INCOME TAX ACT, 1961

Section 10(24)

Exemption under section 10(24) - Allowability - Documentary evidence were not available before lower authorities and appeal dismissed ex parte - Remand of matter

Assessee did not file any return of income under section 139(1) and AO initiated reassessment proceedings under section 147 by issuing notice under section 148 on basis of AIR information showing interest income received by the assessee from SBBJ. Though assessee filed its return of income showing NIL income after claiming exemption under section 10(24) but AO did not accept it as it was filed belatedly. Held: It was pertinent to note that even documentary evidence regarding registration of assessee's Trade Union was not produced either before AO or before CIT(A), therefore, in these facts circumstances assessee produced all documentary evidences to show that it was a registered Trade Union and income during the year was earned from interest from the bank deposits as well as rental income in respect of property owned by it. Since explanation and documentary evidence were not available before lower authorities and appeal of assessee was dismissed ex parte, therefore, in interest of justice, matter was remitted back to AO to frame assessment de novo after considering all documentary evidences regarding source of income and eligibility of assessee for exemption under section 10(24).

REFERRED :

FAVOUR : Matter remanded

A.Y. : 2010-11

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