PADMA ESTATES PRIVATE LIMITED,KOLKATA V. DCIT,CENTRAL CIRCLE , NOIDA

ITA 5723/DEL/2024

AI Insights

The case involves Padma Estates Private Limited, which appealed against the order of the Commissioner of Income Tax (Appeals) that dismissed their earlier appeal due to a significant delay in filing. The original assessment order, which added Rs. 24,11,150 to the assessee's income under section 68 of the Income Tax Act, was issued on 30/12/2017. The assessee's appeal to the CIT(A) was dismissed on 21/11/2024 due to the 864-day delay in filing. The Tribunal heard arguments from both sides regarding the sufficiency of the cause for the delay and decided to remand the case for a fresh decision on its merits, after condoning the delay.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 712006 (ITAT-DELHI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-07-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Assessment Year: 2010-2011
• Other Referred Cases: Collector, Land & Acquisition vs. Mst. Katiji & Others (1987) 167 ITR 471 (SC)
• Laws Referred To: Income Tax Act
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: POOJA SWAROOP
• Assessee Lawyers: RAJIV KHANDELWAL; GAGAN
• Keywords: Opportunity of being heard

Judgement Text

"1 ITA NO. 5723/Del/2024 Padma Estates (P). Ltd. IN THE INCOME TAX APPELLATE TRIBUNAL DELHI [DELHI BENCH : “B” NEW DELHI] BEFORE SHRI YOGESH KUMAR U.S., JUDICIAL MEMBER AND SHRI MANISH AGARWAL, ACCOUNTANT MEMBER I.T.A. No. 5723/DEL/2024 (A.Y 2010-11) Padma Estates Private Limited (Cindy goods & Supply Pvt. Ltd., since amalgamation) 277, B. B. Ganguly Street, Kolkata, West Bengal PAN: AABCP5462H Vs Deputy Commissioner of Tax , Central Circle, Noida Appellant Respondent Assessee by Sh. Rajiv Khandelwal, CA, Shri Gagan Khandelwal, Adv and Shri jaind Kumar, Adv Revenue by Ms. PoojaSwaroop, CIT(DR) Date of Hearing 22/07/2025 Date of Pronouncement 22/07/2025 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) (‘Ld. CIT(A) for short), New -3, Noida dated 21/11/2024 for the Assessment Year 2010-11. 2. Brief facts of the case are that, an assessment order came to be passed on 30/12/2017 by computing the income of the Assessee at Rs. 24,11,150/- by making an addition of Rs. 24,11,150/- u/s 68 of the Act. Aggrieved by the assessment order dated 30/12/2017, the Assessee preferred the Appeal before the Ld. CIT(A). Since, there was a delay of Printed from counselvise.com 2 ITA NO. 5723/Del/2024 Padma Estates (P). Ltd. 864 days and filing the first Appeal, the Ld. CIT(A) vide order dated 21/11/2024 , 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 30/12/2017, the Assessee preferred Appeal before the Ld. CIT(A) with a delay of 864 days. As per the Assessee the cause of the delay are as under:- “ (i) Mr. vijendra Tripathy, the Director of the Company, received the impugned order on 1st January, 2018 and immediately sent the same to Mr. Hridesh Singh, an accountant of the Company, with an instruction that the same be forwarded to Mr. Vishnu Agarwal, Chartered Accountants for further action; Printed from counselvise.com 3 ITA NO. 5723/Del/2024 Padma Estates (P). Ltd. (ii) Mr. Hridesh Singh kept the order in his drawer and inadvertently, failed to send the same to the Chartered Accountants. Later, Mr. Hridesh Singh left the Company in September 2018. The order was lost of; (iii) During the Covid-19 time in May 2019, Mr. Tripathy was taking account of all papers sand documents in the office and found the impugned order lying in the drawer of Mr. Hridesh Singh. On enquiry with the chartered Accountants, he realized that the appeal was never filed against the said order; (iv) Mr. Tripathy immediately sent the order to R. S. Khandelwal& Associates Chartered Accountants, Mumbai for further action. 6. The Ld. CIT(A) has not condone the delay. It can be seen from the reasons contended by the Assessee that due to the negligence of the Accountant of the Company, the requisite steps have not been taken for filing the Appeal. The copy of the assessment order was found during the Covid-19 period in the driver of the Accountant as the Appeal has not been filed. 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 Printed from counselvise.com 4 ITA NO. 5723/Del/2024 Padma Estates (P). Ltd. condone the delay of 864 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 22ND July , 2025 Sd/- Sd/- (MANISH AGARWAL) (YOGESH KUMAR U.S.) ACCOUNTANT MEMBER JUDICIAL MEMBER Date:- 22 .07.2025 R.N, Sr.P.S* Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTR ITAT, NEW DELHI Printed from counselvise.com 5 ITA NO. 5723/Del/2024 Padma Estates (P). Ltd. Printed from counselvise.com "