S 285, VENKATACHALAPATHI PACB,SALEM V. ITO, WARD-1(2), SALEM

ITA 4030/CHNY/2025

AI Insights

The case involves an appeal by M/s. S 285 Venkatachalapathi PACB Manjulayur against the order of the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi, which had dismissed the assessee's appeal in limine due to a delay of 1064 days in filing. The Tribunal noted that a similar delay in a related quantum assessment had been condoned in a previous case (ITA No.2551/CHNY/2025) and the matter was set aside to the FAA for merits. Consequently, the Tribunal decided to condone the delay in the current case and restore the penalty issue to the FAA for reconsideration alongside the quantum assessment.

• Counselvise Citation: [2026] 140 COUNSELVISE.COM (IT) 837984 (ITAT-CHENNAI)
• Duration Of Justice: 1 month(s) 20 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-02-2026
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Assessment Year: 2017-2018
• Appeal Filed On: 29-12-2025
• Other Referred Cases: ITA No.2551/CHNY/2025
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: V AWASTHY
• Assessee Lawyers: T.S. LAKSHMI VENKATARAMAN
• Keywords: Set aside; Reasonable cause

Judgement Text

"आयकर अपीलȣय अͬधकरण, ‘डी’ Ûयायपीठ, चेÛनई IN THE INCOME TAX APPELLATE TRIBUNAL ‘D’ BENCH, CHENNAI Įी जॉज[ जॉज[ क े, उपाÚय¢ एवं Įी इंटूरȣ रामा राव, लेखा सदèय क े सम¢ BEFORE SHRI GEORGE GEORGE K, VICE PRESIDENT AND SHRI INTURI RAMA RAO, ACCOUNTANT MEMBER आयकर अपील सं./ITA No.: 4030/CHNY/2025 िनधाᭅरण वषᭅ/Assessment Year: 2017-18 M/s. S 285 Venkatachalapathi PACB Manjulayur, Muthunackenpatty PO, Omalur, Salem – 636 455. PAN: AAEAS 8632B Vs. The Income Tax Officer, Ward 1(2), Salem (अपीलाथᱮ/Appellant) (ᮧ᭜यथᱮ/Respondent) अपीलाथᱮ कᳱ ओर से/Appellant by : Shri T.S. Lakshmi Venkataraman, CA (Through Virtual Mode) ᮧ᭜यथᱮ कᳱ ओर से/Respondent by : Ms. V Awasthy, JCIT सुनवाई कᳱ तारीख/Date of Hearing : 17.02.2026 घोषणा कᳱ तारीख/Date of Pronouncement : 18.02.2026 आदेश/ O R D E R PER GEORGE GEORGE K, VICE PRESIDENT: This appeal filed by the assessee is directed against the order of Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi, dated 11.11.2025 passed under section 250 of the Income Tax Act, 1961 (hereinafter called ‘the Act’). The relevant Assessment Year is 2017-18. Printed from counselvise.com ITA No.4030/Chny/2025 :- 2 -: 2. At the very outset, we notice that the First Appellate Authority (FAA) had dismissed the appeal of the assessee in limine without adjudicating on merits. The FAA held that there is a delay of 1064 days in filing this appeal before him and there is no reasonable cause for condoning the same. 3. The Ld.AR submitted that as against the quantum assessment, the Tribunal in ITA No.2551/CHNY/2025 has condoned the delay of 134 days (after excluding Covid-19 period) and had set aside the matter to the file of FAA to hear the appeal on merits. The Ld.AR submitted that in light of the quantum assessment order being set aside, the impugned penalty order u/s.271AAC(1) of the Act which arise out of the quantum assessment needs to be set aside. 4. The Ld.DR supported the order of the AO and the First Appellate Authority. 5. We have heard rival submissions and perused the material on record. The Penalty u/s.271AAC(1) of the Act arises out of quantum assessment. Since, the quantum assessment has already been set aside by the Tribunal to the files of the FAA, this penalty order cannot be independently sustained. Therefore, we deem it appropriate to set aside the issue to the files of the FAA Printed from counselvise.com ITA No.4030/Chny/2025 :- 3 -: (before whom the quantum assessment is pending), after condoning the delay in filing the appeal before the FAA. Hence, the delay in filing the appeal before FAA is condoned and the issue of penalty u/s.271AAC(1) of the Act is restored to the files of the FAA for fresh consideration along with the quantum appeal. It is ordered accordingly. 6. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced in the open court on 18th February, 2026 at Chennai. Sd/- Sd/- (इंटूरȣ रामा राव) (INTURI RAMA RAO) लेखा सदèय/ACCOUNTANT MEMBER (जॉज[ जॉज[ क े) (GEORGE GEORGE K) उपाÚय¢ /VICE PRESIDENT चे᳖ई/Chennai, ᳰदनांक/Dated, the 18th February, 2026 RSR आदेश कȧ ĤǓतͧलͪप अĒेͪषत/Copy to: 1. अपीलाथȸ/Appellant 2. Ĥ×यथȸ/Respondent 3. आयकर आयुÈत /CIT, Salem 4. ͪवभागीय ĤǓतǓनͬध/DR 5. गाड[ फाईल/GF. Printed from counselvise.com "