SHANAVAS HASSAN,MUVATTUPUZHA V. ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE I, ALUVA

ITA 281/COCH/2024

AI Insights

The case involves Shanavas Hassan, an individual engaged in the business of manufacturing and marketing Plywood, Veneers, and fruits, who appealed against the order of the National Faceless Appeal Centre, Delhi, for the Assessment Year 2017-18. The primary contention arose from the assessment made by the Assistant Commissioner of Income Tax, which included additions for unexplained cash deposits during the demonetization period, unexplained agricultural income, interest received from the bank, and unexplained unsecured loans. The CIT(A) dismissed the appeal ex parte for non-prosecution, which led to the current appeal before the Tribunal. The Tribunal found that the CIT(A) erred in not addressing the appeal on merits and thus remanded the case for a fresh decision.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 474741 (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: M/s. Chemipol vs. Union of India, PCIT vs. Premkumar Arjundas Luthra
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: LEENA LAL
• Section: 143(3)

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL COCHIN BENCH BEFORE SHRI INTURI RAMA RAO, AM AND SHRI KESHAV DUBEY, JM ITA No. 281/Coch/2024 Assessment Year: 2017-18 Shanavas Hassan .......... Appellant PP-II-556, Proprietor, Goldwood Golden Valley, Pezhakkappilly P.O. Muvattupuzha 686673 [PAN: ACIPH9662B] vs. Asst. Commissioner of Income Tax .......... Respondent Ward - 1 & TPS, Aluva Appellant by: ------- None ------- Respondent by: Smt. Leena Lal, Sr. D.R. Date of Hearing: 27.01.2025 Date of Pronouncement: 19.02.2025 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 06.02.2024 for Assessment Year (AY) 2017-18. 2. Brief facts of the case are that the assesseeis an individual engaged in the business of manufacturing and marketing of Plywood, Veneers and fruits. The return of income for AY 2017-18 2 ITA No. 281/Coch/2024 Shanavas Hassan was filed on 29.12.2017 declaring total income of Rs. 29.01,800/-. Against the said return of income, the assessment was completed by the ACIT, Ward-1, Aluva (hereinafter called \"the AO\") vied order dated 28.12.2019 passed u/s. 143(3) of the Income Tax Act, 1961 (the Act) at a total income of Rs. 1,75,61,219/-. While doing so, the AO made additions on account of unexplained cash deposit made during demonetization period, unexplained agricultural income, interest received from bank, unexplained unsecured loan, etc. 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 Bombay High Court in the case of M/s. Chemipol vs. Union of India in Excise Appeal No. 62 of 2009 and a few other orders. 3. Being aggrieved, the assessee is in appeal before the Tribunal in the present appeal. The assessee filed a letter dated 24.01.2025 seeking adjournment on the ground the partner of the CA firm is out of station due to some emergency. 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. Therefore, we proceed to dispose of the appeal after hearing the learned CIT-DR. 4. We find that the learned CIT(A) dismissed the appeal in limine for non prosecution u/s. 250(6) of the Act. It is the settled position of law that the CIT(A), even while disposing of the appeal 3 ITA No. 281/Coch/2024 Shanavas Hassan 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 we are 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. 5. In the result, the appeal filed by the assessee is allowed for statistical purposes 6. Order pronounced in the open court on 19th February, 2025. Sd/- Sd/- (KESHAV DUBEY) JUDICIAL MEMBER (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 "