BHAANE STUDIO PRIVATE LIMITED (FORMERLY KNOWN AS CAMP SMA PVT LTD),NEW DELHI V. ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE - 5(2), DELHI, NEW DELHI

ITA 1691/DEL/2025

AI Insights

The case involves BHAANE STUDIO PRIVATE LIMITED, which appealed against the order of the Ld. CIT(Appeals)-NFAC, Delhi, sustaining the addition made by the Assessing Officer under section 68 of the Income Tax Act for the Assessment Year 2017-18. The appeal was initially filed with a delay of 385 days, attributed to the unintentional failure to receive the CIT(Appeals) order due to an outdated email address. The tribunal found reasonable cause for the delay and condoned it. Furthermore, the tribunal noted that the CIT(Appeals) had disposed of the appeal ex parte by sending notices to an email address despite the assessee's explicit request not to do so. Consequently, the tribunal restored the appeal to the CIT(Appeals) for a decision on merits.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 772723 (ITAT-DELHI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-08-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Assessment Year: 2017-2018
• Other Referred Cases: Maheshkumar Rajkaranbhai Shah in ITA No.1167/Ahd./2025
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MANISH GUPTA
• Assessee Lawyers: SHIVAM MALIK
• Keywords: Condonation of delay; Opportunity of being heard; Reasonable cause
• Section: 68

Judgement Text

"ITA No.1691/Del/2025 1 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “G” NEW DELHI BEFORE SHRI CHALLA NAGENDRA PRASAD, JUDICIAL MEMBER AND SHRI M BALAGANESH, ACCOUNTANT MEMBER आ.अ.सं/.I.T.A No.1691/Del/2025 िनधा रणवष /Assessment Year:2017-18 BHAANE STUDIO PRIVATE LIMITED (Formerly Known as CAMP SMA P. LTD) F-88, Okhla Industrial Area, Phase-1, New Delhi. PAN No.AAKCS1241G बनाम Vs. ACIT, Circle-5(2), C.R. Building, I.P. Estate, Delhi. अपीलाथ\u0014 Appellant \u0016\u0017यथ\u0014/Respondent Assessee by Shri Shivam Malik, Adv. Revenue by Shri Manish Gupta, Sr. DR सुनवाईक\bतारीख/ Date of hearing: 25.08.2025 उ\u000eोषणाक\bतारीख/Pronouncement on 29.08.2025 आदेश /O R D E R PER C.N. PRASAD, J.M. This appeal is filed by the Assessee against the order of the Ld. CIT(Appeals)-NFAC, Delhi dated 08.12.2023 for the AY 2017-18 in sustaining the addition made by the Assessing Officer u/s 68 of the Act. 2. This appeal is filed by the Assessee with a delay of 385 days and the assessee has filed petition for condonation of delay along with affidavit explaining the reasons for the delay in filing the appeal. Printed from counselvise.com ITA No.1691/Del/2025 2 3. Ld. Counsel for the assessee, at the outset, submitted that the Ld.CIT(A), NFAC disposed of the appeal ex parte without giving proper opportunity to the assessee. Ld. Counsel for the assessee referring to the affidavit and the petition for condonation of delay submitted that the delay in filing the present appeal is purely unintentional and caused due to circumstances beyond the appellant’s knowledge. Ld. Counsel submits that the assessee never received copy of the Ld. CIT(Appeals) order since the e-mail ID provided in Form 35 i.e. [e-mail] belonged to Shri Ashwani Kapoor who left the organization midway in the year 2023. Therefore, the Ld. Counsel for the assessee submitted that in consequent the communications including the order of the Ld. CIT(Appeals) were sent to the said e-mail ID which remained unchecked and was unknown to the assessee. Ld. Counsel for the assessee submitted that assessee came to know of the Ld. CIT(Appeals) order and the outstanding demand when it got a call from the Income Tax Department. Ld. Counsel submitted that upon knowing the CIT(A) order immediately the assessee took steps to obtain a copy of the order of the Ld. CIT(Appeals) and filed appeal before the Tribunal, thus, causing a delay of 385 days. Ld. Counsel therefore submitted that the delay in filing the appeal is not due to Printed from counselvise.com ITA No.1691/Del/2025 3 negligence or lack of diligence on the part of the assessee but solely for the reasons beyond its control, thus, the assessee prayed for condonation of delay in filing the appeal before the Tribunal. 4. The Ld. DR had no serious objection. 5. Heard rival submissions. On going through the petition for condonation of delay along with affidavit filed by the assessee, we see reasonable cause in the delay in filing the appeal before the Tribunal by the assessee. Thus, the delay is condoned. 6. Ld. Counsel submits that since the appeal of the assessee was disposed of ex parte by the Ld. CIT(Appeals) confirming the addition the appeal may be restored to the file of the Ld. CIT(Appeals) to dispose off on merits after providing adequate opportunity of being heard. 7. The appeal of the assessee was decided ex parte by the Ld. CIT(Appeals) by sending the notices to the e-mail address provided in Form 35 even though the assessee has exercised the option for not sending any notice/communication to the e-mail. Ld. Counsel for the assessee also relying on the decision of the Ahmedabad Bench in the case of Maheshkumar Rajkaranbhai Shah in ITA No.1167/Ahd./2025 dated 04.07.2025 stated that on identical circumstances where the Printed from counselvise.com ITA No.1691/Del/2025 4 assessee has exercised option for not sending notices/communication through e-mail, however, in spite of such option the Ld. CIT(A) sent notices to the e-mail and dispose of the appeal to the ex parte the Tribunal restored the appeal of the assessee to the Ld. CIT(A) for deciding the same on merits. 8. Considering the decision and the submissions and the facts on record, we observed that even though the assessee stated in Form 35 that notice/communication are not to be sent to mail address, the Ld. CIT(Appeals) has sent notices to the mail address provided by the assessee and disposed of the appeal ex parte. Thus, we restore this appeal to the file of the Ld. CIT(Appeals) to decide afresh the appeal on merits after providing adequate opportunity of being heard to the assessee. 9. In the result, appeal of the Assessee is allowed for statistical purpose. Order pronounced in the open court on 29.08.2025 Sd/- Sd/- (M BALAGANESH) (C.N. PRASAD) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated: 29.08.2025 *Kavita Arora, Sr. P.S. Printed from counselvise.com ITA No.1691/Del/2025 5 Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR ITAT, NEW DELHI Printed from counselvise.com "