ARIFA EDATHIL,KOZHIKODE vs. ACIT, CENTRAL CIRCLE-2, KOZHIKODE
Facts
The assessees filed appeals against ex-parte orders passed by the CIT(A) imposing penalties under Section 271(1)(c) of the Income Tax Act, 1961. The assessees contended they were not computer literate and thus failed to respond to hearing notices, leading to the ex-parte orders. Previously, the Tribunal had already restored the quantum assessment matters to the CIT(A) for fresh adjudication.
Held
The Tribunal observed that the CIT(A)'s orders were ex-parte due to the assessees' non-appearance. In the interest of natural justice and equity, and as a last opportunity, the Tribunal restored all the penalty appeals to the file of the CIT(A) for fresh adjudication. The assessees were directed to cooperate with the Revenue and avoid unnecessary adjournments.
Key Issues
Whether ex-parte orders imposing penalty under Section 271(1)(c) by the CIT(A) should be set aside and the matter restored for fresh adjudication, given the assessees' reasons for non-appearance and prior remand of quantum assessments.
Sections Cited
250, 271(1)(c)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, COCHIN BENCH
Before: SHRI GEORGE GEORGE K., VP & SHRI INTURI RAMA RAO, AM
IN THE INCOME TAX APPELLATE TRIBUNAL COCHIN BENCH BEFORE SHRI GEORGE GEORGE K., VP AND SHRI INTURI RAMA RAO, AM ITA No. 1013 /Coch/2024 – AY: 2015-16 Kalathingal Fizal Rahman .......... Appellant Rose Villa, Petta, Feroke P.O., Kozhikode 673631 [PAN: ACZPR4683H] ITA Nos. 1014 & 1015 /Coch/2024 – AYs: 2014-15 & 2015-16 Hasna Muhammed Sherif .......... Appellant Arsh, Vengalam P.O., Kozhikode 673303 [PAN: [ADFPH4017E]
ITA Nos. 1016 & 1017 /Coch/2024 – AYs: 2014-15 & 2015-16 Arifa Edathil .......... Appellant Edathil House, Karayad P.O. Meppayyur, Kozhikode 673524 [PAN: [AANPE7000R] vs. Asst. Commissioner of Income Tax .......... Respondent Central Circle-2, Kozhikode Appellant by: Shri C.B.M. Warrier, CA Respondent by: Smt. Leena Lal, Sr. D.R. Date of Hearing: 01.04.2025 Date of Pronouncement: 01.04.2025
2 ITA Nos. 1013-1017/Coch/2024 Kalathingal Fizal Rahman & ors. O R D E R Per: George Gorge K., VP These appeals at the instance of assessees are directed against separate orders of the Commissioner of Income Tax (Appeals)-3, Kochi [CIT(A)], dated 12.11.2024 & 21.10.2024 passed u/s. 250 of Income Tax Act, 1961 (hereinafter "the Act") for assessment years (AYs) 2014-15 & 2015-16. These orders of the CIT(A) arise out of orders of AO imposing penalty u/s. 271(1)(c) of the Act.
Since identical issues are involved in all these appeals, they were heard together and are being disposed off vide this consolidated order.
At the very outset we notice that the CIT(A) has passed exparte orders since the assessees did not respond to the hearing notices issued by the office of the CIT(A). The learned A.R. submitted that the assessees are not computer literates and has failed to take notice of the hearing notices issued from the office of the first appellate authority. Moreover, the learned A.R. submitted, these appeals are arising out of the penalty imposed u/s. 271(1)(c) of the Act and in the quantum assessments, the Tribunal had restored the matter to the file of the CIT(A) for fresh adjudication. Hence it was prayed that in the interest of natural justice and equity the matter may be restored to the files of the CIT(A).
3 ITA Nos. 1013-1017/Coch/2024 Kalathingal Fizal Rahman & ors. 4. On the other hand, the learned Sr. DR supported the orders of the AO imposing penalty and the orders of the CIT(A) confirming the same.
We have heard the rival submissions and perused the material available on record. We find that these the CIT(A)’s orders are exparte orders since the assessees did not respond to the hearing notices nor filed written submissions. As a last opportunity, in the interest of justice and equity, we restore these appeals to the file of the CIT(A). The assessee is directed to cooperate with the Revenue and shall not seek unnecessary adjournments. It is ordered accordingly.
In the result, all the appeals filed by the assessees are allowed for statistical purposes.
Order pronounced in the open court on 1st April, 2025.
Sd/- Sd/- (INTURI RAMA RAO) GEORGE GEORGE K. JUDICIAL MEMBER VICE PRESIDENT Cochin, Dated: 1st April, 2025 n.p. Copy to: 1. The Appellant 4. The Sr. DR, ITAT, Cochin 2. The Respondent 5. Guard File 3. The Pr. CIT concerned Assistant Registrar ITAT, Cochin
