AVM AUTOS,PUDUKOTTAI V. ITO, WARD-1, PUDUKOTTAI

ITA 3002/CHNY/2024

AI Insights

The case involves M/s. AVM Autos, which appealed against the order of the CIT(A)/NFAC dated 30.04.2024 for the Assessment Year 2017-18. The appeal was initially dismissed ex-parte due to non-prosecution as the assessee failed to respond to multiple hearing notices. The assessee argued that they did not receive these notices as their business had ceased operations and the contact details were not updated. The Tribunal found sufficient cause for the delay in filing the appeal and decided to provide a fresh opportunity for the assessee to present their case, emphasizing the need for justice and fair play in the proceedings.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 36107 (ITAT-CHENNAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-01-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Assessment Year: 2017-2018
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S. EASWAR
• Assessee Lawyers: T.VASUDEVAN
• Keywords: Condonation of delay
• Section: 250

Judgement Text

"आयकर अपीलȣय अͬधकरण, ‘डी’ Ûयायपीठ, चेÛनई IN THE INCOME TAX APPELLATE TRIBUNAL ‘D’ BENCH, CHENNAI Įी जॉज[ जॉज[ क े, उपाÚय¢ एवं Įी अिमताभ शु᭍ला, लेखा सदèय क े सम¢ BEFORE SHRI GEORGE GEORGE K, VICE PRESIDENTAND SHRI AMITABH SHUKLA, ACCOUNTANT MEMBER आयकर अपील सं./ITA No.: 3002/CHNY/2024 िनधाᭅरण वषᭅ/Assessment Year:2017-18 M/s. AVM Autos, 9954/P-1, Alangudi Road, Pudukottai – 622 001. PAN: AAJFA 2158E Vs. The Income Tax Officer, Ward-1, Pudukottai. (अपीलाथᱮ/Appellant) (ᮧ᭜यथᱮ/Respondent) अपीलाथᱮ कᳱ ओर से/Appellant by : Shri T. Vasudevan, Advocate ᮧ᭜यथᱮ कᳱ ओर से/Respondent by : Shri S. Easwar, JCIT सुनवाई कᳱ तारीख/Date of Hearing : 23.01.2025 घोषणा कᳱ तारीख/Date of Pronouncement : 24.01.2025 आदेश /O R D E R PER GEORGE GEORGE K, VICE PRESIDENT: This appeal at the instance of the assessee is directed against CIT(A)/NFAC’s order dated 30.04.2024, passed under section 250 of the Income Tax Act, 1961 (hereinafter called ‘the Act’). The relevant Assessment Year is 2017-18. 2. There is a delay of 148 days in filing this appeal. The assessee has filed a petition for condonation of delay along with affidavit - 2 - ITA No.3002/CHNY/2024 stating therein the reasons for belated filing of this appeal. The reasons stated in the condonation application for belated filing of this appeal are as under:- “The order u/s.250 was passed by the ld.CIT(A) on 30/04/2024. The appellant had closed the business during the year 2017-18 completely. The mail address and mobile number as per the income tax profile was not monitored by the partner of the appellant-firm, due to which the appellant was also not aware of any of the notice and order related to appeal proceedings. However based on the demand raised by the concerned jurisdiction officer, the appellant came to know that appeal was disposed off by the ld.CIT(A), Immediately, the order was downloaded from the portal and the appeal was prepared by the auditor. The appellant filed an appeal eventually filed on 02.12.2024.” 3. On perusal of the aforesaid reasons in the condonation application, we are of the view that there is sufficient cause for belated filing of this appeal and no latches can be attributed to the assessee. Hence, we condone the delay in filing this appeal and proceed to dispose off the appeal on merits. 4. At the very outset, we notice that the appeal of the assessee has been dismissed ex-parte qua assessee. In response to five hearing notices issued from the office of the First Appellate Authority, the assessee has not furnished its submissions or any documentary evidences. Consequently the appeal of the assessee was dismissed ex-parte qua assessee for non-prosecution without adjudicating the issue on merits. - 3 - ITA No.3002/CHNY/2024 5. The ld.AR submitted that the hearing notices issued from the office of the First Appellate Authority was never received by the assessee as the same was sent through e-mail which was not taken note by the assessee. Further, the ld.AR submitted that the assessee has filed its return of income beyond the time limit, consequently the said return was not taken note off by the AO, who passed best judgment assessment u/s.144 of the Act. Therefore, he submitted that in the interest of justice and equity, the assessee may be provided with one more opportunity to represent its case before the AO, since it was a best judgment assessment u/s.144 of the Act. 6. The ld.DR supported the order of the AO and the CIT(A). 7. We have heard rival submissions and perused the materials on record. The Office of the First Appellate Authority had issued five hearing notices and since there is no submission made in response to the same, the CIT(A) dismissed the appeal of the assessee ex-parte for non-prosecution without adjudicating on merits. It is the claim of Ld.AR that since assessee firm business had closed down from the AY 2017-18, mail address and mobile number as per the Income-tax portal was not monitored by the partners of assessee firm. In the interest of justice and fair play, we are of the view that one more - 4 - ITA No.3002/CHNY/2024 opportunity should be provided to the assessee to represent its case. Since the proceedings before the AO had also completed on a best judgment assessment, we deem it appropriate to restore the case to the files of the AO. Accordingly, the matter is remitted to the files of the AO for fresh adjudication. The AO shall afford reasonable opportunity of hearing to the assessee. The assessee is directed to co-operate with the Revenue and shall not seek unnecessary adjournment. It is ordered accordingly. 8. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced in the open court on 24th January, 2025 at Chennai. Sd/- Sd/- (अिमताभ शु᭍ला) (AMITABH SHUKLA) लेखा सदèय/ACCOUNTANT MEMBER (जॉज[ जॉज[ क े) (GEORGE GEORGE K) उपाÚय¢ /VICE PRESIDENT चेÛनई/Chennai, Ǒदनांक/Dated, the 24th January, 2025 RSR आदेश कȧ ĤǓतͧलͪप अĒेͪषत/Copy to: 1. अपीलाथȸ/Appellant 2. Ĥ×यथȸ/Respondent 3. आयकर आयुÈत /CIT, Madurai 4. ͪवभागीय ĤǓतǓनͬध/DR 5. गाड[ फाईल/GF. "