THE YEOTMAL URBAN CO-OPERATIVE BANK LTD,YAVATMAL vs. DCIT/ACIT CIRCLE-3, NAGPUR, NAGPUR

ITA 277/NAG/2025Status: DisposedITAT Nagpur19 June 2025AY 2018-20193 pages

AI SummaryRemanded

What did the Tribunal hold?

The Tribunal held that while the assessee's conduct was non-compliant and irresponsible, warranting no leniency, the peculiar facts and circumstances, including the tricky nature of the issues and the assessment proceedings occurring during the COVID-19 period, necessitated a just and proper decision for substantive justice. Therefore, the Tribunal decided to remand the matter back to the file of the learned CIT(A). This decision is based on the principle that substantive justice should prevail, even in cases of procedural default, especially when complex issues are involved and the assessment was conducted under challenging circumstances. The assessee is directed to deposit a token cost of ₹11,000 within 15 days and to file relevant submissions/documents. The Tribunal expressly left undecided the substantive merits of the case, as the remand is for proper adjudication by the lower authority.

What were the facts?

The assessee, The Yeotmal Urban Co-operative Bank, filed an appeal before the Income Tax Appellate Tribunal (ITAT), Nagpur Bench, challenging an order dated 28/02/2025 passed by the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi. The assessment year in question is 2018-19. The ITAT noted that the orders passed by the authorities below were ex-parte because the assessee neither complied with the notices issued nor filed any submissions or documents. The Tribunal rejected the assessee's adjournment application. Despite the assessee's non-compliant conduct, the ITAT considered the peculiar facts and circumstances, the tricky nature of the issues, and the fact that assessment proceedings occurred during the COVID-19 period.

What were the issues?

1. Whether the Tribunal should grant relief to the assessee despite its non-compliance with notices and failure to file submissions, considering the ex-parte orders passed by the lower authorities and the assessment period falling within COVID-19. Assessee's contention: The assessee, through its adjournment application, implicitly sought an opportunity to present its case. While not explicitly stated in the judgment, the subsequent remand suggests a recognition of the need for proper adjudication. Revenue's contention: The learned Departmental Representative argued that the assessee's conduct was non-compliant and irresponsible, and therefore, the assessee was not entitled to any leniency. The revenue relied on the fact that the lower authorities passed ex-parte orders due to the assessee's failure to comply.

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, NAGPUR BENCH, NAGPUR

Before: SHRI NARENDER KUMAR CHOUDHRY & SHRI K.M. ROY, ACCOUNTANT, MEMBER

For Appellant: Shri Mohit Mudhaba

For Respondent: Shri Pankaj Kumar

Date of Hearing – 19/06/2025 Date of Order – 19/06/2025

O R D E R PER N.K. CHOUDHRY, JM:

The present appeal has been filed by the assessee challenging the impugned order dated 28/02/2025, passed by the learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi, [for short, “learned CIT(A)”] for the assessment year (for short, “A.Y.”) 2018–19.

As the orders passed by the authorities below are ex–parte, therefore, we are inclined to dismiss the adjournment application filed by the assessee and thus the same is hereby rejected.

2 The Yeotmal Urban Co–operative Bank ITA no.277/Nag./2025

Admittedly, the assessee neither complied with the notices issued by the authorities below nor filed any submissions / documents and, therefore, both the authorities below were constrained to pass respective orders as ex–parte. The conduct of the assessee seems to be non–compliant and irresponsible, therefore, the assessee is not entitled to any leniency, as claimed by the learned Departmental Representative. However, considering the peculiar facts and circumstances of the case in totality and as the issues involved are tricky in nature and remained to be adjudicated in its right perspective and proper manner, especially in the absence of submissions of the assessee and the assessment proceedings were also carried out during the COVID–19 period when the whole nation was at halt, this Court thus for just and proper decision of the case and substantive justice is inclined to remand the mater back to the file of the learned CIT(A), but subject to token cost of ` 11,000 (Rupees eleven thousand only) to be deposited within 15 days from the date of this order in the Revenue Department under “Other Head”.

The assessee is also directed to file the relevant submissions/documents. It is clarified that, in case of subsequent default, the assessee shall not be entitled for any leniency.

3 The Yeotmal Urban Co–operative Bank ITA no.277/Nag./2025

In the result, appeal filed by the assessee is allowed for statistical purposes, in terms as indicated above. Order pronounced in the open Court on 19/06/2025

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