M/S.GOYAL ISPAT LTD.,CHENNAI V. ACIT, CENTRAL CIRCLE-1(1), CHENNAI

ITA 2248/CHNY/2025

AI Insights

The case involves Goyal Ispat Limited, which appealed against the order of the Commissioner of Income Tax (Appeals), Chennai, concerning the assessment year 2017-18. The appeal was initially delayed due to the assessee's unawareness of the appellate order, which was only discovered upon receiving a show-cause notice related to a set aside assessment. The ITAT found sufficient cause for the delay and condoned it. The original proceedings before the CIT(A) were ex-parte as the assessee did not respond to multiple notices. The Tribunal, noting the absence of real-time alerts and the assessee's claim of not receiving the notices, decided to restore the matter to the CIT(A) for a fair hearing, imposing a cost for the procedural lapse.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 786905 (ITAT-CHENNAI)
• Duration Of Justice: 3 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-11-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2017-2018
• Appeal Filed On: 12-08-2025
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SHIVA SRINIVAS
• Assessee Lawyers: JECINTHA
• Keywords: Condonation of delay; Set aside; Principle of natural justice

Judgement Text

"आयकर अपीलȣय अͬधकरण, ‘बी’ Ûयायपीठ, चेÛनई IN THE INCOME TAX APPELLATE TRIBUNAL ‘B’ BENCH, CHENNAI Įी जॉज[ जॉज[ क े, उपाÚय¢ एवं Įी एस.आर.रघुनाथा, लेखा सदèय क े सम¢ BEFORE SHRI GEORGE GEORGE K, VICE PRESIDENTAND SHRI S.R. RAGHUNATHA, ACCOUNTANT MEMBER आयकर अपील सं./ITA No.: 2248/CHNY/2025 िनधाᭅरण वषᭅ/Assessment Year: 2017-18 Goyal Ispat Limited, No.664, T.H. Road, Tondiarpet, Chennai – 600 081. PAN: AAACG 2191B Vs. The Assistant Commissioner of Income Tax, Central Circle – 1(1), Chennai. (अपीलाथᱮ/Appellant) (ᮧ᭜यथᱮ/Respondent) अपीलाथᱮ कᳱ ओर से/Appellant by : Ms. Jecintha, Advocate ᮧ᭜यथᱮ कᳱ ओर से/Respondent by : Shri Shiva Srinivas,CIT सुनवाई कᳱ तारीख/Date of Hearing : 18.11.2025 घोषणा कᳱ तारीख/Date of Pronouncement : 18.11.2025 आदेश/ O R D E R PER GEORGE GEORGE K, VICE PRESIDENT: This appeal filed by the assessee is directed against the order of the Commissioner of Income Tax (Appeals), Chennai dated 30.10.2024, passed under section 250 of the Income Tax Act, 1961 (hereinafter called ‘the Act’). The relevant Assessment Year is 2017-18. Printed from counselvise.com ITA No.2248/Chny/2025 :- 2 -: 2. There is a delay of 224 days in filing the appeal. The appeal ought to have been filed before ITAT on or before 30.12.2024. However, the appeal was filed belatedly on 12.08.2025. The assessee has filed a petition for condonation of delay accompanied by an affidavit by the Director of the assessee company stating there in the reasons for belated filing of this appeal. The reasons stated in the affidavit by the Director for belated filing is that, the assessee’s company is unaware of the appellate order being passed as it was uploaded in the ITBA portal and there were no real time alerts. It was submitted that the assessee became aware only when show-cause notice issued in connection with a set aside assessment passed u/s.154C of the Act of the Act was received by the assessee company. Immediately appeal was filed belatedly. After considering the reasons stated in the condonation application/affidavit of the assessee, we are of the view that there is sufficient cause for belated filing of appeal. Hence, we condone the delay of 224 days in filing the appeal and proceed to dispose off the same on merits. 3. At the very outset, we notice that the order passed by the CIT(A) is ex-parte, since there was no compliance from the assessee to four notices issued from the office of the First Appellate Authority. Printed from counselvise.com ITA No.2248/Chny/2025 :- 3 -: 4. The Ld.AR for the assessee submitted that the has not received the hearing notices issued from the office of the CIT(A). Therefore, he was unaware of the hearing notices issued during the appellate proceedings. Hence, it was prayed in the interest of justice and equity, the issue may be restored to the files of the FAA as a last opportunity for proper representation of its case. 5. The Ld.DR submitted that adequate opportunities were provided from the offices of the CIT(A) and there is no violation of principles of natural justice. Therefore, it was prayed the appeal of the assessee may be dismissed. 6. We have heard rival submissions and perused the materials on record. The proceeding before the CIT(A) was ex-parte, since the assessee did not respond to the notices issued. The Ld.AR submitted that the assessee has not received the hearing notices in its inbox and there is no real time alert. We strongly deprecate the nonchalant attitude of the assessee in not responding to the notices issued from the office of the CIT(A). However, in the interest of justice and fair play, we are of the view that the matter ought to be restored to the files of the CIT(A) with a condition assessee pays a cost of Rs.5,000/- (Rupees five thousand only) to be paid to Tamil Nadu State Legal Services Authority at the Hon’ble High Court of Madras. The amount Printed from counselvise.com ITA No.2248/Chny/2025 :- 4 -: of Rs.5,000/- shall be paid within a month’s time from the date of receipt of this order and assessee shall produce the receipt for the said payment before the CIT(A). Accordingly, the matter is remitted to the files of the CIT(A) for fresh adjudication. The CIT(A) shall afford reasonable opportunity of hearing to the assessee. The assessee is directed to co-operate with the Revenue and shall not seek unnecessary adjournment. It is ordered accordingly. 7. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced in the open court on 18th November, 2025 at Chennai. Sd/- Sd/- (एस.आर. रघुनाथा) (S.R. RAGHUNATHA) लेखा सदèय/ACCOUNTANT MEMBER (जॉज[ जॉज[ क े) (GEORGE GEORGE K) उपाÚय¢ /VICE PRESIDENT चे᳖ई/Chennai, ᳰदनांक/Dated, the 18th November, 2025 RSR आदेश कȧ ĤǓतͧलͪप अĒेͪषत/Copy to: 1. अपीलाथȸ/Appellant 2. Ĥ×यथȸ/Respondent 3. आयकर आयुÈत /CIT, Chennai 4. ͪवभागीय ĤǓतǓनͬध/DR 5. गाड[ फाईल/GF. Printed from counselvise.com "