APOLLOHOSPITALS INTERNATIONAL LTD.,CHENNAI V. DCIT, CORP. CIRCLE-1(1), CHENNAI

ITA 936/CHNY/2025

AI Insights

The case involves Apollo Hospitals International Limited, which filed an appeal against the order of the Commissioner of Income Tax (Appeals), Agra, for the assessment year 2017-18. The primary contention was regarding the disallowances made by the Assessing Officer under sections related to penalty, bad debts, and non-deduction of TDS. The CIT(A) upheld the AO's decision, leading to the appeal before the Income Tax Appellate Tribunal. The Tribunal noted the assessee's lack of participation in the initial proceedings and decided to provide another opportunity for the assessee to present its case, emphasizing the principles of natural justice.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 708570 (ITAT-CHENNAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-07-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Assessment Year: 2017-2018
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: KUMAR CHANDAN; J. C.I.T
• Assessee Lawyers: A. SURAJ NAHAR
• Keywords: Set aside; Reasonable cause; Bad and doubtful debts; Principle of natural justice; TDS

Judgement Text

" आयकर अपीलीय अिधकरण, ‘ए’ Ɋायपीठ, चेɄई IN THE INCOME TAX APPELLATE TRIBUNAL ‘A’ BENCH, CHENNAI ŵी जॉजŊ जॉजŊ क े, उपाȯƗ एवं ŵी एस.आर.रघुनाथा, लेखा सद˟ क े समƗ BEFORE SHRI GEORGE GEORGE K, VICE PRESIDENT AND SHRI S.R. RAGHUNATHA, ACCOUNTANT MEMBER आयकर अपील सं./ITA No.:936/Chny/2025 िनधाŊरण वषŊ / Assessment Year: 2017-18 Apollo Hospitals International Limited, 29, Bishop Garden, R A Puram, Chennai – 600 028. vs. Deputy Commissioner of Income Tax, Corporate Circle – 1(1), Chennai. [PAN:AABCA-4150-H] (अपीलाथŎ/Appellant) (ŮȑथŎ/Respondent) अपीलाथŎ की ओर से/Appellant by : Shri. A. Suraj Nahar, C.A. ŮȑथŎ की ओर से/Respondent by : Shri. Kumar Chandan, J.C.I.T. सुनवाई की तारीख/Date of Hearing : 17.06.2025 घोषणा की तारीख/Date of Pronouncement : 15.07.2025 आदेश /O R D E R PER S. R. RAGHUNATHA, AM : This appeal by the assessee is filed against the order of the Commissioner of Income Tax, Appeals, ADDL/JCIT (A), Agra, for the assessment year 2017-18, dated 07.01.2025. 2. At the outset, we find that there is a delay of 01 day in appeal filed by the assessee, for which an explanation letter dated 04.04.2025 was filed by the assessee. The assessee has submitted that the last date for filing the appeal was 31.03.2025. Since, the office of the Hon’ble Income Tax Appellate Tribunal was closed on the :-2-: ITA. No:936/Chny/2025 last date of filing i.e. on 31.03.2025 on account of Ramzan, the appeal was filed on the immediate next working day i.e. on 01.04.2025. Hence, there is no delay in filing the appeal. After hearing both the parties, we find that there is a reasonable cause for the assessee in not filing appeal on or before the due date prescribed under the law and thus, in the interests of justice, we condone delay in filing of appeal and admit appeal filed by the assessee for adjudication. 3. The brief facts of the case are that the assessee is a limited company incorporated under the Companies Act, 1956 had filed their Return of Income for the Assessment Year 2017-18 electronically on 30.10.2017, declaring nil income after set off of brought forward loss 2005-06 & 2006-07 to the extent of Rs.7,51,37,427/-. The Return of Income was processed u/s.143(1) of the Income-tax Act, 1961 (hereinafter referred to as 'the Act'). Further, the case was selected for scrutiny under CASS and the AO issued statutory notices calling for details. The assessee submitted certain details for and documents called for from time to time electronically, but the AO was not convinced and made certain disallowances on account of penalty, bad debts and non-deduction of TDS by passing an order u/s.143(3) of the Act on 23.12.2019. Aggrieved by the order of the Assessing Officer, the assessee preferred an appeal before the ld.CIT(A). :-3-: ITA. No:936/Chny/2025 4. The ld.CIT(A) upheld the order of the AO by dismissing the appeal of the assessee stating that considering the assessee’s repeated failure to comply with notices and provide substantive evidence and passed an order dated 23.12.2019. 5. Aggrieved by the order of the ld.CIT(A), the assessee preferred an appeal before us. 6. The ld.AR submitted that the assessee has not participated in the proceedings before the first appellate authority and hence prayed for one more opportunity before the ld.CIT(A) in the interest natural justice and assured the bench that if the opportunity is given, the assessee will participate in the proceedings. 7. Per contra, the ld.DR submitted that the assessee is negligent in responding to the notices of the department and hence prayed for confirming the order of the ld.CIT(A). 8. We have heard rival contentions and noticed that the ld.CIT(A) has passed an exparte order by considering the information available and based on the AO’s order without the participation of the assessee in the first appellate proceedings. We note the assessee was not provided with sufficient opportunities before the ld.CIT(A). Since the assessee has failed to participate in the appellate proceedings, we levy the cost of Rs.10,000/- to be paid to State Legal Aid Authority, Hon’ble High Court of Madras and produce proof of :-4-: ITA. No:936/Chny/2025 payment of cost to the Registry within 30 days from the date of receipt of this order. 9. In the present facts and circumstances of the case and to meet the ends of justice, we are deeming it fit to provide one more opportunity to the assessee and hence we set aside the order of the ld.CIT(A) and remit the matter back to the file to ld.CIT(A) to adjudicate the matter afresh in accordance to law, after providing reasonable opportunity to the assessee. Needless to say, assessee to be diligent and file written submissions and relevant documents if advised so. 10. In the result, appeal filed by the assessee is allowed for statistical purposes. Order pronounced in the court on 15th July, 2025 at Chennai. Sd/- Sd/- (जॉजŊ जॉजŊ क े) (GEORGE GEORGE K) उपाȯƗ /VICE PRESIDENT (एस. आर. रघुनाथा) (S. R. RAGHUNATHA) लेखा सद˟/ACCOUNTANT MEMBER चेɄई/Chennai, िदनांक/Dated, the 15th July, 2025 SP आदेश की Ůितिलिप अŤेिषत/Copy to: 1. अपीलाथŎ/Appellant 2. ŮȑथŎ/Respondent 3.आयकर आयुƅ/CIT– Chennai/Coimbatore/Madurai/Salem 4. िवभागीय Ůितिनिध/DR 5. गाडŊ फाईल/GF "