EMRAID RIMS PVT. LTD.,CHENNAI V. DCIT, CORPORATE CIRCLE-1(1), CHENNAI

ITA 674/CHNY/2025

AI Insights

The case involves Emrald Rims Pvt. Ltd., which is now amalgamated with Emerald Tyre Manufacturers Pvt. Ltd., appealing against the order of the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi. The appeal was initially dismissed by the CIT(A) in limine due to a delay of 170 days in filing the appeal, without adjudicating on the merits. The assessee had not submitted a condonation application for the delay at the time of filing. The Tribunal found that the CIT(A) had not issued a defect notice to the assessee regarding the missing condonation petition, which is a requirement under the principles of natural justice.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 398186 (ITAT-CHENNAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-06-2025
• 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: PRYATI SHARMA
• Assessee Lawyers: SHRIS. VELPANDIAR
• Keywords: Condonation of delay; 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 Įी एस.आर.रघुनाथा, लेखा सदèय क े सम¢ BEFORE SHRI GEORGE GEORGE K, VICE PRESIDENTAND SHRI S.R. RAGHUNATHA, ACCOUNTANT MEMBER आयकर अपील सं./ITA No.: 674/CHNY/2025 िनधाᭅरण वषᭅ/Assessment Year:2017-18 Emrald Rims Pvt. Ltd., Now amalgamated with Emerald Tyre Manufacturers Pvt. Ltd., No.3, KRV House, Nineth Lane, Shashtri Nagar, Adyar, Chennai – 600 020. PAN: AAACE 9718N Vs. The Deputy Commissioner of Income Tax, Corporate Circle 1(1), Chennai. (अपीलाथᱮ/Appellant) (ᮧ᭜यथᱮ/Respondent) अपीलाथᱮ कᳱ ओर से/Appellant by : ShriS. Velpandiar, Advocate ᮧ᭜यथᱮ कᳱ ओर से/Respondent by : Ms. Pryati Sharma, JCIT सुनवाई कᳱ तारीख/Date of Hearing : 03.06.2025 घोषणा कᳱ तारीख/Date of Pronouncement : 03.06.2025 आदेश /O R D E R PER GEORGE GEORGE K, VICE PRESIDENT: This appeal at the instance of the assessee is directed against the order of Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi dated 14.01.2025, passed under section 250 of the Income Tax Act, 1961 (hereinafter called ‘the Act’). The relevant Assessment Year is 2017-18. - 2 - ITA No.674/CHNY/2025 2. At the very outset, we notice that CIT(A) had dismissed the appeal of the assessee in limine without adjudicating on merits. The CIT(A) held that there is a delay of 170 days in filing the appeal before him and the assessee has not submitted the reasons for delay. The Ld.AR submitted that in Form 35, the assessee has stated there is delay in filing the appeal and could not present the condonation application at the time of filing the appeal before the CIT(A). Therefore, the assessee has submitted that the grounds for condonation of delay ‘will be submitted later’. However, the assessee had omitted to furnish the reason for delay. The CIT(A) without giving notice, had rejected the appeal in limine. It was submitted by the ld.AR that before dismissing the appeal in limine on account of delay in filing the appeal, assessee ought to have been provided with defect notice stating that condonation petition has not filed before the First Appellate Authority. 3. The ld.DR was duly heard. 4. We have heard rival submissions and perused the material on record. The appeal filed by the assessee has been dismissed by the CIT(A) in limine without condoning the delay of 170 days. Admittedly, the assessee had not filed the condonation petition. The CIT(A) without issuing defect notice to the assessee had dismissed - 3 - ITA No.674/CHNY/2025 the appeal of the assessee. The principle of natural justice requires that notice should be issued to the assessee seeking its explanation why the delay in filing the appeal before him cannot be condoned. In the instant case, such notice was never issued by the CIT(A). In the interest of justice and equity, we are of the view that the matter needs to be restored back to the files of the CIT(A). Accordingly, we restore the matter to the files of the CIT(A) so that a proper condonation application if required can be filed by the assessee and on receipt of the same, the CIT(A) shall afford reasonable opportunity to the assessee before a decision is taken on the condonation application. If the CIT(A) is satisfied with the reasons furnished by the assessee for belated filing of the appeal, needless to state, the CIT(A) shall decide the issue on merits. It is ordered accordingly. It is ordered accordingly. 5. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced in the open court on 3rd June, 2025 at Chennai. Sd/- Sd/- (एस.आर. रघुनाथा) (S.R. RAGHUNATHA) लेखा सदèय/ACCOUNTANT MEMBER (जॉज[ जॉज[ क े) (GEORGE GEORGE K) उपाÚय¢ /VICE PRESIDENT चेÛनई/Chennai, Ǒदनांक/Dated, the 3rd June, 2025 - 4 - ITA No.674/CHNY/2025 RSR 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. "