SURAJ CO-OP CREDIT SOCIETY LIMITED,KHAR WEST vs. INCOME TAX OFFICER WARD 22 3 4 MUMBAI, MUMBAI

This appeal filed by the assessee is directed against the order dated 21.01.2025 passed by the learned Additional/Joint Commissioner of Income-tax (Appeals), Raipur [“learned CIT(A)”], under section 250 of the Income-tax Act, 1961 (“the Act”), arising from the assessment order dated 10.12.2019 passed under section 143(3) of the Act for the assessment year 2017-18.

The assessee has raised grounds challenging, inter alia, the dismissal of its appeal without adjudication on merits, disallowance of deduction of ₹25,75,356 under section 80P(2)(d) of the Act and addition of ₹66,06,561 under section 69A of the Act.

Briefly stated, the Assessing Officer completed the assessment under section 143(3) of the Act at a total income of ₹91,81,920 after disallowing the deduction claimed under section 80P and treating cash deposits of ₹66,06,561 as unexplained money under section 69A of the Act. The assessee carried the matter in appeal before the learned CIT(A).

The learned CIT(A), noticing that the assessee had not complied with the notices of hearing, dismissed the appeal for non-prosecution by relying, inter alia, upon the decision in CIT v. Multiplan India (P.) Ltd. (38 ITD 320). Aggrieved, the assessee is in appeal before the Tribunal.

We have heard the rival submissions and perused the material available on record. We find that the learned CIT(A) has not adjudicated the grounds raised by the assessee on merits and has dismissed the appeal merely for non-prosecution. Under section 250(6) of the Act, the learned CIT(A) is required to dispose of the appeal on merits by stating the points for determination, the decision thereon and the reasons for such decision. Therefore, the dismissal of the appeal by applying the decision in Multiplan India (P.) Ltd. (supra), without deciding the issues on merits, cannot be sustained.

Accordingly, the impugned order is set aside and the entire appeal is restored to the file of the learned CIT(A) for fresh adjudication on merits, after providing a reasonable opportunity of hearing to the assessee. The assessee is also directed to cooperate in the appellate proceedings and furnish the necessary details within the time allowed.

In the result, the appeal filed by the assessee is allowed for statistical purposes.