INDIA NIPPON ELECTRICALS LIMITED,CHENNAI V. DCIT, CORP. CIRCLE-1(1), CHENNAI

ITA 301/CHNY/2025

AI Insights

The case involves India Nippon Electricals Ltd., which appealed against the order of the CIT(A) that dismissed their appeal as time-barred. The original assessment disallowed a claim of Rs. 43,25,000 under section 80G related to CSR activities. The assessee argued that they were not properly notified of the assessment order, leading to a delay in filing the appeal. The Tribunal found that the CIT(A) erred in dismissing the appeal without considering the reasons for the delay and the merits of the case. The Tribunal emphasized the need for proper notification as per section 282 of the Income Tax Act and directed a re-examination of the case on its merits.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 652999 (ITAT-CHENNAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-06-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2020-2021
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: R. ANITHA
• Assessee Lawyers: P. LALITH KUMAR; C.A
• Keywords: Set aside
• Section: 143(3); 80G

Judgement Text

"आयकर अपीलीय अिधकरण ’सी’ \u000fा यपीठ, चे\u0015ई। IN THE INCOME TAX APPELLATE TRIBUNAL ‘C’ BENCH: CHENNAI मा ननीय \u001aी मनु क ुमा र िग र, \u000fा ियक सद एवं मा ननीय अिमता भ शु&ा , लेखा सद क े सम( BEFORE HON’BLE SHRI MANU KUMAR GIRI, JUDICIAL MEMBER AND SHRI HON’BLE AMITABH SHUKLA, ACCOUNTANT MEMBER आयकर अपील सं./ ITA No.301/Chny/2025 िनधा 9रण वष9 /Assessment Year: 2020-21 India Nippon Electricals Ltd., No.11 & 13 (Old No.6 & 7), Patullos Road, Chennai – 600 002. Vs. The Dy. Commissioner of Income Tax, Circle-(1)1, Chennai. [PAN: AAACI 0921R] (अपीलाथ\u0007/Appellant) (\b यथ\u0007/Respondent) अपीलाथE की ओर से/ Appellant by : Shri P. Lalith Kumar, C.A GHथE की ओर से /Respondent by : Ms. R. Anitha, Addl. CIT सुनवाई की तारीख/Date of Hearing : 12.06.2025 घोषणा की तारीख /Date of Pronouncement : 17.06.2025 आदेश / O R D E R PER MANU KUMAR GIRI (Judicial Member): The captioned appeal filed by the assessee is directed against order of the Ld. Commissioner of Income Tax (Appeals) NFAC, Delhi [CIT(A)] dated 13.12.2024 for Assessment Year 2020-21. 2. Brief facts of the case are as under: The assessee is engaged in the business of manufacture of parts and accessories of motor vehicles and engines. For the ITA No.301/Chny/2025 India Nippon Electricals Ltd. :- 2 -: assessment year (‘AY’ in short) in question, the case was selected through CASS. Notice under section 143(2) was issued and served electronically. In response to the notice sent through e-assessment ITBA module, the assessee submitted the required documents online from time to time. After verification of documents filed by the assessee, the assessing officer (‘AO’ in short) completed the assessment u/s 143(3) r.w.s 144B by order dated 23.09.2022. Further, while completing the assessment the AO disallowed Rs.43,25,000/- u/s 80G claimed out of the expenditure made on CSR activities. 3. Aggrieved, assessee challenged the order of the assessment before the CIT(A), who did not admit the appeal and dismissed the appeal of the assessee in limine as the same is time barred by 52 days. He did not condone the delay in filing the appeal Now assessee is in appeal before us. 4. Before us, the ld. counsel submitted that intimation order u/s 143(1) was not yet received by the assessee. He further submitted that the assessment order dated 23.09.2022 is neither served upon the assessee by email nor intimated through message (SMS). The assessment was uploaded in the Income Tax Portal without any ITA No.301/Chny/2025 India Nippon Electricals Ltd. :- 3 -: intimation. Therefore, the assessee came to know about the assessment order late which caused the delay. 5. Per contra, ld.DR relied upon the impugned order and pleaded for the dismissal of the appeal. She further argued that the assessee failed to justify the delay. 6. We have heard the rival submission, perused the record of appeal papers. We are of the considered view that while rejecting the appeal on account of non-service of the assessment order through email or post is not justified. It is difficult to perceive that assessee will all around will watch the Income Tax Portal. It is bare minimum requirement that while serving the assessment order on the assessee, the AO must follow the strict provisions prescribed under section 282 of the Act. We also find that the ld. CIT(A) has called for the detailed reply on the merits of the disallowance and which has been comprehensibly replied by the assessee [from Page 6 to16 CIT(A)’s order], in that case it is unreasonable on the part of the ld.CIT(A)to dismiss the appeal in limine on the ground of delay. In is incumbent on the ld. CIT(A) that he should first satisfy himself on delay in filing appeal. If satisfied, then proceed on the merits of the case. We also ITA No.301/Chny/2025 India Nippon Electricals Ltd. :- 4 -: observe that the order of the ld.CIT(A) runs into 32 pages for dismissing the appeal in limine on the ground of delay. Hence, seeing the reasons as sufficient cause, we condone the delay in filing the appeal before the CIT(A). Accordingly, the impugned order is set aside and the ld. CIT(A) is directed to hear the appeal afresh on merits after affording proper opportunity of hearing to the assessee. The assessee is directed to substantiate its case with all evidence and documents if any, forthwith without any fail, failing which Ld. CIT(A) shall be at liberty to proceed with the appeal proceedings as per law. The ld. counsel, who appeared has assured the bench that he will ensure that the assessee will prosecute his case diligently before the ld. CIT(A). 7. In result, appeal of the assessee is allowed for statistical purpose. Order pronounced on 17th day of June, 2025 at Chennai. Sd/- Sd/- (अिमताभ शु&ा) (Amitabh Shukla) लेखा लेखा लेखा लेखा सद\u0011य सद\u0011य सद\u0011य सद\u0011य /Accountant Member (मनु क ुमार िग र) (Manu Kumar Giri) \u000fाियक सद / Judicial Member चे\u0013नई/Chennai, \u0016दनांक/Dated: 17th June, 2025. EDN/- ITA No.301/Chny/2025 India Nippon Electricals Ltd. :- 5 -: आदेश क\u0019 \bितिल प अ े षत/Copy to: 1. अपीलाथ\u0007/Appellant 2. \b थ\u0007/Respondent 3. आयकर आयु\u000f/CIT, Chennai 4. िवभागीय \bितिनिध/DR 5. गाड\u0018 फाईल/GF "