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Facts
The assessee, Elayavoor Service Co-operative Bank Ltd., filed appeals against ex-parte orders passed by the CIT(A) for AY 2018-19, which pertained to both quantum of assessment and penalty under Section 270A. The CIT(A) had issued four hearing notices, but the orders did not confirm proper service of these notices to the assessee, leading to orders passed without considering the merits of the case.
Held
The Income Tax Appellate Tribunal remitted both appeals back to the CIT(A) for a fresh decision. The Tribunal directed the CIT(A) to decide the cases on merits, ensuring that the assessee is provided a meaningful opportunity of being heard before passing any order.
Key Issues
Whether the CIT(A) was justified in passing ex-parte orders without ensuring proper service of hearing notices and providing a meaningful opportunity to the assessee to present its case.
Sections Cited
270A
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Income Tax Appellate Tribunal, COCHIN BENCH:COCHIN
Before: SHRI INTURI RAMA RAO & SHRI PRAKASH CHAND YADAV
Date of Hearing : 29.05.2025 Date of Pronouncement : 23.06.2025 O R D E R PERPRAKASH CHAND YADAV, JUDICIAL MEMBER:
Present appeals of the assessee are arising from the orders of ld. CIT(A) dated 17.12.2024 having DIN & Order No.ITBA/NFAC/S/250/2024-25/1071303667(1) and relates to the AY 2018-19 (Penalty appeal) and dated 6.12.2024 having DIN & Order no.ITBA/NFAC/S/250/2024-25/1070979690(1) for the AY 2018-19.
At the outset, we observe that the ld. CIT(A) has passed the orders ex-parte without considering the merits of the case. In these two appeals, one appeal related to quantum and one appeal related to penalty u/s 270A of the Income Tax Act, 1961 (in short “The Act”).
& 115/Coch/2025 Elayavoor Service Co-operative Bank Ltd., Kannur Page 2 of 2 3. At the outset, ld. Counsel for the assessee crave for one more opportunity before ld. CIT(A).
Ld. D.R. relied upon the orders of authorities below.
After considering the rival submissions and perusing the materials available on record, we observe that the ld. CIT(A) has simply issued four notices of hearing to the assessee. Order of ld. CIT(A) is silent on the aspect of service of these notices to the assessee. Therefore, in the interest of justice, we remit these appeals to the file of ld. CIT(A) to decide afresh in accordance with law. Needless to say, that ld. CIT(A) will grant meaningful opportunity to the assessee before passing any order.
In the result, appeals filed by the assessee are allowed for statistical purposes. Order pronounced in the open court on 23rd Jun, 2025