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Facts
The assessee, a co-operative society, filed its return for AY 2017-18 declaring Nil income after claiming deduction under Section 80P. The AO completed the assessment under Section 143(3) at a total income of Rs. 7,77,180/-. The CIT(A) subsequently dismissed the assessee's appeal *ex parte* for non-prosecution.
Held
The Tribunal held that the CIT(A) erred in dismissing the appeal *in limine* for non-prosecution without adjudicating on the merits. Citing precedent, the Tribunal ruled that the CIT(A) is duty-bound to dispose of appeals on merits, even if heard *ex parte*.
Key Issues
Whether the CIT(A) can dismiss an appeal *in limine* for non-prosecution without deciding the case on its merits.
Sections Cited
80P, 143(3)
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Income Tax Appellate Tribunal, COCHIN BENCH
Before: SHRI INTURI RAMA RAO, AM & SHRI PRAKASH CHAND YADAV, JM
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 11.067.2024 for Assessment Year (AY) 2017-18.
Brief facts of the case are that the assessee, a co-operative society, filed its return of income for AY 2017-18 on 31.03.2018 declaring Nil income after claiming deduction u/s. 80P of the Edakkad Block Agricultural Imporvement Co-op. Society Ltd. Income Tax Act, 1961 (the Act) to the tune of Rs.27,99,137/-. Against the said return of income, the assessment was completed by the Income Tax Officer, Ward – 1, Kannur (hereafter “the AO”) vide order dated 17.10.2019 passed u/s. 143(3) of the Act at a total income of Rs. 7,77,180/-.
Being aggrieved, an appeal was filed before the CIT(A), who vide the impugned order dismissed the appeal exparte for non prosecution placing reliance on the judgement of the Hon'ble Supreme Court in the case of B.N. Bhattacharji and Anr [1977] 118 ITR 461 (SC).
Being aggrieved, the assessee is in appeal before the Tribunal in the present appeal.
We have heard the rival contentions of both the parties and perused the material available on record. We find that the learned CIT(A) dismissed the appeal in limine for non prosecution. 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
In the result, the appeal filed by the assessee is allowed for statistical purposes
Order pronounced in the open court on 21st January, 2025. 7.