CHITTATTUKARA PANCHAYAT SERVICE CO-OP BANK LTD,ERNAKULAM vs. THE ITO WARD 1 & TPS, ALUVA

This appeal filed by the assessee along with stay application are directed against the order of the CIT(A) / NFAC DIN & Order No.ITBA/NFAC/S/250/2023-24/1053685794(1) dated 13th June, 2023 for the assessment year 2017-2018.

At the outset we find that there is a delay in filing the present appeal by 24 days. The assessee filed a petition along . Chittattukara Panchayat SCB Limited. with an affidavit praying for condonation of delay on the ground that the order passed by the CIT(A) was not served physically but through e-mail which was not noticed by the assessee. The assessee came to know about the dismissal of the appeal only when he received the demand notice from the Income Tax Officer, Ward-1 & TPS Aluva on 17.08.2023. Therefore, there is no willful negligence or deliberate latches on the part of the assessee in not filing the appeals within the stipulated time limit. Thus, he prayed that the delay be condoned in the interest of justice adopting a liberal view.

On the other hand, the learned CIT-DR has not seriously opposed the condonation of delay.

There is no material on record to disbelieve the averments made in the affidavit explaining the reasons for the delay in filing the present appeal. Keeping in view the salutary principle of law that ordinarily the litigant does not stands gain anything by filing the appeal belatedly. We are of the considered opinion that it is a fit case for condoning the delay. Accordingly we condone the delay and admit the appeal for adjudication.

Briefly stated the facts of the case are that the assessee is a co- operative society registered under the Kerala Co-operative Societies Act, 1969, as a primary agricultural credit society. The return of income for assessment year 20917-2018 was filed declaring `Nil’ income after . Chittattukara Panchayat SCB Limited. claiming exemption deduction u/s.80P of the Income-tax Act, 1961. Against the said return of income, the assessment was completed by the Assessing Officer (AO) vide order dated 23.12.2019 passed u/s.143(3) of the Act at a total income of Rs.66,38,300. While doing so the AO denied the exemption u/s.80P of the Act by holding that the assessee is a co-operative bank and hit by the provisions (4) of sec.80P of the Act. Being aggrieved, an appeal was filed before the Commissioner of Income-tax (Appeals), who vide the impugned order, dismissed the appeal in limine for non-prosecution.

Being aggrieved, the assessee is in appeal before us in the present appeal. When the appeal was called, none appeared on behalf of the assessee despite of due service of notice, however, filed written submissions.

After duly considering the written submission and hearing the learned Senior Departmental Representative, we dispose of this appeal as under.

We have heard the learned Sr. DR and perused the material on record. At the outset we find that the CIT(A) has dismissed the appeal in limine for non-prosecution. It is trite law that the CIT(A) is duty bound to dispose of the appeal on merits even in the absence of the assessee as held by Hon'ble Bombay High Court in the case of PCIT vs. Premkumar Arjundas Luthra 279 CTR 614.Thus, the . Chittattukara Panchayat SCB Limited. approach adopted by the CIT(A) is contrary to the well settled position of law. Therefore, the order passed by the CIT(A) is set aside and the matter is remanded to the file of the CIT(A) for de novo disposal of the appeal in accordance with law after affording due opportunity of being heard to the assessee.

Since we have disposed of the quantum appeal, the stay application filed by the assessee is dismissed as rendered infructuous.

In the result, the appeal filed by the assessee is allowed for statistical purposes and the stay application is dismissed.