M/S. INDIAN CHAIN PVT. LTD.,KOLKATA V. D.C.I.T., CIRCLE - 11(1), KOLKATA, KOLKATA

ITA 1086/KOL/2024

AI Insights

The case involves Indian Chain Pvt. Ltd., which appealed against the order of the CIT(A) dismissing their appeal due to a delay in filing. The original dispute arose from an intimation order passed under section 143(1) of the Income Tax Act, 1961, by the DCIT, CPC. The CIT(A) dismissed the appeal without condoning the delay, which was attributed to the non-receipt of the order by the assessee. The Tribunal found that the delay was justified and noted a significant error in the CIT(A)'s understanding of the assessee's identity, leading to the restoration of the case to the CIT(A) for a decision on the merits.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 473852 (ITAT-KOLKATA)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-03-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: C
• Assessment Year: 2020-2021
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: VINEET KUMAR
• Assessee Lawyers: S. JHAJHARIA
• Section: 143(1); 80P

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL “C” BENCH, KOLKATA [Before Shri Rajesh Kumar, AM& Shri Sonjoy Sarma, JM] I.T.A. No. 1086/Kol/2024 Assessment Year: 2020-21 Indian Chain Pvt. Ltd. C/o M/s. Salarpuria Jajodia & Co. 7, C. R. Avenue, 3rd Floor, Kolkata- 700072. (PAN: AAACI6291G) Vs. DCIT, Circle-11(1), Kolkata Appellant Respondent Date of conclusion of Hearing 20.02.2025 Date of Pronouncement 04.03.2025 For the Assessee Shri S. Jhajharia, FCA For the Revenue Shri Vineet Kumar, Addl. CIT ORDER Per Shri Rajesh Kumar, AM The appeal filed by the assessee is against the order of Ld. CIT(A), Addl/JCIT(A)-2, Delhi dated 16.04.2024 for AY 2020-21 arising out of intimation order passed u/s. 143(1) of the Income Tax Act, 1961 (hereinafter referred to as the “Act”) by DCIT, CPC dated 24.12.2021. 2. The issue raised in ground no. 1 by the assessee is against the order of Ld. CIT(A) dismissing the appeal without condoning the delay in filing the appeal. 3. The Ld. Counsel for the assessee, at the outset, submitted that the Ld. CIT(A) has dismissed the appeal of the assessee without condoning the delay in filing the appeal which was of 230 days. The ld. Counsel for the assessee submitted that though the Ld. CIT(A) discussed the merits of the case, however, on page no. 7, the Ld. CIT(A) while reproducing the argument of the assessee on ground no. 1 discussed the issue of deduction u/s. 80P of the Act which is in respect of the cooperative credit society by wrongly treating the assessee as cooperative society whereas the assessee is a private limited company. The Ld. Counsel for the assessee, therefore, prayed that in all fairness the issue may be restored to the file of 2 ITA No. 1086/Kol/2024 Indian Chain Pvt. Ltd., AY 2020-21 the Ld. CIT(A) so that the factual mistake committed by the first appellate authority could be taken care of and the issue be decided on merits after taking into account the submissions and contentions of the assessee. 4. The Ld. DR, on the other hand, left the issue on the decision of the Bench. 5. After hearing both the parties and perusing the material on record, we find that though the Ld. CIT(A) dismissed the appeal of the assessee without condoning the delay in filing the appeal by observing that there was no sufficient cause for the delay in filing the appeal. We note that the delay in filing the appeal was on account of non-service of hard copy of the order passed u/s. 143(1) of the Act dated 24.12.2021 nor any e-mail was sent and thus, the assessee was totally unaware of the said order. In our opinion, the assessee cannot be denied justice merely on the technical reason that the appeal is barred by limitation when there is a valid and sufficient reason for the same. In our opinion, the delay of 230 days as explained by the assessee before us is for sufficient and bonafide reasons. Accordingly, we condone the delay. 6. Further, we note that from page 7 onwards the ld. CIT(A) has discussed the issue of deduction u/s. 80P by wrongly treating the said as a cooperative credit society whereas as a matter of fact, the assessee is a private limited company. Therefore, this is a mistake as apparent from the order of the first appellate authority which needs to be looked into. Besides the appeal of the assessee is also required to be decided on merits. Accordingly, we restore the issue to the file of the Ld. CIT(A) with a direction to decide the appeal on merit after affording reasonable opportunity of hearing to the assessee. 7. In the result, appeal of the assessee is allowed for statistical purposes. Order is pronounced in the open court on 4th March, 2025 Sd/- Sd/- (Sonjoy Sarma) (Rajesh Kumar) Judicial Member Accountant Member Dated: 4th March, 2025 JD, Sr. PS 3 ITA No. 1086/Kol/2024 Indian Chain Pvt. Ltd., AY 2020-21 Copy of the order forwarded to: 1. Appellant–M/s. Indian Chain Pvt. Ltd.. 2. Respondent – DCIT, Circle-11(1), Kolkata 3. CIT(A), Addl/JCIT(A)-2, Delhi 4. Pr. CIT 5. DR, ITAT, Kolkata, True Copy By Order Assistant Registrar ITAT, Kolkata Bench, Kolkata "