BASILIA CO OP HOUSING SOCIETY LTD,THANE vs. CIT(APPEALS), CIRCLE 1, THANE

Per Saktijit Dey, VP:

This is an appeal by the assessee against order dated 12.07.2024 passed by National Faceless Appeal Centre (NFAC), Delhi for the Assessment Year (AY)
2018-19. 2. There is a small delay of eleven days in filing the appeal. After considering the submissions of the parties, we are of the view that the delay was due to reasonable cause. Hence, we condone the delay and admit the appeal for adjudication.

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AY 2018-19
3. We have heard the parties and perused the materials on record. Basic grievance of the assessee is against ex-parte disposal of its appeal without providing reasonable opportunity of being heard that too through a non- speaking order.
4. Facts on record reveal that the assessee is a Cooperative Society. For the assessment year under dispute, assessment was reopened under Section (u/s.) 147 of the Income Tax Act, 1961 (in short the ‘Act’). As alleged by the Assessing Officer
(AO), there was failure on the part of the assessee to effectively comply with various statutory notices. Whatever reply filed by the assessee, were vague and sketchy.
Thus, ultimately the Assessing Officer completed the assessment u/s. 147 r.w.s. 144
and 144A of the Act determining the total income at Rs.1,06,39,029/-. Against the assessment order so passed assessee preferred an appeal before learned First
Appellate Authority. However, by the impugned order, learned First Appellate
Authority dismissed the appeal.
5. As could be seen from the observations of learned First Appellate Authority in the body of the appellate order, more specifically, in Paragraph 6.6 and 6.7, the appeal of the assessee basically was dismissed on the charge of non-prosecution.
6. In our view, as per the statutory mandate, learned First Appellate Authority has no power to dismiss an appeal filed by the assessee merely on the ground of non- prosecution. Even if the assessee does not comply with the hearing notices, the learned First Appellate Authority is supposed to decide the appeal on merits based on the materials available on record through a speaking order. The aforesaid statutory mandate has not been carried out by learned First Appellate Authority in the present case.
7. In view of the aforesaid, we set aside the impugned order of learned First
Appellate Authority and restore the issue back to his file for de-novo adjudication after providing reasonable opportunity of being heard to the assessee. It is made

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AY 2018-19
Mumbai; Dated : 23.04.2025
Aks/-

Copy of the Order forwarded to :
1. The Applicant
2. The Respondent
3. The CIT(A)
4. CIT - concerned
5. DR, ITAT, Mumbai
6. Guard File
BY ORDER,

(Dy./Asstt.