MOD ILLVA INDIA PVT LTD,DELHI V. DCIT, CIRCLE-16(1), DELHI

ITA 64/DEL/2025

AI Insights

Mod Illva India Private Limited appealed against the order of the Commissioner of Income Tax (Appeals) which had dismissed their earlier appeal due to a delay of 171 days. The original assessment had computed the income of the assessee significantly higher than reported, leading to a substantial tax liability. The Tribunal found merit in the assessee's explanation for the delay, influenced by the resignation of the individual responsible for tax matters, and thus remanded the case for a fresh assessment on its merits.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 714415 (ITAT-DELHI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-08-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Assessment Year: 2014-2015
• Other Referred Cases: Collector, Land & Acquisition vs. Mst. Katiji & Others (1987) 167 ITR 471 (SC)
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: JITENDER SINGH
• Assessee Lawyers: C. S. GUPTA
• Keywords: Opportunity of being heard
• Section: 147; 144; 143(3)

Judgement Text

"1 ITA No. 64/Del/2025 Mod Illva India (P) Ltd. vs. DCIT IN THE INCOME TAX APPELLATE TRIBUNAL DELHI DELHI BENCH ‘A’ NEW DELHI BEFORE SHRI SHAMIM YAHYA, ACCOUNTANT MEMBER AND SHRI YOGESH KUMAR U.S., JUDICIAL MEMBER ITA No. 64/DEL/2025 (A.Y. 2019-20) Mod Illva India Private Limited(through Director- Sh. Sanjay Kumar Garg), 1513, Modi Tower, 98, Nehru Place, New Delhi PAN: AAGCM0570N Vs. Assessing Officer DCIT Circle, 16(1) National Faceless Assessment Centre , Delhi Appellant Respondent Assessee by Sh. C. S. Gupta, Adv Revenue by Sh. Jitender Singh, CIT, DR Date of Hearing 10/07/2025 Date of Pronouncement 06/08/2025 ORDER PER YOGESH KUMAR, U.S. JM: The present appeal is filed by the Assessee against the order of Ld. Commissioner of Income Tax (Appeals/ National Faceless Appeal Centre (‘Ld. CIT(A)/NFAC’ for short), New Delhi dated 10/04/2024for the Assessment Year 2014-15. 2. Brief facts of the case are that, an assessment order came to be passed u/s 147 r.w. Section 144 and 144B of the Income Tax Act, 1961('Act' for short) on 30/03/2022 by computing the income of the Assessee at Rs. 5,28,76,820/-as against the loss computed as per the order u/s 143(3) of the Act of Rs. 5,28,76,820/-.Aggrieved by the Printed from counselvise.com 2 ITA No. 64/Del/2025 Mod Illva India (P) Ltd. vs. DCIT assessment order dated 30/03/2022, the Assessee preferred an Appeal before the Ld. CIT(A). Since, there was a delay of 171 days in filing the first Appeal, the Ld. CIT(A) vide order dated 10/04/2024 , dismissed the Appeal filed by the Assessee on delay in latches. Aggrieved by the order of the Ld. CIT(A), the Assessee preferred the present Appeal. 3. The Ld. Counsel for the Assessee vehemently submitted that the Ld. CIT(A) has dismissed the first Appeal though there was sufficient cause the condone the delay, therefore, sought for allowing the present Appeal of the Assessee. 4. Per contra, the Ld. Departmental Representative vehemently submitted that there was no sufficient cause to condone the inordinate delay in filing the Appeal before the Ld. CIT(A), therefore, sought for dismissal of the present Appeal. 5. We have heard both the parties and perused the material available on record. Aggrieved by the assessment order dated 30/03/2022, the Assessee preferred Appeal before the Ld. CIT(A) with a delay of 171 days. As per the Assessee, the cause of the delay was that ‘the person responsible for income tax matters resigned and left the Assessee without handing over the charge’. However, the Ld. CIT(A) has not condone the delay and dismissed the Appeal. Printed from counselvise.com 3 ITA No. 64/Del/2025 Mod Illva India (P) Ltd. vs. DCIT 6. It can be seen from the reasons contended by the Assessee that ‘the person responsible for income tax matters resigned and left the Assessee without handing over the charge’. Though it is expected from the Assessee to file the Appeal on time, if the cause for delayis bona- fide and beyond the control of the Assessee, the same can be construed as sufficient cause. The Hon'ble Supreme Court time and again clarified that the delay in filing the Appeal with sufficient cause should be looked into in a liberal way and shall condone the delay. In the landmark decision in Collector, Land & Acquisition vs. Mst. Katiji& Others (1987) 167 ITR 471 (SC), the Hon'ble Supreme Court settled the law that the delay when supported by justifiable reasons, must make way for the cause of substantial justice. Considering the above facts and circumstances, we condone the delay of 171 days in filing the first Appeal before the Ld. CIT(A) and remand the matter to the file of the Ld. CIT(A) with a direction to the Ld. CIT(A) to decide the Appeal afresh on its merits in accordance with law after providing opportunity of being heard to the Assessee. 7. In the result, the Appeal of the Assessee is partly allowed for statistical purpose. Order pronounced in the open court on 06th August, 2025 Sd/- Sd/- (SHAMIM YAHYA) (YOGESH KUMAR U.S.) ACCOUNTANT MEMBER JUDICIAL MEMBER Date:- 06.08.2025 R.N, Sr.P.S* Printed from counselvise.com 4 ITA No. 64/Del/2025 Mod Illva India (P) Ltd. vs. DCIT Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR ITAT, NEW DELHI Printed from counselvise.com "