INDIUM SOFTWARE (INDIA) PVT. LTD.,CHENNAI V. DCIT, CORP. CIRCLE-1(1), CHENNAI

ITA 847/CHNY/2025

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The case involves M/s. Indium Software (India) Pvt. Ltd., which appealed against the order of the Learned Commissioner of Income Tax (Appeals) for the Assessment Year 2017-18. The appeal was initially dismissed due to a significant delay in filing, which the Ld.CIT(A) did not condone. The assessee argued that the delay was due to compelling reasons, including pursuing an alternate remedy under section 154 of the Income Tax Act and disruptions caused by the COVID-19 pandemic. The Tribunal found merit in the assessee's reasons for the delay, particularly in light of the Supreme Court's extension of limitation periods for legal proceedings due to the pandemic. Consequently, the Tribunal condoned the delay and restored the appeal to the Ld.CIT(A) for a decision on the merits.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 653057 (ITAT-CHENNAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-06-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Assessment Year: 2017-2018
• Other Referred Cases: CIT v. K.S.P. Shanmugavel Nadar \\u2013 [1985] 153 ITR 596 (Madras), Hosanna Ministries v. ITO \\u2013 [2017] 80 taxmann.com 173 (Madras)
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: GAUTHAM S.MUKUNDAN
• Assessee Lawyers: GIRISH KUMAR
• Keywords: Period of limitation; Principle of natural justice; Time period of passing order

Judgement Text

"आयकर अपीलीय अिधकरण, ’डी’ \u0001यायपीठ, चे ई। IN THE INCOME TAX APPELLATE TRIBUNAL ‘D’ BENCH: CHENNAI \u0001ी एबी टी. वक , ाियक सद\u0011 एवं एवं एवं एवं \u0001ी अिमताभ शु\u0018ा, लेखा सद क े सम\u001b BEFORE SHRI ABY T. VARKEY, JUDICIAL MEMBER AND SHRI AMITABH SHUKLA, ACCOUNTANT MEMBER आयकर अपील सं./ITA No.847/Chny/2025 िनधा\u000eरण वष\u000e/Assessment Year: 2017-18 M/s. Indium Software (India) Pvt. Ltd., No.64 (Old No.143), Ganesh Chambers, Eldams Road, Teynampet, Chennai-600 018. v. The DCIT, Corporate Cirlce-1(1), Chennai. [PAN: AAACI 6333 F ] (अपीलाथ\u0016/Appellant) (\u0017\u0018यथ\u0016/Respondent) अपीलाथ\u0016 क\u001a ओर से/ Appellant by : Mr.Girish Kumar, Advocate for Mr. S. Sridhar, Advocate \u0017\u0018यथ\u0016 क\u001a ओर से /Respondent by : Mr. Gautham S. Mukundan, IRS सुनवाईक\u001aतारीख/Date of Hearing : 03.06.2025 घोषणाक\u001aतारीख /Date of Pronouncement : 18.06.2025 आदेश / O R D E R PER ABY T. VARKEY, JM: This is an appeal preferred by the assessee against the order of the Learned Commissioner of Income Tax (Appeals)/Addl./JCIT (A)-1, (hereinafter referred to as ‘Ld.CIT(A)‘), Delhi, dated 10.03.2025 for the Assessment Year (hereinafter referred to as ‘AY‘) 2017-18. ITA No.847/Chny/2025 (AY 2017-18) M/s. Indium Software (India) Pvt. Ltd. :: 2 :: 2. At the outset, the Ld.AR of the assessee brought to our notice that the Ld.CIT(A) has dismissed the appeal by not condoning the delay in filing of appeal before him, even though, there were compelling reasons for the cause of delay, which has not been appreciated by the Ld.CIT(A) in the right spirit, which omission has led to failure of justice. According to the Ld.AR, the assessee had filed its Return of Income (RoI) declaring an income of Rs.6,20,99,860/- which was processed by the CPC and intimation u/s.143(1) of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act‘) was passed on 13.02.2019 determining taxable total income at Rs.6,52,52,210/- by making four (4) specific disallowances. The assessee filed rectification application u/s.154 of the Act which was not acted upon and later the CPC reiterated the disallowance by order dated 22.09.2022. Thereafter, the assessee again preferred rectification application before the jurisdictional AO, which was also disposed of on 29.04.2024. Then, the assessee is noted to have immediately filed the appeal before the Ld.CIT(A). But finding the delay of ‘1970’ days in filing of appeal, he dismissed the appeal without admitting it. We don’t countenance this action of the Ld.CIT(A), since we note that there were two reasons given by the assessee explaining the delay, one was that it was pursuing alternate remedy u/s.154 of the Act; and second reason was that in the meanwhile Covid-19 pandemic struck India; and the day to day activities came to a grinding halt and which event led the Hon’ble ITA No.847/Chny/2025 (AY 2017-18) M/s. Indium Software (India) Pvt. Ltd. :: 3 :: Supreme Court to pass order in Miscellaneous Petition No.21 of 2022 in Suo Motu Writ Petition (C) No.3 of 2020, wherein their Lordships has extended limitation applicable to all proceedings in respect of Courts and Tribunals across the country on account of spread of Covid-19 infections w.e.f.15.03.2020, till 28.02.2022 and said limitation has been extended from time to time up to May, 2022. In view of the above general exemption provided by the Hon'ble Supreme Court extending limitation period applicable for all proceedings before Courts and Tribunals and thus, considering facts and circumstances of the case and also in the interest of natural justice, we are inclined to condone the delay in filing of appeal subject to assessee remitting Rs.5,000/- as costs which the assessee should remit to the State Legal Aid Authority, Hon’ble Madras High Court, and produce necessary proof of depositing of the same before the Ld.CIT(A), for which, we rely on the following decisions also: • CIT v. K.S.P. Shanmugavel Nadar – [1985] 153 ITR 596 (Madras) • Hosanna Ministries v. ITO – [2017] 80 taxmann.com 173 (Madras) 3. Having condoned the delay of ‘1,970’ days in filing of appeal before the Ld.CIT(A), we restore the appeal back to his file i.e. the Ld.CIT(A) for adjudication of grounds of appeal raised by the assessee as per sub- section (6) of section 250 of the Act. The assessee is directed to file all the relevant documents and written submissions in support of its grounds ITA No.847/Chny/2025 (AY 2017-18) M/s. Indium Software (India) Pvt. Ltd. :: 4 :: of appeal and the Ld.CIT(A) to pass speaking order in accordance to law after hearing the assessee. 4. In the result, appeal filed by the assessee is allowed for statistical purposes. Order pronounced on the 18th day of June, 2025, in Chennai. Sd/- (अिमताभ शु\u0018ा) (AMITABH SHUKLA) लेखा सद\u0003य/ACCOUNTANT MEMBER Sd/- (एबी टी. वक ) (ABY T. VARKEY) \u0005याियक सद\u0003य/JUDICIAL MEMBER चे ई/Chennai, !दनांक/Dated: 18th June, 2025. TLN आदेश क\u001a \u0017ितिलिप अ$ेिषत/Copy to: 1. अपीलाथ /Appellant 2. \u000e\u000fथ /Respondent 3. आयकरआयु\u0015/CIT, Chennai / Madurai / Salem / Coimbatore. 4. िवभागीय\u000eितिनिध/DR 5. गाड फाईल/GF "