GEORGE MAIJO INDUSTRIES PVT. LTD.,CHENNAI V. ITO, CORPORATE WARD-2(3), CHENNAI

ITA 3621/CHNY/2025

AI Insights

The case involves George Maijo Industries Private Limited, which appealed against the penalty levied by the Income Tax Officer following an assessment that significantly increased their declared income for the Assessment Year 2017-18. The initial assessment added a substantial amount to the declared income, leading to a penalty under section 271AAC of the Income Tax Act, 1961. The assessee did not respond to the penalty notices, resulting in an ex-parte decision by the CIT(A), which was subsequently appealed to the Tribunal. The Tribunal found merit in the assessee's claim of not being adequately represented or informed about the proceedings and decided to remit the case back to the CIT(A) for a fresh decision in light of the ongoing quantum appeal.

• Counselvise Citation: [2026] 140 COUNSELVISE.COM (IT) 840926 (ITAT-CHENNAI)
• Duration Of Justice: 2 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-02-2026
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2017-2018
• Appeal Filed On: 01-12-2025
• Other Referred Cases: Collector, Land Acquisition Vs. MST.Katiji & Ors.
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: M.D. VIJAY KUMAR
• Assessee Lawyers: JOSHITA JOTHI
• Keywords: Opportunity of being heard

Judgement Text

"आयकर अपीलीय अिधकरण, ‘ए’ ा यपीठ, चे\u0012ई। IN THE INCOME TAX APPELLATE TRIBUNAL ‘A’ BENCH: CHENNAI \u0015ी एबी टी. वक\u0019, ा ियक सद एवं सु\u0015ी पदमा वती यस, लेखा सद क े सम\" BEFORE SHRI ABY T. VARKEY, JUDICIAL MEMBER AND MS. PADMAVATHY.S, ACCOUNTANT MEMBER आयकर अपील सं./ITA No.3621/Chny/2025 िनधा $रण वष$ /Assessment Year: 2017-18 George Maijo Industries Private Limited, 2B, Apex Plaza, Nungambakkam High Road, Chennai-600 034 PAN: AACCG 6145 R Vs. The Income Tax Officer, Corporate Ward-2(3), Chennai. (अपीलाथ\u0007/Appellant) (\b यथ\u0007/Respondent) अपीला थ\u0019 की ओर से/ Appellant by : Ms. Joshita Jothi, CA ()थ\u0019 की ओर से /Respondent by : Dr. M.D. Vijay Kumar, JCIT सुनवा ई की ता रीख/Date of Hearing : 17.02.2026 घोषणा की ता रीख /Date of Pronouncement : 25.02.2026 आदेश / O R D E R PER PADMAVATHY.S, A.M: This appeal by the assessee is against the order of the Commissioner of Income Tax (Appeals)/National Faceless Appeal Centre (NFAC), Delhi, (in short \"CIT(A)\") passed u/s. 250 of the Income Tax Act, 1961 (in short \"the Act\") dated 19.06.2025 for Assessment Year (AY) 2017-18. 2. The assessee is a company and filed the return of income for AY 2017- 18 on 15.12.2017 declaring total income of Rs.2,69,46,390/- The case was selected for scrutiny and the assessing officer completed the assessment u/s.143(3) assessing the income at Rs.7,16,07,181 after making Printed from counselvise.com ITA No.3621/Chny/2025 George Maijo Industries Private Limited :- 2 -: addition/disallowance of Rs.3,75,13,000 u/s.68 of the Act and receivables to the tune of Rs.71,47,791/-. Subsequently, the AO initiated penalty proceedings u/s.271AAC of the Act. Since, the assessee did not respond to the show cause notice as well as further notices issued, the AO passed the penalty order levying penalty of Rs.22,50,780/-. Aggrieved, the assessee filed further appeal before the CIT(A). Even before the CIT(A), the assessee did not appear and therefore the appeal was dismissed by the CIT(A) ex-parte. The assessee is in appeal before the Tribunal against the order of the CIT(A). 3. There is a delay of the 92 days in filing the appeal before the tribunal and the assessee filed the petition seeking condonation of delay. Having heard both the parties and perused the material on record, we are of the view that there is a reasonable and sufficient cause for the delay in filing the appeal before the Tribunal. Therefore following the Hon’ble Supreme Court decision in the case of Collector, Land Acquisition Vs. MST.Katiji & Ors., (167 ITR 471) (SC) we condone the delay of in filing the appeal and admit the appeal for adjudication. 4. We heard the parties and perused the material on record. The Ld. AR submitted that the assessee does not have any technical knowledge to access computers and therefore is completely dependent on counsel with regard to income tax matters. The Ld. AR further submitted the counsel of the assessee did not handle assessee's case properly and hence the assessee was kept in dark regarding the penalty as well as the appellate proceedings. The ld. AR also submitted that the assessee has filed an appeal against the quantum addition made by the AO before the CIT(A) and the same is pending for adjudication. Accordingly the Ld. A.R prayed that the penalty appeal may be Printed from counselvise.com ITA No.3621/Chny/2025 George Maijo Industries Private Limited :- 3 -: sent back to the CIT(A) to be considered along with the quantum appeal. Considering the fact that the assessee did not represent the case properly before the lower authorities and that the quantum appeal being pending before the CIT(A), we deem it fit to remit the present appeal back to the CIT(A). The CIT(A) is directed to decide the present appeal based on his decision in the quantum appeal in accordance with law. Needless to say that the assessee be given a reasonable opportunity of being heard. It is ordered accordingly. 5. Further, we also levy a cost of Rs.4,000/- (Four Thousand only) in the appeal since considerable time and efforts have been spent by the Exchequer and for the reason that the assessee being delinquent before the lower authorities. The same shall be paid by the assessee to Tamil Nadu State Legal Services Authority at Hon’ble High Court of Madras within a period of one month from the date of receipt of this order and produce the receipt before the CIT(A). 6. In result, the appeal of the assessee is allowed for statistical purposes. Order pronounced on 25th day of February, 2026 at Chennai. Sd/- Sd/- (एबी टी. वक\u0019) (ABY. T. Varkey) \u0001याियक \u0001याियक \u0001याियक \u0001याियक सद\bय सद\bय सद\bय सद\bय / Judicial Member (पदमा वती यस) (Padmavathy.S) लेखा लेखा लेखा लेखा सद\u0011य सद\u0011य सद\u0011य सद\u0011य /Accountant Member चे\u0013नई/Chennai, \u0016दनांक/Dated: 25th February, 2026. EDN, Sr. P.S Printed from counselvise.com ITA No.3621/Chny/2025 George Maijo Industries Private Limited :- 4 -: आदेश क\u0019 \bितिल प अ े षत/Copy to: 1. अपीलाथ\u0007/Appellant 2. \b थ\u0007/Respondent 3. आयकर आयु\u000f/CIT, Chennai/Madurai/Coimbatore/Salem 4. िवभागीय \bितिनिध/DR 5. गाड\u0018 फाईल/GF Printed from counselvise.com "