GEMINI TRADERS,VELLORE vs. ACIT, CIRCLE-1, VELLORE

आदेश/ O R D E R PER GEORGE GEORGE K, VICE PRESIDENT: These appeals filed by the assessee are directed against two orders of the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi both dated 02.02.2026 passed under section 250 of the Income Tax Act, 1961 (hereinafter called ‘the Act’). The relevant Assessment Year is 2018-19.

ITA Nos.2748 & 2749/CHNY/2026 - 2 - Gemini Traders 2. There is a delay of 11 days in filing these appeals before the Tribunal. The assessee has filed a petition supported by an affidavit seeking condonation of the delay. It has been explained that immediately upon receipt of the appellate orders, the same were handed over to its auditor for taking necessary steps, who in turn referred the matter to the counsel's office for preparation and filing of the appeals. However, the counsel had to undergo surgery in March and, owing to the period of treatment and recovery, the appeal papers could be prepared and forwarded for the assessee's signature only thereafter, resulting in a delay of 11 days in filing the appeals. On perusal of the reasons stated, we are of the view that no latches can be attributed to the assessee as there is sufficient cause for belated filing of this appeal. Hence, we condone the delay and proceed to dispose off the appeal on merits.

ITA Nos.2748 & 2749/CHNY/2026 - 3 - Gemini Traders 4. The Ld. AR submitted that the assessee is engaged in the business of wholesale and retail trading in auto spares. It was submitted that the business had suffered severe financial losses, due to which the assessee did not have adequate staff to monitor the notices uploaded on the Income-tax portal. Consequently, the assessee could not respond to the statutory notices or effectively participate in the assessment proceedings, resulting in the orders of the AO being passed ex-parte. The Ld. AR further contended that the assessee was prevented by sufficient cause from effectively prosecuting the appeal before the FAA, as the FAA had issued four notices of hearing within a short span of time, leaving the assessee with insufficient opportunity to respond. It was, therefore, pleaded that one final opportunity may be granted and the matter be restored to the file of the AO to enable the assessee to substantiate its case. The Ld.AR undertook that he would duly appear and furnish the necessary details as and when called for.

ITA Nos.2748 & 2749/CHNY/2026 - 4 - Gemini Traders 6. We have heard rival submissions and perused the materials on record. The proceedings before the AO as well as the FAA were ex- parte, since the assessee did not respond to various notices issued from the office of the AO & FAA. The Ld. AR submitted that the assessee had suffered severe financial losses in its auto spares business and, owing to the absence of adequate staff to monitor the notices uploaded on the Income-tax portal, could not effectively participate in the assessment proceedings. It was further explained that the FAA had issued four notices of hearing within a short span of time, resulting in the assessee being unable to effectively represent its cases. The Ld.AR also undertook that he would duly appear and furnish the necessary details as and when called for. We strongly deprecate the nonchalant attitude of the assessee in not responding to the statutory notices issued by the tax authorities. At the same time, considering the submissions of the Ld. AR and in the interest of justice and fair play, we are of the view that the matters ought to be restored to the files of the AO subject to the condition that the assessee shall pay a cost of Rs.5,000/- (Rupees Five Thousand only) in each appeal, aggregating to Rs.10,000/-, to the Tamil Nadu State Legal Services Authority, Hon'ble High Court of Madras, within one month from the date of receipt of this order and produce the proof of such payment before the AO. Accordingly, the

ITA Nos.2748 & 2749/CHNY/2026 - 5 - Gemini Traders matters are remitted to the files of the AO for fresh adjudication. The AO shall afford reasonable opportunity of hearing to the assessee. The assessee is directed to co-operate with the Revenue and furnish all requisite details and evidences in support of its claim and shall not seek unnecessary adjournment. It is ordered accordingly.

Order pronounced in the open court on 28th July,2026 at Chennai.

Sd/- Sd/- (प�मावती एस) (जॉज� जॉज� के) (PADMAVATHY S) (GEORGE GEORGE K) लेखा सद�य/ACCOUNTANT MEMBER उपा�य� /VICE PRESIDENT चे�नई/Chennai, �दनांक/Dated, the 28th July, 2026 RSR, Sr.PS आदेश क� ��त�ल�प अ�े�षत/Copy to: 1. अपीलाथ�/Appellant 2. ��यथ�/Respondent 3. आयकर आयु�त /CIT, Chennai 4. �वभागीय ��त�न�ध/DR 5. गाड� फाईल/GF. By Order Digitally signed by REKHA REKHA SENTHIL RAJ SENTHIL RAJ Date: 2026.07.30 14:43:38 +05'30'