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Facts
The assessee, a district level Co-operative bank, is in appeal against the order for AY 2020-21. A survey was conducted where payments in excess of Rs.1 crore were noted, leading to a show cause notice. The AO determined a tax liability and interest. The CIT(A) dismissed the appeal due to no response from the assessee.
Held
The Tribunal set aside the appeal to the file of the CIT(A) for de novo adjudication. The assessee is granted one more opportunity to file relevant evidence, and the CIT(A) is directed to provide a hearing. Failure to substantiate will allow the CIT(A) to proceed as per law.
Key Issues
Whether the assessee should be granted another opportunity to present evidence before the CIT(A) after failing to respond earlier.
Sections Cited
133A(2A), 194N, 201(1A)
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Income Tax Appellate Tribunal, ‘B’ BENCH: CHENNAI
Before: SHRI MANU KUMAR GIRI & SHRI JAGADISH
आदेश / O R D E R
PER MANU KUMAR GIRI, JM:
This is an appeal preferred by the assessee against the order of the Learned Commissioner of Income Tax (Appeal)/Addl./JCIT (A), (hereinafter in short ‘the Ld.CIT(A)’), Kochi, dated 21.03.2025 for the Assessment Year (hereinafter in short ‘AY’) 2020-21.
The brief facts of the case are that the assessee is a district level Co-operative engaged in business of banking. A Survey u/s.133A (2A) of (AY 2020-21) The Thoothukudi District Central Co-op. Bank Ltd. Income tax Act, 1961 (hereinafter referred to as ‘the Act‘) was conducted at the business premises on 28.2.2020. During the course of survey, details of payments made by the assessee in cash in aggregate of such sum in excess of Rs.1 crore during the previous year 2019-20 was called for to ascertain whether the assessee has complied with the provisions of Section 194N of the Act. A show cause notice was issued. The AO has not considered the facts detailed in the reply of show cause notice and determined the Tax liability of Rs.1,33,37,687/- and had also charged interest u/s.201(1a) of Rs.6,00,196/-. However, the Ld. CIT(A) dismissed the appeal of the assessee as there was no response from the assessee.
Aggrieved, assessee is in appeal before us.
Before us also, the Ld. Counsel submitted that while adjudicating the matter the Ld. CIT(A) has not properly served. He further pleaded that for one more opportunity to file the evidence before the CIT(A). The Ld. Addl. CIT-DR pleaded for dismissal of the appeal on the ground that the assessee has not filed supporting evidences with regard to the addition before the Ld. CIT(A).
We have gone through the orders of lower authorities and submission addressed by the Ld.DR. We are of the considered view that in the interest of justice assessee should be given one more opportunity before Ld.CIT(A) to file all relevant evidences/documents to prosecute his (AY 2020-21) The Thoothukudi District Central Co-op. Bank Ltd. case. Therefore, in the light of aforesaid factual position we deem it fit to set aside this appeal to the file of Ld.CIT(A) for de novo adjudication of appeal. The Ld.CIT(A) who shall proceed for de novo adjudication of appeal after providing proper opportunity of hearing to the assessee. The assessee is directed to substantiate its case forthwith without fail, failing which, the Ld.CIT(A) shall be at liberty to proceed with the appellate proceedings as per law.
In the result, appeal filed by the assessee is allowed for statistical purpose.
Order pronounced on the 21st day of July, 2025, in Chennai.