THE PAZHAMBALACODE SERVICE CO-OPERATIVE BANK LIMITED NO P 492,PALAKKAD V. ITO, WARD 5, PALAKKAD, PALAKKAD

ITA 347/COCH/2024

AI Insights

The case involves The Pazhambalacode Service Co-op. Bank Ltd., which appealed against the order of the National Faceless Appeal Centre, Delhi (CIT(A)), for the Assessment Year 2011-12. The primary issue arose from the assessee's failure to file a return of income under section 139(1) of the Income Tax Act, 1961, leading to an assessment under section 144 read with section 147 of the Act, where a total income of Rs. 63,24,230 was assessed. 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) should have disposed of the appeal on merits, even if ex parte, and thus remanded the case back to the CIT(A) for a decision on merits.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 23372 (ITAT-COCHIN)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-01-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: misc
• Other Referred Cases: B.N. Bhattacharji and Anr 118 ITR 461 (SC), PCIT vs. Premkumar Arjundas Luthra 279 CTR 614
• Laws Referred To: Income Tax Act, 1961, Kerala Co-Operative Societies Act, 1969
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: LEENA LAL
• Assessee Lawyers: AMALJITH
• Section: 147; 148; 144; 142(1); 139(1); 80P

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL COCHIN BENCH BEFORE SHRI INTURI RAMA RAO, AM AND SHRI PRAKASH CHAND YADAV, JM ITA No. 347/Coch/2024 Assessment Year: 2011-12 The Pazhambalacode Service .......... Appellant Co-op. Bank Ltd. Pazhambalacode P.O. Alathur Taluk, Palakkad 678544 [PAN: AAAAP4158K] Vs. The Income Tax Officer - 5 .......... Respondent Aayakar Bhavan, English Chruch Road Palakkad 670014 Appellant by: Shri Amaljith, CA Respondent by: Smt. Leena Lal, Sr. D.R. Date of Hearing: 19.12.2024 Date of Pronouncement: 29.01.2025 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 26.02.2024 for Assessment Year (AY) 2011-12. 2. Brief facts of the case are that the assessee, the assessee is a co-operative bank registered under the Kerala Co-Operative 2 ITA No. 347/Coch/2024 The Pazhambalacode Service Co-op. Bank Ltd. Societies Act, 1969. The assessee has not filed the return of income u/s. 139(1) of the Income Tax Act, 1961 (the Act) for AY 2011-12. Therefore the Income Tax Officer, Ward 5, Palakkad (hereafter “the AO”) issued a notice u/s. 148 of the Act on 11.11.2014. The assessee neither complied with the notice u/s. 148 of the Act nor produced any details called for vide the notices u/s. 142(1) of the Act dated 16.08.2016. Therefore, the AO completed the assessment vide order dated 19.12.2016 passed u/s. 144 r.w.s 147 of the act at a total income of Rs. 63,24,230/- by disallowing the claim for deduction u/s. 80P of the Act by holding that the appellant society is a co-operative bank. 3. 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 judgement of the Hon'ble Supreme Court in the case of B.N. Bhattacharji and Anr 118 ITR 461 (SC) and few other judgements. 4. Being aggrieved, the assessee is in appeal before the Tribunal in the present appeal. 5. We have heard the rival 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. 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. 3 ITA No. 347/Coch/2024 The Pazhambalacode Service Co-op. Bank Ltd. 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 7. Order pronounced in the open court on 29th January, 2025. Sd/- Sd/- (PRAKASH CHAND YADAV) JUDICIAL MEMBER (INTURI RAMA RAO) ACCOUNTANT MEMBER Cochin, Dated: 29th 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 "