MEDICAL COLLEGE EMPLOYEES CREDIT CO-OPERATIVE SOCIETY LIMITED NO. 721,TRIVANDRUM V. ITO,WD-2(1), TRIVANDRUM

ITA 465/COCH/2024

AI Insights

The case involves the Medical College Employees Credit Co-Operative Society Ltd., which appealed against the order of the National Faceless Appeal Centre, Delhi, for the Assessment Year 2020-21. The society had filed a return declaring a total income of Rs. 2,53,060, which was significantly increased by the Income Tax Officer to Rs. 4,02,22,440, primarily due to additions under profits and gains from business and disallowance under section 68 of the Income Tax Act, 1961. The CIT(A) dismissed the society's appeal ex parte for non-prosecution, leading to the current appeal before the Tribunal. The Tribunal found that the CIT(A) had erred in not deciding the appeal on merits and thus remanded the case for a fresh decision.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 471716 (ITAT-COCHIN)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-12-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2020-2021
• Other Referred Cases: CIT vs. B.N. Bhattachargee & Another 118 ITR 461, 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: R. KRISHNAN
• Section: 144; 68

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL COCHIN BENCH BEFORE SHRI INTURI RAMA RAO, AM AND SHRI PRAKASH CHAND YADAV, JM ITA No. 465/Coch/2024 Assessment Year: 2020-21 Medical College Employees Credit Co-Operative Society Ltd. Medical College P.O. Thiruvananthapuram 695011 [PAN: AAFAM2291P] .......... Appellant Vs. Income Tax Officer Ward - 2(1), Thiruvananthapuram .......... Respondent Appellant by: Shri R. Krishnan, CA Respondent by: Smt. Leena Lal, Sr. D.R. Date of Hearing: 10.12.2024 Date of Pronouncement: 30.12.2024 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 27.03.2024 for Assessment Year (AY) 2020-21. 2. Brief facts of the case are that the appellant society filed its return of income on 30.03.2021 declaring total income of Rs. 2,53,060/-.Against the said return of income assessment was completed by the Income Tax Officer, Ward - 2(1), Thiruvananthapuram (hereinafter “the AO”) vide 2 ITA No. 465/Coch/2024 Medical College Employees Credit Co-Operative Society order dated 17.09.2022 passed u/s. 144 r.w.s. 144B of the Income Tax Act, 1961 (the Act) at Rs.,4,02,22,440/- by making the following additions: - i. Income under the head profits and gains from business or procession - Rs. 28,62,283/0 ii. Disallowance u/s. 68 of the Act -Rs. 3,73,60,161/- 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 judgement of the Hon'ble Supreme Court in the case of CIT vs. B.N. Bhattachargee & Another 118 ITR 461. 4. Being aggrieved, the assessee is in appeal before the Tribunal in the present appeal. The learned A.R. has filed a letter seeking adjournment on the ground the senior partner of the CA firm is out of country. The request for adjournment is declined, as the matter can be disposed of without entering into the merits, as the CIT(A) has disposed of the appeal without entering into the merits of the case. 5. I 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 3 ITA No. 465/Coch/2024 Medical College Employees Credit Co-Operative Society Arjundas Luthra 279 CTR 614. Therefore, in the light of the above legal 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. 6. In the result, the appeal filed by the assessee is allowed for statistical purposes Order pronounced in the open court on 30th December, 2024 Sd/- Sd/- (PRAKASH CHAND YADAV) JUDICIAL MEMBER (INTURI RAMA RAO) ACCOUNTANT MEMBER Cochin, Dated: 30th December, 2024 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 "