ANAKKARA FOOD PROCESSING AND EXPORTS PRIVATE LIMITED,EDAPPAL V. ACIT, TIRUR

ITA 581/COCH/2024

AI Insights

The case involves Anakkara Food Processing and Export Pvt. Ltd., which appealed against the orders of the National Faceless Appeal Centre, Delhi, for the Assessment Years 2012-13 and 2013-14. The company had declared a loss for AY 2012-13 and a profit for AY 2013-14, which was set off against losses of earlier years. The assessments were completed by the ACIT, Tirur, at a significantly higher total income than declared. The CIT(A) dismissed the appeals ex parte due to non-prosecution by the appellant. The appellant contested the dismissal, citing operational inactivity and health issues of the Managing Director as reasons for the delay in filing the appeal. The Tribunal found the service of notice through the ITBA portal to be invalid and remanded the case for a fresh hearing.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 31248 (ITAT-COCHIN)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-01-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: DB
• Assessment Year: 2012-2013
• Other Referred Cases: Munjal BCU Centre of Innovation and Entrepreneurship vs. CIT (Exemptions)
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: LEENA LAL
• Assessee Lawyers: PAULSON K.P.
• Section: 143(3)

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL COCHIN BENCH BEFORE SHRI INTURI RAMA RAO, AM AND SHRI SOUNDARARAJAN K., JM ITA Nos. 581 & 582/Coch/2024 Assessment Years: 2012-13 & 2013-14 Anakkara Food Processing and Export Pvt. Ltd .......... Appellant Door No. X/232A, Anakkara P.O. Eadappal 679551 [PAN: AAFCA3726R] Vs. Asst. Commissioner of Income Tax .......... Respondent Tirur Appellant by: Shri Paulson K.P., CA Respondent by: Smt. Leena Lal, Sr. D.R. Date of Hearing: 01.01.2025 Date of Pronouncement: 21.01.2025 O R D E R Per: Inturi Rama Rao, AM These appeals filed by the assessee are directed against the orders of the National Faceless Appeal Centre, Delhi [CIT(A)] both dated 08.12.2023 for Assessment Years (AYs) 2012-13 & 2013-14. 2. Brief facts of the case are that the assessee company filed its returns of income for AY 2012-13 on 07.03.2013 declaring a loss of Rs. 14,20,060/- and for AY 2013-14 on 14.03.2014 declaring an income of Rs. 37,26,690/-, which was set off against losses of earlier years. Against the said return of income, the assessment was 2 ITA Nos. 581& 582/Coch/2024 Anakkara Food Processing and Export Pvt. Ltd. completed by the assessments were completed by the ACIT, Tirur (hereafter “the AO”) vide orders dated 27.03.2015 & 08.03.2016 passed u/s. 143(3) of the Income Tax Act, 1961 (the Act) at total income of Rs. 3,19,00,149/- and Rs. 2,61,25,664/-, respectively. 3. Being aggrieved, an appeal was filed before the CIT(A), who vide the impugned orders dismissed the appeals exparte. 4. Being aggrieved, the appellant is in appeal before us in the present appeal. There is a delay in filing the present appeal by 132 days. The delay is stated to have occurred due to the fact that the appellant company was inoperative since 2018 with huge accumulated losses. There was no full time accountant or staff to looks after the statutory matters. Further, the Managing Director of the appellant company was under treatment for L.B.A (Kadeegraham) from 25.11.2023 to 25.02.2024. An affidavit and medical certificate to this effect were filed along with the petition for condonation of delay. Therefore, it is prayed that the delay in filing the appeal be condoned. After considering the explanation for delay 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. 5. We have heard the rival contentions of both the parties and perused the material available on record. The CIT(A) dismissed the appeal exparte for non-prosecution of the appeal by the appellant. From the orders the CIT(A)’s it is clear that notices of hearing were 3 ITA Nos. 581& 582/Coch/2024 Anakkara Food Processing and Export Pvt. Ltd. issued through ITBA portal. In our considered opinion, it is not a valid method and manner of service of notice as specified under the provisions of section 282(1) of the Income-tax Act, 1961 Act and Rule 127(1) of the Income-tax Rules, 1962. Therefore, it is crystal clear that the notices were not served upon the appellant. To fortify our view, we would like to make reference to a decision rendered by the Hon’ble Punjab & Haryana High Court in the case of Munjal BCU Centre of Innovation and Entrepreneurship vs. CIT (Exemptions) (2024) 463 ITR 560 (P&H), wherein the Hon’ble High Court after making reference to provisions of 282(1) held that service of notice through ITBA portal is not valid service and remanded the matter to AO for denovo disposal of case. 6. Respectfully following the above judgement of the Hon'ble High Court, we remand the matter back to the CIT(A) with the direction to dispose the appeal after affording opportunity of hearing to the assessee in accordance with law. 7. In the result, appeals filed by the assessee are partly allowed for statistical purposes. Order pronounced in the open court on 21st January, 2025. Sd/- Sd/- (SOUNDARARAJAN K.) JUDICIAL MEMBER (INTURI RAMA RAO) ACCOUNTANT MEMBER Cochin, Dated: 21st January, 2025 n.p. 4 ITA Nos. 581& 582/Coch/2024 Anakkara Food Processing and Export Pvt. Ltd. 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 "