KAYNES TECHNOLOGY INDIA LIMITED ,MYSORE V. INCOME TAX OFFICER, WARD-1 , MYSORE

ITA 1069/BANG/2025

AI Insights

The case involves M/s. Kaynes Technology India Ltd., the appellant, challenging an order by the Ld.Addl/JCIT(A)-5, Mumbai, which treated them as an assessee in default for not deducting tax at source, under sections 201(1) and 201(1A) of the Income Tax Act. The initial appeal to the Ld.CIT(A) was dismissed on grounds of non-prosecution, despite multiple notices being issued. The Tribunal found that the Ld.CIT(A) had overlooked a significant reply from the assessee, leading to the decision to remit the case back for a fresh evaluation on merits.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 711318 (ITAT-BANGALORE)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-07-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Assessment Year: 2022-2023
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: BALUSAMY N
• Assessee Lawyers: VINAYA SUNGA
• Keywords: Set aside; TDS
• Section: 201(1)

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL ‘A’ BENCH : BANGALORE BEFORE SHRI PRASHANT MAHARISHI, VICE – PRESIDENT AND SHRI SOUNDARARAJAN K., JUDICIAL MEMBER ITA No. 1069/Bang/2025 Assessment Year : 2022-23 M/s. Kaynes Technology India Ltd., #23, Belagola (Food) Industrial Area, 11, Hebbal, Mysore – 570 016. PAN: BLRK08538F Vs. The Income Tax Officer, TDS-Ward – 1, Mysore. APPELLANT RESPONDENT Assessee by : Shri Vinaya Sunga, CA Revenue by : Shri Balusamy N, JCIT-DR Date of Hearing : 21-07-2025 Date of Pronouncement : 25-07-2025 ORDER PER SOUNDARARAJAN K., JUDICIAL MEMBER This is an appeal filed by the assessee challenging the order of Ld.Addl/JCIT(A)-5, Mumbai dated 26/03/2025 in respect of A.Y. 2022-23. 2. The brief facts of the case are that the AO based on the survey observed that the assessee had not deducted the tax at source and therefore passed an order u/s. 201(1) and 201(1A) by treating the assessee as an assessee in default. As against the said order, the assessee filed an appeal before the Ld.CIT(A) and raised several grounds on merits. The Ld.CIT(A) had dismissed the appeal on the ground that the assessee was not Printed from counselvise.com Page 2 of 3 ITA No. 1069/Bang/2025 interested in prosecuting the appeal even though five notices were issued and served on them. As against the said ex-parte order, the assessee is in appeal before this Tribunal. 3. At the time of hearing, the Ld.AR submitted that even though the assessee had not looked into the earlier four notices issued, but filed their reply to the notice dated 18/03/2025 on 24/03/2025 and therefore the order of the Ld.CIT(A) without considering the said reply is bad in law. The Ld.AR also filed a paper book enclosing the written submissions as well as the e-proceedings acknowledgement dated 24/03/2025 in response to the notice dated 18/03/2025. The Ld.AR therefore submitted that the Ld.CIT(A)’s finding that the assessee had not shown any interest in prosecuting the appeal is against the facts of the case and prayed an opportunity to appear before the Ld.CIT(A). 4. The Ld.DR relied on the orders of the lower authorities. 5. We have perused the order of the Ld.CIT(A) in which in paragraph no. 4.1, he had furnished a tabular column by showing the various dates of the notices and the remarks. From the said tabular column, we notice that the Ld.CIT(A) had granted five opportunities to the assessee. But for the last notice dated 18/03/2025, the assessee had sent a reply through the portal and also filed the acknowledgement for having filed the said documents. Even though the Ld.CIT(A) had passed the order on 26/03/2025, he has not considered the said reply filed by the assessee on 24/03/2025. Therefore the order of the Ld.CIT(A) is not based on the submissions made by the assessee on 24/03/2025. 6. Therefore We are inclined to set aside the order of Ld.CIT(A) and remit the issue to the file of the Ld.CIT(A) to consider the appeal on merits and decide the same after hearing the assessee. It is open to the assessee to file the relevant documents before the Ld.CIT(A) while adjudicating the appeal on merits. Printed from counselvise.com Page 3 of 3 ITA No. 1069/Bang/2025 7. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced in the open court on 25th July, 2025. Sd/- Sd/- (PRASHANT MAHARISHI) (SOUNDARARAJAN K.) Vice – President Judicial Member Bangalore, Dated, the 25th July, 2025. /MS / Copy to: 1. Appellant 2. Respondent 3. CIT 4. DR, ITAT, Bangalore 5. Guard file 6. CIT(A) By order Assistant Registrar, ITAT, Bangalore Printed from counselvise.com "