SRI BALAJI PAINT COMPANY,CHENNAI V. ITO, NCW-1(6), CHENNAI

ITA 1025/CHNY/2025

AI Insights

The case involves Sri Balaji Paint Company, a firm that did not initially file its return of income for the Assessment Year 2017-18. The Assessing Officer reopened the assessment and made an ex-parte addition of Rs.1,12,73,000 under section 69A of the Income-tax Act, 1961. The assessee appealed this decision to the Learned Commissioner of Income Tax (NFAC), Delhi, but the appeal was dismissed in limine due to a delay of 125 days, which the CIT(A) did not condone. The assessee argued that the income added had already been taxed in the hands of the proprietorship concern, and requested that the appeal be admitted and decided on merits.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 669480 (ITAT-CHENNAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-06-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2017-2018
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SHIVA SRINIVAS
• Assessee Lawyers: S. SRINIRANJANI
• Section: 147; 144

Judgement Text

"आयकर अपीलीय अिधकरण, ‘बी’ \u0011ा यपीठ, चे\u0016ई। IN THE INCOME TAX APPELLATE TRIBUNAL ‘B’ BENCH: CHENNAI \u0019ी एबी टी. वक , \u0011ा ियक सद! एवं \u0019ी जगदीश, लेखा सद! क े सम( BEFORE SHRI ABY T. VARKEY, JUDICIAL MEMBER AND SHRI JAGADISH, ACCOUNTANT MEMBER आयकर अपील सं./ITA No.1025/Chny/2025 िनधा8रण वष8 /Assessment Years: 2017-18 Sri Balaji Paint Company, 185, Royapettah High Road, Mylapore, Chennai-600 004. [PAN: AACFS 1804N] Vs. The Income Tax Officer, Non Corporate Ward-1(6), Chennai. (अपीलाथ\u0007/Appellant) (\b यथ\u0007/Respondent) अपीलाथ की ओर से/ Appellant by : Ms. S. Sriniranjani, Advocate GHथ की ओर से /Respondent by : Shri Shiva Srinivas, CIT सुनवाई की तारीख/Date of Hearing : 17.06.2025 घोषणा की तारीख /Date of Pronouncement : 26.06.2025 आदेश / O R D E R PER JAGADISH, A.M : Aforesaid appeal filed by the assessee for Assessment Year (AY) 2017-18 arises out of the orders of Learned Commissioner of Income Tax (NFAC), Delhi [hereinafter “CIT(A)”] dated 06.03.2025 in the matter of assessment framed by Assessing Officer [AO] u/s. 147 r.w.s 144 r.w.s 144B of the Income-tax Act,1961 (hereinafter “the Act”) on 25.03.2022. ITA No.1025/Chny/2025 M/s.Sri Balaji Paint Company :- 2 -: 2. The effective ground of appeal in this appeal of assessee is against dismissing the appeal in limine without condoning the delay by the Ld. CIT(A). 3. The assessee is a firm and has not filed its return of income. The A.O has reopened the assessment and made ex-parte addition of Rs.1,12,73,000/- u/s. 69A of the Act. Aggrieved, the assessee filed an appeal before Ld. CIT(A) with a delay of 125 days. However, the Ld. CIT(A) did not condone the delay and dismissed the appeal in limine. 4. The Ld. Authorized Representative (A.R.) of the assessee submitted that the assessee-firm is a sole proprietorship concern of one Mr. C.A. Raja. It was further submitted that the assessee could not make submissions as the notices were served on the email ID of the firm, and the assessee was not aware of any of the proceedings. The Ld. AR argued that the income added has already been taxed in the hands of the proprietorship concern. The Ld. AR, therefore, prayed that the Ld. CIT(A) may be directed to admit the appeal and decide the issue on merits in the interest of justice. 5. We have heard the rival submissions, and perused the materials available on record. On perusal of the order of Ld. CIT(A), we note ITA No.1025/Chny/2025 M/s.Sri Balaji Paint Company :- 3 -: that there was a delay of 125 days in filing the appeal before the Ld. CIT(A). Before us, the assessee has provided the reason for the delay, in filling appeal. We have given considerable thought to the matter, and are of the opinion that there was sufficient cause for not presenting appeal within time, therefore the Ld. CIT(A) should have admitted the appeal and decided the case on merits. We accordingly, remand the matter back to the file of A.O with a direction to condone the delay and adjudicate the appeal on merits denovo in accordance with law. We also direct the assessee to appear before the A.O on the date of hearing without fail and furnish complete details for fresh consideration. In the view of the above, the appeal filed the assessee is allowed for statistical purposes only. 6. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced on 26th day of June, 2025 at Chennai. Sd/- Sd/- (एबी टी. वक ) (ABY. T. Varkey) \u0011ाियक सद! / Judicial Member (जगदीश) (Jagadish) लेखा सद! /Accountant Member चे\u0010नई/Chennai, \u0013दनांक/Dated: 26th June, 2025. EDN/- ITA No.1025/Chny/2025 M/s.Sri Balaji Paint Company :- 4 -: आदेश क\u0016 \bितिल\u0019प अ\u001aे\u0019षत/Copy to: 1. अपीलाथ\b/Appellant 2. थ\b/Respondent 3. आयकर आयु\u0010/CIT, Madurai 4. िवभागीय ितिनिध/DR 5. गाड\u0019 फाईल/GF "