PERFEX TECHNOCRATS PRIVATE LIMITED,VISAKHAPATNAM V. INCOME-TAX OFFICER,WARD-3(3), VISAKHAPATNAM

ITA 172/VIZ/2025

AI Insights

The case involves Perfex Technocrats Private Limited, which appealed against the order of the Commissioner of Income Tax (Appeals) at the National Faceless Appeal Centre, Delhi. The appeal was initially dismissed due to a significant delay of 1795 days, attributed to the assessee's reliance on a deceased chartered accountant and personal hardships including family disputes and health issues. The Tribunal found merit in the assessee's reasons for the delay, particularly noting the impact of COVID-19 on legal proceedings and the assessee's ability to respond. Consequently, the Tribunal set aside the CIT(A)'s order and remitted the case for a fresh decision on its merits.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 633194 (ITAT-VISAKHAPATNAM)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-06-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2016-2017
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: APARNA VILLURI
• Assessee Lawyers: I. KAMA SASTRY
• Keywords: Set aside; Business income; Opportunity of being heard
• Section: 144; 142(1)

Judgement Text

" आयकर अपीलीय अधिकरण, धिशाखापटणम “एस एम् सी” ‘पीठ IN THE INCOME TAX APPELLATE TRIBUNAL Visakhapatnam “SMC” Bench, Visakhapatnam Before Shri V.Durga Rao, Hon’ble Judicial Member And Shri Balakrishnan.S., Hon’ble Accountant Member आ.अपी.सं /ITA No.172 /Viz/2025 (निर्धारण वर्ा/Assessment Year: 2016-17) Perfex Technocrats Private Limited Visakhapatnam PAN : AACCP1426A Vs. Income Tax Officer Ward-3(3) Visakhapatnam निर्धाररती द्वधरध/Assessee by: Shri I.Kama Sastry, AR रधजस् व द्वधरध/Revenue by: Dr.Aparna Villuri, DR सुिवधई की तधरीख/Date of Hearing: 03/06/2025 घोर्णध की तधरीख/Date of Pronouncement: 09/06/2025 आदेश / ORDER PER V.DURGA RAO, J.M. This appeal filed by the assessee is directed against the order passed by the Commissioner of Income Tax (Appeals) [“CIT(A)”], National Faceless Appeal Centre, Delhi, dated 16.01.2024 for the A.Y.2016-17, which in turn arises from the order passed by the AO u/s 144 of the Income Tax Act, 1961 (for short “the Act”) dated 29.12.2018 for the A.Y.2016-17. 2 ITA No.172/Viz/2025 Perfex Technocrats Private Limited 2. The brief facts of the case are that the assessee company deriving income from business of carrying out contract works filed its return of income for the A.Y.2016-17 on 25.04.2017 admitting Rs.Nil income. The case was selected for scrutiny and notice u/s 143(2) and 142(1) of the Act were issued and served on the assessee on 28.09.2018 and 15.12.2018 respectively, but the assessee failed to comply with the notices. Accordingly, the AO completed the assessment u/s 144 of the Act by estimating business income @12.5% on gross receipts of Rs.71,55,735/- and arrived at Rs.8,94,467/-. 3. Aggrieved by the order of the AO, the assessee preferred an appeal before the CIT(A), but with the delay of 1795 days. The CIT(A) dismissed the appeal filed by the assessee in-limine, holding that there is lack of bonafides and inaction or negligence on the part of the appellant relying solely on the chartered accountant and even when the chartered accountant had expired on 22.07.2019, the appellant has not established that he appointed a new one and that even the new chartered accountant failed to do his duty. Therefore, held that the overall delay in filing the appeal is not condonable. 4. Aggrieved by the order of the Ld.CIT(A), the assessee preferred an appeal before the Tribunal by raising the following grounds of appeal : 3 ITA No.172/Viz/2025 Perfex Technocrats Private Limited 5. At the outset, the Ld.AR drawn our attention to the affidavit filed by the assessee and submitted that there is miscommunication between the chartered accountant and the 4 ITA No.172/Viz/2025 Perfex Technocrats Private Limited assessee as the chartered accountant has given his email id, to which all notices and other correspondence was delivered. Besides, the assessee was facing family dispute since 2015, also faced challenge of several civil, criminal cases and was also attending to his ailing mother, who expired on 23.11.2023. The Ld.AR further submitted that the assessee came to know of the ex-parte order passed by the department only when the notice u/s 179 of the Act dated 01.03.2022 was served at the residential address of the assessee. The assessee tried to get back the impounded books of accounts and other documentary evidence to enable him to file the appeal. Thus, the Ld.AR submitted that the delay in filing the appeal was neither intentional nor willful, but was bonafide for the reasons mentioned in the affidavit. He, therefore, pleaded to condone the delay and remit the matter back to the file of the Ld.CIT(A) to decide the appeal on merits. 6. Per contra, the Ld.DR submitted that the Ld.CIT(A) was justified in dismissing the appeal of the assessee ex-parte as the assessee was given sufficient opportunity to present his case, but the assessee failed to avail the same. She, therefore, pleaded to uphold the order passed by the Ld.CIT(A) and dismiss the appeal filed by the assessee. 7. We have heard both the parties, perused the material on record and gone through the orders of the authorities below. It is evident that the assessee had preferred appeal before the 5 ITA No.172/Viz/2025 Perfex Technocrats Private Limited Ld.CIT(A) with the delay of 1795 days for the reasons mentioned in the affidavit filed by the assessee, as extracted below : 6 ITA No.172/Viz/2025 Perfex Technocrats Private Limited 7 ITA No.172/Viz/2025 Perfex Technocrats Private Limited 8 ITA No.172/Viz/2025 Perfex Technocrats Private Limited 8. Going by the affidavit filed by the assessee, we find that there are justifiable reasons for the assessee to file the appeal belatedly before the Ld.CIT(A) after excluding the period of 715 days from 15.03.2020 to 28.02.2022 due to COVID as per the directions of the Hon’ble Supreme Court in M.A.No.665/2021 dated 23.03.2020 and 21/2022 dated 10.01.2022. In view of the foregoing facts and circumstances of the case, we are inclined to condone the delay of 1080 days after excluding the covid period (1795-715=1080 days). We therefore, set aside the order passed by the Ld.CIT(A) and remit the matter back to the file of the CIT(A) to decide the matter on merits, after providing reasonable opportunity of being heard to the assessee. The assessee is also 9 ITA No.172/Viz/2025 Perfex Technocrats Private Limited directed to adhere to the notices issued by the department and cooperate during the appeal proceedings. 9. In the result, appeal filed by the assessee is allowed for statistical purpose. Order pronounced in the Open Court on 09th June, 2025. Sd/- Sd/- (BALAKRISHNAN S.) ACCOUNTANT MEMBER (V.DURGA RAO) JUDICAL MEMBER Hyderabad, Dated 09th June, 2025 OKK, SPS Copy to: S.No Addresses 1 M/s Perfex Technocrats Private Limited, 38-44-2/1/2, Jyothinagar, Marripalem, Visakhapatnam 2 The Income Tax Officer, Ward-3(3), Pratyakshakar Bhavan, MVP Double Road, MVP Colony, Visakhapatnam 3 The Pr.Commissioner of Income Tax, Visakhapatnam 4 The DR, ITAT Visakhapatnam Benches 5 Guard File TRUE COPY SENIOR PRIVATE SECRETARY ITAT, VISAKHAPATNAM "