JEEVAN TELECASTING CORPORATION LIMITED,KOCHI vs. JOINT COMMISSIONER OF INCOME TAX TDS CIRCLE KOCHI, KOCHI
Facts
The assessee deducted TDS amounting to Rs. 21,17,532/- but failed to remit it to the government account within the prescribed time for AY 2019-20, leading to a penalty of Rs. 21,71,532/- under Section 271C. The CIT(A) dismissed the assessee's appeal ex-parte for non-prosecution without addressing the merits of the case.
Held
The Tribunal held that the CIT(A) erred by dismissing the appeal ex-parte without disposing of it on merits, which is contrary to Section 250(6) of the Income Tax Act and established legal precedent. Therefore, the case was remanded back to the CIT(A) for a de novo disposal on merits after providing the assessee a reasonable opportunity of hearing.
Key Issues
Whether the CIT(A) can dismiss an appeal ex-parte for non-prosecution without deciding it on merits, and if such a dismissal is in conformity with the provisions of the Income Tax Act, 1961.
Sections Cited
274, 271C, 250(6)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, COCHIN BENCH
Before: SHRI INTURI RAMA RAO, AM & SHRI SOUNDARARAJAN K., JM
IN THE INCOME TAX APPELLATE TRIBUNAL COCHIN BENCH BEFORE SHRI INTURI RAMA RAO, AM AND SHRI SOUNDARARAJAN K., JM ITA No. 809/Coch/2024 Assessment Year: 2019-20 Jeevan Telecasting Corporation Ltd. .......... Appellant 32/2401 B Rashtradeepia Building Palarivttom, Kochi 682025 [PAN: AAACJ8267F] vs. Jt. Commissioner of Income Tax .......... Respondent TDS Circle, Kochi Appellant by: Shri Prashanth Srinivas, CA Respondent by: Shri Omanakuttan, Sr. D.R. Date of Hearing: 19.03.2025 Date of Pronouncement: 29.04.2025
O R D E R Per: Inturi Rama Rao, AM This appeal filed by the assessee is directed against the order of the National Faceless Appeal Centre, Delhi [CIT(A)], dated 10.07.2024 for Assessment Year (AY) 2019-20.
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
2 ITA No. 809/Coch/2024 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.
3 ITA No. 809/Coch/2024 Jeevan Telecasting Corporation Ltd. Therefore, in the light of the above legal position we 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 29th April, 2025.
Sd/- Sd/- (SOUNDARARAJAN K.) (INTURI RAMA RAO) JUDICIAL MEMBER ACCOUNTANT MEMBER Cochin, Dated: 29th April, 2025 n.p. Copy to: 1. The Appellant 2. The Respondent 3. The Pr. CIT concerned 4. The Sr. DR, ITAT, Cochin 5. Guard File By Order
Assistant Registrar ITAT, Cochin
