D AJEETHRAJ CHORDIA & SONS,CHENNAI V. ITO, NON CORPORATE WARD -4(5), CHENNAI

ITA 2143/CHNY/2025

AI Insights

The case involves M/s. D Ajeethraj Chordia & Sons, who appealed against the order of the Commissioner of Income Tax (Appeals), which had dismissed their appeal as time-barred by 1222 days. The assessee argued that the delay was due to ongoing rectification proceedings and professional advice taken after a bank attachment notice. The Tribunal found sufficient cause for the delay, citing the impact of the COVID-19 pandemic and the Supreme Court's exclusion period, and thus allowed the appeal for statistical purposes, remanding it back to the CIT(A) for a decision on the merits.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 784256 (ITAT-CHENNAI)
• Duration Of Justice: 3 month(s) 10 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-11-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2012-2013
• Appeal Filed On: 01-08-2025
• Other Referred Cases: 153 ITR 596
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: PRYATI SHARMA
• Assessee Lawyers: S. GIRISH KUMAR
• Keywords: Set aside; Reasonable cause; Rectification of order
• Section: 154; 234B

Judgement Text

"आयकर अपीलȣय अͬधकरण,‘ए’ Ûयायपीठ,चेÛनई IN THE INCOME TAX APPELLATE TRIBUNAL ‘A’ BENCH, CHENNAI Įी मनु क ुमार ͬगǐर,ÛयाǓयक सदèय एवं Įी जगदȣश, लेखा सदèय क े सम¢ BEFORE SHRI MANU KUMAR GIRI, JUDICIAL MEMBER AND SHRI JAGADISH, ACCOUNTANT MEMBER आयकर अपील सं./ITA No.: 2143/CHNY/2025 िनधाᭅरण वषᭅ/Assessment Year:2012-13 M/s. D Ajeethraj Chordia & Sons, 23, General Muthia Mudali Street, Sowcarpet, Chennai – 600 079. Vs. The Income Tax Officer, Non Corporate Ward – 4(5), Chennai PAN: AAAHD 2647C (अपीलाथᱮ/Appellant) (ᮧ᭜यथᱮ/Respondent) अपीलाथᱮ कᳱ ओर से/Appellant by : Shri S. Girish Kumar, Advocate ᮧ᭜यथᱮ कᳱ ओर से/Respondent by : Ms. Pryati Sharma, JCIT सुनवाई कᳱ तारीख/Date of Hearing : 30.10.2025 घोषणा कᳱ तारीख/Date of Pronouncement : 11.11.2025 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), NFAC, Delhi, [CIT(A)] dated 25.07.2025 for Assessment Year 2012-13. 2. Brief facts are that the ld.CIT(A) has dismissed the appeal of the assessee in limine as the appeal filed was barred by 1222 days. Printed from counselvise.com :: 2 :: ITA No.2143/CHNY/2025 3. Before us, the ld. counsel for the assessee has filed dates and events as under: 10.12.2018 Show cause notice issued to the appellant 27.12.2018 Response to show cause notice filed by the appellant 27.12.2018 Date of Re-assessment order passed 24.01.2019 Rectification petition filed seeking rectification of the re-assessment order 15.03.2020 Commencement of period of exclusion granted by Supreme Court on account of Covid-19 pandemic. 02.09.2021 Suo moto rectification order passed for re- computing interest u/s 234B of the Act 03.03.2022 Bank attachment of the appellant was attached 29.05.2022 Completion of of period of exclusion granted by Supreme Court including the grace period on account of Covid-19 pandemic. 05.06.2022 Belated appeal filed before the First Appellate Authority after seeking professional advice He further contended that in view of the non-disposal of the pending rectification petition dated 24.01.2019 filed by the appellant, the appellant had not filed an appeal in terms of section 246A of the Act and however there was a notice u/s226 of the Act in attaching the bank account of the appellant on 03.03.2022 which forced the appellant to take a professional advice. Based on the professional advice, the appeal against the reassessment order was prepared and filed belatedly on 05.06.2022 and the belated filing of appeal is neither willful nor deliberate but due to the understanding of the proceedings initiated and pending before the JAO for deleting the tax computation forming part of the Printed from counselvise.com :: 3 :: ITA No.2143/CHNY/2025 reassessment order through the said pending rectification proceedings. The ld.counsel for the Assessee submitted that pursuing the alternate remedy available under the Act in the form of rectification proceeding under section 154 of the Act would constitute reasonable cause for the belated filing of the appeal under consideration. He relied upon the judgment of the Jurisdictional High Court in the case reported in 153 ITR 596 approved the belated filing of appeal in pursuance to the alternate remedy pursued by the assessee which according to the court would constitute reasonable cause for permitting the Assessee in pursuing the belated appeal on merits. 4. The Ld. DR Ms. Pryati Sharma, JCIT pleaded for dismissal of the appeal. She entirely supported the impugned order. 5. We have gone through the orders of lower authorities, dates and events and submission addressed by both the parties. We are of the considered view that there was bonafide and sufficient cause for the delay in filing appeal before the ld.CIT(A). Hence, we condone the delay in filing the appeal. Further, in the interest of justice and in the light of aforesaid factual position, we deem it fit to set aside the appeal to the file of the ld.CIT(A) for fresh adjudication of appeal on merits. The Ld.CIT(A) who shall proceed for fresh adjudication of appeal after providing proper opportunity of hearing to the assessee as per law. The assessee is directed to substantiate its case forthwith without any fail. We make it Printed from counselvise.com :: 4 :: ITA No.2143/CHNY/2025 clear that if assessee again fails to prosecute the appeal before the ld.CIT(A), no leniency will be given to the assessee. 6. In the result, appeal filed by the assessee is allowed for statistical purpose. Order pronounced on the 11th day of November, 2025, in Chennai. Sd/- (जगदीश) (JAGADISH) लेखा सदèय/ACCOUNTANT MEMBER Sd/- (मनु क ुमार िगįर) (MANU KUMAR GIRI) ÛयाǓयक सदèय/JUDICIAL MEMBER चेÛनई/Chennai, Ǒदनांक/Dated: 11th November, 2025. RSR, Sr.PS आदेश कȧ ĤǓतͧलͪप अĒेͪषत/Copy to: 1. अपीलाथŎ/Appellant 2. ŮȑथŎ/Respondent 3. आयकरआयुƅ/CIT, Chennai / Madurai / Salem / Coimbatore. 4. िवभागीयŮितिनिध/DR 5. गाडŊफाईल/GF Printed from counselvise.com "