SUBRAMANAIAM SRINIVASAN,ERODE V. ITO, WARD-1(1), ERODE

ITA 2829/CHNY/2025

AI Insights

The case involves Subramaniam Srinivasan, the appellant, who contested an ex parte order by the Learned Commissioner of Income Tax (Appeals) for the Assessment Year 2016-17. The appellant argued that the delay in filing the appeal was due to a rectification application submitted to the Assessing Officer under section 154 of the Income Tax Act, 1961, which was not acted upon. The CIT(A) had refused to condone the delay, leading to the appeal before the Tribunal. The Tribunal found that the appellant had not been negligent and had taken an alternate course of action sanctioned by law, thus condoning the delay and remanding the case back to the CIT(A).

• Counselvise Citation: [2026] 140 COUNSELVISE.COM (IT) 836167 (ITAT-CHENNAI)
• Duration Of Justice: 3 month(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-02-2026
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2016-2017
• Appeal Filed On: 14-10-2025
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: K. ILAIYARAJA
• Assessee Lawyers: S.SENTHIL KUMAR
• Keywords: Set aside; Rectification of order

Judgement Text

"आयकर अपीलीय अिधकरण, ‘बी’ \u0001यायपीठ, चे ई। IN THE INCOME TAX APPELLATE TRIBUNAL ‘B’ BENCH: CHENNAI \u0001ी एबी टी. वक , ाियक सद\u0011 एवं एवं एवं एवं \u0001ी एस. आर. रघुनाथा, लेखा सद क े सम\u001b BEFORE SHRI ABY T. VARKEY, JUDICIAL MEMBER AND SHRI S.R.RAGHUNATHA, ACCOUNTANT MEMBER आयकर अपील सं./ITA No.2829/Chny/2025 िनधा\u000eरण वष\u000e/Assessment Year: 2016-17 Subramaniam Srinivasan, 26, Pumping Station Road, Koovathamman Koil, Opp. Karungalpalayam S.O., Erode-638 003. [PAN: BEFPS 8600 N] v. The ITO, Ward-1(1), Erode. (अपीलाथ\u0016/Appellant) (\u0017\u0018यथ\u0016/Respondent) अपीलाथ\u0016 क\u001a ओर से/ Appellant by : Mr.S. Senthil Kumar, Advocate \u0017\u0018यथ\u0016 क\u001a ओर से /Respondent by : Mr.K. Ilaiyaraja, Addl.CIT सुनवाईक\u001aतारीख/Date of Hearing : 16.12.2025 घोषणाक\u001aतारीख /Date of Pronouncement : 11.02.2026 आदेश / O R D E R PER ABY T. VARKEY, JM: This is an appeal preferred by the assessee against the order of the Learned Commissioner of Income Tax (Appeals)/NFAC, (hereinafter referred to as “the Ld.CIT(A)”), Delhi, dated 19.09.2025 for the Assessment Year (hereinafter referred to as \"AY”) 2016-17. Printed from counselvise.com ITA No.2829/Chny/2025 (AY 2016-17) Subramaniam Srinivasan :: 2 :: 2. At the outset, the Ld.AR of the assessee brought to our notice that the Ld.CIT(A) has passed an ex parte order without condoning the delay of ‘31’ days in filing of the appeal before him. According to the assessee, he had demonstrated the reasons for cause of the delay. But, the Ld.CIT(A) has not appreciated the same in the right perspective and didn’t condone the delay which is arbitrary and therefore prayed for condoning the delay and giving one more opportunity to the assessee to pursue the appeal on merits before the Ld.CIT(A). The Ld.DR opposed the same and submitted that the assessee didn’t show any sufficient cause for condoning the delay. Therefore, the Ld.CIT(A) rightly didn’t condone the delay. 3. Having heard both the parties and after perusal of the records, we note that the AO had passed the assessment order on 23.09.2024 for AY 2016-17. Hence, the assessee had to file the appeal on or before 23.10.2024, but the assessee had filed the appeal only on 23.11.2024 with a delay of ‘31’ days. Cause for the delay according to the assessee was due to the reason that it had preferred a rectification application before the AO on 21.10.2024 u/s.154 of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act‘) and expected the AO to consider the same and pass rectification order. However, finding no action from the Printed from counselvise.com ITA No.2829/Chny/2025 (AY 2016-17) Subramaniam Srinivasan :: 3 :: part of the AO, the assessee had filed the appeal before the Ld.CIT(A) with a delay of ‘31’ days. But the Ld CIT(A) is noted to have refused to condone the delay, which action we cannot countenance. It is noted that by passing the assessment order the AO had made an addition of ₹37,04,419/- and the assessee had filed rectification application u/s.154 of the Act on 21.10.2024 and finding no action from the part of the AO, had filed the appeal before the Ld.CIT(A) with a delay of ‘31’ days which according to the assessee was on the advice of the Legal Counsel, therefore assessee should not be penalized for taking an alternate course sanctioned by law. Hence considering the fact that the assessee doesn’t gain by not preferring the appeal against the addition made by the AO and instead has preferred an alternate course of action, it can’t be said that the assessee had been negligent. Therefore, for the interest of justice and fair play, we condone the delay of ‘31’ days in filing of appeal before the First Appellate Authority and hence set aside the impugned ex parte order of the Ld.CIT(A) and restore the appeal back to the file of the Ld.CIT(A) with a direction to adjudicate the grounds of appeal raised by the assessee as prescribed under sub-section (6) of Section 250 of the Act. The assessee is directed to participate in the appellate proceedings and file written submissions/relevant documents to substantiate the grounds of appeal and the Ld.CIT(A) to pass speaking order in accordance to law after hearing the assessee. Printed from counselvise.com ITA No.2829/Chny/2025 (AY 2016-17) Subramaniam Srinivasan :: 4 :: 4. In the result, appeal filed by the assessee is allowed for statistical purposes. Order pronounced on the 11th day of February, 2026, in Chennai. Sd/- (एस. आर. रघुनाथा) (S.R.RAGHUNATHA) लेखा सद\u0003य/ACCOUNTANT MEMBER Sd/- (एबी टी. वक ) (ABY T. VARKEY) \u0005याियक सद\u0003य/JUDICIAL MEMBER चे ई/Chennai, !दनांक/Dated: 11th February, 2026. TLN आदेश क\u001a \u0017ितिलिप अ$ेिषत/Copy to: 1. अपीलाथ /Appellant 2. \u000e\u000fथ /Respondent 3. आयकरआयु\u0015/CIT, Chennai / Madurai / Salem / Coimbatore. 4. िवभागीय\u000eितिनिध/DR 5. गाड फाईल/GF Printed from counselvise.com "