THE MYNAGAPPALLY SERVICE CO-OPERATIVE BANK LIMITED,KOLLAM V. THE DEPARTMENTAL REPRESENTATIVE, KOCHI

ITA 800/COCH/2024

AI Insights

The case involves Mynagappally Service Co-op. Bank Ltd., a cooperative society engaged in banking and credit facilities, which filed an appeal against the order of the National Faceless Appeal Centre, Delhi [CIT(A)], 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 disallowed by the Income Tax Officer, Kollam. The CIT(A) dismissed the appeal ex parte for non-prosecution, leading to the current appeal before the ITAT. The ITAT found that the CIT(A) should have addressed the appeal on its merits, even in the absence of the appellant's representation, and thus remanded the case back to the CIT(A) for a detailed examination on merits.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 23362 (ITAT-COCHIN)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-03-2025
• 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
• Assessee Lawyers: R. KRISHNAN
• 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. 800/Coch/2024 Assessment Year: 2020-21 Mynagappally Service Co-op. Bank Ltd. .......... Appellant Mynagappally, Kunnathoor, Kollam 690519 [PAN: AAGAT3750M] vs. The Income Tax Officer .......... Respondent Kollam Appellant by: Shri R. Krishnan, CA Respondent by: Smt. Leena Lal, Sr. D.R. Date of Hearing: 19.02.2025 Date of Pronouncement: 18.03.2025 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 29.04.2024 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 engaged in the business of banking or providing credit facilities to its members for agricultural and allied activities. The return of income for AY 2020-21 was filed on 15.02.2021 declaring 2 ITA No. 800/Coch/2024 Mynagappally Service Co-op. Bank Ltd. Nil income after claiming deduction of Rs. 2,56,86,947/- u/s. 80P of the Income Tax Act, 1961 (the Act). Against the said return of income, the assessment was completed by the Income Tax Officer, Kollam (hereinafter called \"the AO\") vide order dated 26.08.2022 passed u/s. 143(3) r.w.s. 144B of the Act at a total income of Rs. 2,56,86,947/-. While doing so, the AO disallowed the claim of the assessee for deduction u/s. 80P of the Act. 3. Being aggrieved, an appeal was filed before the CIT(A), who vide the impugned order dismissed the appeal exparte for non prosecution. 4. Being aggrieved, the appellant is in appeal before us in the present appeal. 5. We have heard the contentions of both the parties and perused the material available on record. 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 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 3 ITA No. 800/Coch/2024 Mynagappally Service Co-op. Bank Ltd. 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 18th March, 2025. Sd/- Sd/- (KESHAV DUBEY) JUDICIAL MEMBER (INTURI RAMA RAO) ACCOUNTANT MEMBER Cochin, Dated: 18th March, 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 "