declaring ‘Nil’ income and claiming exemption under sections 11 & 12 of the Income Tax Act, 1961. The case was selected for scrutiny assessment, and notices under sections 143(2) and 142(1) were issued by the Assessing Officer (AO). However, the assessee did not comply, leading the AO to frame an ex parte best judgment assessment under section 144, disallowing 50% of the expenses amounting to Rs. 92,28,130/- and assessing an income of Rs. 92,28,130/-. The assessee filed an appeal with the Commissioner of Income Tax (Appeals) (CIT(A)), claiming that replies were filed but not considered by the AO. The CIT(A) dismissed the appeal for non-prosecution after issuing multiple notices with no compliance from the assessee. The assessee then filed this appeal before the Income Tax Appellate Tribunal, claiming that the CIT(A) did not adjudicate the appeal on merits.…

Legal Issues

• 1. Whether the delay in filing the appeal should be condoned.
• 2. Whether the ex parte best judgment assessment by the AO was valid.
• 3. Whether the appeal before the CIT(A) was properly adjudicated.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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