M/S NEW CHENNAI TOWNSHIP PVT. LTD., KANCHEEPURAM V. DCIT(OSD), CORPORATE CIRCLE-4, CHENNAI

ITA 171/CHNY/2023

AI Insights

The case involves M/s. New Chennai Township Pvt. Ltd., which appealed against the order of the Commissioner of Income Tax (Appeals)-8, Chennai, dated 18-08-2017. The original assessment for the Assessment Year 2012-13 by the Assessing Officer under section 143(3) of the Income Tax Act resulted in a significant increase in the assessed income from Rs. 18.94 lakhs to Rs. 504.96 lakhs due to various additions and disallowances. The appellant's initial appeal was dismissed for non-prosecution, leading to the current appeal. The Tribunal considered the substantial delay in filing the appeal, attributed to the company's insolvency proceedings and the impact of the COVID-19 pandemic, and decided to condone the delay and remand the case for a fresh hearing.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 134112 (ITAT-CHENNAI)
• Duration Of Justice: 6 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-08-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 20-08-2023
• Assessment Year: 2012-2013
• Appeal Filed On: 08-02-2023
• Other Referred Cases: Collector, Land Acquisition Vs Ms. Katiji
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Additional evidence
• Section: 12A

Judgement Text

आयकर अपीलीय अिधकरण “ए” ायपीठ चे ई म । IN THE INCOME TAX APPELLATE TRIBUNAL “A” BENCH, CHENNAI माननीय ी महावीर िसंह, उपा ! एवं माननीय ी मनोज कुमार अ%वाल ,लेखा सद( के सम!। BEFORE HON’BLE SHRI MAHAVIR SINGH, VP AND HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM आयकरअपील सं./ ITA No.171/Chny/2023 (िनधा)रण वष) / As sessment Year: 2012-13) M/s. New Chennai Township Pvt. Ltd., Registered Office : Seekanakuppam Cheyyur, Kancheepuram-603 305. बनाम / V s . DCIT (OSD) Corporate Circle-4, Chennai. थायीलेखासं./जीआइआरसं./PAN/GIR No. AAC C N -3 054- A (अपीलाथ /Appellant) : ( थ / Respondent) अपीलाथ कीओरसे/ Appellant by : Shri B. Ramakrishnan (FCA)-Ld. AR थ कीओरसे/Respondent by : Shri AR V Sreenivasan (Addl.CIT)- Ld. DR सुनवाईकीतारीख/Date of Hearing : 21-08-2023 घोषणाकीतारीख /Date of Pronouncement : 23-08-2023 आदेश / O R D E R Manoj Kumar Aggarwal (Accountant Member) 1. Aforesaid appeal by assessee for Assessment Year (AY) 2012-13 arises out of order of learned Commissioner of Income Tax (Appeals)-8, Chennai [CIT(A)] dated 18-08-2017 in the matter of an assessment framed by Ld. Assessing Officer [AO] u/s.143(3) on 27-03-2015. 2. Upon perusal of the assessment order, it could be seen that returned income filed by the assessee for Rs.18.94 Lacs has been assessed at Rs.504.96 Lacs after certain additions and disallowances. The assessee assailed the same before Ld. CIT(A) vide impugned order dated 18-08-2017, wherein the assessee failed to appear during those 2 ITA No.171/Chny/2023 proceedings and accordingly, the appeal was dismissed for non- prosecution. Aggrieved, the assessee is in further appeal before us. 3. The Registry has noted delay of 1941 days in the appeal, the condonation of which has been sought by the assessee on the strength of affidavit dated 09-02-2023. The Ld. AR submitted that assessee company underwent insolvency proceedings since 05-07-2019 which ultimately got culminated on 27-05-2023 by the order of Hon’ble NCLT, Chennai wherein CIRP initiated against the corporate debtor was withdrawn. The Ld. AR submitted that substantial period of delay is covered by those proceedings. The Ld.AR sought to explain the delay as under: - From Date To Date No. of days Remarks / Reason 18-08-2017 17-10-2017 60 Regular time to file appeal 18-10-2017 04-07-2019 624 Bank servicing defaults IBC cases filed. Financial crisis in company and high employee’s attrition causing no proper handling over litigations. 04-07-2019 27-05-2022 1058 CIRP process from Moratorium to conclusion of order u/s 12A of the IBC 27-05-2022 09-02-2023 258 Taking stock of pending litigation and affairs of the company Total No. of days of delay 1940 The Ld. AR also submitted that period from 15-03-2020 to 28-02-2022 is to be excluded for the purpose of limitation due to Covid-19 Pandemic. The Ld. AR also relied on the decision of the Hon'ble Supreme Court in the case of Collector, Land Acquisition Vs Ms. Katiji in 1987 Taxmann.com 1072(SC) and pleaded for condonation of delay. On merits, Ld. AR placed on record a petition u/r 29 praying for admission of additional evidences in view of the fact that first appeal has been dismissed for non-prosecution. The Ld. Sr. DR vehemently opposed 3 ITA No.171/Chny/2023 condonation of delay and submitted that no reasonable cause could be shown by the assessee. 4. After considering the aforesaid arguments of Ld. AR, the bench formed an opinion that the delay was to be condoned. The assessee was facing IBC proceeding for substantial period of time which would have certainly disrupted assessee’s functioning adversely. Therefore, we condone the delay and admit the appeal for adjudication on merits. 5. Since impugned order is an ex-parte order dismissing the appeal for non-prosecution, we restore the appeal back to the file of Ld. CIT(A) for fresh adjudication in the light of additional evidences furnished by the assessee. Needless to add that reasonable opportunity of hearing shall be granted to the assessee. 6. The appeal stand allowed for statistical purposes. Order pronounced on 23 rd August, 2023. Sd/- Sd/- (MAHAVIR SINGH) (MANOJ KUMAR AGGARWAL) उपा ! / VICE PRESIDENT लेखा सद( / ACCOUNTANT MEMBER चे3ई Chennai; िदनांक Dated :23-08-2023 DS आदेश की Aितिलिप अ %ेिषत/Copy of the Order forwarded to : 1. अपीलाथ /Appellant 2. थ /Respondent 3. आयकर आयु