AUGUST CINEMA,TRIVANDRUM V. ACIT, CIRCLE-1, TRIVANDRUM

ITA 111/COCH/2024

AI Insights

The case involves August Cinema (India) Pvt. Ltd., which appealed against the order of the National Faceless Appeal Centre, Delhi, for the Assessment Year 2012-13. The appellant had filed a return declaring a total income of Rs. 71,70,660, which was later assessed at Rs. 3,23,05,256 by the Assistant Commissioner of Income Tax, Trivandrum. The assessment included additions on account of an unsecured loan and disallowances under section 40(a)(ia) of the Income Tax Act, 1961. The CIT(A) dismissed the appeal ex parte for non-prosecution, which led to the current appeal before the Tribunal. The Tribunal found that the CIT(A) should have disposed of the appeal on merits, even if ex parte, and thus remanded the case for a fresh decision on merits.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 23366 (ITAT-COCHIN)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-02-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: misc
• Other Referred Cases: CIT v. B.N. Bhattacharjee and Anr [1977] 118 ITR 461 (SC), 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: ARAVIND NAIR
• Section: 143(3); 40(a)(ia)

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL COCHIN BENCH BEFORE SHRI INTURI RAMA RAO, AM AND SHRI PRAKASH CHAND YADAV, JM ITA No. 111/Coch/2024 Assessment Year: 2012-13 August Cinema (India) Pvt. Ltd. .......... Appellant TC 26/322(3), Raj Sadan, Secretariat Ward Nr. ACV Statue, Trivandrum 6965001 [PAN: AAICA7365B] vs. Asst. Commissioner of Income Tax .......... Respondent Circle- 1(1), Trivandrum Appellant by: Shri Aravind Nair, Advocate Respondent by: Smt. Leena Lal, Sr. D.R. Date of Hearing: 09.01.2025 Date of Pronouncement: 11.02.2025 O R D E R Per: Inturi Rama Rao, AM This appeal filed by the assessee is directed against the order of the National Faceless Appeal Centre, Delhi [CIT(A)], dated 16.10.2023 for Assessment Year (AY) 2012-13. 2. Brief facts of the case are that the assessee is a company engaged in the business of production and distribution of films. The appellant filed the return of income for AY 2012-13 on 09.03.2015 declaring total income of Rs. 71,70,660/-. Against the said return of 2 ITA No. 111/Coch/2024 August Cinema (India) Pvt. Ltd. income, the assessment was completed by the ACIT, Circle- 1(1), Trivandrum (hereinafter called \"the AO\") vide order dated 26.03.2015 passed u/s. 143(3) r.w.s. 148 of the Income Tax Act, 1961 (the Act) at a total income of Rs. 3,23,05,256/-. While doing so, the AO additions of Rs.35,00,000/- u/s. 69 on account of unsecured loan and Rs. 20,75,935/- u/s. 40(a)(ia) of the Act. 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 Supreme Court in the case of CIT v. B.N. Bhattacharjee and Anr [1977] 118 ITR 461 (SC) and a few other orders. 4. Being aggrieved, the assessee is in appeal before the Tribunal in the present appeal. 5. We have heard the rival contentions of both the parties and perused the material available on record. We find that the learned CIT(A) dismissed the appeal in limine for non prosecution. 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 we are of the considered view that the matter requires to be remanded to the file of the CIT(A) with the direction to dispose of 3 ITA No. 111/Coch/2024 August Cinema (India) Pvt. Ltd. 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 7. Order pronounced in the open court on 11th February, 2025. Sd/- Sd/- (PRAKASH CHAND YADAV) JUDICIAL MEMBER (INTURI RAMA RAO) ACCOUNTANT MEMBER Cochin, Dated: 11th February, 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 "