SAGOTHARA VAZHVU PANI,CUDDALORE V. ITO, WARD,1, CUDDALORE, CUDDALORE

ITA 1582/CHNY/2025

AI Insights

The case involves Sagothara Vazhvu Pani Sangam, an Association of Persons (AOP), appealing against an order from the Addl./JCIT(A)-7, Kolkata, concerning the assessment year 2017-18. The appeal was initially delayed by 303 days due to administrative oversights related to the aging member responsible for the society's affairs, who failed to communicate pending issues. The Tribunal condoned the delay subject to a cost of Rs. 5,000 to be paid to the Tamil Nadu State Legal Services Authority. The primary issue during the appellate proceedings was the non-response of the assessee to multiple notices from the FAA, leading to an ex-parte decision. The Tribunal noted the assessee's lack of awareness of the proceedings due to the inexperience of the AOP's in-charge, who had only completed up to the 8th standard of education.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 714300 (ITAT-CHENNAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-08-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Assessment Year: 2017-2018
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: R.V. ARUN PRASAD
• Assessee Lawyers: HITESH
• Keywords: Condonation of delay; Principle of natural justice

Judgement Text

"आयकर अपीलȣय अͬधकरण, ‘डी’ Ûयायपीठ, चेÛनई IN THE INCOME TAX APPELLATE TRIBUNAL ‘D’ BENCH, CHENNAI Įी जॉज[ जॉज[ क े, उपाÚय¢ एवं Įी एस.आर.रघुनाथा, लेखा सदèय क े सम¢ BEFORE SHRI GEORGE GEORGE K, VICE PRESIDENTAND SHRI S.R. RAGHUNATHA, ACCOUNTANT MEMBER आयकर अपील सं./ITA No.: 1582/CHNY/2025 िनधाᭅरण वषᭅ/Assessment Year: 2017-18 Sagothara Vazhvu Pani Sangam, Samupillai Nagar, Cuddalore – 607 001. PAN: AAGAS 5961F Vs. The Income Tax Officer, Ward 1, Cuddalore. (अपीलाथᱮ/Appellant) (ᮧ᭜यथᱮ/Respondent) अपीलाथᱮ कᳱ ओर से/Appellant by : Shri Hitesh, Advocate for Shri D. Anand, Advocate ᮧ᭜यथᱮ कᳱ ओर से/Respondent by : Shri R.V. Arun Prasad, Addl.CIT सुनवाई कᳱ तारीख/Date of Hearing : 01.08.2025 घोषणा कᳱ तारीख/Date of Pronouncement : 05.08.2025 आदेश/ O R D E R PER GEORGE GEORGE K, VICE PRESIDENT: This appeal filed by the assessee is directed against the order of Addl./JCIT(A)-7, Kolkata dated 24.05.2024, 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.1582/Chny/2025 :- 2 -: 2. There is a delay of 303 days in filing the appeal. The appeal ought to have been filed before ITAT on or before 23.07.2024. However, the appeal was filed belatedly on 30.05.2025. The assessee, an ‘AOP’ has filed a petition for condonation of delay supported by affidavit stating there in the reasons for belated filing of this appeal. The reason stated for delay is that the assessee’s administration and income-tax related matters was handed by a member of the society. Due to his age-related issues, he relinquished his position and had failed to bring to the notice of the office bearers regarding the pending issues of the society. Only on receipt of letter from Income-tax Department, the assessee was aware of the pending income-tax proceeding and immediately took steps to collect the information and submit to its authorized representative for filing of appeal. Therefore, there was a delay of 303 days in filing the appeal before the Tribunal. On perusal of the same, we condone the delay in filing the appeal subject to a cost of Rs.5,000/- (Rupees five thousand only) to be paid to Tamil Nadu State Legal Services Authority at the Hon’ble High Court of Madras. The amount of Rs.5,000/- shall be paid within a month’s time from the date of receipt of this order and assessee shall produce the receipt for the said payment before the Registry. Accordingly, we proceed to dispose off the appeal on merits. Printed from counselvise.com ITA No.1582/Chny/2025 :- 3 -: 3. At the very outset, we notice that the order passed by the First Appellate Authority (FAA) is ex-parte, since there was no compliance from the assessee to three notices issued from the office of the First Appellate Authority. 4. The Ld.AR for the assessee submitted that the assessee is an ‘Association of Persons’, a self-help group and the person who is incharge of the AOP has studied only upto 8th standard and is unaware of the income-tax proceedings and did not check the income tax portal. Therefore, he was unaware of the hearing notices issued during the appellate proceedings. Hence, it was prayed in the interest of justice and equity, the issue may be restored to the files of the FAA as a last opportunity for proper representation of his case. 5. The Ld.DR submitted that adequate opportunities were provided from the offices of the FAA and there is no violation of principles of natural justice. Therefore, it was prayed the appeal of the assessee may be dismissed. 6. We have heard rival submissions and perused the materials on record. The proceedings before the FAA was ex-parte, since the assessee did not respond to three notices issued. The Ld.AR Printed from counselvise.com ITA No.1582/Chny/2025 :- 4 -: submitted that the person incharge of assessee’s AOP has studied only upto 8th standard and was unaware of the hearing notices issued from the office of the FAA. We strongly deprecate the nonchalant attitude of the assessee in not responding to the notices issued from the office of the FAA. However, in the interest of justice and fair play, we are of the view that the matter ought to be restored to the files of the FAA as a last opportunity. Accordingly, the matter is remitted to the files of the FAA for fresh adjudication. The FAA shall afford reasonable opportunity of hearing to the assessee. The assessee is directed to co-operate with the Revenue and shall not seek unnecessary adjournment. It is ordered accordingly. 7. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced in the open court on 5th August, 2025 at Chennai. Sd/- Sd/- (एस.आर. रघुनाथा) (S.R. RAGHUNATHA) लेखा सदèय/ACCOUNTANT MEMBER (जॉज[ जॉज[ क े) (GEORGE GEORGE K) उपाÚय¢ /VICE PRESIDENT चे᳖ई/Chennai, ᳰदनांक/Dated, the 5th August, 2025 RSR Printed from counselvise.com ITA No.1582/Chny/2025 :- 5 -: आदेश कȧ ĤǓतͧलͪप अĒेͪषत/Copy to: 1. अपीलाथȸ/Appellant 2. Ĥ×यथȸ/Respondent 3. आयकर आयुÈत /CIT, Chennai 4. ͪवभागीय ĤǓतǓनͬध/DR 5. गाड[ फाईल/GF. Printed from counselvise.com "