SIB STAFF CREDIT SOCIETY LTD NO.731,THRISSUR V. ITO, WARD 2(1), THRISSUR

ITA 796/COCH/2024

AI Insights

The case involves SIB Staff Credit Society Ltd., a cooperative society, 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 nil income after claiming a deduction under section 80P of the Income Tax Act, 1961, which was denied by the Income Tax Officer due to insufficient substantiation. The CIT(A) dismissed the appeal ex parte for non-prosecution. The Tribunal found that the CIT(A) erred in dismissing the appeal without a detailed discussion on merits, as required under section 250(6) of the Act. The Tribunal cited the decision of the Hon'ble Bombay High Court in PCIT vs. Premkumar Arjundas Luthra to emphasize the necessity of disposing of the appeal on merits, even ex parte.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 474737 (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
• Section: 143(3); 80P

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL COCHIN BENCH BEFORE SHRI INTURI RAMA RAO, AM AND SHRI KESHAV DUBEY, JM ITA No. 796/Coch/2024 Assessment Year: 2020-21 SIB Staff Credit Society Ltd. .......... Appellant SIB House, T.B. Road Mission Quarterss, Thrissur 680001 [PAN: AAFAS7620E] vs. The Income Tax Officer .......... Respondent Ward - 2(1), Thrissur Appellant by: ------- None ------- Respondent by: Smt. Leena Lal, Sr. D.R. Date of Hearing: 30.01.2025 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 29.07.2024 for Assessment Year (AY) 2020-21. 2. Brief facts of the case are that the appellant is a co-operative society registered under the Kerala State Co-operative Societies Act, 1969. It is formed for the purpose of accepting deposits from members and lending money to the members. The return of income 2 ITA No. 796/Coch/2024 SIB Staff Credit Society Ltd. for AY 2020-21 was filed on 09.12.2020 declaring nil income after claiming deduction u/s. 80P of the Income Tax Act, 1961 (the Act) of Rs. 61,13,148/-. Against the said return of income, the assessment was completed by the Income Tax Officer, Ward-2(1), Thrissur (hereinafter called \"the AO\") vide order dated 27.09.2022 passed u/s. 143(3) r.w.s. 144B of the Income Tax Act, 1961 (the Act) at a total income of Rs. 61,13,148/- denying exemption u/s. 80P of the Act for the failure of the appellant to substantiate the claim for deduction u/s. 80P of the Act. 3. Being aggrieved, an appeal was filed before the CIT(A) contending that the appellant is eligible for deduction u/s. 80P(2)(a)(i) of the Act. However, the CIT(A) dismissed the appeal exparte for non-prosecution. 4. Being aggrieved, the assessee is in appeal before the Tribunal in the present appeal. When the appeal was called nobody appeared on behalf of the assessee despite due service of notice of hearing. Therefore, we proceeded to dispose of the appeal after hearing the learned Sr. DR. 5. We 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 3 ITA No. 796/Coch/2024 SIB Staff Credit Society Ltd. 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. 6. In the result, the appeal filed by the assessee is allowed for statistical purposes 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 "