Premalatha Korottoliprasantham Vs ITO (ITAT Cochin)
The case Premalatha Korottoliprasantham Vs ITO (ITAT Cochin) pertains to the assessee, engaged in the automobile spare parts business, who failed to file a return of income for the Assessment Year (AY) 2017-18 under Section 139(a) of the Income Tax Act. During the demonetisation period, the Income Tax Officer (ITO), based on information about cash deposits, issued a notice under Section 142(1) of the Act. Non-compliance by the assessee led the Assessing Officer (AO) to complete the assessment under Section 144, estimating a total income of ₹16,23,149 by applying an 8% presumptive income rate on the turnover. The CIT(A) subsequently dismissed the appeal for non-prosecution, citing Supreme Court precedence.
On further appeal to the ITAT, the tribunal noted procedural lapses in the CIT(A)’s decision. As per Section 250(6) of the Act, the CIT(A) must provide reasoned determinations even when an appeal is dismissed ex parte. The ITAT referred to precedents like PCIT vs. Premkumar Arjundas Luthra (Bombay High Court) and highlighted the need for the CIT(A) to adjudicate appeals on their merits. Consequently, the ITAT remanded the case back to the CIT(A) for a fresh hearing, directing it to afford the assessee a reasonable opportunity to present their case.
