FEROKE SERVICE CO-OPERATIVE BANK LIMITED,KOZHIKODE vs. ITO WARD 2(3), KOZHIKODE
Facts
The assessee, a co-operative society, filed its return for AY 2017-18 claiming a deduction under Section 80P, resulting in Nil income. The AO disallowed the Section 80P claim, leading to an addition of Rs. 1,90,51,885/-. The CIT(A) subsequently dismissed the assessee's appeal ex-parte for non-prosecution.
Held
The Tribunal held that the CIT(A) is bound by Section 250(6) to decide appeals on merits, even if disposed of ex-parte. Consequently, the case was remanded to the CIT(A) for a de novo disposal on merits after affording the assessee a fresh opportunity of hearing.
Key Issues
Whether the CIT(A) can dismiss an appeal solely for non-prosecution without considering its merits, and if so, whether this is contrary to Section 250(6) of the Income Tax Act.
Sections Cited
80P, 143(3), 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. 725/Coch/2024 Assessment Year: 2017-18 Feroke Service Co-op. Bank Ltd. .......... Appellant 1, Cheruvannur, Feroke, Kozhikoe 673631 [PAN: AAAAF2402N] vs. The Income Tax Officer .......... Respondent Ward - 2(3), Kozhikode Appellant by: Shri Rishal K., Advocate Respondent by: Smt. Leena Lal, Sr. D.R. Date of Hearing: 04.02.2025 Date of Pronouncement: 21.02.2025
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 27.06.2024 for Assessment Year (AY) 2017-18.
Brief facts of the case are that the appellant is a co-operative society registered under the Kerala State Co-operative Societies Act, 1969.The appellant filed return of income for AY 2017-18 on 13.11.2017 declaring Nil income after claiming deduction u/s. 80P of the Act. Against the said return of income, the assessment was
2 ITA No. 725/Coch/2024 Feroke Service Co-op. Bank Ltd. completed by the Income Tax Officer, Ward-2(3), Kozhikode (hereinafter called "the AO") vide order dated 23.12.2019 passed u/s. 143(3) of the Income Tax Act, 1961 (the Act) at a total income of Rs. 1,90.51.995/-. While doing so the AO made addition of Rs. 1,90,51,885/- disallowing the claim made by the assessee u/s. 80P of the Act.
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 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 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.
3 ITA No. 725/Coch/2024 Feroke Service Co-op. Bank Ltd. 6. In the result, the appeal filed by the assessee is allowed for statistical purposes
Order pronounced in the open court on 21st February, 2025.
Sd/- Sd/- (SOUNDARARAJAN K.) (INTURI RAMA RAO) JUDICIAL MEMBER ACCOUNTANT MEMBER Cochin, Dated: 21st 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
