TRIDENT COATINGS PVT. LTD.,VANDALUR V. ACIT, CORPORATE CIRCLE-3(1), CHENNAI

ITA 2/CHNY/2025

AI Insights

The case involves Trident Coatings Private Limited, which appealed against the decision of the Learned Commissioner of Income Tax (Appeals) for the assessment year 2016-17. The appeal was initially dismissed due to the assessee's participation in the VSVS scheme 2020 before the issuance of Form-3, as required by section 4(7) of the VSVS Act 2020. The assessee argued that the dismissal was premature and that the appeal should have been awaited until the issuance of Form-3, which would allow for the revival of the appeal under section 4(6) of the VSVS Act 2020. The Tribunal found merit in the assessee's arguments and decided to set aside the dismissal, directing the case to be re-adjudicated after providing a proper hearing.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 47111 (ITAT-CHENNAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-04-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2016-2017
• Laws Referred To: VSVS Act 2020
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SAMANTHA MULLAMUDI
• Assessee Lawyers: S. SRIDHAR
• Keywords: Set aside; Opportunity of being heard; Competent authority

Judgement Text

" आयकर अपीलीय अधिकरण, ‘ए’ न्यायपीठ, चेन्नई। IN THE INCOME TAX APPELLATE TRIBUNAL ‘A’ BENCH: CHENNAI माननीय श्री मनु क ुमार धिरर ,न्याधयक सदस्य एवं माननीय श्री अमिताभ शुक्ला, लेखा सदस्य क े सिक्ष BEFORE HON’BLE SHRI MANU KUMAR GIRI, JUDICIAL MEMBER AND HON’BLE SHRI AMITABH SHUKLA, ACCOUNTANT MEMBER आयकर अपील सं./ITA No.2/Chny/2025 Assessment Years: 2016-17 Trident Coatings Private Limited, No.1/590, GST Road, vandalur, Tamil Nadu-600048. [PAN: AACCT3000A] Asst. Commissioner of Income Tax, Corporate Circle-3(1) Chennai (अपीलार्थी/Appellant) (प्रत्यर्थी/Respondent) अपीलार्थी की ओर से/ Assessee by : Shri.S.Sridhar, Advocate प्रत्यर्थी की ओर से /Revenue by : Smt.Samantha Mullamudi, Addl.CIT सुनवाई की तारीख/Date of Hearing : 26.03.2025 घोषणा की तारीख /Date of Pronouncement : 09.04.2025 आदेश / O R D E R PER AMITABH SHUKLA, A.M : This appeal is filed by the assessee against the ITA No.38/CITA- 11/2018-19 dated 31.08.2020 of the Learned Commissioner of Income Tax(Appeals) [herein after “CIT(A), for the assessment years 2016-17. 2.0 It has been noted that there is a delay of 1523 days in the case, in filing of this appeal before the tribunal. In its affidavit the assesse has pleaded that the delay is attributable to assessee’s initial attempts to settle the dispute by taking recourse to contemporaneous VSVS scheme and partly to the Covid-19 epidemic. The former had occurred on ITA No.02/Chny/2025 Page - 2 - of 4 account of deficient advice of the then Chattered Accountant. All these activities contributed to the delay which was neither willful nor wanton. The assesse submitted that there will not be case of any non-compliance now. We have considered the justification put forth by the assesse and we are satisfied with their adequacy. We are also conscious of the fact that no litigant gains by intentionally delaying its own matters. The Ld. DR did not pose any serious objections to the delay save that cost be imposed upon the assessee for wasting the precious time of this court. Accordingly, we hereby condone the delay and proceed to adjudicate this appeal. 3.0 At the outset the Ld. Counsel for the assesse informed that the Ld. First Appellate Authority has dismissed its appeal, vide order dated 31.08.2020, on the premise of assessee having opted for contemporaneous VSVS scheme 2020. The Ld. Counsel of the assessee explained that the Ld. First Appellate Authority ought to have awaited issuance of Form-3 from the competent authority before dismissing its appeal invoking provisions of section 4(7) of the VSVS Act 2020. The Ld.Counsel also submitted that section 4(6) of the VSVS Act 2020 postulated revival of appeal in the event of a case not filing under VSVS 2020. The Ld. Counsel thus argued that its right to be heard on merits, has been adversely impacted by the impugned dismissal of its appeal. The Ld. Counsel for the assesse accordingly pleaded for setting ITA No.02/Chny/2025 Page - 3 - of 4 aside the case to Ld.CIT(A) and assured that full compliance would now be made to the statutory notices of the Ld. CIT(A). 4.0 The Ld. DR vehemently argued in favour of order of lower authorities. 5.0 We have heard rival submissions in the light of material available on records. Right of being heard on merits of its case before the Ld.First Appellate Authority, is an inalienable right of a litigant. The assessee has not been able to present its case, partly on account of his own misgivings. The Ld. Counsel has advanced personal assurance that due compliance shall be made to the statutory notices now issued by the Ld.CIT(A). Be that as it may be in the interest of justice, we deem it appropriate that the matter be restored to the Ld.First Appellate Authority for fresh adjudication. Accordingly, the contested order of the Ld.CIT(A) is set aside and he is directed to readjudicate the appeal after giving due opportunity of being heard and by passing a speaking order. The assessee shall be bounden to comply with all the statutory notices and any non-compliance can be adversely viewed. This order is however subject to payment of cost of Rs.5,000/- by the assessee to the Tamil Nadu State Legal Services Authority at Hon’ble High Court of Madras within 30 days of the receipt of this order. The grounds of appeal raised by the assessee are therefore allowed for statistical purposes. ITA No.02/Chny/2025 Page - 4 - of 4 6.0 In the result, the appeal of the assessee is allowed for statistical purposes Order pronounced on 9th , April-2025 at Chennai. Sd/- (मनु क ुमार धिरर) (MANU KUMAR GIRI) न्याधयक सदस्य / Judicial Member Sd/- (अधमताभ शुक्ला) (AMITABH SHUKLA) लेखा सदस्य /Accountant Member चेन्नई/Chennai, धदनांक/Dated: 9th , April-2025. KB/- आदेश की प्रतितिति अग्रेतिि/Copy to: 1. अिीिार्थी/Appellant 2. प्रत्यर्थी/Respondent 3. आयकर आयुक्त/CIT - Chennai 4. तिभागीय प्रतितिति/DR 5. गार्ड फाईि/GF "