BENIT& CO. ELECTRONICS PVT. LTD.,MADURAI V. ITO, CORPORATE WARD-1, MADURAI

ITA 388/CHNY/2025

AI Insights

This case involves an appeal by M/s. Benit & Co. Electronics Pvt. Ltd. against an ex parte order from the Learned Commissioner of Income Tax (Appeals), which was issued due to the appellant's failure to respond to four notices. The appellant contended that the notices were directed to their 'SPAM' folder, leading to their unawareness and inability to respond. The Tribunal found merit in the appellant's argument regarding the technical glitch and recognized a violation of natural justice. Consequently, the Tribunal decided to set aside the ex parte order and remand the case back to the Ld.CIT(A) for a detailed examination on merits.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 396963 (ITAT-CHENNAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-05-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2017-2018
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: KEERTHI NARAYANAN
• Assessee Lawyers: B. AGNUS JENNIFER
• Keywords: Set aside; Reasonable cause; Principle of natural justice

Judgement Text

"आयकर अपीलीय अिधकरण, ‘ए’ \u0001यायपीठ, चे ई। IN THE INCOME TAX APPELLATE TRIBUNAL ‘A’ BENCH: CHENNAI \u0001ी एबी टी. वक , ाियक सद\u0011 एवं एवं एवं एवं \u0001ी एस. आर. रघुनाथा, लेखा सद क े सम\u001b BEFORE SHRI ABY T. VARKEY, JUDICIAL MEMBER AND SHRI S.R.RAGHUNATHA, ACCOUNTANT MEMBER आयकर अपील सं./ITA No.388/Chny/2025 िनधा\u000eरण वष\u000e/Assessment Year: 2017-18 M/s. Benit & Co. – Electronics Pvt. Ltd., 41, TB Road, Arasaradi HO, Madurai South, Madurai-625 016. v. The ITO, Corporate Ward-1, Madurai. [PAN: AAGCB 6197 E] (अपीलाथ\u0016/Appellant) (\u0017\u0018यथ\u0016/Respondent) अपीलाथ\u0016 क\u001a ओर से/ Appellant by : Ms. B.Agnus Jennifer, Advocate for Mr. G. Baskar, Advocate \u0017\u0018यथ\u0016 क\u001a ओर से /Respondent by : Mr. Keerthi Narayanan, JCIT सुनवाईक\u001aतारीख/Date of Hearing : 23.04.2025 घोषणाक\u001aतारीख /Date of Pronouncement : 26.05.2025 आदेश / O R D E R PER ABY T. VARKEY, JM: This is an appeal preferred by the assessee against the order of the Learned Commissioner of Income Tax (Appeals)/NFAC, (hereinafter referred to as “the Ld.CIT(A)”), Delhi, dated 12.01.2024 for the Assessment Year (hereinafter referred to as \"AY”) 2017-18. 2. At the outset, it is noted that there is a delay of ‘313’ days in filing of this appeal. The assessee has filed an affidavit explaining the cause of ITA No.388/Chny/2025 (AY 2017-18) M/s. Benit & Co. Electronics Pvt. Ltd. :: 2 :: delay. Having gone through the affidavit filed for condonation of delay, we find that there is reasonable cause for delay and therefore, we are inclined to condone the same and proceed to hear the appeal on merits. 3. The Ld.AR of the assessee brought to our notice that the impugned order of the Ld.CIT(A) is an ex parte order qua assessee because the assessee didn’t respond to his four (4) notices and hence, dismissed the appeal without going into the merits of the appeal. According to the Ld.AR, notices issued by the Ld.CIT(A) went to the ‘SPAM’ account of the assessee, therefore, the assessee wasn’t aware about such notices and hence, couldn’t respond to the notices and therefore, the Ld.AR pleaded for one more opportunity before the Ld.CIT(A). 4. Per contra, the Ld.DR doesn’t want us to give one more innings to the assessee. 5. Having heard both the parties and after perusal of the records, we note that the Ld.CIT(A) has passed ex parte order qua assessee, since he found that four (4) notices issued to the assessee hasn’t been responded to. So, the Ld.CIT(A) was of the view that in the absence of relevant documents to support the contentions against the impugned action of the AO was not sustainable. Therefore, he upheld the assessment order. Be that as it may, we find that the main plea of the assessee is that the notices issued by the Ld.CIT(A) went to the ‘SPAM’ account of e-mail ID of ITA No.388/Chny/2025 (AY 2017-18) M/s. Benit & Co. Electronics Pvt. Ltd. :: 3 :: the assessee and therefore, the assessee was not aware of such notices and therefore couldn’t respond and therefore, assessee can’t be faulted for the technical glitches. In the aforesaid circumstances, we are of the view that there is violation of natural justice and hence, we are inclined to set aside the impugned order of the Ld.CIT(A) and restore the appeal back to the file of the Ld.CIT(A) with a direction to adjudicate the grounds of appeal raised by the assessee on merits as contemplated by sub- section (6) of section 250 of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act‘). The Ld.AR before us has undertaken to file requisite/relevant documents/written submissions along with case laws to substantiate its grounds of appeal before the Ld.CIT(A). The Ld.CIT(A) to pass speaking order in accordance to law after hearing the assessee. The Ld AR brought to our notice the e-mail ID for correspondence i.e.,: [e-mail]. This id may also be considered by Ld CIT(A) while issuing notices to assessee. 6. In the result, appeal filed by the assessee is allowed for statistical purposes. Order pronounced on the 26th day of May, 2025, in Chennai. Sd/- (एस. आर. रघुनाथा) (S.R.RAGHUNATHA) लेखा सद\u0003य/ACCOUNTANT MEMBER Sd/- (एबी टी. वक ) (ABY T. VARKEY) \u0005याियक सद\u0003य/JUDICIAL MEMBER ITA No.388/Chny/2025 (AY 2017-18) M/s. Benit & Co. Electronics Pvt. Ltd. :: 4 :: चे ई/Chennai, !दनांक/Dated: 26th May, 2025. TLN आदेश क\u001a \u0017ितिलिप अ$ेिषत/Copy to: 1. अपीलाथ /Appellant 2. \u000e\u000fथ /Respondent 3. आयकरआयु\u0015/CIT, Chennai / Madurai / Salem / Coimbatore. 4. िवभागीय\u000eितिनिध/DR 5. गाड फाईल/GF "