MADATHUM PARAMBATH MOHAMMED IQBAL,KOZHIKODE V. ITO, WARD INT.TAX, KOZHIKODE

ITA 883/COCH/2024

AI Insights

The case involves Madathum Parambath Mohammed Iqbal, the appellant, who contested the order of the National Faceless Appeal Centre, Delhi (CIT(A)), which had dismissed his appeal ex parte for non-prosecution. The original dispute arose from the Income Tax Officer, International Taxation, Kozhikode, assessing Iqbal's income for AY 2017-18 at Rs. 11,49,350, which included an addition of Rs. 9,00,000 under section 68 of the Income Tax Act, 1961, due to unexplained cash deposits during the demonetisation period. The Tribunal found that the CIT(A) should have addressed the appeal on its merits despite the absence of the appellant at the hearing, referencing decisions from the Bombay High Court to support this view.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 474724 (ITAT-COCHIN)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-01-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2017-2018
• Other Referred Cases: Estate of Late Tukojirao Holkar vs. CWT, New Diwan Oil Mills vs. CIT, PCIT vs. Premkumar Arjundas Luthra
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: LEENA LAL
• Assessee Lawyers: P.D. RAVI
• Section: 143(3)

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL COCHIN BENCH BEFORE SHRI INTURI RAMA RAO, AM AND SHRI PRAKASH CHAND YADAV, JM ITA No. 883/Coch/2024 Assessment Year: 2017-18 Madathum Parambath Mohammed Iqbal .......... Appellant 5/2697, Malabar Hills, Cherootty Nagar Jafarkhan Colony, Kozhikode [PAN: AIBPM9282B] Vs. The Income Tax Officer .......... Respondent International Taxation Kozhikode Appellant by: Shri P.D. Ravi, Advocate Respondent by: Smt. Leena Lal, Sr. D.R. Date of Hearing: 12.12.2024 Date of Pronouncement: 21.01.2025 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 14.08.2024 for Assessment Year (AY) 2017-18. 2. Brief facts of the case are that the assessee filed return of income for AY 2017-18 on 11.10.2018 declaring total income of Rs. 2,49,350/-. Against the said return of income, the assessment was 2 ITA No. 883/Coch/2024 Madathum Parambath Mohammed Iqbal completed by the Income Tax Officer, International Taxation, Kozhikode (hereafter “the AO”) vide order dated 23.12.2019 passed u/s. 143(3) of the Income Tax Act, 1961 (the Act) assessing the total income at Rs. 11,49,350/- by making addition of Rs. 9,00,000/- u/s. 68 of the Act on account of unexplained cash deposits in bank during the demonetisation period. 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 judgements of the Hon'ble Madhya Pradesh High Court in the case of Estate of Late Tukojirao Holkar vs. CWT 223 ITR 480 and the Hon'ble Punjab & Haryana High Court in the case of New Diwan Oil Mills vs. CIT [2008] 296 ITR 495. 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 3 ITA No. 883/Coch/2024 Madathum Parambath Mohammed Iqbal position I am 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. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced in the open court on 21st January, 2025. Sd/- Sd/ (PRAKASH CHAND YADAV) JUDICIAL MEMBER (INTURI RAMA RAO) ACCOUNTANT MEMBER Cochin, Dated: 21st January, 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 "