BASILIA CO OP HOUSING SOCIETY LTD,THANE V. CIT(APPEALS), CIRCLE 1, THANE

ITA 4878/MUM/2024

AI Insights

The case involves Basilia Cooperative Housing Society Ltd., which appealed against the order of the National Faceless Appeal Centre (NFAC), Delhi, for the Assessment Year 2018-19. The primary grievance was the ex-parte disposal of their appeal by the First Appellate Authority, which was done without providing a reasonable opportunity of being heard and through a non-speaking order. The Tribunal noted that the First Appellate Authority dismissed the appeal on the grounds of non-prosecution without considering the merits of the case, which is against the statutory mandate.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 126299 (ITAT-MUMBAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-04-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2018-2019
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Matter Remanded
• Court: TRIBUNAL
• Department Lawyers: LEYAQAT ALI AAFAQUI
• Keywords: Set aside; Opportunity of being heard; Reasonable cause; Dismissed; National Faceless Appeal; Statistical purposes
• Section: 147

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH, MUMBAI BEFORE SHRI SAKTIJIT DEY, V.P. AND MS. PADMAVATHY S., AM ITA No. 4878/Mum/2024) (Assessment Year: 2018-19) Basilia Cooperative Housing Society Ltd., Shop No.03, A Wing, Gulmohar Chya Bldg. Mumbra, Thane- 400612 Vs. CIT(Appeals), Circle I, Thane. PAN/GIR No. AAEAB 7663F (Applicant) : (Respondent) Applicant by : Shri Praveen Lokwani Respondent by : Shri Leyaqat Ali Aafaqui, Sr. AR Date of Hearing : 23.04.2025 Date of Pronouncement : 23.04.2025 O R D E R Per Saktijit Dey, VP: This is an appeal by the assessee against order dated 12.07.2024 passed by National Faceless Appeal Centre (NFAC), Delhi for the Assessment Year (AY) 2018-19. 2. There is a small delay of eleven days in filing the appeal. After considering the submissions of the parties, we are of the view that the delay was due to reasonable cause. Hence, we condone the delay and admit the appeal for adjudication. 2 ITA No.4878/Mum/2024 AY 2018-19 Basilia Coop. Housing Society Vs. CIT(A) Thane 3. We have heard the parties and perused the materials on record. Basic grievance of the assessee is against ex-parte disposal of its appeal without providing reasonable opportunity of being heard that too through a non- speaking order. 4. Facts on record reveal that the assessee is a Cooperative Society. For the assessment year under dispute, assessment was reopened under Section (u/s.) 147 of the Income Tax Act, 1961 (in short the ‘Act’). As alleged by the Assessing Officer (AO), there was failure on the part of the assessee to effectively comply with various statutory notices. Whatever reply filed by the assessee, were vague and sketchy. Thus, ultimately the Assessing Officer completed the assessment u/s. 147 r.w.s. 144 and 144A of the Act determining the total income at Rs.1,06,39,029/-. Against the assessment order so passed assessee preferred an appeal before learned First Appellate Authority. However, by the impugned order, learned First Appellate Authority dismissed the appeal. 5. As could be seen from the observations of learned First Appellate Authority in the body of the appellate order, more specifically, in Paragraph 6.6 and 6.7, the appeal of the assessee basically was dismissed on the charge of non-prosecution. 6. In our view, as per the statutory mandate, learned First Appellate Authority has no power to dismiss an appeal filed by the assessee merely on the ground of non- prosecution. Even if the assessee does not comply with the hearing notices, the learned First Appellate Authority is supposed to decide the appeal on merits based on the materials available on record through a speaking order. The aforesaid statutory mandate has not been carried out by learned First Appellate Authority in the present case. 7. In view of the aforesaid, we set aside the impugned order of learned First Appellate Authority and restore the issue back to his file for de-novo adjudication after providing reasonable opportunity of being heard to the assessee. It is made 3 ITA No.4878/Mum/2024 AY 2018-19 Basilia Coop. Housing Society Vs. CIT(A) Thane clear, learned First Appellate Authority must decide the appeal on merits through a speaking order. Grounds are allowed for statistical purposes. 8. In the result, appeal is allowed for statistical purposes . Order pronounced in the open court on 23.04.2025 Sd/- Sd/- (Padmavathy S.) (Saktijit Dey) Accountant Member Vice President Mumbai; Dated : 23.04.2025 Aks/- Copy of the Order forwarded to : 1. The Applicant 2. The Respondent 3. The CIT(A) 4. CIT - concerned 5. DR, ITAT, Mumbai 6. Guard File BY ORDER, (Dy./Asstt. Registrar) ITAT, Mumbai "