SARADA BUILDCON PRIVATE LIMITED,JAJPUR V. THE ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE-1(1), CUTTACK, CUTTACK

ITA 728/CTK/2025

AI Insights

The case involves Sarada Buildcon Private Limited appealing against the order of the CIT(A), National Faceless Appeal Centre, Delhi, for the assessment year 2006-2007. The appeal was initially dismissed due to a significant delay of 3887 days. The assessee argued that the delay was caused by the directors' involvement in Debt Recovery Tribunal litigations and their inability to receive notices. The Tribunal noted the ex-parte nature of the original assessment order and the subsequent lack of cooperation from the assessee in the set aside proceedings. Despite these issues, the Tribunal decided to condone the delay and restore the matter to the AO, imposing a condition of payment of costs to ensure compliance and seriousness from the assessee.

• Counselvise Citation: [2026] 140 COUNSELVISE.COM (IT) 837314 (ITAT-CUTTACK)
• Duration Of Justice: 2 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-02-2026
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: DB
• Assessment Year: 2006-2007
• Appeal Filed On: 12-12-2025
• Laws Referred To: Income Tax Act
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: VIJAY SINGH
• Assessee Lawyers: P.K.MISHRA; NARAHARI SWAIN; ARS
• Keywords: Condonation of delay; Set aside

Judgement Text

" आयकर अपीलȣय अͬधकरण, कटक Ûयायपीठ,कटक IN THE INCOME TAX APPELLATE TRIBUNAL CUTTACK BENCH CUTTACK BEFORE SHRI GEORGE MATHAN, JUDICIAL MEMBER AND SHRI MADHUSUDAN SAWDIA, ACCOUNTANT MEMBER आयकर अपील सं/ITA No.728/CTK/2025 (Ǔनधा[रण वष[ / Assessment Year : 2006-2007) Sarada Buildcon Private Limited, At -Plot No.1425, Bank Street, Jajpur Road, Jajpur-755019 Vs ACIT, Circle-1(1), Cuttack PAN No. :AAHCS 7412 E (अपीलाथȸ /Appellant) .. (Ĥ×यथȸ / Respondent) Ǔनधा[ǐरती कȧ ओर से /Assessee by : Shri P.K.Mishra & Narahari Swain, ARs राजèव कȧ ओर से /Revenue by : Shri Vijay Singh, Sr. DR सुनवाई कȧ तारȣख / Date of Hearing : 18/02/2026 घोषणा कȧ तारȣख/Date of Pronouncement : 18/02/2026 आदेश / O R D E R Per Bench : This is an appeal filed by the assessee against the order of the Ld.CIT(A), National Faceless Appeal Centre (NFAC), Delhi, dated 21.09.2025 for the assessment year 2006-2007. 2. The appeal of the assessee is delayed by 13 days. In this regard, the assessee has filed an application for condonation of delay supported with an affidavit stating therein sufficient reasons for delay in filing the appeal before the Tribunal, which are not found to be false. Ld. Sr. DR did not object to condone the delay. Accordingly, we condone the delay of 13 days in filing the appeal before the Tribunal and appeal of the assessee is admitted for hearing. 3. It was submitted by the Ld.AR that the assessment order is an ex- parte order. The Ld. CIT(A) has dismissed the appeal of the assessee on account of delay of 3887 days. It was submission that the assesses’s Printed from counselvise.com ITA No.728/CTK/2025 2 company is practically gone down. The directors of the assessee company were involved in Debt Recovery Tribunal Litigations. They were also hiding for which the notices could not be served on the assessee. It is the submission that the assessee had no knowledge of the proceedings of the assessment order. This had caused the delay before the Ld.CIT(A). It was prayer that the issues may be restored to the file of the AO for readjudication and the Ld.AR undertook that he would cooperate in the set aside proceedings. 4. In reply, the Ld. Sr.DR submitted that the original assessment order was passes u/s.144 of the Act which is an ex-parte order on 29.12.2011. The matter was reached to the Tribunal and the coordinate bench of this Tribunal had originally restored the issues to the file of the AO for readjudication. The set aside proceedings were also initiated and the assessee did not cooperate. It was submission that the delay should not be condoned as the assessee has shown substantial recalcitrant attitude. 5. We have considered the rival submissions. A perusal of the facts in the present case clearly shows that original assessment is an exparte assessment which was also set aside by the Tribunal to grant the assessee opportunity to provide the details. It is also noticed that in the set aside proceedings, the assessee has not cooperated in the assessment proceedings. However, considering the fact that the assessee’s directors were stuck in DRT litigation and were also hiding, in the interest of justice, the delay in filing of the appeal before the Ld.CIT(A) is condoned and the issues are restored to the file of the AO for readjudication subject to an Printed from counselvise.com ITA No.728/CTK/2025 3 exemplary cost of Rs.50,000/-(Rupees Fifty Thousand only) to be payable by the assessee to the Income Tax Appellate Tribunal Bar Association, Sector-1, CDA, Cuttack-753014, within sixty days from the date of this order and receipt of the same would be produced before the AO at the first hearing. Should the assessee not pay the abovementioned costs within the prescribed period of sixty days from the date of this order, the order of the ld. CIT(A) shall stand confirmed. 6. In the result, appeal of the assessee is partly allowed for statistical purposes. Order dictated and pronounced in the open court on 18/02/2026. Sd/- (MADHUSUDAN SAWDIA) Sd/- (GEORGE MATHAN) लेखा सदèय/ ACCOUNTANT MEMBER ÛयाǓयक सदèय / JUDICIAL MEMBER Ǒदनांक Dated 18/02/2026 Prakash Kumar Mishra, Sr.P.S. आदेश कȧ ĤǓतͧलͪप अĒेͪषत/Copy of the Order forwarded to : आदेशानुसार/ BY ORDER, (Assistant Registrar) आयकर अपीलȣय अͬधकरण, कटक/ITAT, Cuttack 1. अपीलाथŎ / The Appellant - 2. ŮȑथŎ / The Respondent- 3. आयकर आयुƅ(अपील) / The CIT(A), 4. आयकर आयुÈत / CIT 5. िवभागीय Ůितिनिध, आयकर अपीलीय अिधकरण, कटक / DR, ITAT, Cuttack 6. गाड[ फाईल / Guard file. स×याͪपत ĤǓत //True Copy// Printed from counselvise.com "