AHAMED KOVVAL HAJI,KASARAGOD V. ITO, WARD INTERNATIONAL TAX, KOZHIKODE

ITA 906/COCH/2024

AI Insights

The case involves Ahamed Kovval Haji, a non-resident settled in the UAE, who appealed against the order of the National Faceless Appeal Centre, Delhi, for the Assessment Year 2016-17. The Income Tax Officer, International Taxation, Kozhikode, had assessed the appellant's income, including long-term capital gains from the sale of immovable properties, and completed the assessment at a total income of Rs. 23,14,928. The CIT(A) dismissed the appellant's appeal ex parte for non-prosecution, leading to the current appeal before the Tribunal. The Tribunal found that the CIT(A) erred in dismissing the appeal without discussing the merits and remanded the case for a de novo hearing.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 23456 (ITAT-COCHIN)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-01-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2016-2017
• Other Referred Cases: New Diwan Oil Mills vs. CIT [2008] 296 ITR 495, PCIT vs. Premkumar Arjundas Luthra 279 CTR 614
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: LEENA LAL
• Assessee Lawyers: SURESH KUMAR
• Keywords: Capital Gains
• Section: 147

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL COCHIN BENCH BEFORE SHRI INTURI RAMA RAO, AM ITA No. 906/Coch/2024 Assessment Year: 2016-17 Ahamed Kovval Haji .......... Appellant CP IX/216, Kovval House, Chattanchal Thekkil Post, Kasaragod 671541 [PAN: ABNPH9534L] vs. The Income Tax Officer .......... Respondent Ward International Tax Kozhikode Appellant by: Shri Suresh Kumar, CA Respondent by: Smt. Leena Lal, Sr. D.R. Date of Hearing: 16.01.2025 Date of Pronouncement: 21.01.2025 O R D E R This appeal filed by the assessee is directed against the order of the National Faceless Appeal Centre, Delhi [CIT(A)] dated 11.09.2024 for Assessment Year (AY) 2016-17. 2. Brief facts of the case are that the assessee is a non resident settled in UAE. On the basis of the MNS data under AIMS module of ITBA portal the Income Tax Officer, International Taxation, Kozhikode (hereinafter called \"the AO\") found that the appellant sold 3 items of immovable properties, the capital gains from which 2 ITA No. 906/Coch/2024 Ahamed Kovval Haji were declared in the return of income. The AO completed the assessment vide order date 26.05.2022 passed u/s. 147 r.w.s. 144C(3) of the Income Tax Act, 1961 (the Act) at a total income of Rs. 23.14,928/-. While doing so the AO made addition on account of long term capital gain amounting to Rs. 17,30,218/-. 3. Being aggrieved, an appeal was filed before the CIT(A), who vide the impugned order dismissed the appeal exparte for non prosecution placing on the decision of the Hon'ble Punjab & Haryana High Court in the case of MNew Diwan Oil Mills vs. CIT [2008] 296 ITR 495 and others. 4. Being aggrieved, the assessee is in appeal before the Tribunal in the present appeal. 5. I heard the rival contentions of both the parties and perused the material available on record. I find that the learned CIT(A) dismissed the appeal in limine for non prosecution. As contemplated u/s. 250(6) of the Act the CIT(A) is required to frame points of determination followed by a detailed discussion thereupon before passing the order. 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 I am of the considered view that the 3 ITA No. 906/Coch/2024 Ahamed Kovval Haji matter requires to be remanded to the file of the CIT(A) with the direction to dispose of the appeal de novo on merits after affording reasonable opportunity of hearing to the assessee. 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. Sd/ (INTURI RAMA RAO) ACCOUNTANT MEMBER Cochin, Dated: 21st January, 2025 n.p. Copy to: 1. The Appellant 2. The Respondent 3. The Pr. CIT concerned 4. The Sr. DR, ITAT, Cochin 5. Guard File By Order Assistant Registrar ITAT, Cochin "