PATTAMBI SERVICE CO-OPERATIVE BANK LTD,PATTAMBI vs. ITO, PALAKKAD

Brief facts of the case are that the assessee, a co-operative society registered under the Kerala Co-operative Societies Act, 1969, filed its return of income for AYs 202021 & 2021-22 on 09.11.2020 & 15.02.2022 respectively declaring Nil income. Since the assessee could not respond to the notices, the Income Tax Officer, Palakkad (hereinafter “the AO”) issued show cause notices. However, there had been & 909/Coch/2023 Pattambi Service Co-op. Bank Ltd. no response from the assessee to the show cause notices. Under the circumstances the AO completed the assessments by making additions u/s. 80P(2)(a)(i) of the Act.

Being aggrieved, an appeal was filed before the CIT(A) who vide the impugned order dismissed the appeals of the assessee in limine for want of prosecution placing reliance of the decision in the case of CIT vs. B.N. Bhattachargee & Another 118 ITR 461.

Being aggrieved, the assessee is in appeals before the Tribunal in the present appeal raising various grounds for both the assessment years.

We have heard the rival contentions of both the parties and perused the material available on record. At the outset we find that the CIT(A) dismissed the appeals in limine for non-prosecution without entering into the merits of the issue involved in the appeal. It is settled position of law that the CIT(A) is bound to dispose of the issues in appeal on merits by adverting to the facts of the facts of the case and discussing the legal position governing the issue in appeal. However, in the present case the CIT(A) merely dismissed the appeal in limine, contrary to the settled position of law. Therefore, we remand the matter back to the file of CIT(A) with a direction to dispose of the appeals on merits in accordance with law after providing opportunity of hearing to the assessee.