JEEVAN TELECASTING CORPORATION LIMITED,KOCHI vs. JOINT COMMISSIONER OF INCOME TAX TDS CIRCLE KOCHI, KOCHI

Brief facts of the case are that the assessee had deducted TDS amounting to Rs.21,17,532/- during the financial year 2018-19 but, not remitted TDS amount to the Government Account in time. Thus, the assessee was treated as an assessee in default. A notice u/s. 274 Jeevan Telecasting Corporation Ltd. r.w.s. 271C of the Income Tax Act, 1961 (the Act) was issued on 21.11.2019 enabling the assessee to show cause as to why penalty u/s. 271C of the Act should not be imposed. In response to the notice, assessee submitted reply before the AO. The AO was of the view that since the tax was deducted but not deposited to the government account within the prescribed time, the appellant is liable for penalty u/s. 271C of the Act and levied penalty of Rs. 21,71,532/-.

Being aggrieved, an appeal was filed before the CIT(A), who vide the impugned order dismissed the appeal exparte for non prosecution.

Being aggrieved, the assessee is in appeal before the Tribunal in the present appeal.

We have heard the rival contentions of both the parties and perused the material available on record. 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.

In the result, the appeal filed by the assessee is allowed for statistical purposes Order pronounced in the open court on 29th April, 2025.