FEROKE SERVICE CO-OPERATIVE BANK LIMITED,KOZHIKODE vs. ITO WARD 2(3), KOZHIKODE

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 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.