SIB STAFF CREDIT SOCIETY LTD NO.731,THRISSUR vs. ITO, WARD 2(1), THRISSUR

PDF · subscribers
ITA 796/COCH/2024Status: DisposedITAT Cochin19 February 2025AY 2020-21Bench: SHRI INTURI RAMA RAO (Accountant Member), SHRI KESHAV DUBEY (Judicial Member)3 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal held that the CIT(A) is obligated to dispose of appeals on merits, even if exparte, as per Section 250(6) of the Act and established legal precedent. Therefore, the matter was remanded to the CIT(A) for a de novo disposal on merits, ensuring a reasonable opportunity of hearing for the assessee.

What were the facts?

The appellant, a co-operative society, filed a nil income return for AY 2020-21 claiming deduction under Section 80P. The AO denied the deduction, assessing a total income of Rs. 61,13,148/-. The CIT(A) dismissed the appellant's appeal exparte for non-prosecution.

What were the issues?

Whether the CIT(A) can dismiss an appeal in limine for non-prosecution without deciding on its merits, and the procedural requirements for CIT(A) in disposing of such appeals.

Which sections of the Income-tax Act were involved?

Section 80P,Section 80P(2)(a)(i),Section 143(3),Section 144B,Section 250(6)

AI-generated summary — verify with the full judgment below

Cases cited in this judgment(1)Show list

Detected automatically from the text. Citations are also linked where they appear in the judgment. The count shows how many other judgments on BharatTax rely on the same authority.

Income Tax Appellate Tribunal, COCHIN BENCH

Before: SHRI INTURI RAMA RAO, AM & SHRI KESHAV DUBEY, JM

For Respondent: Smt. Leena Lal, Sr. D.R
Hearing: 30.01.2025Pronounced: 19.02.2025

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 29.07.2024 for Assessment Year (AY) 2020-21.

2.

Brief facts of the case are that the appellant is a co-operative society registered under the Kerala State Co-operative Societies Act, 1969. It is formed for the purpose of accepting deposits from members and lending money to the members. The return of income SIB Staff Credit Society Ltd. for AY 2020-21 was filed on 09.12.2020 declaring nil income after claiming deduction u/s. 80P of the Income Tax Act, 1961 (the Act) of Rs. 61,13,148/-. Against the said return of income, the assessment was completed by the Income Tax Officer, Ward-2(1), Thrissur (hereinafter called "the AO") vide order dated 27.09.2022 passed u/s. 143(3) r.w.s. 144B of the Income Tax Act, 1961 (the Act) at a total income of Rs. 61,13,148/- denying exemption u/s. 80P of the Act for the failure of the appellant to substantiate the claim for deduction u/s. 80P of the Act.

3.

Being aggrieved, an appeal was filed before the CIT(A) contending that the appellant is eligible for deduction u/s. 80P(2)(a)(i) of the Act. However, the CIT(A) dismissed the appeal exparte for non-prosecution.

4.

Being aggrieved, the assessee is in appeal before the Tribunal in the present appeal. When the appeal was called nobody appeared on behalf of the assessee despite due service of notice of hearing. Therefore, we proceeded to dispose of the appeal after hearing the learned Sr. DR.

5.

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 SIB Staff Credit Society Ltd. 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.

6.

In the result, the appeal filed by the assessee is allowed for statistical purposes Order pronounced in the open court on 19th February, 2025.

More judgments on Section 80P

All 5,069 judgments and leading authorities on Section 80P →

Recent GST High Court judgments

Search GST case law →