DRILLCON (RAJ) PRIVATE LIMITED,UDAIPUR V. ACIT, CIRCLE-1 UDAIPUR, UDAIPUR

ITA 430/JODH/2025

AI Insights

The case involves Drillcon (Raj) Pvt Ltd appealing against the order of the National Faceless Appeal Centre (NFAC), Delhi, which was passed under section 250 of the Income-tax Act, 1961 for the Assessment Year 2014-15. The appeal was initially delayed by 4 years and 11 months due to the death of the company's director and subsequent personal and financial difficulties faced by his successor. The tribunal considered the circumstances surrounding the delay, including the mental health issues of the new director, and decided to set aside the previous order and remand the case for a fresh hearing.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 716552 (ITAT-JODHPUR)
• Duration Of Justice: 3 month(s) 30 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-08-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2014-2015
• Appeal Filed On: 21-04-2025
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ASSESSEE SHRAWAN KUMAR GUPTA; REVENUE M.K. JAIN; LD
• Keywords: Set aside; Opportunity of being heard
• Section: 143(3); 271(1)(c)

Judgement Text

"1 ITA No430/Jodh/2025 Drillcon (Raj) Pvt Ltd IN THE INCOME TAX APPELLATE TRIBUNAL JODHPUR BENCH, JODHPUR BEFORE DR. MITHA LAL MEENA, HON’BLE ACCOUNTANT MEMBER AND SHRI ANIKESH BANERJEE, HON’BLE JUDICIAL MEMBER I.T.A No.430/Jodh/2025 (Assessment Year: 2014-15) DRILLCON (RAJ) PRIVATE LIMITED, 12a, Amba Mata Scheme, Opp I G Police Residence, Udaipur, Udaipur, Rajasthan-313 001 PAN: AAACD5241R vs ACIT, CIRCLE-1, UDAIPUR Income Tax Office, Subcity Centre, Reti Stand, Savina, Udaipur-313 001 Date of hearing 18/08/2025 Date of pronouncement 20/08/2025 O R D E R Per Bench: The instant appeal of the assessee filed against the order of the National Faceless Appeal Centre (NFAC), Delhi [for brevity, ‘Ld.CIT(A)’] passed under section 250 of the Income-tax Act, 1961 (in short, ‘the Act’) for Assessment Year 2014-15, dated 24/02/2025. The impugned order emanated from the order of the Learned Assistant Commissioner of Income-tax, Circle-1, Udaipur (in short, ‘the Ld.AO’) passed under section 271(1)(c) of the Act, date of order 12/06/2017. 2. The Ld.AR argued and stated that the assessment order was passed under section 143(3) of the Act with additions under different heads. The Present for Assessee Shri Shrawan Kumar Gupta, Advocate Present for Revenue Shri M.K. Jain, Ld.CIT(DR) Printed from counselvise.com 2 ITA No430/Jodh/2025 Drillcon (Raj) Pvt Ltd proceedings under section 271(1)(c) of the Act was initiated and finally, the Ld.AO levied penalty @100% of the tax sought to be evaded at Rs.22,35,000/-. The aggrieved assessee challenged the penalty order before the Ld.CIT(A) by filing appeal with a delay of 4 years and 11 months. The Ld.AR further stated that during the appeal proceedings before the Ld.CIT(A), the assessee filed all the details related to delay in filing the appeal before the Ld.CIT(A). 3. The Ld. ARsubmitted that the director of the company, Shri Praful Mehta, had expired, and a copy of the death certificate is duly placed in the paper book. Subsequent to his demise, his son, Shri Vikram Mehta, assumed responsibility for managing the day-to-day affairs of the company. Shri Vikram Mehta got married on 09/12/2012; however, due to financial difficulties and marital discord, he was divorced on 09/10/2015. Thereafter, Shri Vikram Mehta suffered from depression and mental instability, rendering him incapable of effectively pursuing the regular affairs of the company. In support of these facts, the assessee has filed a duly notarised affidavit executed on 20/04/2025. On these grounds, the Ld. AR prayed that the matter be restored to the file of the Ld. CIT(A) for adjudication afresh, and further urged that the delay in filing the appeal before the Ld. CIT(A) be condoned in the interest of justice. 4. The Ld. DR, on the other hand, supported the orders of the revenue authorities and relied upon the reasoning recorded therein. 5. We have heard the rival submissions and perused the material placed on record. It is noted that the assessee’s appeal before the Ld. CIT(A) was delayed by 4 years and 11 months. The reasons for such delay have been explained by way of a notarised affidavit dated 20/04/2025, wherein it has been stated that the director of the company, Shri Praful Mehta, had expired, and thereafter his Printed from counselvise.com 3 ITA No430/Jodh/2025 Drillcon (Raj) Pvt Ltd son, Shri Vikram Mehta, who assumed charge of the day-to-day affairs of the company, was himself facing severe personal and financial difficulties, including divorce and mental depression. In view of these circumstances, it is pleaded that the delay was neither deliberate nor intentional but occurred due to bona fide reasons beyond the control of the assessee. Considering the explanation furnished and the affidavit placed on record, we are of the considered opinion that the assessee deserves an opportunity of being heard before the first appellate authority. In the interest of substantial justice, we, therefore, set aside the impugned order and restore the matter to the file of the Ld. CIT(A) with a direction to condone the delay in filing the appeal and adjudicate the same afresh on merits, after affording due opportunity of hearing to the assessee. 6. In the result, the appeal of the assessee bearing ITA No.430/Jodh/2025 is allowed for statistical purpose. Order pronounced in the open court on 20th August 2025 Sd/- sd/- (DR.MITHA LAL MEENA) (ANIKESH BANERJEE) ACCOUNTANT MEMBER JUDICIAL MEMBER Jodhpur, Dt: 20th August, 2025 Pavanan Copy of the Order forwarded to: 1. अपीलाथŎ/The Appellant , 2. Ůितवादी/ The Respondent. 3. आयकरआयुƅ CIT 4. िवभागीयŮितिनिध, आय.अपी.अिध., मुबंई/DR, ITAT, Jodhpur 5. गाडŊफाइल/Guard file. BY ORDER, //True Copy// (Asstt. Registrar), ITAT, Jodhpur Printed from counselvise.com "