THRISSUR HOUSE CONSTRUCTION CO-OP SOCIETY LTD NO. R 1107,THRISSUR V. INCOME TAX OFFICER, WARD-2(1), THRISSUR, THRISSUR

ITA 912/COCH/2024

AI Insights

The case involves Thrissur House Construction Co-op Society Ltd., the appellant, who failed to furnish a return of income for the Assessment Year 2017-18. The Income Tax Officer (ITO) assessed the society's income based on deposits made during the demonetisation period, amounting to Rs. 10,73,200, and added this amount under section 69A of the Income Tax Act, 1961. The CIT(A) dismissed the society's appeal ex parte for non-prosecution. The Tribunal found that the CIT(A) erred in dismissing the appeal without a detailed discussion on merits and remanded the case for a fresh assessment.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 474697 (ITAT-COCHIN)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-01-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2017-2018
• Other Referred Cases: M/s. Chemipol vs. Union of India, PCIT vs. Premkumar Arjundas Luthra
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: LEENA LAL
• Assessee Lawyers: VIPIN K.K.
• Section: 144; 142(1); 69A; 139

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL COCHIN BENCH BEFORE SHRI INTURI RAMA RAO, AM ITA No. 912/Coch/2024 Assessment Year: 2017-18 Thrissur House Construction .......... Appellant Co-op Society Ltd. East Fort, Thrissur 680005 [PAN: AAFAT2514C] vs. The Income Tax Officer .......... Respondent Ward - 2(1), Thrissur Appellant by: Shri Vipin K.K., CA 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 11.06.2024 for Assessment Year (AY) 2017-18. 2. Brief facts of the case are that the appellant is a co-operative society. The appellant failed to furnish the return of income for AY 2017-18 either u/s. 139 and also in response to notice u/s. 142(1) of the Income Tax Act, 1961 (the Act). On the basis of the information gathered during the phase of online verification under ‘Operation Clean Money’, the Income Tax Officer, Ward 2(1), Thrissur 2 ITA No. 912/Coch/2024 Thrissur House Construction Co-op Society Ltd. (hereinafter called \"the AO\") found that the appellant has deposited Rs. 10,73,200/- with Thrissur District Central Co-op. Bank durng the demonetisation period. Hence, the AO completed the assessment vide order dated 30.12.2019 passed u/s. 144 of the Act at a total income of Rs. 10.73,200/-. While doing so, the AO made addition u/s. 69A of the Act of Rs. 10,73,200/-. 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 decision of the Hon'ble Bombay High Court in the case of M/s. Chemipol vs. Union of India in Excise Appeal No. 62 of 2009 and a few other orders. 4. Being aggrieved, the assessee is in appeal before the Tribunal in the present appeal. 5. I heard the rival contentions of both the parties and perused the material available on record. I 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 3 ITA No. 912/Coch/2024 Thrissur House Construction Co-op Society Ltd. of the above legal position I am 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 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 "