ESSCON INTEGRATED SECURITY SOLUTIONS PVT LTD,DELHI V. ITO WARD-8(1), DELHI

ITA 162/DEL/2025

AI Insights

Esscon Integrated Security Solutions Pvt. Ltd. appealed against the order of the NFAC, which had dismissed their earlier appeal due to a delay of 257 days without condoning it. The original assessment by the Income Tax Officer (ITO) had made several additions to the assessee's income, including misclassifications of employee benefits and disallowances of various expenditures. The ITAT found that the NFAC had adopted a hyper-technical approach in not condoning the delay and emphasized the need for a fair hearing. The case was thus remanded back to the NFAC for a comprehensive re-evaluation.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 711589 (ITAT-DELHI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-07-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Assessment Year: 2020-2021
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: AJAY KUMAR ARORA
• Keywords: Condonation of delay; Opportunity of being heard
• Section: 144

Judgement Text

"ITA No.162/Del/2025 A.Y. 2020-21 Esscon Integrated Security Solutions Vs. ITO 1 THE INCOME TAX APPELLATE TRIBUNAL, DELHI BENCH: “A”:NEW DELHI BEFORESHRI M. BALAGANESH, ACCOUNTANT MEMBER AND SHRI SUDHIR KUMAR, JUDICIAL MEMBER ITA No.162/Del/2025 Assessment Year: 2020-21 Esscon Integrated Security Solutions Pvt. Ltd. B-5/273, Ground Floor, Sector-11, Rohini, North West Delhi, Delhi-110085 Vs. ITO, Ward -8 (1) Delhi PAN :AABCE3804E (Appellant) (Respondent) ORDER PERSUDHIR KUMAR, JUDICIAL MEMBER: The assessee preferred the captioned appeal, challenging the order dated 11.11.2024passed by theNational Faceless Appeal Centre (herein after referred {NFAC}pertaining to assessment order dated 06.09.2022for Assessment year 2020-21. Assessee by None Revenue by Sh.Ajay Kumar ARora, Sr.DR Date of hearing 23.07.2025 Date of pronouncement 25.07.2025 Printed from counselvise.com ITA No.162/Del/2025 A.Y. 2020-21 Esscon Integrated Security Solutions Vs. ITO 2 2. The assessee has raised the flowing grounds in appeal: 1. That on the facts and circumstances of the case and in law, the Id. CIT(A) has erred in dismissing the appeal by rejecting the application condonation of delay in filling appeal, though the same was filled with a sufficient cause along with affidavit of director. 2. That on the facts and circumstances of the case and in law, the Id. CIT(A) has erred in not disposing the following Grounds of Appeal taken before him :- 1. Assessment order passed u/s 143(2) & 144 is bad in law: -That on the facts and circumstances of the case and in law the assessment order passed by the ld. Assessing authority u/s 143(2) & 144 is bad in law which deserve to be cancelled as no proper opportunity was given to the appellant as required under the law. II. Bonus & recognized Contribution to gratuity fund considered as income. That the on facts and circumstances of the case and in law, the Id. Assessing authority has erred in making an addition of Rs. 56,22,836/-in the total income towards the amount paid to employees for their salary & wages and other benefits wrongly considering the same as bonus and excessive payments of gratuity on the basis of figures wrongly reported in ITR by ignoring the correct bifurcation of employees cost reported in audited financials filed alongwith ITR. III. Disallowance of various expenditure That facts and on the circumstances of the case and in in law, the ld. Assessing Authority has erred disallowing out of the following Printed from counselvise.com ITA No.162/Del/2025 A.Y. 2020-21 Esscon Integrated Security Solutions Vs. ITO 3 expenditure considering the same as unsupported though the same was supported by proper evidence that could not be submitted due to lack of proper opportunity. a) Out of rent Rs.64,800/- b) Out of travelling expense Rs. 1,01,010/- c) Out of telephone expense Rs. 57,924/- d) Out of other expenditure Rs. 1,42,553/- e) Interest Rs.9,63,489/- IV. That on the facts and circumstances of the case and in law the ld. Assessing authority has erred initiating the penalty u/s. 272 A (1)(d) and U/s. 270A of the Act. 3. The brief facts of the case are that the assessee the assessee filed return of income declaring of Rs. 5,73,800/- on 12-02-2021 for A.Y. 2020-21. The case of the assessee was selected for scrutiny under CASS for complete scrutiny. In the response of notice issued, the assessee has not furnished any reply. Th AO completed the assessment and assessed the income of the assessee Rs. 75,26,448/- after making the additions. 4. Aggrieved the order of the AO the assessee filed the appeal before the Ld. NFAC who vide order dated 11-11-2024 dismissed the appeal without condoning the delay. Being aggrieved the order the assessee is in appeal before the tribunal. 5. We have heard the Ld. Departmental Representative and perused the relevant materials available on record. None is present for assessee. Perusal of the order of the Ld. NFAC it reveals that the Printed from counselvise.com ITA No.162/Del/2025 A.Y. 2020-21 Esscon Integrated Security Solutions Vs. ITO 4 appeal was dismissed by adopting the hyper technical approach not condoning the delay of 257 days. The Ld. NFAC should have condone the delay and should have admit the appeal for adjudication. The, assessee has shown the sufficient cause for not preferring the appeal within time. Thus, keeping in view, the entire aspects of the matter, we condone the delay in preferring the appeal before the Ld. NFAC/ CIT(A) having been satisfied with the explanation so rendered by the assessee before the said authority. The order passed by the Ld. NFAC/ CIT(A) is setting side, the issue to the file is restored before the Ld. NFAC/CIT(A) who decide the matter to the file after giving the opportunity of being heard to the assessee. The assessee is directed to co-operate with the appellate authority. In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced in the open court on 25/07/2025. Sd/- Sd/- (M. BALAGANESH) (SUDHIR KUMAR) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated: 25 July,2025. Neha, Sr. PS Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(A) 5. DR Asst. Registrar, ITAT, New Delhi Printed from counselvise.com "