M/S. MADEENA CONSTRUCTIONS,CHENNAI V. ACIT, NCC-8)1), CHENNAI

ITA 3031/CHNY/2024

AI Insights

This case involves an appeal by M/s. Madeena Construction against the order of the Learned Commissioner of Income Tax (Appeals)-18, Chennai, which dismissed their appeal for the Assessment Year 2013-14. The dismissal was based on the grounds of non-condonation of a 1418-day delay in filing the appeal and incorrect findings regarding the non-payment of due taxes. The assessee argued that they had paid excess tax compared to what was due. The Tribunal found merit in the assessee's arguments, particularly regarding the medical incapacity of the managing partner which justified the delay, and directed a re-examination of the tax payment claims.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 396448 (ITAT-CHENNAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-05-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Assessment Year: 2013-2014
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: R.ANITA
• Assessee Lawyers: T.VASUDEVAN; ITA NO.CHNY AY
• Keywords: Condonation of delay

Judgement Text

"आयकर अपीलीय अिधकरण, ’डी’ \u0001यायपीठ, चे ई। IN THE INCOME TAX APPELLATE TRIBUNAL ‘D’ BENCH: CHENNAI \u0001ी एबी टी. वक , ाियक सद\u0011 एवं एवं एवं एवं \u0001ी अिमताभ शु\u0018ा, लेखा सद क े सम\u001b BEFORE SHRI ABY T. VARKEY, JUDICIAL MEMBER AND SHRI AMITABH SHUKLA, ACCOUNTANT MEMBER आयकर अपील सं./ITA No.3031/Chny/2024 िनधा\u000eरण वष\u000e/Assessment Year: 2013-14 M/s. Madeena Construction, Plot No.05, Bismilla Apartments, 49/101, G-1, Shanmugasundaram Street, Devaraja Nagar, Saligramam, Chennai-600 093. v. The ACIT, Non Corporate Circle-8(1), Chennai. [PAN: AAJFM 8896 P] (अपीलाथ\u0016/Appellant) (\u0017\u0018यथ\u0016/Respondent) अपीलाथ\u0016 क\u001a ओर से/ Appellant by : Mr.T. Vasudevan, Advocate \u0017\u0018यथ\u0016 क\u001a ओर से /Respondent by : Ms.R. Anita, Addl. CIT सुनवाईक\u001aतारीख/Date of Hearing : 13.05.2025 घोषणाक\u001aतारीख /Date of Pronouncement : 28.05.2025 आदेश / O R D E R PER ABY T. VARKEY, JM: This is an appeal preferred by the assessee against the order of the Learned Commissioner of Income Tax (Appeals)-18, (hereinafter referred to as “the Ld.CIT(A)”), Chennai, dated 31.01.2024 for the Assessment Year (hereinafter referred to as \"AY”) 2013-14. 2. At the outset, the Ld.AR of the assessee brought to our notice that the Ld.CIT(A) has erroneously dismissed the appeal of the assessee by ITA No.3031/Chny/2024 (AY 2013-14) M/s. Madeena Constructions :: 2 :: firstly, not condoning the delay of ‘1418’ days and secondly, by finding that the assessee didn’t pay the tax due on the income returned by it, which according to assessee is erroneous. For convenience, we re- produce the Ground Nos.2 & 3 raised by the assessee: 2. The CIT(A) erred in holding that the appeal is not admissible under sec.249(4)(a) of the Act. 3. The CIT(A) failed to appreciate that the assessee had remitted total tax of Rs.5,08,57,893/- on the admitted income and this was in excess, as against the tax payable of Rs.4,65,49,181/- and hence the dismissal of appeal on this score was unjustified and untenable in law. 3. From a perusal of the aforesaid grounds, it is noted that the assessee has asserted that it has remitted total tax of Rs.5,08,57,893/- on the admitted income as disclosed in the return of income (RoI) filed by it. And also submitted that this amount was in excess against the tax payable to the tune of Rs.4,65,49,181/- whereas the Ld.CIT(A) has erroneously found that the assessee has only made payment of Rs.1.30 Crs. and therefore, the Ld.CIT(A) erred in finding that the assessee was barred from filing the appeal under sub-section 249(4)(a) of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act‘) 4. The aforesaid assertion of the assessee needs verification. Having said so, we note that the other ground on the basis of which the Ld.CIT(A) has refused to admit the appeal preferred by the assessee because there was a delay of ‘1418’ days in filing of appeal before him. ITA No.3031/Chny/2024 (AY 2013-14) M/s. Madeena Constructions :: 3 :: In this regard, the assessee has filed huge Paper Book containing the medical history of the Managing partner, Mr. Rasheed Khan who was suffering from various serious ailments which is discernable from the medical records placed before us and taking note of the aforesaid facts as well as the application for condonation of delay as well as the affidavits supporting the same, we are of the view that since the managing partner was unwell and hospitalized, the delay caused in filing of appeal before the Ld.CIT(A) can’t be held to be deliberate because it was beyond the control of the assessee firm. Therefore, we condone the delay of ‘1418’ days in filing of appeal before the Ld.CIT(A) and direct the Ld.CIT(A) to verify from the proof of payment of tax of Rs.5,08,57,893/- which according to the assessee was in excess as against the tax payable to the tune of Rs.4,65,49,181/-; and if the Ld.CIT(A) finds the assessee’s assertion regarding remitting of tax on the admitted income is correct, then, the Ld.CIT(A) to admit the appeal of the assessee and decide the grounds of appeal raised by the assessee in accordance with sub-section (6) of section 250 of the Act. The assessee is directed to file all the relevant documents called for by the Ld.CIT(A) and file written submissions and the Ld.CIT(A) to pass order in accordance to law after hearing the assessee. ITA No.3031/Chny/2024 (AY 2013-14) M/s. Madeena Constructions :: 4 :: 5. In the result, appeal filed by the assessee is allowed for statistical purposes. Order pronounced on the 28th day of May, 2025, in Chennai. Sd/- (अिमताभ शु\u0018ा) (AMITABH SHUKLA) लेखा सद\u0003य/ACCOUNTANT MEMBER Sd/- (एबी टी. वक ) (ABY T. VARKEY) \u0005याियक सद\u0003य/JUDICIAL MEMBER चे ई/Chennai, !दनांक/Dated: 28th May, 2025. TLN आदेश क\u001a \u0017ितिलिप अ$ेिषत/Copy to: 1. अपीलाथ /Appellant 2. \u000e\u000fथ /Respondent 3. आयकरआयु\u0015/CIT, Chennai / Madurai / Salem / Coimbatore. 4. िवभागीय\u000eितिनिध/DR 5. गाड फाईल/GF "