JAYA HIND MECHANICS LIMITED ,PUNE V. ADDL/JCIT(A)3 , BENGALURE

ITA 621/PUN/2025

AI Insights

The case involves Jay Hind Mechanics Limited, which appealed against the order of the ld. Addl/JCIT(A)-3, Bengaluru, concerning the assessment year 2020-21. The appeal was initially dismissed by the ld. CIT(A) due to a significant delay in filing (1028 days), which the assessee attributed to disruptions caused by the COVID-19 pandemic and subsequent miscommunication. The Tribunal found merit in the assessee's reasons for the delay and decided to remand the case for a fresh examination on merits, emphasizing the principles of natural justice.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 771903 (ITAT-PUNE)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-08-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Assessment Year: 2020-2021
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RAMNATH P. MURKUNDE
• Assessee Lawyers: PAWAN JAIN
• Keywords: Reasonable cause; Principle of natural justice
• Section: 37; 6

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCHES “A”, PUNE BEFORE DR.MANISH BORAD, ACCOUNTANT MEMBER AND MS. ASTHA CHANDRA, JUDICIAL MEMBER आयकर अपील सं. / ITA No.621/PUN/2025 Assessment Year : 2020-21 Jay Hind Mechanics Limited, D1 Block, Plot 18/1, MIDC, Chinchwad, Chinchwad East S.O., Pune 411 019, Maharashtra PAN : AAACK9718J Vs. Addl/JCIT(A)-3, Bengaluru Assessee Respondent आदेश / ORDER PER DR. MANISH BORAD, ACCOUNTANT MEMBER : The captioned appeal at the instance of assessee pertaining to A.Y.2020-21 is directed against the order of Ld. Addl/JCIT(A)-3, Bangaluru dated 11.02.2025 passed u/s.250 of the Income-tax Act, 1961 (in short ‘the Act’) which inturn is arising out of Intimation order u/s.143(1)(a) of the Act dated 18.12.2021. 2. At the outset, Ld. Counsel for the assessee submitted that ld.CIT(A) has dismissed the assessee’s appeal in limine by not condoning the delay of 1028 days. He prayed that the delay may please be condoned as the assessee failed to file the appeal before ld.CIT(A) due to ‘reasonable cause’ and the matter may please be restored to the file of ld.CIT(A) for denovo adjudication. Assessee by : Shri Pawan Jain Respondent by : Shri Ramnath P. Murkunde Date of hearing : 23.07.2025 Date of pronouncement : 25.08.2025 Printed from counselvise.com ITA No.621/PUN/2025 Jaya Hind Mechanics Limited 2 3. On the other hand, ld. Departmental Representative supported the orders of the lower authorities. 4. We have heard the rival contentions and perused the record placed before us. On perusal of the impugned order, we find that ld.CIT(A) has dismissed the assessee’s appeal in limine by not condoning the delay of 1028 days. Assessee is a Limited company and filed the return of income for A.Y. 2020- 21 on 31.12.2020 and the return was processed u/s.143(1)(a) of the Act on 18.12.2021 wherein certain adjustments have been made. Aggrieved with the said intimation order, assessee preferred appeal before ld.CIT(A) but the same was filed on 12.11.2023, leading to delay of 1028 days. Reasons for delay has been mentioned by the assessee enumerating the following chronology of events which led to delay in filing of the appeal. : “Events in Chronological order that caused delay in filing the appeal” Sl.No. Date Subject Pre-Covid period (15-03-2020 to 28-02-2022) 1 24-03-2020 Company shut down due to COVID-19 lockdown; all employees including Accountant Mr. Laxmi Patra, retrenched 2 31-12-2020 Return filed using email id of retrenched Accountant ([e-mail]) 3 18-12-2021 Intimation u/s.143(1)(a) sent to same retrenched employee’s email. 4 23-12-2021 Demand notice u/s.156 also sent to same incorrect email. Post-Covid period (From 01-03-2022 onwards 5 25-09-2023 Demand notice sent to updated email ([e-mail]); reply submitted on 12-10-2023 advising rectification u/s.154. 6 12-10-2023 Rectification u/s.154(a)(b) filed; pointed out error in Form 3CD (Clause 21 (g)); no AO response till date; rectification window open till 31-03- 2026 Printed from counselvise.com ITA No.621/PUN/2025 Jaya Hind Mechanics Limited 3 7 25-11-2023 Second rectification request sent to grievance cell 8 30-11-2023 Received system-generated reply; no rectification or written refusal 9 21-12-2023 Third rectification request sent; still no action from AO, violating Section 154(4), 154(7), 154(8) 10 29-10-2024 Adjustment intimations u/s.245 received for AYs 2023-24 & 2024-25 11 12-11-2024 Appeal filled before CIT (A) within 30 days of receipt of 245 intimations 12 12-11-2024 Realized rectification route was futile; appeal filed promptly from awareness date 13 11-02-2025 CIT(A) rejected condonation; appeal not adjudicated 14 06-03-2025 Appeal dismissed citing 1028 day delay from unreceived original intimation Delay caused by COVID, mis- communication, and department inaction 5. From going through the above events, we find that assessee was prevented from filing the appeal before ld.CIT(A) within the stipulated time limit for ‘reasonable cause’. We therefore condone the delay of 1028 days in filing the appeal before ld.CIT(A). Further, ld.CIT(A) has not dealt with merits of the case. Under the given facts and circumstances, we in the interest of natural justice being fair to both the parties, deem it appropriate to grant one more opportunity to the assessee, setting aside the impugned order to the file of ld. CIT(A). Assessee is also directed to remain vigilant and make satisfactory compliance to the notice(s) of hearing issued by ld.CIT(A). It should refrain from taking adjournments unless otherwise required for reasonable cause. Effective grounds of appeal raised by the assessee are allowed for statistical purposes. Printed from counselvise.com ITA No.621/PUN/2025 Jaya Hind Mechanics Limited 4 6. In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced on this 25th day of August, 2025. Sd/- Sd/- (ASTHA CHANDRA) (MANISH BORAD) JUDICIAL MEMBER ACCOUNTANT MEMBER पुणे / Pune; \u0001दनांक / Dated : 25th August, 2025. Satish आदेश क\u0002 \u0003ितिलिप अ ेिषत / Copy of the Order forwarded to : 1. अपीलाथ / The Assessee. 2. \u000eयथ / The Respondent. 3. The Pr. CIT concerned. 4. िवभागीय ितिनिध, आयकर अपीलीय अिधकरण, “A” ब\u0014च, पुणे / DR, ITAT, “A” Bench, Pune. 5. गाड\u0004 फ़ाइल / Guard File. आदेशानुसार / BY ORDER, // True Copy // Senior Private Secretary आयकर अपीलीय अिधकरण, पुणे / ITAT, Pune. Printed from counselvise.com "