AIRSTATE LOGISTICS & COURIERS PRIVATE LIMITED,BENGALURU V. INCOME TAX OFFICER, BENGALURU

ITA 586/BANG/2025

AI Insights

Airstate Logistics & Couriers Private Limited, engaged in courier and logistic operations, filed an appeal against the order of the CIT(A)/NFAC which had dismissed their earlier appeal due to non-submission of required documents and non-response to notices. The original assessment for AY 2014-15 was reopened under section 148 of the Income Tax Act, 1961, due to alleged violations of section 40A(3), leading to disallowance of truck expenses amounting to Rs.55,21,568. The Tribunal found that the assessee's inability to represent their case was due to the shifting of their registered office and decided to remit the matter back to the CIT(A) for a fresh assessment.

• Counselvise Citation: [2026] 140 COUNSELVISE.COM (IT) 841189 (ITAT-BANGALORE)
• Duration Of Justice: 11 month(s) 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-02-2026
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: A
• Assessment Year: 2014-2015
• Appeal Filed On: 19-03-2025
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: SHIVANAD KALAKERI
• Assessee Lawyers: THIRUMALA NAIDU K.; SURYA KANTA DEVADIGA
• Keywords: Opportunity of being heard
• Section: 147; 148; 143(3); 40A(3)

Judgement Text

"ITA No.586/Bang/2025 Airstate Logistics & Couriers Private Limited, Bengaluru IN THE INCOME TAX APPELLATE TRIBUNAL “A’’ BENCH: BANGALORE BEFORE SHRI PRASHANT MAHARISHI, VICE PRESIDENT AND SHRI KESHAV DUBEY, JUDICIAL MEMBER ITA No. 586/Bang/2025 Assessment Year : 2014-15 Airstate Logistics & Couriers Private Limited No.44, Anglo Indian Block Austin Town Bengaluru Karnataka 560 047 PAN NO : AAFCA0100P Vs. ITO Ward 1(1)(3) Bengaluru APPELLANT RESPONDENT Appellant by : Sri Thirumala Naidu K., A.R. & Sri Surya Kanta Devadiga, A.R. Respondent by : Sri Shivanad Kalakeri, D.R. Date of Hearing : 15.12.2025 Date of Pronouncement : 27.02.2026 O R D E R PER KESHAV DUBEY, JUDICIAL MEMBER: This Appeal at the instance of the assessee is directed against the order of ld. CIT(A)/NFAC dated 16.5.2024 vide DIN and Order No: ITBA/NFAC/S/250/2024-25/1064922646 (1) passed u/s. 250of the income Tax Act, 1961 (in short “the Act”) for the AY 2014-15. 2. The assessee has raised the following Grounds of appeal: - Printed from counselvise.com ITA No.586/Bang/2025 Airstate Logistics & Couriers Private Limited, Bengaluru Page 2 of 5 Printed from counselvise.com ITA No.586/Bang/2025 Airstate Logistics & Couriers Private Limited, Bengaluru Page 3 of 5 3. Brief facts of the case are that the assessee company is engaged in the business of courier and logistic operations. The assessee filed its return of income for the assessment year 2014-15 on 30.11.2014 declaring total income of Rs.36,91,020/-. The said return was revised on 28.5.2015 declaring income of Rs.43,62,940/-. The case was thereafter selected for scrutiny and order u/s 143(3) of the Act was passed on 16.12.2016 by accepting the returned income. Subsequently, the case was reopened by issuing notice u/s 148 of the Act on 13.3.2019 with the prior approval of Addl CIT vide letter dated 18.2.2019. The main reason for reopening of the assessment was that the assessee had violated the provisions of section 40A(3) of the Act. The AO thereafter completed the assessment proceedings u/s 147 r.w.s. 143(3) of the Act on 12.12.2019 by disallowing the truck expenses amounting to Rs.55,21,568/- as per the provisions contained in section 40A(3A) of the Act and accordingly assessed on a total income of Rs.98,84,500/-. 4. Aggrieved by the assessment completed u/s 147 r.w.s. 143(3) of the Act dated 12.12.2019, the assessee preferred an appeal before the ld. CIT(A)/NFAC. 5. The ld. CIT(A)/NFAC dismissed the appeal of the assessee since in spite of 4 numbers of notices issued to the assessee, the assessee neither submit any documents/records nor responded to any of the notices. Further, the ld. CIT(A)/NFAC held that the assessee is not aggrieved with the assessment order impugned herein and is not interested in pursuing the same and accordingly the additions/disallowances as challenged in the grounds of appeal were dismissed. 6. Aggrieved by the order of ld. CIT(A)/NFAC, the assessee has filed the present appeal before this Tribunal. The assessee has filed Printed from counselvise.com ITA No.586/Bang/2025 Airstate Logistics & Couriers Private Limited, Bengaluru Page 4 of 5 a paper book comprising 60 pages containing therein brief facts and notes on arguments, copy of the order of the AO and ld. CIT(A) as well as case laws relied upon by the assessee. 7. Before us, the ld. A.R. of the assessee vehemently submitted that the assessee could not represent its case before the ld. CIT(A)/NFAC due to the shifting of the registered office of the assessee. Further, the ld. A.R. of the assessee prayed to remit the entire issue to the file of ld. CIT(A)/NFAC for fresh consideration and also undertakes to appear before the ld. CIT(A)/NFAC and submit all the necessary documents/records to substantiate its claim. 8. The ld. D.R. on the other hand, vehemently supported the order of the Authorities below. 9. We have heard the rival submissions and perused the materials available on record. It is an undisputed fact that the assessee company could not represent its case before the ld. CIT(A)/NFAC. Before us, the ld. A.R. of the assessee undertakes to submit all the necessary documents/records/confirmation to substantiate its claim and requested to remit the matter to the file of ld. CIT(A)/NFAC to decide a fresh. This being so, in the interest of justice and fair play, we deem it fit and proper to remit the entire issue in dispute to the file of ld. CIT(A)/NFAC to decide afresh in accordance with law. Needless to say, a reasonable opportunity of being heard must be granted to the assessee. The assessee is also directed to produce all the relevant documents/records/information/explanation before the ld. CIT(A)/ NFAC in support of its claim. It is ordered accordingly. Printed from counselvise.com ITA No.586/Bang/2025 Airstate Logistics & Couriers Private Limited, Bengaluru Page 5 of 5 10. In the result, appeal filed by the assessee is partly allowed for statistical purposes. Order pronounced in the open court on 27th Feb, 2026 Sd/- (Prashant Maharishi) Vice President Sd/- (Keshav Dubey) Judicial Member Bangalore, Dated 27th Feb, 2026. 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. Printed from counselvise.com "