REGUS SUBURB CENTRES PRIVATE LIMITED,MUMBAI V. DEPUTY COMMISSIONER OF INCOME TAX (INTERNATIONAL TAXATION)-4(1)(1), MUMBAI

ITA 6836/MUM/2024

AI Insights

The case involves Regus Suburb Centres Private Limited appealing against the order of the CIT(A) which confirmed the action of the Assessing Officer (AO) treating the assessee as 'assessee in default' under sections 201(1) and 201(1A) of the Income Tax Act, 1961, for the Assessment Year 2016-17. The primary contention was the non-condonation of delay in filing the appeal against the tax demand raised. The Tribunal found that the delay was due to reasonable cause and not intentional, thus allowing the appeal for statistical purposes and remanding the case back to the CIT(A) for a decision on merits.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 473369 (ITAT-MUMBAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-02-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: I
• Assessment Year: 2016-2017
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: KRISHNA KUMAR
• Assessee Lawyers: KETAN VED
• Keywords: Condonation of delay; Reasonable cause
• Section: 201(1)

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL, ‘I’ BENCH MUMBAI BEFORE: SHRI AMIT SHUKLA, JUDICIAL MEMBER & MS. PADMAVATHY S, ACCOUNTANT MEMBER ITA No.6836/Mum/2024 (Assessment Year :2016-17) Regus Suburb Centres Private Limited Level 4, A Wing Dynasty Business Park Andheri Kurla Road Mumbai – 400 059 Vs. Deputy Commissioner of Income Tax (International Taxation)-4(1)(1) Mumbai PAN/GIR No.AADCR3590G (Appellant) .. (Respondent) Assessee by Shri Ketan Ved Revenue by Shri Krishna Kumar, Sr. DR Date of Hearing 13/02/2025 Date of Pronouncement 18/02/2025 आदेश / O R D E R PER AMIT SHUKLA (J.M): The aforesaid appeal has been filed by the assessee against order dated 29/10/2024 passed by NFAC / CIT(A) in relation to the order passed u/s.201(1) / 201(1A) of the Act for the A.Y.2016-17. 2. In the grounds of appeal assessee is aggrieved by the action of the ld. CIT(A) in not condoning the delay in filing of the appeal and confirming the action of the ld. AO for treating the assessee as “assessee in default” under the provisions of ITA No.6836/Mum/2024 Regus Suburb Centres Pvt. Ltd. 2 Section 201(1) and 201(1A) and raising tax demand of Rs.1,45,44,758/-. 3. Before us ld. Counsel submitted that assessee has filed an application for condonation of delay and ld. CIT(A) has dismissed the appeal as not maintainable considering that appeal is not filed in conformity with the provisions of Section 249(2) and there is no sufficient cause for condonation of delay in appeal. 4. Before us it has been stated that delay in filing of appeal mainly occurred on account of the following facts:- “1. The order dated 24 June 2019 passed by the assessing officer under section 201(1A) for the captioned assessment year was received on 27 June 2019 (copy of proof of receipt enclosed as Annexure A), however the same has been inadvertently lost sight by the appellant for the reason that there was a delay at the administrative dispatch department of the appellant who forwards the courier to the concerned department. 2 It was only later on that the relevant personnel handling tax matters for the appellant after receipt of the courier on 28 August 2019 (copy of email sent to dispatch team requesting for date of receipt enclosed as Annexure B) noticed that no action has been taken against the said order and forwarded the order to the appellant's tax consultant on 5 September 2019 to know the appropriate course of action 3. During the course of discussion with the tax consultant it was advised that the appeal shall be filed against the said order accordingly, the appeal was filed on 25 September 2019 As the order is dated 24 June 2019 (received on 27 June 2019), accordingly the appeal was required to be filed within ITA No.6836/Mum/2024 Regus Suburb Centres Pvt. Ltd. 3 30 days Le, by 27 July 2019, however it was belatedly filed an appeal on 25 September 2019.” 5. Looking to the aforesaid facts and circumstances that there was a reasonable cause in filing of appeal before the ld. First Appellate Authority and delay is only of three months, therefore, in the interest of justice, the delay is condoned. It is also seen that ld. CIT(A) has not decided the issue on merits, therefore, in the interest of justice matter is restored back to the file of the ld. CIT(A) to decide the case on merits after giving due opportunity of hearing to the assessee. 6. In the result, appeal of the assessee is allowed for statistical purposes. Order pronounced on 18th February, 2025. Sd/- (PADMAVATHY S) Sd/- (AMIT SHUKLA) ACCOUNTANT MEMBER JUDICIAL MEMBER Mumbai; Dated 18/02/2025 KARUNA, sr.ps ITA No.6836/Mum/2024 Regus Suburb Centres Pvt. Ltd. 4 Copy of the Order forwarded to : BY ORDER, (Asstt. Registrar) ITAT, Mumbai 1. The Appellant 2. The Respondent. 3. CIT 4. DR, ITAT, Mumbai 5. Guard file. //True Copy// "