PRABHEESH NAIR,KOZHIKODE V. ITO, WARD 1(3), KOZHIKODE

ITA 1003/COCH/2024

AI Insights

The case involves Prabheesh Nair, an individual engaged in the business of electrical items, who did not file his income tax return for the assessment year 2017-18. Following a notice under section 142(1) of the Income Tax Act, 1961, which he failed to comply with, the Income Tax Officer completed the assessment ex parte, adding a significant amount to his income as unexplained money deposited during the demonetisation period. The CIT(A) dismissed Nair's subsequent appeal ex parte for non-prosecution. Aggrieved by this decision, Nair appealed to the Income Tax Appellate Tribunal, which found procedural improprieties in the CIT(A)'s handling of the case and remanded it for a fresh decision on merits.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 23409 (ITAT-COCHIN)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-02-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2017-2018
• Other Referred Cases: CIT v. B.N. Bhattacharjee and Anr [1977] 118 ITR 461 (SC), 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: RISHAL K.
• Section: 144; 142(1); 139(1)

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL COCHIN BENCH BEFORE SHRI INTURI RAMA RAO, AM ITA No. 1003/Coch/2024 Assessment Year: 2017-18 Prabheesh Nair .......... Appellant 27/1421 Drisya: Govindapuram P.O. Calicut 673016 [PAN: AMQPP9364A] vs. The Income Tax Officer .......... Respondent Ward - 1(3), Kozhikode Appellant by: Shri Rishal K., Advocate 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 09.10.2024 for Assessment Year (AY) 2017-18. This appeal filed by the assessee is directed against the order of the National Faceless Appeal Centre (NFAC), Delhi [CIT(A)] dated 14.05.2024 for Assessment Year (AY) 2017-18. 2. Brief facts of the case are that the appellant is an individual engaged in the business of electrical items. The appellant did not file return of income u/s. 139(1) of the Income Tax Act, 1961 (the Act) for 2 ITA No. 1003/Coch/2024 Prabheesh Nair AY 2017-19. Notice u/s. 142(1) of the Act was issued to the assessee on 09.03.2018 requiring the appellant to file the return of income on or before 31.03.2018. The appellant did not comply with the notice. Therefore, the Income Tax Officer, Ward 1(3), Kozhikode (hereinafter called \"the AO\") completed the assessment vide order dated 11.10.2019 passed u/s. 144 of the Act at a total income of 15,17,191/-. While doing so, the AO made addition of Rs. 9,22,000/- u/s. 69 of the Act on account of the deposits made in specified bank notes during the demonetisation period treating as unexplained money of the appellant. 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 decision of the Hon'ble Supreme Court in the case of CIT v. B.N. Bhattacharjee and Anr [1977] 118 ITR 461 (SC) and a few other orders. 4. Being aggrieved, the assessee is in appeal before the Tribunal in the present appeal. 5. I heard the rival contentions of both the parties and perused the material available on record. 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 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 3 ITA No. 1003/Coch/2024 Prabheesh Nair 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. 6. In the result, the appeal filed by the assessee is allowed for statistical purposes 7. 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 By Order Assistant Registrar ITAT, Cochin "