SREE NARAYANA SALES AND SERVICES,EDAPALLY, KOCHI V. DCIT CORPORATE CIR 1(1), KOCHI

ITA 713/COCH/2024

AI Insights

The case involves Sree Narayana Sales and Services, a partnership firm, which filed an appeal against the order of the National Faceless Appeal Centre, Delhi (CIT(A)), dated 21.06.2024, for the Assessment Year 2013-14. The firm had initially filed a return declaring a total income of Rs. 4,84,650, which was later assessed at Rs. 9,79,700 by the AO, incorporating additions under various sections including 40(a)(ia) and 40A(3). The CIT(A) upheld the AO's decision due to non-prosecution by the appellant. However, the Tribunal found procedural flaws in the service of notice and remanded the case for a de novo hearing.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 23436 (ITAT-COCHIN)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-01-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: DB
• Assessment Year: 2013-2014
• Other Referred Cases: Munjal BCU Centre of Innovation and Entrepreneurship vs. CIT (Exemptions)
• Laws Referred To: Income Tax Act, 1961, Income Tax Rules, 1962
• Result in Favour of: Partly Allowed
• 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 ITA No. 713/Coch/2024 Assessment Year: 2013-14 Sree Narayana Sales and Services .......... Appellant Koonamthai Edapally, Ernakulam 682024 [PAN: AAWFS8196H] vs. DCIT, Corporate Circle (1) .......... Respondent C.R. Building, I.S. Press Road Kochi 682018 Appellant by: ------- None ------- Respondent by: Smt. Leena Lal, Sr. D.R. Date of Hearing: 16.01.2025 Date of Pronouncement: 21.01.2025 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 21.06.2024 for Assessment Year (AY) 2013-14. 2. Brief facts of the case are that the appellant is a partnership firm. The return of income was filed on 27.09.2013 for AY 2013-14 declaring total income of Rs. 4,84,650/-. Against the said return of income, the assessment was completed by the DCIT, Corporate Circle 1(1), Kochi (hereinafter called \"the AO\") vide order dated 24.03.2016 passed u/s. 143(3) of the Income Tax Act, 1961 (the 2 ITA No. 713/Coch/2024 Sree Narayana Sales and Services Act) at a total income of Ra. 9,79,700/-. While doing so, the AO had made additions under sections 40(a)(ia), 40A(3), etc. amounting to Rs. 4,95,049/-. 3. Being aggrieved, an appeal was filed before the CIT(A), who vide the impugned order confirmed the action of the AO for non- prosecution by the appellant. 4. Being aggrieved, the appellant is in appeal before me in the present appeal. 5. When the appeal was called 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. 6. From the order of the CIT(A) it would be clear that notices of hearing were issued through ITBA portal. In my considered opinion, it is not a valid method and manner of service of notice as specified under the provisions of section 282(1) of the Income-tax Act, 1961 Act and Rule 127(1) of the Income-tax Rules, 1962. Therefore, it is crystal clear that the notices were not served upon the appellant. To fortify our view, we would like to make reference to a decision rendered by the Hon’ble Punjab & Haryana High Court in the case of Munjal BCU Centre of Innovation and Entrepreneurship vs. CIT (Exemptions) (2024) 463 ITR 560 (P&H), wherein the Hon’ble High Court after making reference to provisions of 282(1) held that 3 ITA No. 713/Coch/2024 Sree Narayana Sales and Services service of notice through ITBA portal is not valid service and remanded the matter to AO for denovo disposal of case. 7. Respectfully following the above judgement of the Hon'ble Punjab & Haryana High Court, I remand the matter back to the CIT(A) with the direction to dispose the appeal after affording reasonable opportunity of hearing to the assessee in accordance with law. 8. In the result, appeal filed by the assessee is partly allowed for statistical purposes. Order pronounced in the open court on 21st January, 2025. Sd/- (INTURI RAMA RAO) ACCOUNTANT MEMBER Cochin, Dated: 21st January, 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 "