PROGRESSIVE AMBAR CO OPERATIVE HOUSING SOCIETY LIMITED,NAVI MUMBAI vs. ITO - WARD 28(2)(1), NAVI MUMBAI

The Assessee has raised following grounds of appeal :

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.