AMALA CANCER HOSPITAL SOCIETY,THRISSUR V. ACIT(E), KOCHI

ITA 33/COCH/2025

AI Insights

The case involves the Amala Cancer Hospital Society, a cooperative society registered under the Kerala State Cooperative Societies Act, which appealed against the order of the National Faceless Assessment Centre / Commissioner of Income-tax (Appeals) for the assessment year 2012-2013. The society had filed a return declaring 'Nil' income, but the Assessing Officer assessed a total income of Rs. 22,05,112, including a corpus donation of Rs. 15,99,916. The CIT(A) dismissed the appeal ex parte, leading to the current appeal. The Tribunal found procedural irregularities in the service of notice and referenced a decision by the Hon'ble Punjab & Haryana High Court, which led to the remand of the case for a de novo hearing.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 33547 (ITAT-COCHIN)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-02-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2012-2013
• Other Referred Cases: Munjal BCU Centre of Innovation and Entrepreneurship v. CIT (Exemptions)
• Laws Referred To: Income-tax Act, 1961, Kerala State Co-operative Societies Act, Income-tax Rules, 1962
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: LEENA LAL; SENIOR
• Assessee Lawyers: C.J. ROMID
• Keywords: Opportunity of being heard

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL “SMC” BENCH, COCHIN Before Shri Inturi Rama Rao, Accountant Member ITA No.33/Coch/2025 : Asst.Year 2012-2013 Amala Cancer Hospital Society Amala Nagar Thrissur – 680 555. PAN : AAATA4065B. v. The Assistant Commissioner of Income-tax (Exemption) Kochi. (Appellant) (Respondent) Appellant by : Sri.C.J.Romid, CA Respondent by : Smt.Leena Lal, Senior AR Date of Hearing : 10.02.2025 Date of Pronouncement :13.02.2025 O R D E R This appeal filed by the assessee is directed against the order of the National Faceless Assessment Centre / Commissioner of Income- tax (Appeals) [“CIT(A)” for short] dated 11.11.2024 having DIN & Order No.ITBA/APL/S/250/2024-25/1070263498(1) for the assessment year 2012-2013. 2. Briefly, the facts of the case are that the assessee is a co-operative society registered under the Kerala State Co-operative Societies Act formed for the purpose of rendering medical services to the public. The return of income for the assessment year 2012-2013 was filed on 08th March, 2013 declaring `Nil’ income. Against the said return of income, the assessment was completed by the Assessing Officer (“the AO\" hereinafter) vide order dated 16th March, 2015 passed u/s.143(3) of the Income-tax Act, 1961 (“the Act” hereinafter) at a total income of ITA No.33/Coch/2025. Amala Cancer Hospital Society. 2 Rs.22,05,112. While doing so, the AO made addition of corpus donation of Rs.15,99,916 and determined the total income in a normal commercial manner. 3. Being aggrieved, an appeal was filed before the CIT(A), who vide the impugned order dismissed the appeal ex parte. 4. Being aggrieved, the assessee is in appeal before me, in the present appeal. The learned Counsel for the assessee submitted that the AO had adopted the application of income as gross receipts of the assessee-society. Therefore, the matter may be remitted to the file of the AO. 5. The learned Senior Departmental Representative submits that no interference in the impugned order is called for. 6. I have heard the rival submissions and perused the material available on record. At the outset, I find that the CIT(A) passed an ex parte order after issuing notices through ITBA Portal. Perusal of the order of the CIT(A), it would be clear that the notices of hearing were issued through ITBA portal. In my considered opinion, it is not a valid method and manner of service of notice as specified under the provisions of sec.282(1) of the Act and Rule 127(1) of the Income-tax Rules, 1962. Therefore, it is crystal clear that the notices were not served upon the assessee. It is pertinent to make a reference to a decision rendered by the Hon’ble Punjab & Haryana High Court in the case of Munjal BCU Centre of Innovation and Entrepreneurship v. CIT (Exemptions) (2024) 463 ITR 560 (P&H), wherein the Hon’ble High ITA No.33/Coch/2025. Amala Cancer Hospital Society. 3 Court after making reference to the provisions of sec.282(1) held that service of notice through ITBA portal is not valid service and remanded the matter to the file of AO for de novo disposal of the appeal. 7. Respectfully following the above judgment of the Hon’ble High Court, we remand the matter back to the file of CIT(A) with a direction to dispose of the appeal in accordance with law after affording a reasonable opportunity of being heard to the assessee. 8. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced on this 13th day of February, 2025. Sd/- (Inturi Rama Rao) ACCOUNTANT MEMBER Cochin; Dated : 13th February, 2025. Devadas G* Copy to : 1. The Appellant. 2. The Respondent. 3. The CIT, Cochin. 4. The DR, ITAT, Cochin. 5. Guard File. Asst.Registrar/ITAT, Cochin "