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Facts
The assessee, Guruvayur Co-op. Urban Bank Ltd., filed its return of income for AY 2014-15, which was subsequently revised. The AO completed the assessment by making a disallowance of interest paid on deposits without deducting TDS. The CIT(A) dismissed the assessee's appeal without a detailed discussion on merits.
Held
The Tribunal held that the CIT(A) is duty-bound to dispose of an appeal on merits, even if ex-parte, and should not dismiss it in limine for non-prosecution without proper adjudication. Therefore, the matter requires to be remanded.
Key Issues
Whether the CIT(A) erred in dismissing the appeal in limine without adjudicating on merits. Whether the disallowance of interest paid on deposits without TDS was justified.
Sections Cited
250(6) of the Act, 143(3) of the Income Tax Act, 1961
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Income Tax Appellate Tribunal, COCHIN BENCH
Before: SHRI INTURI RAMA RAO, AM & SHRI SONJOY SARMA, JM
O R D E R Per: Inturi Rama Rao, AM These appeals filed by the assessee are directed against different order of the National Faceless Appeal Centre, Delhi [CIT(A)] dated 27.09.2023 & 27.03.2024 for Assessment Years (AY) 2014-15 & 2018-19, respectively.
Since identical issues and facts are involved in these appeals, they are heard together and disposed of by this common order.
For the sake of convenience and clarity the facts relevant to the appeal bearing for AY 2014-15 are stated herein.
& 331/Coch/2025 Guruvayur Co-op. Urban Bank Ltd.
Brief facts of the case are that the appellant is a co-operative society registered under the Kerala State Co-operative Societies Act, 1969. The return of income for AY 2014-15 was filed on 28.09.2014 declaring total income of Rs. 1,87,85,930/-. Subsequently, the return of income was revised on 31.05.2015 declaring total income of Rs.1,42,00,070/-. Against the said return of income, the assessment was completed by the ACIT, Circle-2(2), Thrissur (hereinafter called "the AO") vide order dated 143(3) of the Income Tax Act, 1961 (the Act) at a total income of Rs. 6,42,96,300/-. While doing so, the AO made disallowance of interest paid on deposits without deducting TDS of Rs. 5,00,86,231/-.
Being aggrieved, an appeal was filed before the CIT(A), who vide the impugned order confirmed the action of the AO.
Being aggrieved, the appellant is in appeal before this Tribunal in the present appeal.
We find that the learned CIT(A) dismissed the appeal in limine for non prosecution. As contemplated u/s. 250(6) of the Act the CIT(A) is required to frame points of determination followed by a detailed discussion thereupon before passing the order. It is the settled position of law that the CIT(A), even while disposing of the appeal exparte, is duty bound to dispose of the appeal on merits. Reliance in this regard can be placed on the decision of the Hon'ble Bombay High Court in the case of PCIT vs. Premkumar Arjundas Luthra 279 CTR 614. Therefore, in the light of the above legal position we & 331/Coch/2025 Guruvayur Co-op. Urban Bank Ltd. are of the considered view that the matter requires to be remanded to the file of the CIT(A) with the direction to dispose of the appeal de novo on merits after affording reasonable opportunity of hearing to the assessee.
In the result, the appeal filed by the assessee is allowed for statistical purposes.
Order pronounced in the open court on 6th August, 2025.