APPVIEWX PRIVATE LIMITED,COIMBATORE V. DEPUTY COMMISSIONER OF INCOME TAX, CORPORATE CIRCLE 1, COIMBATORE, COIMBATORE

ITA 1137/CHNY/2025

AI Insights

The case involves App View X Private Limited, which appealed against the order of the CIT(A) that dismissed their appeal due to an 820-day delay in filing. The original issue was the disallowance of a deduction under section 10AA of the Income Tax Act amounting to Rs. 3,58,97,700, because the assessee failed to file Form 56 within the due date. The Tribunal, considering the substantial justice and the reason for the delay in serving the intimation order under section 143(1) by the revenue, decided to remand the case back to the CIT(A) for a decision on merits after condoning the delay, provided the assessee pays the specified cost.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 706065 (ITAT-CHENNAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-06-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Assessment Year: 2018-2019
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: BIPIN C.N
• Assessee Lawyers: SARAVANA KUMAR
• Keywords: Set aside
• Section: 10AA

Judgement Text

"आयकर अपीलीय अधिकरण, ’सी’ न्यायपीठ, चेन्नई। IN THE INCOME TAX APPELLATE TRIBUNAL ‘C’ BENCH: CHENNAI माननीय श्री मनु क ुमार धिरर ,न्याधयक सदस्य एवं माननीय श्री अमिताभ शुक्ला, लेखा सदस्य क े सिक्ष BEFORE HON’BLE SHRI MANU KUMAR GIRI, JUDICIAL MEMBER AND HON’BLE SHRI AMITABH SHUKLA, ACCOUNTANT MEMBER आयकर अपील सं./ITA No.1137/Chny/2025 Assessment Years: 2018-19 App View X Private Limited, Module No.107, 1st floor, ELCOT SEZ, Tidel Park, Coimbatore, Tamil Nadu- 641 104. [PAN: AAOCA7136L] Deputy Commissioner of Income Tax, Coimbatore Circle-1, Coimbatore (अपीलार्थी/Appellant) (प्रत्यर्थी/Respondent) अपीलार्थी की ओर से/ Assessee by : Mr.Saravana Kumar C.A. प्रत्यर्थी की ओर से /Revenue by : Mr.Bipin C.N, CIT सुनवाई की तारीख/Date of Hearing : 18.06.2025 घोषणा की तारीख /Date of Pronouncement : 30.06.2025 आदेश / O R D E R PER MANU KUMAR GIRI, JM: This appeal filed by the assessee is directed against the order of the Ld. Commissioner of Income Tax (Appeals), ADDL/JCIT(A)-6 Mumbai [CIT(A)] dated 13.02.2025 for Assessment Year 2018-19. 2. Brief facts of the case are that the assessee instituted appeal before the ld.CIT(A) against the order passed u/s 143(1) of the Act by AO, CPC for AY 2018-19 disallowing deduction u/s 10AA of the Act amounting to Rs.3,58,97,700/- for the reason that the assesse has not ITA No.1137 /Chny/2025 Page - 2 - of 3 filed the Form 56 within due date. On appeal to CIT(A), the ld. CIT(A) dismissed the appeal in limine as there was enormous delay of 820 days in filing appeal. Aggrieved, assessee is in appeal before us. 3. Before the ld. Counsel for assessee submitted that the delay of 820 in filing appeal had arisen due to delay in serving the intimation order u/s 143(1) of the Act by the revenue. He further, prayed that the appeal may be remanded back to the file of the CIT(A) to decide the appeal on merits after condoning the delay. The ld.DR relied upon the order of the ld.CIT(A) and pleaded for the dismissal of the appeal. 4. Though we some extent concur with the submissions of Ld.DR Mr. Bipin C.N., CIT however, keeping in mind the substantial justice, grant one more opportunity to the assesee to prosecute the appeal on merits. We also find that the AO, CPC has disallowed the deduction u/s 10AA of the Act amounting to Rs.3,58,97,700/- for the reason that the assesse has not filed the Form 56 within due date. Accordingly, the impugned order is set aside and the appeal is restored back to the file of Ld. CIT(A) for hearing on merits subject to cost of Rs.50,000/- (Rupees fifty thousand) which shall be deposited by the assessee within 30 days from the date of receipt of this order to ‘Tamil Nadu State Legal Services Authority’ at Hon’ble High Court of Madras. The ITA No.1137 /Chny/2025 Page - 3 - of 3 proof of the same will be furnished by the Assessee before Ld.CIT(A) whose shall proceed for hearing the appeal on merits after affording proper opportunity of hearing to the assessee. The assessee is directed to substantiate its case with all evidence and documents, if any, forthwith without any fail, failing which Ld.CIT(A) shall be at liberty to proceed with the appeal proceedings on merits as per law. 5. In the result, appeal filed by the assessee is allowed for statistical purpose. Order pronounced in the open court on 30th day of June, 2025 at Chennai. Sd/- Sd/- (अमिताभ शुक्ला) ( िनु क ुिार गिरर) ( Amitabh Shukla ) ( Manu Kumar Giri) लेखा सदस्य / Accountant Member न्याययक सदस्य/ Judicial Member चेन्नई/Chennai, धदनांक/Dated: , June-2025. KB/- आदेश की प्रतितिति अग्रेतिि/Copy to: 1. अिीिार्थी/Appellant 2. प्रत्यर्थी/Respondent 3. आयकर आयुक्त/CIT - 4. तिभागीय प्रतितिति/DR 5. गार्ड फाईि/GF "