SHRI SAMPATHRAJ VIMALCHAND,CHENNAI V. ITO, NCW-8(2), CHENNAI

ITA 691/CHNY/2025

AI Insights

The case involves an appeal by Shri Sampathraj Vimalchand against the order of the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi, which was passed under section 250 of the Income Tax Act, 1961 for the assessment year 2018-19. The appeal was initially dismissed by the CIT(A) due to a significant delay in filing without a valid condonation petition. The assessee's representative argued for another opportunity to file the condonation petition, citing the absence of a 'Real Time alert' in the National Faceless Appeal Scheme, which led to the assessee's unawareness of the appellate order until March 2025. The Tribunal, considering the principles of natural justice and equity, decided to restore the matter to the CIT(A) for a decision on the condonation application and, if accepted, on the merits of the case.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 398113 (ITAT-CHENNAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-06-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2018-2019
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: PRYATI SHARMA
• Assessee Lawyers: D.ANAND
• Keywords: Principle of natural justice

Judgement Text

"आयकर अपीलȣय अͬधकरण, ‘ए’ Ûयायपीठ, चेÛनई IN THE INCOME TAX APPELLATE TRIBUNAL ‘A’ 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.: 691/CHNY/2025 िनधाᭅरण वषᭅ/Assessment Year:2018-19 Shri Sampathraj Vimalchand, 3-C Pallai Street, Kundrathoor, Chennai – 600 069. PAN: ADIPV 2433M Vs. The Income Tax Officer, Non-Corporate Ward 8(2), Chennai. (अपीलाथᱮ/Appellant) (ᮧ᭜यथᱮ/Respondent) अपीलाथᱮ कᳱ ओर से/Appellant by : Shri D. Anand, Advocate ᮧ᭜यथᱮ कᳱ ओर से/Respondent by : Ms. Pryati Sharma, JCIT सुनवाई कᳱ तारीख/Date of Hearing : 04.06.2025 घोषणा कᳱ तारीख/Date of Pronouncement : 05.06.2025 आदेश /O R D E R PER GEORGE GEORGE K, VICE PRESIDENT: This appeal at the instance of the assessee is directed against the order of Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi dated 19.11.2024, passed under section 250 of the Income Tax Act, 1961 (hereinafter called ‘the Act’). The relevant Assessment Year is 2018-19. - 2 - ITA No.691/CHNY/2025 2. There is a delay of 34 days in filing the appeal. The assessee has filed condonation petition along with affidavit stating therein the reasons for belated filing of this appeal. The reasons stated in the affidavit for belated filing is that, there is no ‘Real Time alert’ in the National Faceless Appeal Scheme, 2023. Therefore, The assessee was unaware of the appellate order being uploaded into the portal. During the first week of March, 2025, when the petitioner enquired his Chartered Accountant about the status of his case pending before NFAC, the Chartered Accountant verified the portal and only then, the assessee came to know that order has been passed and uploaded. Immediately, the assessee’s chartered accountant advised the assessee to file appeal before the Tribunal and the appeal was filed with a delay of 34 days. On perusal of the same, we find there is sufficient reason for delay in filing this appeal before the Tribunal. Hence, we condone the delay in filing the appeal and proceed to dispose off the appeal on merits. 3. At the very outset, we notice that CIT(A) had dismissed the appeal of the assessee in limine without adjudicating on merits. The CIT(A) held that there is a delay of almost five months in filing the appeal before him and the assessee has not submitted the reasons for delay. The CIT(A) has noted that though the assessee in Form 35 - 3 - ITA No.691/CHNY/2025 has stated that he has filed condonation petition, no condonation petition was filed. Since the assessee has not filed the reasons for delay, the CIT(A) had rejected the appeal in limine after giving two opportunities to the assessee to file condonation petition. It was submitted by the ld.AR that one more opportunity may be provided to the assessee to file condonation petition before the CIT(A). 4. The ld.DR submitted that adequate opportunities were provided from the offices of the CIT(A) and there is no violation of principles of natural justice. Therefore, it was prayed the appeal of the assessee may be dismissed. 5. We have heard rival submissions and perused the material on record. The appeal filed by the assessee has been dismissed by the CIT(A) in limine without condoning the delay. Admittedly, the assessee had not filed the condonation petition. We strongly deprecate the nonchalant attitude of the assessee in not responding to the notices issued from the offices of the CIT(A). However, in the interest of justice and equity, we are of the view that the matter needs to be restored back to the files of the CIT(A). Accordingly, we restore the matter to the files of the CIT(A) so that a proper condonation application if required can be filed by the assessee and on receipt of the same, the CIT(A) shall afford reasonable - 4 - ITA No.691/CHNY/2025 opportunity to the assessee before a decision is taken on the condonation application. If the CIT(A) is satisfied with the reasons furnished by the assessee for belated filing of the appeal, needless to state, the CIT(A) shall decide the issue on merits. 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 5th June, 2025 at Chennai. Sd/- Sd/- (एस.आर. रघुनाथा) (S.R. RAGHUNATHA) लेखा सदèय/ACCOUNTANT MEMBER (जॉज[ जॉज[ क े) (GEORGE GEORGE K) उपाÚय¢ /VICE PRESIDENT चेÛनई/Chennai, Ǒदनांक/Dated, the 5th June, 2025 RSR 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. "