THE NADUVIL SERVICE CO.OPERATIVE BANK ,KANNUR V. ITO,WARD 4, KANNUR

ITA 227/COCH/2025

AI Insights

The case involves The Naduvil Service Co-operative Bank appealing against an order from the National Faceless Assessment Centre / Commissioner of Income Tax (Appeals), which was initially passed ex parte due to the assessee's non-response to hearing notices. The assessee contended that they were unaware of the appeal's disposal as they did not receive any notice or alert regarding the appellate order, only becoming aware upon receiving a penalty order under section 270A of the Income Tax Act. The Tribunal found sufficient cause for the delay in filing the appeal and condoned the delay of 460 days. It was decided that the matter should be restored to the CIT(A) for a fresh hearing in the interest of natural justice.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 315421 (ITAT-COCHIN)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-05-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2017-2018
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: LEENA LAL
• Assessee Lawyers: ARUN RAJ S
• Keywords: Opportunity of being heard; Principle of natural justice

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL COCHIN BENCH, COCHIN Before Shri George George K, Vice-President & Shri Inturi Rama Rao, Accountant Member ITA No.227/Coch/2025 :Asst.Year 2017-2018 The Naduvil Service Co- operative Bank, P.O. Naduvil Kannur – 670 582. PAN : AACAT8761E. v. The Income Tax Officer Ward - 4 Kannur. (Appellant) (Respondent) Appellant by : Sri.Arun Raj S, Advocate Respondent by : Smt.Leena Lal, Sr.AR Date of Hearing :15.05.2025 Date of Pronouncement : 15.05.2025 O R D E R Per George George K, Vice-President : This appeal at the instance of assessee is directed against the order of the National Faceless Assessment Centre / Commissioner of Income Tax (Appeals) [“CIT(A)”] dated 11.10.2023 passed u/s. 250 of Income Tax Act, 1961 (\"the Act\" hereinafter). The relevant assessment year is 2017-2018. 2. There is a delay of 460 days in filing this appeal before the Tribunal. The assessee has filed a petition for condoning the delay supported by an affidavit of the Secretary of the assessee co-operative society. The reasons stated for belated filing of the appeal is that the assessee was not aware of the disposal of the appeal by the NFAC, as no notice or appellate ITA No.227/Coch/2025. The Naduvil SC.B Limited. 2 order was served on the assessee, and even no SMC alert was received in the mobile phone. It is further submitted that the assessee became aware of the order passed by the CIT(A) only on receipt of the penalty order passed u/s.270A of the Act, by the jurisdictional Officer. It is therefore prayed that the delay may be condoned. 2.1 We have perused the affidavit filed by the assessee. We are satisfied that there is sufficient cause for belated filing of this appeal and no latches can be attributed to the assessee. Hence, we condone the delay of 460 days in filing this appeal and proceed to dispose of the same on merits. 3. At the very outset, we notice that the CIT(A) has passed ex parte order since the assessee did not respond to the hearing notices issued from the office of the CIT(A). The learned A.R. submitted that the notices stated to have been sent from the office of the CIT(A) has not been served on the assessee, consequently, the same were not complied with. It is prayed that in the interest of natural justice and equity the matter may be restored to the files of the CIT(A). 4. On the other hand, the learned DR supported the orders of the authorities below. 5. We have heard the rival submissions and perused the material on record. We find that the CIT(A)'s order is ex parte order since the assessee did not respond to the hearing notices ITA No.227/Coch/2025. The Naduvil SC.B Limited. 3 nor filed written submissions. In the interest of justice and equity, we restore the appeal to the file of the CIT(A) for de novo disposal of the appeal, in accordance with law, after affording a reasonable opportunity of being heard to the assessee. The assessee is directed to cooperate with the Revenue and shall not seek unnecessary adjournments. It is ordered accordingly. 6. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced on this 15th day of May, 2025. Sd/- (Inturi Rama Rao) Sd/- (George George K) ACCOUNTANT MEMBER VICE-PRESIDENT Cochin; Dated : 15th May, 2025. Devadas G* Copy to : 1. The Appellant. 2. The Respondent. 3. The CIT, Cochin. 4. The DR, ITAT, Cochin. 5. Guard File. Asst.Registrar/ITAT, Cochin "