KSK ENERGY COMPANY PRIVATE LIMITED,HYDERABAD V. DCIT., CIRCLE-2(1), HYDERABAD

ITA 1273/HYD/2024

AI Insights

M/s. KSK Energy Company Private Limited filed an appeal against the order of the Learned Commissioner of Income Tax (Appeals), which had dismissed their earlier appeal ex parte due to non-response. The assessee explained that during the time of the notices, the company was undergoing a management transition as per an NCLT order under the Insolvency and Bankruptcy Code, 2016, which hindered their ability to respond. The Tribunal found this reason sufficient to grant a re-hearing and set aside the previous order, remanding the case back to the CIT(A) for a fresh decision on merits.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 315602 (ITAT-HYDERABAD)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-05-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB-A
• Assessment Year: 2018-2019
• Laws Referred To: Income Tax Act, 1961, Insolvency and Bankruptcy Code, 2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: B.BALAKRISHNA
• Assessee Lawyers: S. SANDHYA
• Keywords: Condonation of delay; Set aside; Opportunity of being heard; Reasonable cause
• Section: 143(3)

Judgement Text

" आआआआ आआआआआआ आआआआआआ, आआआआआआआआ आआआ IN THE INCOME TAX APPELLATE TRIBUNAL Hyderabad ‘A’ Bench, Hyderabad शशशश शशशश शशश शशश, शशशशशशशशश शशश शशशश शशशशशशश शशशशशशश, शशशश शशशशश शश शशशशश श BEFORE SHRI VIJAY PAL RAO, VICE PRESIDENT AND SHRI MADHUSUDAN SAWDIA, ACCOUNTANT MEMBER आ.अपी.सं /ITA No.1273/Hyd/2024 (निर्धारण वर्ा/Assessment Year:2018-19) M/s. KSK Energy Company Private Limited, Hyderabad. PAN:AACCK9414B Vs. Dy. Commissioner of Income Tax, Circle-2(1), Hyderabad. (Appellant) (Respondent) निर्धाररती द्वधरध/Assessee by: Smt. S. Sandhya, Advocate रधजस् व द्वधरध/Revenue by: Shri B. Balakrishna, CIT-DR सुिवधई की तधरीख/Date of hearing: 07/05/2025 घोर्णध की तधरीख/Pronouncement: 16/05/2025 आदेश/ORDER PER MADHUSUDAN SAWDIA, A.M. : This appeal is filed by M/s. KSK Energy Company Private Limited (“the assessee”), feeling aggrieved by the order passed by the Learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi (“Ld. CIT(A)”), dated 13.09.2024 for the A.Y. 2018-19. 2. At the outset, it is noted that there was a delay of nine days in filing the present appeal before the Tribunal. The assessee has filed a petition for condonation of delay along with a duly sworn affidavit explaining the reason ITA No.1273/Hyd/2024 2 for the delay. The learned Authorised Representative (“Ld. AR”) submitted that the delay was neither intentional nor deliberate and was due to unavoidable circumstances. After perusing the affidavit and considering the submissions of both the Ld. AR and the learned Departmental Representative (“Ld. DR”), we are satisfied that there was a reasonable cause for the delay. Accordingly, the delay in filing the appeal is condoned and the appeal is admitted for adjudication. 3. The brief facts of the case are that, the assessee filed an appeal before the Ld. CIT(A) against the order passed by the Ld. AO u/s 143(3) read with sections 143(3A) and 143(3B) of the Income Tax Act,1961 (“the Act”) on 08/04/2021 for A.Y. 2018-19. Before the Ld. CIT(A), the assessee did not respond to the notices issued by him. Consequently, the Ld. CIT(A) dismissed the appeal of the assessee ex parte. 4. Aggrieved with the order of Ld. CIT(A), the assessee is in appeal before us. Before us, the Ld. AR submitted that at the time when the notices were issued by the Ld. CIT(A), the assessee-company was undergoing a change in management pursuant to the order passed by the Hon’ble National Company Law Tribunal (“NCLT”) dated 01.04.2024 under the provisions of the Insolvency and Bankruptcy Code, 2016. It was submitted that due to the transitional phase and takeover of affairs by the new management, the assessee could not ITA No.1273/Hyd/2024 3 effectively respond to the notices issued during the appellate proceedings before the Ld. CIT(A). The Ld. AR, prayed for one more opportunity to represent the case on merits and requested that the matter may be restored to the file of the Ld. CIT(A) for fresh adjudication. 5. Per contra, the Ld. DR opposed the request for remand and submitted that sufficient opportunity was already provided to the assessee before the Ld. CIT(A). He supported the order of the lower authorities. 6. We have heard the rival contentions and also gone through the records in the light of submissions made by either side. In our considered opinion, the reason advanced by the Ld. AR regarding the transition of management in compliance with the NCLT’s order constitutes a reasonable cause for non- appearance during the appellate proceedings before the Ld. CIT(A). In the interest of justice and fair play, and considering that the matter has not been adjudicated on merits, we are inclined to grant one more opportunity to the assessee. Accordingly, we set aside the order of the Ld. CIT(A) and restore the matter to his file with a direction to adjudicate the appeal afresh after providing due opportunity of being heard to the assessee. The assessee is also directed to cooperate in the fresh appellate proceedings without seeking unnecessary adjournments. ITA No.1273/Hyd/2024 4 7. In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced in the open Court on 16th May, 2025. Sd/- Sd/- (VIJAY PAL RAO) (MADHUSUDAN SAWDIA) VICE PRESIDENT ACCOUNTANT MEMBER Hyderabad. Dated: 16.05.2025. * Reddy gp Copy of the Order forwarded to : 1. M/s. KSK Energy Company Private Limited, 8-2-293/82A, Road No.22, Jubilee Hills, Hyderabad-500033 2. DCIT, Circle 2(1), Hyderabad. 3. Pr.CIT, Hyderabad. 4. DR, ITAT, Hyderabad. 5. Guard file. BY ORDER, "