SAI SAKSHI AUTOMOTIVE PVT LTD,PUNE V. NFAC, DELHI

ITA 26/PUN/2025

AI Insights

The case involves Sai Sakshi Automotive Private Limited appealing against a penalty order under section 270A of the Income Tax Act, issued by the National Faceless Assessment Centre, Delhi. The appeal was initially dismissed by the CIT(A) in limine due to a significant delay in filing. The assessee company attributed the delay to financial losses and disruptions caused by the COVID-19 pandemic. The ITAT found merit in the assessee's reasons for the delay, citing precedents that supported a liberal approach in such circumstances. Consequently, the ITAT set aside the findings of the CIT(A) and remitted the case for a fresh examination on merits.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 24735 (ITAT-PUNE)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-03-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2017-2018
• Other Referred Cases: Collector Land Acquisition Vs. MST Katiji (1987) 167 ITR 471 SC, CIT vs. Sanmac Motor Finance Ltd. reported in 322 ITR 309
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ARVIND DESAI
• Keywords: Set aside; Reasonable cause

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCHES “B”, PUNE BEFORE DR.MANISH BORAD, ACCOUNTANT MEMBER AND SHRI VINAY BHAMORE, JUDICIAL MEMBER आयकर अपील सं. / ITA No.26/PUN/2025 Assessment Year : 2017-18 Sai Sakshi Automotive Private Limited, 805, The Reverie, Bhandarkar Institute Road, Haveli, Pune 411 004 Maharashtra PAN : AATCS7275D Vs. National Faceless Assessment Centre, Delhi Appellant Respondent आदेश / ORDER PER DR. MANISH BORAD, ACCOUNTANT MEMBER : The captioned appeal at the instance of assessee is directed against the order dated 21.11.2024 framed by National Faceless Appeal Centre, Delhi which inturn is arising out of the Penalty order dated 25.03.2022 u/s.270A of the Act. 2. When the appeal was called for, none appeared on behalf of the assessee despite due service of notice of hearing. We therefore proceed to dispose of the appeal with the able assistance from the ld. Departmental Representative exparte qua the assessee. 3. After hearing the ld. Departmental Representative and perusing the record placed before us, I notice that the instant Appellant by : None Revenue by : Shri Arvind Desai Date of hearing : 03.03.2025 Date of pronouncement : 24.03.2025 ITA No.26/PUN/2025 Sai Sakshi Automotive Pvt. Ltd. 2 appeal has been dismissed by the ld.CIT(A) in limine, without condoning the delay of 673 days occurred before him. On perusal of Form No.35 submitted before the ld.CIT(A), I notice that the reason for delay of 673 days in filing of appeal was stated to be mainly on account of the fact that the assessee company has incurred heavy losses during F.Y. 2016-17 leading to significant moderation in the financial performance. The decision was further deteriorated on account of covid-19 pandemic outbreak prevailed all over the country when the whole country witnessed lockdown and the financial services were severely hit. Most of the persons turned conservative limiting the growth and focused solely on collections and recovery but due to liquidity crunch and the poor financial services the assessee company was unable to move forward. He also stated that the Accounting records maintained in a software by the company also got distorted. Considering all these facts and also taking into consideration the judgment of Hon’ble Supreme Court in the case of Collector Land Acquisition Vs. MST Katiji (1987) 167 ITR 471 SC and the decision of Hon’ble Madras High Court in the case of CIT vs. Sanmac Motor Finance Ltd. reported in 322 ITR 309 where delay of 1876 days was condoned, we find that the case of the assessee needs to be taken up with liberal approach as there was ‘reasonable cause’ which prevented the assessee in filing the appeal before ld.CIT(A) within the stipulated time. We therefore condone the said delay of 673 days before ld.CIT(A) and admit the appeal for adjudication of appeal. 4. Since the issues on merits have not been decided by the ld.CIT(A) for the reasons stated in connection with delay, we in the interest and being fair to both the parties, deem it ITA No.26/PUN/2025 Sai Sakshi Automotive Pvt. Ltd. 3 appropriate to remit the issues on merits to the file of ld.CIT(A) for denovo adjudication. Assessee is at liberty to adduce any evidence as it deems expedient and ld.CIT(A) shall pass the order interms of provisions of section 250(6) of the Act after affording reasonable opportunity of hearing and in accordance with law. Assessee is directed to provide correct email id to the department for receiving the hearing notices from the ITBA portal. Assessee is further directed to remain vigilant and not to take adjournment unless otherwise required for reasonable cause, failing which the ld.CIT(A) shall be free to proceed in accordance with law. Findings of ld.CIT(A) are set aside and effective grounds of appeal raised by the assessee are allowed for statistical purposes. 5. In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced on this 24th day of March, 2025. Sd/- Sd/- (VINAY BHAMORE) (MANISH BORAD) JUDICIAL MEMBER ACCOUNTANT MEMBER पुणे / Pune; \u0001दनांक / Dated : 24th March, 2025. Satish आदेश क\u0002 \u0003ितिलिप अ ेिषत / Copy of the Order forwarded to : 1. अपीलाथ / The Appellant. 2. \u000eयथ / The Respondent. 3. The Pr. CIT concerned. 4. िवभागीय ितिनिध, आयकर अपीलीय अिधकरण, “B” ब\u0014च, पुणे / DR, ITAT, “B” Bench, Pune. 5. गाड\u0018 फ़ाइल / Guard File. आदेशानुसार / BY ORDER, // True Copy // Senior Private Secretary आयकर अपीलीय अिधकरण, पुणे / ITAT, Pune. "