THE TIRUCHIRAPALLI DISTRICT CENTRAL COOPERATIVE BANK LTD.,TRICHY vs. DCIT, TRICHY

This appeal filed by the assessee is directed against the order of the Commissioner of Income Tax (Appeals), Tiruchirapalli, dated 26.07.2013 relevant to the assessment year 2010-11.

Facts in brief are that the assessee is a co-operative bank. It had filed its return of income by declaring NIL income. The return Income-tax Act, 1961 and after due process, the assessment was completed under Section 143(3) of the Act. The A.O. has disallowed various claims made by the assessee and the same was considered as income of the assessee.

On being aggrieved, the assessee carried the matter before the Ld. CIT(Appeals). The Ld. CIT(Appeals) sustained the additions made by the A.O. and thus confirmed the order of the A.O.

On being aggrieved, the assessee carried the matter in appeal before the Tribunal. At the time of hearing, the Ld.counsel for the assessee has submitted that the assessee had received the notice of hearing dated 24.07.2013 and the case was fixed for hearing by the Ld. CIT(Appeals) on 25.07.2013. The order was passed on 26.07.2013. The Ld. counsel submitted that no sufficient opportunity was given to the assessee to represent its case before the first appellate authority in a proper perspective. He pleaded that the matter may go back to the assessee giving a reasonable opportunity to plead its case before the first appellate authority.

On the other hand, the Ld. D.R. supported the orders passed by the authorities below.

We have heard both sides and perused the records and gone through the orders of the authorities below. From the notice filed by the assessee, we find that the Ld. CIT(Appeals) had issued the notice of hearing on 24.7.2013 asking the assessee to appear on 25.07.02013 at 3.30 P.M. The Ld. CIT(Appeals) passed an order very next day, i.e. 26.07.2013. From the above it is clear that the assessee has got only one day time to represent its case before the Ld. CIT(Appeals). In our opinion, the Ld. CIT(Appeals) ought to have given some more reasonable time to the assessee to plead its case before him. Therefore, in the interest of justice and also by considering the principle of natural justice, we set aside the order passed by the Ld. CIT(Appeals) and we direct the Ld. CIT(Appeals) to give a reasonable opportunity of being heard to the assessee and decide the issue raised by it in accordance with law.

In the result, the appeal of the assessee is allowed for statistical purpose. Order pronounced on Thursday, the 5th of March, 2015 at Chennai.