SARIGA CHICKEN CENTRE AND COLD STORAGE,PIRAVOM V. INCOME TAX OFFICER, THODUPUZHA

ITA 431/COCH/2025

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The case involves Sariga Chicken Centre & Cold Storage, a partnership firm engaged in the retail sale of chicken and poultry products, which did not file a regular return of income for the Assessment Year 2018-19. The Income Tax Officer (ITO) issued a notice under section 148 of the Income Tax Act, 1961, based on information of cash deposits and withdrawals in a bank. The assessment was completed ex-parte under sections 147, 144, and 144B, treating the entire cash deposits as business receipts and estimating the income at 8%. The CIT(A) dismissed the appeal ex-parte for non-prosecution without merit consideration. The assessee appealed to the Tribunal, which found procedural impropriety in the CIT(A)'s decision and remanded the case for a fresh assessment on merits.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 713020 (ITAT-COCHIN)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-07-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Assessment Year: 2018-2019
• 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
• Assessee Lawyers: ANIL KUMAR P J
• Keywords: Business income
• Section: 147; 148

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL COCHIN BENCH BEFORE SHRI INTURI RAMA RAO, AM ITA No. 431/Coch/2025 Assessment Year: 2018-19 Sariga Chicken Centre & Cold Storage, .......... Appellant V/567, Piravom (PO), Muvattupuzha, Ernakulam, [PAN: ACIFS 8065 M] vs. ITO, Ward-1, Thodupuzha .......... Respondent Appellant by: Shri Anil Kumar P J, Advocate Respondent by: Smt. Leena Lal, Sr. DR Date of Hearing: 21.07.2025 Date of Pronouncement: 31.07.2025 O R D E R This appeal filed by the assessee is directed against the order of the National Faceless Appeal Centre, Delhi [CIT(A)] dated 24.03.2025 for Assessment Year (AY) 2018-19. 2. Brief facts of the case are that the assessee is a partnership firm, engaged in the business of retail sale of chicken and poultry products. No regular return of income for the A.Y. 2018-19 was filed. Based on the information that assessee had made cash deposits and withdrawals in the Federal bank, therefeore, the AO Printed from counselvise.com 2 ITA No. 431/Coch/2025 Sariga Chicken Centre & Cold Storage issued a notice u/s. 148 of the Act on 30/03/2022. Against the said return of income, the AO completed the assessment vide order dated 06/03/2023 passed u/s. 147 r.w.s. 144 r.w.s. 144B of the Income Tax Act, 1961 (for short, ‘the Act’) at a total income of Rs. 12,03,584/-. While doing so, the AO treated the entire cash deposits as business receipts and estimated the income thereon at 8%. 3. Being aggrieved, an appeal was filed before the CIT(A), who vide the impugned order dismissed the appeal ex-parte for non prosecution without entering into the merits. 4. Being aggrieved, the assessee is in appeal before the Tribunal in the present appeal. 5. I have heard the rival submissions and perused the material on record. 6. 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 ex-parte, 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 Printed from counselvise.com 3 ITA No. 431/Coch/2025 Sariga Chicken Centre & Cold Storage the considered view that the matter requires to be remanded to the file of the CIT(A) with a direction to dispose of the appeal de novo on merits after affording reasonable opportunity of hearing to the assessee. 7. In the result, the appeal filed by the assessee is allowed for statistical purposes Order pronounced in the open court on 31st July, 2025. Sd/- (INTURI RAMA RAO) ACCOUNTANT MEMBER Cochin, Dated: 31st July, 2025 vr/- 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 Printed from counselvise.com "