KUTHANUR SERVICE CO-OPERATIVE BANK LIMITED,PALAKKAD vs. ITO, WARD-1, PALAKKAD

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ITA 677/COCH/2024Status: DisposedITAT Cochin21 January 2025AY 2013-14Bench: SHRI INTURI RAMA RAO (Accountant Member), SHRI PRAKASH CHAND YADAV (Judicial Member)3 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal held that a CIT(A) is duty-bound to dispose of an appeal on merits, even if ex parte, and cannot dismiss it in limine for non-prosecution. Consequently, the matter was remanded back to the file of the CIT(A) for a de novo disposal on merits after providing a reasonable opportunity of hearing to the assessee.

What were the facts?

The assessee, a co-operative society, filed its return for AY 2013-14 claiming Section 80P deduction, which was disallowed by the AO under Section 143(3). The CIT(A) dismissed the assessee's appeal ex parte for non-prosecution, leading the assessee to appeal before the ITAT.

What were the issues?

Whether the CIT(A) can dismiss an appeal ex parte for non-prosecution without deciding it on merits.

Which sections of the Income-tax Act were involved?

Section 80,Section 80P,Section 143(3)

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Cases cited in this judgment(2)Show list

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Income Tax Appellate Tribunal, COCHIN BENCH

Before: SHRI INTURI RAMA RAO, AM & SHRI PRAKASH CHAND YADAV, JM

For Appellant: Ms. Dhanya G., CA
For Respondent: Smt. Leena Lal, Sr. D.R
Hearing: 19.12.2024Pronounced: 21.01.2025

O R D E R Per: Inturi Rama Rao, AM This appeal filed by the assessee is directed against the order of the Commissioner of Income Tax (Appeals), Thrissur [CIT(A)] dated 31.07.2018 for Assessment Year (AY) 2013-14.

2.

Brief facts of the case are that the assessee is a co-operative society registered under the Kerala State Co-operative Societies Act, 1969. The assessee filed its return of income for AY 2013-14 on Kuthanur Service Co-op. Bank Ltd. 18.07.2014 declaring total income at Rs. 56,420/- after claiming deduction u/s. 80 of the Income Tax Act, 1961 (the Act) amounting to Rs. 41,62,497/-. Against the said return of income, the assessment was completed by the NFAC, Delhi (hereafter “the AO”) vide order dated 20.09.2021 passed u/s. 143(3) of the Act disallowing the claim of 80P deduction.

3.

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).

4.

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

5.

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

6.

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.

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