SWELECT ENERGY SYSTEMS LIMITED, FORMERLY SWELECT SOLAR ENERGY PVT LTD,CHENNAI V. INCOME TAX OFFICER CORP WARD 6 (4), CHENNAI

ITA 1668/CHNY/2025

AI Insights

The case involves Swelect Energy Systems Limited, which appealed against the order of the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi. The appeal was directed against an exparte order confirming an addition of \\u20b937,37,424 towards interest income for the assessment year 2014-15, against a returned loss of \\u20b98,26,765. The primary contention was the non-compliance to the hearing notices by the assessee, which was argued to be due to circumstances beyond their control. The Tribunal noted the absence of cooperation from the assessee in previous proceedings but decided to afford one more opportunity for the assessee to present their case, subject to the payment of costs.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 775590 (ITAT-CHENNAI)
• Duration Of Justice: 3 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-09-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: B
• Assessment Year: 2014-2015
• Appeal Filed On: 06-06-2025
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: V. ASWATHY
• Assessee Lawyers: R. HARSHAVARDAN
• Keywords: Revenue expenditure
• Section: 143(3)

Judgement Text

"आयकर अपीलीय अिधकरण, ’बी’ Ɋायपीठ, चेɄई IN THE INCOME-TAX APPELLATE TRIBUNAL ‘B SMC’ BENCH, CHENNAI ŵी एस.एस. िवʷनेũ रिव, Ɋाियक सद˟ क े समƗ Before Shri S.S. Viswanethra Ravi, Judicial Member आयकर अपील सं./I.T.A. No.1668/Chny/2025 िनधाŊरण वषŊ/Assessment Year: 2014-15 Swelect Energy Systems Limited [Formerly Swelect Solar Energy Pvt. Ltd.], P.S. Sivasamy Salai, Mylapore, Chennai 600 004. [PAN:AADCN3843J] Vs. The Income Tax Officer, Corporate Ward 6(4), Chennai. (अपीलाथŎ/Appellant) (ŮȑथŎ/Respondent) अपीलाथŎ की ओर से / Appellant by : Shri R. Harshavardan, Advocate ŮȑथŎ की ओर से/Respondent by : Ms. V. Aswathy, JCIT सुनवाई की तारीख/ Date of hearing : 04.09.2025 घोषणा की तारीख /Date of Pronouncement : 09.09.2025 आदेश /O R D E R This appeal filed by the assessee is directed against the order dated 07.04.2025 passed by the ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi for the assessment year 2014-15. 2. The assessee raised 5 grounds of appeal in challenging the action of the ld. CIT(A) in confirming the addition made by the Assessing Officer by passing exparte order in the facts and circumstances of the case. Printed from counselvise.com I.T.A. No.1668/Chny/25 2 3. At the outset, it is noted that the assessment was completed under section 143(3) r.w.s. 147 of the Income Tax Act, 1961 [“Act” in short], inter alia, making addition of ₹.37,37,424/- towards interest income under the head income from other sources against the returned loss of ₹.8,26,765/-. The ld. CIT(A) dismissed the appeal of the assessee since there was no compliance to the hearing notices issued under section 250 of the Act. 4. The ld. AR Shri R. Harshavardan, Advocate submits that non- compliance to the notices issued by the ld. CIT(A) is neither wilful nor deliberate but due to circumstances beyond assessee’s control. He submits that the assessee is ready to furnish complete details before the ld. CIT(A), if this Tribunal afford one more opportunity to the assessee. Thus, the ld. AR prayed that, one more opportunity may be afforded to the assessee to pursue his case before the ld. CIT(A). 5. The ld. DR Ms. V. Aswathy, JCIT opposed the same and drew our attention to para 4 of the impugned order and argued that the ld. CIT(A) afforded ample opportunities to the assessee, but, it was not availed. She vehemently argued that cost may be imposed, in case this Printed from counselvise.com I.T.A. No.1668/Chny/25 3 Tribunal affords an opportunity by remanding the matter to the file of the ld. CIT(A). 6. Heard both the parties and perused the material on record. It is noted that the assessment was completed under section 143(3) r.w.s. 147 of the Act dated 28.02.2019. On perusal of the impugned order, it is noted that there was no assistance from the assessee to various notices issued by the ld. CIT(A) under section 250 of the Act. I find that the Assessing Officer treated assessee’s other income of ₹.37,37,424 as its income without allowing the set-off of revenue expenditure stated to have been incurred by it of ₹.45,64,189/-. The ld. AR undertakes that the assessee shall cooperate with first appellate authority in completing the proceedings. Taking into consideration of the submissions of the ld. AR and the ld. DR and in the interest of justice, I deem it proper to afford one more opportunity and remand the matter to the file of the ld. CIT(A) subject to the condition of payment of ₹.15,000/- in favour of the State Legal Aid Authority, Hon’ble High Court of Madras within 30 days from the date of receipt of this order, and the ld. CIT(A) shall satisfy the payment of cost and decide the issue on merits afresh after considering the written submissions/documentary evidences as may be filed by the assessee to substantiate its claim in accordance with law. Printed from counselvise.com I.T.A. No.1668/Chny/25 4 Thus, the grounds raised by the assessee are allowed for statistical purposes. 7. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced on 09th September, 2025 at Chennai. Sd/- (S.S. VISWANETHRA RAVI) JUDICIAL MEMBER Chennai, Dated, 09.09.2025 Vm/- आदेश की Ůितिलिप अŤेिषत/Copy to: 1. अपीलाथŎ/Appellant, 2.ŮȑथŎ/ Respondent, 3. आयकर आयुƅ/CIT, Chennai/Madurai/Coimbatore/Salem 4. िवभागीय Ůितिनिध/DR & 5. गाडŊ फाईल/GF. Printed from counselvise.com "