RASILY THENAMMACKAL KUNJUPILLA,KOTTAYAM vs. INCOME TAX OFFICER WARD 1 , KOTTAYAM

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ITA 77/COCH/2025Status: DisposedITAT Cochin24 February 2025AY 2021-2022Bench: SHRI INTURI RAMA RAO (Accountant Member)3 pages
AI SummaryRemanded

Facts

The assessee filed a return for AY 2021-22 declaring Rs. 5,15,730/-. The AO completed assessment under Section 143(3) read with Section 144B, adding Rs. 29,76,000/- under Section 69A as unexplained money, thereby increasing the total income to Rs. 34,91,730/-. The CIT(A) dismissed the assessee's appeal ex-parte for non-prosecution.

Held

The Tribunal held that the CIT(A) is duty-bound under Section 250(6) to frame points of determination and dispose of an appeal on merits, even if dismissed ex-parte for non-prosecution. The matter was remanded back to the CIT(A) for fresh 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 framing points of determination, and if the CIT(A) is obligated to dispose of appeals on merits.

Sections Cited

143(3), 144B, 69A, 250(6)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, COCHIN BENCH

Before: SHRI INTURI RAMA RAO, AM

For Appellant: Shri Prasanth Srinivas, CA
For Respondent: Smt. Leena Lal, Sr. D.R
Hearing: 11.02.2025Pronounced: 24.02.2025

IN THE INCOME TAX APPELLATE TRIBUNAL COCHIN BENCH

BEFORE SHRI INTURI RAMA RAO, AM ITA No. 77/Coch/2025 Assessment Year: 2021-22 Rasily Thenammackal Kunjupilla .......... Appellant Thenammackal House, Kanjirappally 686507 [PAN: AEHPK6306C] vs. The Income Tax Officer, Ward-1 .......... Respondent Sastri Road, Kottayam 686001

Appellant by: Shri Prasanth Srinivas, CA Respondent by: Smt. Leena Lal, Sr. D.R.

Date of Hearing: 11.02.2025 Date of Pronouncement: 24.02.2025

O R D E R This appeal filed by the assessee is directed against the order of the National Faceless Appeal Centre (NFAC), Delhi [CIT(A)] dated 08.11.2024 for Assessment Year (AY) 2021-22.

2.

Brief facts of the case are that appellant is an individual earning income primarily from house property. The return of income for AY 2021-22 was filed on 31.11.2021 declaring total income of Rs. 5,15,730/-. Against the said return of income, the assessment was completed by the Income Tax Officer, Ward-1, Kottayam (hereinafter called "the AO") vide order dated 21.12.2022 passed u/s. 143(3) r.w.s. 144B of the Income Tax Act, 1961 (the Act) at a total income of Rs. 34,91,730/-. While doing

2 ITA No. 77/Coch/2025 Rasily Thenammackal Kunjupilla so the AO made an addition of Rs. 29,76,000/- u/s. 69A of the Act as unexplained money.

3.

Being aggrieved, an appeal was filed before the CIT(A), who vide the impugned order dismissed the appeal exparte for non prosecution placing on the decision of the Hon'ble Supreme Court in the case of Ramlal vs. Rewa Coalfield Ltd. AIR 196 SC 361 and a few other orders.

4.

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

5.

I heard the rival contentions of the parties and perused the material available on record. I 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 I am 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.

3 ITA No. 77/Coch/2025 Rasily Thenammackal Kunjupilla 6. In the result, the appeal filed by the assessee is allowed for statistical purposes

Order pronounced in the open court on 24th February, 2025. 7.

Sd/- (INTURI RAMA RAO) ACCOUNTANT MEMBER Cochin, Dated: 24th February, 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 Assistant Registrar ITAT, Cochin