ABHISHEK FOUNDATION PRIVATE LIMITED,CHENNAI vs. INCOME TAX OFFICER, CORPORATE WARD 1(1), CHENNAI, CHENNAI

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 15.12.2023 passed under section 250 of the Income Tax Act, 1961 (hereinafter called ‘the Act’). The relevant Assessment Years are 2016-17 & 2017-18.

ITA Nos.1958 & 1959/CHNY/2026 - 2 - Abhishek Foundation Pvt Ltd. 2. There is a delay of 767 days in filing these appeals. The assessee has filed affidavits seeking condonation of delay explaining therein the reasons for the delay. The reason stated is that, the assessee- company had become financially sick and commercially unviable and had completely discontinued its business operations after 31.03.2021. The last return of income was filed for the assessment year 2020-21 and thereafter no business activities were carried on. It was further submitted that after closure of the business, the company ceased to have any regular office, administrative staff or personnel to monitor the pending income-tax proceedings. Most of the employees who were handling the accounts, taxation and statutory compliances left the employment of the company. The employees who had originally handled the income-tax matters and filed the appeal before the Commissioner of Income Tax (Appeals) left the organization without informing the management regarding the status of the pending appeal and without handing over the relevant records. It was further submitted that all notices issued during the appellate proceedings, including the appellate order dated 15.12.2023, were served electronically on the e-mail ID ramesh74p@gmail.com. However, after the closure of the business, the said e-mail account had become inactive and was not being regularly accessed. Consequently, the assessee was completely

ITA Nos.1958 & 1959/CHNY/2026 - 3 - Abhishek Foundation Pvt Ltd. unaware of the notices issued by the CIT(A) as well as the appellate order. The assessee was under the bona fide belief that the appeal was still pending before the first appellate authority. It was further submitted that since the company had discontinued all business operations and there were no statutory or commercial activities thereafter, there was no occasion to regularly access the income-tax e-filing portal or verify the status of the pending appellate proceedings. It was only on 30.03.2026, when the erstwhile auditor received a telephone call from the AO demanding payment of the outstanding tax demand, that the assessee came to know for the first time that the appeals before the CIT(A) had already been dismissed. Immediately thereafter, the assessee made necessary enquiries, obtained a copy of the appellate order, collected the relevant records, consulted legal counsel and instructed counsel to file the present appeal before the Tribunal without any further delay. It was therefore submitted that the delay was caused due to genuine and unavoidable circumstances and constituted sufficient cause within the meaning of law. 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 these appeals. Hence, we condone the delay and proceed to dispose off the appeals on merits.

ITA Nos.1958 & 1959/CHNY/2026 - 4 - Abhishek Foundation Pvt Ltd. 3. At the very outset, we notice that the orders of First Appellate Authority (FAA) are ex-parte, since there was no compliance from the assessee to various notices issued from the office of the First Appellate Authority.

ITA Nos.1958 & 1959/CHNY/2026 - 5 - Abhishek Foundation Pvt Ltd. 6. We have heard rival submissions and perused the materials on record. We notice that the proceedings before the FAA were concluded ex-parte, as the assessee failed to respond to the notices issued by the office of the FAA. The Ld.AR submitted that the assessee could not effectively prosecute the appeal before the FAA since the assessee- company had become financially sick and had discontinued its business operations after 31.03.2021, and that the employees who were handling the income-tax matters had left the organization without handing over the relevant records or informing the management about the pending appeal. The Ld.AR pleaded that one more opportunity may be granted to the assessee to represent its cases before the FAA and undertook that he would duly appear before FAA and furnish the necessary details as and when called for. Considering the submissions of the Ld. AR and in the interest of justice and fair play, we are of the view that the assessee deserves one more opportunity to present its case before the First Appellate Authority. Accordingly, we set aside the impugned orders of the FAA and restore the matter to the file of the FAA for fresh adjudication in accordance with law, after affording the assessee a reasonable opportunity of being heard. The assessee is directed to cooperate with the appellate proceedings by appearing as and when called for and by furnishing all the necessary details and

ITA Nos.1958 & 1959/CHNY/2026 - 6 - Abhishek Foundation Pvt Ltd. evidences without seeking unnecessary adjournments. It is ordered accordingly.

Order pronounced in the open court on 17th July,2026 at Chennai.

Sd/- Sd/- (जॉज� जॉज� के) (प�मावती एस) (PADMAVATHY S) (GEORGE GEORGE K) लेखा सद�य/ACCOUNTANT MEMBER उपा�य� /VICE PRESIDENT चे�नई/Chennai, �दनांक/Dated, the 17th 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: 2026.07.17 17:29:25 +05'30'