Loading judgment…
Facts
The assessee, a cooperative bank, had its case reopened under Section 147 for AY 2013-14 due to information that interest income on NPAs was not credited to the profit and loss account. The assessee did not comply with notices, and the AO made an addition of Rs. 81,32,393/-. The CIT(A)/NFAC dismissed the appeal ex-parte.
Held
The Tribunal set aside the ex-parte order of the CIT(A)/NFAC due to technical reasons (spam email) and remanded the matter back for a fresh decision after providing the assessee with a reasonable opportunity of being heard.
Key Issues
Whether the ex-parte order passed by the CIT(A)/NFAC was justified, and whether the assessee should be granted another opportunity to present its case.
Sections Cited
147, 148, 142(1), 151
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, PUNE BENCH “B”, PUNE
Before: SHRI MANISH BORAD & SHRI VINAY BHAMORE
Assessment Year : 2013-14 Shree Vyas Dhanvarsha Vs. ITO, Ward-1(4), Sahakari Bank Ltd., Jalgaon. 2944, Main Road, Yawal, Dist. Jalgaon- 425301. PAN : AAALS0041D Appellant Respondent Assessee by : Shri Vinay Kwadia (Virtual) Revenue by : Shri Kumar Manish Sinha Date of hearing : 09.04.2025 Date of pronouncement : 30.05.2025 आदेश / ORDER
PER VINAY BHAMORE, JM:
This appeal filed by the assessee is directed against the order dated 12.11.2024 passed by Ld. CIT(A)/NFAC for the assessment year 2013-14.
The appellant has raised the following grounds of appeal :- “1) Under the facts and circumstances of the case and in law, the assessment order passed us 147 on 29.03.2022 on the basis of notice u/s 148 issued on 12.04.2021 without following the provisions of section 147 to 151 relating to reassessment proceedings as amended by Finance Act 2021 w.e.f. 01.04.2021 is bad in law and therefore liable to be quashed.
2) Under the facts and circumstances of the case and in law, the CIT(A), NFAC has erred in confirming the addition made by the AO by treating the interest receivable on Non-Performing Assets (NPAs) of Rs.81,32,393/- as income of the appellant chargeable to tax on accrual basis for AY 2013-14. 3) Under the facts and circumstances of the case and in law, the CIT(A), NFAC has erred in dismissing the appeal without appreciating the facts of the case and without adjudicating any of the grounds of appeal before him. 4) The appellant craves the permission to add, amend, modify, alter, revise, substitute, delete any or all grounds of appeal, if deemed necessary at the time of hearing of the appeal.”
3. Facts of the case, in brief are that the assessee is a cooperative bank and has furnished its return of income on 16.03.2014 by declaring total income of Rs.1,38,446/-. Subsequently, on the basis of information received by the Department that the interest income on NPA was not credited to the profit and loss account, however the same was disclosed in the balance sheet. The case was reopened u/s 147 of the IT Act after obtaining approval from the competent authority and notice u/s 148 on 29.03.2021 and notice u/s 142(1) on 12.11.2021 respectively were issued to the assessee. The assessee neither complied with the above notice nor furnished any return in compliance to notice u/s 148 of the IT Act. However, on 21.02.2022 the assessee furnished a reply that the amount of interest on NPA is shown separately under the hand interest receivable and the same is treated as income only when it is actually realised and then it is credited to profit and loss account. Not being satisfied with the reply of the assessee, the Assessing Officer completed the assessment by determining total income of Rs.82,70,839/- as against the income returned by the assessee at Rs.1,38,446/-. The above assessed income includes interest on NPA of Rs.81,32,393/-.
4. Since the assessee remained absent, Ld. CIT(A)/NFAC dismissed the appeal filed by the assessee for want of prosecution. It is this order against which the assessee is in appeal before this Tribunal.
Ld. AR appearing from the side of the assessee submitted before us that the ex-parte order passed by Ld. CIT(A)/NFAC is unjustified. Ld. AR submitted before us that somehow the notices issued by Ld. CIT(A)/NFAC stored in spam email box and due to this reason the notices of hearing could not be seen by the assessee which resulted in ex-parte order. The Ld. AR requested to provide one opportunity to the assessee to appear before Ld. CIT(A)/NFAC so that the assessee can substantiate the grounds of appeal.
6. Ld. DR appearing from the side of the Revenue supported the orders passed by subordinate authorities and requested to confirm the same.
We have heard Ld. Counsels from both the sides and perused the material available on record. The sole prayer made by the Counsel of the assessee that the assessee is a co-operative society doing banking business and providing banking services to general public and if one opportunity is provided to the assessee, he would be in a position to substantiate the grounds of appeal before Ld. CIT(A/NFAC. Considering the totality of the facts of the case and in the interest of justice and without going into merits of the case, we deem it appropriate to set-aside the ex-parte order passed by Ld. CIT(A)/NFAC and remand the matter back to his file with a direction to decide the appeal afresh and as per fact and law after providing reasonable opportunity of hearing to the assessee. The assessee is also hereby directed to comply with the notices issued by Ld. CIT(A)/NFAC in this regard and produce requisite information/documents in support of grounds of appeal without taking any adjournment under any pretext, otherwise Ld. CIT(A)/NFAC shall be at liberty to pass appropriate order as per