NILAMBUR TALUK CO-OPERATIVE EMPLOYEES CO-OPERATIVE SOCIETY,MALAPPURAM V. ITO,WARD 2, TIRUR

ITA 1002/COCH/2024

AI Insights

The case involves the Nilambur Taluk Co-op. Employees Co-operative Society, which appealed against the order of the National Faceless Appeal Centre (NFAC), Delhi, for the Assessment Year 2020-21. The society, engaged in granting loans for house construction and acquisition, filed a return declaring nil income after claiming a deduction under section 80P(2)(a)(i) of the Income Tax Act, 1961. The Income Tax Officer (ITO) added a significant amount under 'income from other sources', which was upheld by the CIT(A). The Tribunal found that the CIT(A) had dismissed the appeal in limine for non-prosecution without a detailed discussion on merits, contrary to the requirements under section 250(6) of the Act. The Tribunal, referencing a decision by the Hon'ble Bombay High Court, directed a de novo hearing on merits.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 471702 (ITAT-COCHIN)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-02-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2020-2021
• 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: Condonation of delay; Reasonable cause
• Section: 143(3)

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL COCHIN BENCH BEFORE SHRI INTURI RAMA RAO, AM ITA No. 1002/Coch/2024 Assessment Year: 2020-21 Nilambur Taluk Co-op. Employees .......... Appellant Co-operative Society Chandakumu Post, Nilambur 679329 [PAN: AAFAT0457N] vs. The Income Tax Officer .......... Respondent Ward - 2, Tirur Appellant by: ------- None ------- Respondent by: Smt. Leena Lal, Sr. D.R. Date of Hearing: 05.02.2025 Date of Pronouncement: 19.02.2025 O R D E R This appeal filed by the assessee is directed against the order of the National Faceless Appeal Centre (NFAC), Delhi [CIT(A)] dated 31.05.2024 for Assessment Year (AY) 2020-21. 2. Brief facts of the case are that the appellant is a co-operative housing society engaged in granting loans to its members for house construction and acquisition. The return of income was filed on 14.01.2021 declaring total income of Rs. Nil after claiming deduction of Rs. 46,24,850/- u/s. 80P(2)(a)(i) of the Income Tax Act, 1961 (the Act). Against the said return of income, the assessment was completed by the Income Tax Officer, Ward-2, Tirur (hereinafter called \"the AO\") vide 2 ITA No. 1002/Coch/2024 Nilambur Taluk Co-op. Employees Co-op. Society order dated 23.09.2022 passed u/s. 143(3) r.w.s. 144B of the Act. While doing so, the AO made an addition of Rs. 45,14,566/- under the head “income from other sources”. 3. Being aggrieved, an appeal was filed before the CIT(A), who vide the impugned order confirmed the action of the AO. 4. Being aggrieved, the appellant is in appeal before the Tribunal in the present appeal. 5. At the outset I find that there is a delay of 133 days in filing the present appeal. The appellant filed a petition along with an affidavit for condonation of delay in filing the appeal, wherein it is stated that due to technical error in the mail ID of the appellant, the hearing notices and the exparte order passed by the CIT(A) were not received by the appellant. Therefore, the delay is not willful for deliberate. Therefore it is prayed that the delay in filing the appeal may be condoned and the appeal may be admitted for adjudication. On a perusal of the averments made in the condonation petition, it is evident that the appellant is prevented by reasonable cause from filing the appeal. Therefore, I condone the delay and admit the appeal for adjudication. 6. When the appeal was called on nobody appeared on behalf of the assessee despite due service of notice of hearing. Therefore, I proceeded to dispose of the appeal after hearing the learned Sr. DR. 7. I find that the learned CIT(A) dismissed the appeal in limine for non prosecution. As contemplated u/s. 250(6) of the Act the CIT(A) is required to frame points of determination followed by a detailed 3 ITA No. 1002/Coch/2024 Nilambur Taluk Co-op. Employees Co-op. Society 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 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. Ordered accordingly. 8. In the result, the appeal filed by the assessee is allowed for statistical purposes 9. Order pronounced in the open court on 19th February, 2025. Sd/- (INTURI RAMA RAO) ACCOUNTANT MEMBER Cochin, Dated: 19th 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 Assistant Registrar ITAT, Cochin "