JANATHA TRADING CORPORATION,ALWAYE V. ITO, WARD 1 & TPS, ALUVA

ITA 307/COCH/2024

AI Insights

The case involves Janatha Trading Corporation, a partnership firm engaged in trading cement, which appealed against the order of the National Faceless Appeal Centre, Delhi (CIT(A)), for the Assessment Year 2008-09. Initially, the Income Tax Officer (AO) had assessed the income significantly higher than reported, leading to an appeal to the CIT(A), which was dismissed. The Tribunal had earlier set aside the issue for de novo assessment, but the AO reiterated the original additions. The CIT(A) dismissed the subsequent appeal ex parte for non-prosecution. The Tribunal found this dismissal procedurally incorrect as it did not address the merits of the case, leading to the current remand for a thorough re-evaluation.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 23392 (ITAT-COCHIN)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-02-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2008-2009
• Other Referred Cases: 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
• Keywords: Set aside
• 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 No. 307/Coch/2024 Assessment Year: 2008-09 Janatha Trading Corporation .......... Appellant XVII-541 Silver Castle Building Ernakulam Road, Aluva 683101 [PAN: AABFJ8978K] vs. The Income Tax Officer .......... Respondent Ward - 1 & TPS, Aluva Appellant by: ------- None ------- Respondent by: Smt. Leena Lal, Sr. D.R. Date of Hearing: 03.02.2025 Date of Pronouncement: 21.02.2025 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 15.02.2024 for Assessment Year (AY) 2008-09. 2. Brief facts of the case are that the appellant is a partnership firm engaged in the business of trading in cement. The return of income for AY 2008-09 was filed on 20.09.2008 disclosing income of Rs. 10,82,510/-. Against the said return of income, the assessment 2 ITA No. 307/Coch/2024 Janatha Trading Corporation was completed by the Income Tax Officer, Ward-1, Aluva (hereinafter called \"the AO\") vide order dated 20.12.2010 passed u/s. 143(3) r.w.s. 254 of the Income Tax Act, 1961 (the Act) at a total income of Rs. 71,99,170/-. 3. Being aggrieved, an appeal was filed before the CIT(A) contesting the addition made by the AO. The CIT(A) dismissed the appeal. 4. Being aggrieved, the appellant had filed an appeal before Tribunal. 5. The Tribunal vide order dated 20.09.2018 passed in ITA No. 303/Coch/2014 set aside the issue to the AO for de novo assessment. Pursuant to the order passed by the Tribunal assessment order was passed by the AO vide order dated 20/12/2010 passed us 143(3) r.w.s. 254 of the Act reiterating the additions made in the original assessment. 6. Being aggrieved, an appeal was filed before the CIT(A), who vide the impugned order dismissed the appeal exparte for non- prosecution. 7. Being aggrieved, the appellant is in appeal before us in the present appeal. 8. We find that the learned CIT(A) dismissed the appeal in limine for non prosecution. As contemplated u/s. 250(6) of the Act the 3 ITA No. 307/Coch/2024 Janatha Trading Corporation 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 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 the appeal de novo on merits after affording reasonable opportunity of hearing to the assessee. 9. In the result, the appeal filed by the assessee is allowed for statistical purposes 10. Order pronounced in the open court on 21st February, 2025. Sd/- Sd/- (SOUNDARARAJAN K.) JUDICIAL MEMBER (INTURI RAMA RAO) ACCOUNTANT MEMBER Cochin, Dated: 21st February, 2025 n.p. "