DAECHANG INDIA SEAT COMPANY PRIVATE LIMITED,KANCHIPURAM V. DEPUTY COMMISIONER OF INCOME TAX, CHENNAI

ITA 3197/CHNY/2025

AI Insights

The case involves Daechang India Seat Company Pvt. Ltd., the appellant, contesting an order from the Addl/JCIT(A)-3, Mumbai, under section 250 of the Income Tax Act, 1961, for the assessment year 2016-17. The FAA's initial decision was ex-parte due to the assessee's non-compliance with six notices, attributed to the inoperability of the registered email ID during the relevant period. The assessee, represented by Ms. Sanchita, Advocate, argued that the lack of receipt of notices due to technical issues prevented them from participating in the appellate proceedings. The respondent, represented by Ms. R. Kavitha, Addl.CIT, contended that adequate opportunities were provided, and there was no violation of natural justice.

• Counselvise Citation: [2026] 140 COUNSELVISE.COM (IT) 830832 (ITAT-CHENNAI)
• Duration Of Justice: 2 month(s) 12 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-01-2026
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: misc
• Appeal Filed On: 10-11-2025
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: R.KAVITHA
• Assessee Lawyers: SANCHITA
• Keywords: Principle of natural justice

Judgement Text

" आयकर अपीलȣय अͬधकरण, ‘ए’ Ûयायपीठ, चेÛनई IN THE INCOME TAX APPELLATE TRIBUNAL ‘A’ BENCH, CHENNAI Įी जॉज[ जॉज[ क े, उपाÚय¢ एवं सुĮी पɮमावती एस, लेखा सदèय क े सम¢ BEFORE SHRI GEORGE GEORGE K, VICE PRESIDENTAND MS PADMAVATHY S, ACCOUNTANT MEMBER आयकर अपील सं./ITA No.: 3197/CHNY/2025 िनधाᭅरण वषᭅ/Assessment Year: 2016-17 Daechang India Seat Company Pvt. Ltd., 491, Mannur Village, Valarpuram Post, Valarpuram BO Mannur, Kancheepuram – 602 105. PAN: AACCD 3176F Vs. The Deputy Commissioner of Income Tax, Corporate Circle (1), Chennai. (अपीलाथᱮ/Appellant) (ᮧ᭜यथᱮ/Respondent) अपीलाथᱮ कᳱ ओर से/Appellant by : Ms. Sanchita, Advocate ᮧ᭜यथᱮ कᳱ ओर से/Respondent by : Ms. R. Kavitha, Addl.CIT सुनवाई कᳱ तारीख/Date of Hearing : 21.01.2026 घोषणा कᳱ तारीख/Date of Pronouncement : 22.01.2026 आदेश/ O R D E R PER GEORGE GEORGE K, VICE PRESIDENT: This appeal filed by the assessee is directed against the Addl/JCIT(A)-3, Mumbai order dated 11.09.2025 passed under section 250 of the Income Tax Act, 1961 (hereinafter called ‘the Act’). The relevant Assessment Year is 2016-17. Printed from counselvise.com ITA No.3197/Chny/2025 :- 2 -: 2. At the very outset, we notice that the order passed by the First Appellate Authority (FAA) is ex-parte, since there was no compliance from the assessee to six notices issued from the office of the First Appellate Authority. 3. The Ld.AR for the assessee submitted that the assessee did not receive the hearing notices issued from the office of the FAA since the registered e-mail ID of the assessee was inoperative during the relevant period. Therefore, the assessee could not represent its case before the FAA during the appellate proceedings. Hence, it was prayed in the interest of justice and equity, the issue may be restored to the files of the FAA as a last opportunity for proper representation of the case. 4. The Ld.DR submitted that adequate opportunities were provided from the offices of the FAA and there is no violation of principles of natural justice. Therefore, it was prayed the appeal of the assessee may be dismissed. 5. We have heard rival submissions and perused the materials on record. The proceeding before the FAA was ex-parte, since the assessee did not respond to the notices issued. The Ld.AR Printed from counselvise.com ITA No.3197/Chny/2025 :- 3 -: submitted that the assessee’s registered email ID was inoperative during the relevant period and hence, the hearing notices were not received resulting in non-appearance before the FAA. We strongly deprecate the nonchalant attitude of the assessee in not responding to the notices issued from the office of the FAA. However, in the interest of justice and fair play, we are of the view that the matter ought to be restored to the files of the FAA as a last opportunity. Accordingly, the matter is remitted to the files of the FAA for fresh adjudication. The FAA 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. 6. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced in the open court on 22nd January, 2026 at Chennai. Sd/- Sd/- (पɮमावती एस) (PADMAVATHY S) लेखा सदèय/ACCOUNTANT MEMBER (जॉज[ जॉज[ क े) (GEORGE GEORGE K) उपाÚय¢ /VICE PRESIDENT चे᳖ई/Chennai, ᳰदनांक/Dated, the 22nd January, 2026 RSR Printed from counselvise.com ITA No.3197/Chny/2025 :- 4 -: आदेश कȧ ĤǓतͧलͪप अĒेͪषत/Copy to: 1. अपीलाथȸ/Appellant 2. Ĥ×यथȸ/Respondent 3. आयकर आयुÈत /CIT, Chennai 4. ͪवभागीय ĤǓतǓनͬध/DR 5. गाड[ फाईल/GF. Printed from counselvise.com "