Loading judgment…
Facts
The assessee, a co-operative society, claimed deduction under Section 80P(2)(d). This was denied during processing, and a rectification application was also dismissed. The CIT(A) further dismissed the assessee's appeal for non-prosecution without examining the merits.
Held
The Tribunal held that the CIT(A) cannot dismiss an appeal for non-prosecution without examining the merits. The order of the CIT(A) was set aside, and the appeal was restored to the CIT(A)'s file for decision on merits.
Key Issues
Whether the CIT(A) can dismiss an appeal solely on grounds of non-prosecution without deciding the merits of the case?
Sections Cited
250, 154, 80P(2)(d)
AI-generated summary — verify with the full judgment below
Detected automatically from the text. The count shows how many other judgments on BharatTax rely on the same authority.
Income Tax Appellate Tribunal, “K (SMC
(Assessment Year:2021-2022) Progressive Ambar Co-Operative Housing Society Society Office, Progressives Ambar CHS Ltd, Koparkhairane, Navi Mumbai - 400709. [PAN:AACA90456G] …………. Appellant Vs Income Tax Officer Ward 28(2)(1), Mumbai IT Office, Vashi Railway Station Building, Navi Mumbai – 400703. …………. Respondent Appearance For the Appellant/Assessee : Shri Sanjiv Brahme For the Respondent/Department : Shri Bhagirath Ramawat Date Conclusion of hearing : 24.07.2025 Pronouncement of order : 31.07.2025 O R D E R [ Per Rahul Chaudhary, Judicial Member: 1. The present appeal preferred by the Assessee is directed against the order, dated 07/04/2025, passed by the National Faceless Appeal Centre (NFAC), Delhi [hereinafter referred to as ‘the CIT(A)’] under Section 250 of the Income Tax Act, 1961 [hereinafter referred to as ‘the Act’] whereby the Ld. CIT(A) had dismissed the appeal against the Rectification Order, dated 19/10/2022, passed under Section 154 of the Act for the Assessment Year 2021-2022.
The Assessee has raised following grounds of appeal :
“1. CIT(A) has erred in disallowing deduction under Section.80P(2)(d) of Rs.3,89,520/-.
Assessment Year 2021-2022 2. CIT(A) has erred in not allowing condonation for delay in filing appeal and disallowed deduction even though, assessee have filed Income Tax Return in time.”
The Assessee is a co-operative society. For the Assessment Year 2021-2022, the Assessee filed returned of income claiming deduction of INR.3,89,520/- under Section 80P(2)(d) of the Act which was denied while processing return of income. The Assessee filed a Rectification Application under Section 154 of the Act seeking rectification of the Intimation dated 19/10/2022 issued for the Assessment Year 2021-2022. The aforesaid Rectification Application was disposed off vide order, dated 08/12/2022. The Assessee challenged the aforesaid order before the CIT(A) in appeal instituted on 17/12/2022 which was dismissed on 07/04/2025. As a result, the Assessee has preferred the present appeal before the Tribunal.
The Learned Authorized Representative for the Assessee, at the outset, submitted that the CIT(A) had dismissed the appeal preferred by the Assessee vide impugned order, dated 07/04/2025, without examining the merits. In response, the Learned Departmental Representative pointed out that the Assessee had failed to comply with the notice(s) of hearing issued by the Learned CIT(A) and therefore, the CIT(A) had no option to dismiss the appeal. Reliance in this regard was placed on judicial precedent cited by the Learned CIT(A) in the order in this regard.
We have heard both the sides and have perused the material on record. It is admitted position that the appeal preferred by the Assessee was dismissed by the CIT(A) without examining the merits and on account of non-prosecution of appeal. In the case of Commissioner of Income Tax (Central), Nagpur Vs. Premkumar Arjundas Luthra (HUF): [2016] 240 Taxman 133 (Bombay)/[2017] 297 CTR 614 (Bombay)[25-04-2016], it has been held by the Hon’ble Bombay High Court that the provisions of the Act do not empower the CIT(A) to dismiss the appeal preferred by an Assessee Assessment Year 2021-2022 on account of non-prosecution. Accordingly, the CIT(A) was required to dispose of the appeal on merits. Therefore, we set aside the order, dated 06/10/2024, passed by the CIT(A) and restore the appeal to the file of the CIT(A) with the directions to decide the same on merits as per law. All the rights and contentions of the Assessee are left open. The Assessee has directed to cooperate in the appellate proceedings before the CIT(A) and not seek unnecessary adjournment. Further, the Assessee is also directed to file all the relevant submissions/documents/details on which the Assessee wishes to place reliance before the CIT(A) on receiving notice of hearing. The CIT(A) is directed to consider the evidence/additional evidence filed by the Assessee before the CIT(A) as per law. It is clarified that in case the Assessee fails to enter appearance or file relevant documents/details/submission, the CIT(A) would be at liberty to adjudicate the appeal on merits on the basis of material on record.
Since we have restored the appeal to the file of the CIT(A) in terms of paragraph 4 above, Ground No. 1 & 2 raised by the Assessee are treated as allowed for statistical All the rights and contentions are left open.
In result the present appeal is treated as allowed for statistical purposes.
Order pronounced on 31.07.2025.