KERALA STATE DRUGS AND PHARMACEUTICALS LIMITED,KALAVOOR V. THE ASSISTANT COMMISSIONER OF INCOME TAX, ALAPPUZHA

ITA 799/COCH/2024

AI Insights

The case involves Kerala State Drugs and Pharmaceuticals Ltd., a government undertaking engaged in the business of drugs and pharmaceuticals, which appealed against the order of the National Faceless Appeal Centre, Delhi, for the Assessment Year 2012-13. The appellant had initially filed a return declaring nil income, which was accepted by the Assessing Officer (AO). However, the AO later issued a notice under section 148 of the Income Tax Act, 1961, claiming that income had escaped assessment, leading to a revised assessment. The appellant's subsequent appeal was dismissed by the CIT(A) due to a 4-day delay, which the CIT(A) found inordinate and without sufficient cause. The Tribunal found merit in the appellant's reasons for the delay, including the unavailability of key personnel due to public holidays and other commitments, and thus remanded the case back to the CIT(A) for a decision on the merits.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 474736 (ITAT-COCHIN)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-02-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: DB
• Assessment Year: 2012-2013
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: LEENA LAL
• Assessee Lawyers: R. KRISHNAN
• Keywords: Condonation of delay; Opportunity of being heard
• Section: 148; 143(3); 115JB

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL COCHIN BENCH BEFORE SHRI INTURI RAMA RAO, AM AND SHRI KESHAV DUBEY, JM ITA No. 799/Coch/2024 Assessment Year: 2012-13 Kerala State Drugs and Pharmaceuticals Ltd. .......... Appellant Lakavoor, Alappuzha 688522 [PAN: AAACK8717D] vs. Asstt. Commissioner of Income Tax .......... Respondent Circle Alappuzha Appellant by: Shri R. Krishnan, CA Respondent by: Smt. Leena Lal, Sr. D.R. Date of Hearing: 30.01.2025 Date of Pronouncement: 19.02.2025 O R D E R Per: Inturi Rama Rao, AM This appeal filed by the assessee is directed against the order of the National Faceless Appeal Centre, Delhi [CIT(A)], dated 27.08.2024 for Assessment Year (AY) 2012-13. 2. Brief facts of the case are that the appellant is a company incorporated under the provisions of the Companies Act. It is an undertaking of the Government of Kerala, engaged in the business of drugs and pharmaceuticals. The return of income for AY 2012-13 was filed on 29.09.2012 declaring nil income. Against the said 2 ITA No. 799/Coch/2024 Kerala State Drugs and Pharmaceuticals Ltd. return of income, the assessment was completed by the ACIT, Alappuzha (hereinafter called \"the AO\") vide order dated 29.12.2014 passed u/s. 143(3) of the Income Tax Act, 1961 (the Act) accepting the returned income. Subsequently the AO formed an opinion that income escaped assessment to tax, as the appellant had failed to disclose income of Rs. 18,75,111/- u/s. 115JB of the Act. Accordingly, a notice u/s. 148 of the Act was issued on 29.03.2019 after obtaining necessary approvals from the Chief Commissioner of Income Tax (CCIT). In response to the notice u/s. 148 of the Act the appellant filed return of income declaring Nil income. Against the said return of income, the assessment was completed by the AO u/s. 115JB of the Act at a book profit of Rs. 98,40,521/-. 3. Being aggrieved, an appeal was filed before the CIT(A) with a delay of 4 days. The CIT(A) refused to condone the delay of 4 days by holding that it is an inordinate delay and the appellant had failed to make out sufficient cause for the delay. 4. Being aggrieved, the appellant is in appeal before us in the present appeal. 5. We have heard the rival contentions of both the parties and perused the material available on record. The solitary issue that arises in the present appeal is whether the CIT(A) was justified in refusing to condone the delay of 4 days in filing the appeal. The appellant filed a petition seeking condonation of delay stating that 3 ITA No. 799/Coch/2024 Kerala State Drugs and Pharmaceuticals Ltd. the delay has occurred as the authorised representative of the appellant company was pre-occupied in time barring assessments and when the appeal was prepared and ready for filing, the Managing Director of the appellant company was out of station and it is further submitted that just before the day of filing the appeal it was preceded by public holidays on account of Christmas. Thus it was submitted before the CIT(A) that the delay in filing the appeal occurred on account of reasons which are beyond the control of the assessee. 6. In our considered opinion, there is nothing on record to disbelieve the averments made in the petition seeking condonation of delay. The CIT(A) ought to have condoned the delay and admitted the appeal for adjudication on merits. Therefore, we remand the matter back to the file of the CIT(A) with a direction of condone the delay of 4 days and decide the issues in the appeal on merits after affording opportunity of being heard to the appellant. 7. In the result, the appeal stands partly allowed. Order pronounced in the open court on 19th February, 2025. Sd/- Sd/- (KESHAV DUBEY) JUDICIAL MEMBER (INTURI RAMA RAO) ACCOUNTANT MEMBER Cochin, Dated: 19th February, 2025 n.p. 4 ITA No. 799/Coch/2024 Kerala State Drugs and Pharmaceuticals Ltd. Copy to: 1. The Appellant 2. The Respondent 3. The Pr. CIT concerned 4. The Sr. DR, ITAT, Cochin 5. Guard File By Order Assistant Registrar ITAT, Cochin "