ABBVIE HEALTHCARE INDIA PRIVATE LIMITED ,BANGALORE V. DCIT, CIRCLE-1(1)(1), BANGALORE

ITA 981/BANG/2025

AI Insights

The case involves Abbvie Healthcare India Private Limited, which appealed against the order of the CIT(A) that dismissed their appeal on the grounds of delay. The delay was attributed to the change in the company's name and email ID following its merger with Abbvie Group, which led to non-receipt of communications. The ITAT had to reconsider the matter after the jurisdictional High Court restored it for reconsideration following the dismissal of an early hearing application by the ITAT. The Tribunal's decision to condone the delay and restore the matter was based on the principle that the cause of the delay, rather than its length, is what matters in judicial proceedings.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 652913 (ITAT-BANGALORE)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-06-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2020-2021
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SHIVANAND KALAKERI
• Assessee Lawyers: T. SURYANARAYANA

Judgement Text

"ITA No.981/Bang/2025 Abbvie Healthcare India Private Limited, Bangalore IN THE INCOME TAX APPELLATE TRIBUNAL “A’’ BENCH: BANGALORE BEFORE SHRI PRASHANT MAHARISHI, VICE PRESIDENT AND SHRI PRAKASH CHAND YADAV, JUDICIAL MEMBER ITA No.981/Bang/2025 Assessment Year: 2020-21 Abbvie Healthcare India Private Limited Level 6 & 7, Prestige Obelisk Kasturba Road Bangalore 560 001 PAN NO : AAHCA3776H Vs. DCIT Circle 1(1)(1) Bangalore APPELLANT RESPONDENT Appellant by : Sri T. Suryanarayana, A.R. Respondent by : Sri Shivanand Kalakeri, D.R. Date of Hearing : 16.06.2025 Date of Pronouncement : 19.06.2025 O R D E R PER PRAKASH CHAND YADAV, JUDICIAL MEMBER: Present appeal of the assessee is arising from the order of ld. CIT(A) dated 11.2.2025 vide DIN & Order No.ITBA/NFAC/S/250/2024-25/1073113959(1) passed u/s 250 of the Income Tax Act, 1961 (in short “The Act”) and relates to assessment year 2020-21. 2. A brief background of the case. In this case, the assessee has earlier filed an early hearing application before the bench. The same was rejected by the bench vide order dated 16.5.2025. Thereafter, the assessee filed writ petition before the jurisdictional High Court vide WP No.15602/2025 and inter-alia argued that the ITAT has erred in dismissing the early hearing application filed before it. The Hon’ble High Court vide its order dated 3.6.2025 restored the matter ITA No.981/Bang/2025 Abbvie Healthcare India Private Limited, Bangalore Page 2 of 3 to the file of ITAT for reconsidering the early hearing application of the assessee and hence this case was taken up for hearing out of turn on 16.6.2025. 3. At the outset, ld. Counsel for the assessee pointed out that the ld. CIT(A) has dismissed the appeal of the assessee on the ground of delay. Ld. Counsel for the assessee pointed out that the ld. CIT(A) has not at all appreciated the fact that there was a delay of 46 days, hence it is a case of ordinate delay and hence circumstances behind the delay could have been appreciated liberally. At least ld. Counsel for the assessee pointed out that the assessee has applied for Direct Tax VSVS Scheme, 2024 for settling the dispute and paying the appropriate taxes. 4. Ld. D.R. appearing on behalf of the revenue relied upon the orders of the authorities below. 5. We have heard the rival submissions and perused the materials available on record, we observe that the main reason behind the delay of 46 days before the ld. CIT(A) was that the assessee was not receiving the e-mails for the reason that the assessee was earlier known as “Allergan Health Care” and has filed the return of income for the impugned assessment year in the erstwhile name. Thereafter, the case of the assessee was picked up for scrutiny and the AO issued various notices as is mentioned in para 4 of the affidavit, for condonation of delay. All these notices were duly complied with by the assessee vide its submission starting from July, 2021 to March, 2023. Thereafter, the assessee got merged with Abbvie Group and the interface of Allergan Health Care was changed to the Abbvie domain. We further observed that the earlier e-mail ID of the assessee was “[e-mail]” and the same was changed somewhere after March, 2023 e-mail address ITA No.981/Bang/2025 Abbvie Healthcare India Private Limited, Bangalore Page 3 of 3 “[e-mail]”. Ld. D.R. could not be able to refute this averment of the assessee with any cogent material. It is settled position of law that it is not the length of delay rather the cause behind the delay is to be seen. In the present case the cause behind the delay is non- service of the order at the new email id of the assessee, which fact has not been refuted by the revenue. Non service of an order would constitute “sufficient cause” unless refuted with cogent evidence. Therefore, considering the totality of the facts, and ordinate delay of 46 days, we are of the view that purpose of justice would be served if we condone the delay of 46 days and restore the matter back to the file of ld. CIT(A) for deciding afresh in accordance with law. Needless to say, that ld. CIT(A) would grant meaningful opportunity to the assessee before passing any order. 6. In the result, appeal of the assessee is allowed for statistical purposes. Order pronounced in the open court on 19th June, 2025 Sd/- (Prashant Maharishi) Vice President Sd/- (Prakash Chand Yadav) Judicial Member Bangalore, Dated 19th June, 2025. VG/SPS Copy to: 1. The Applicant 2. The Respondent 3. The CIT 4. The DR, ITAT, Bangalore. 5 Guard file By order Asst. Registrar, ITAT, Bangalore. "