BRANDZSTORM INDIA MARKETING PRIVATE LIMITED,MUMBAI vs. DCIT - CIRCLE 1(2)(1), MUMBAI

आदेश / O R D E R PER PRABHASH SHANKAR [A.M.] :- The present appeal emanating from the appellate order dated 29.12.2025 is preferred by the assessee against the order passed by the Learned Commissioner of Income-tax (Appeals)/National Faceless Appeal Centre, Delhi [hereinafter referred to as “CIT(A)”] pertaining to the assessment order passed u/s. 201(1)/201(1A) of the Income-tax Act, 1961 [hereinafter referred to as “Act”] dated 31.10.2025 for the Assessment Year [A.Y.] 2021-22.

ITA No. 2496/Mum/2026; Brandzstorm India Marketing Pvt. Ltd. 2. The grounds of appeal are as under: “1. On the facts and circumstances of the case, the Learned CIT(A) erred in not appreciating that TDS amounting to Rs. 23,12,667 was not deducted and hence not paid and relevant income was declared, and due taxes were already paid by the payee at the time of filing its return of income u/s 139(1). 2. The Learned CIT(A) erred in not appreciating that TDS amounting to Rs. 1,99,794 was deducted but not paid, but the corresponding amount on which TDS of Rs. 1,99,794 was deducted i.e., Rs. 37,20,775/- was declared as income and due taxes were already paid by the payee at the time of filing its return of income u/s 139(1), leading to the assessee company not being considered as assessee in default as per provisions of section 201(1). 3. The Learned CIT(A) erred in confirming the amount payable by the appellant u/s 201(1A) amounting to Rs. 19,73,660/- and 1,15,094/- towards interest on the above amount upto date of order passed U/s 201, without appreciating that interest if any can be charged only upto date of payment of taxes by payee and therefore maximum can be charged for deferment of 12 months, since the relevant income was declared, and due taxes were already paid by the payee at the time of filing its return of income u/s 139(1). 4. On the facts and circumstances of the case, the appellant company is entitled to a relief u/s 201(1) for the taxes paid by the payees within the time specified in the proviso to Section 201(1).

ITA No. 2496/Mum/2026; Brandzstorm India Marketing Pvt. Ltd. communication.However, no notices of hearing were ever received on the aforesaid registered email address. Upon verification of records subsequently, it was revealed that the notices had instead been issued and delivered to "accounts@brandzstorm.com", which was neither the designated nor authorised email address mentioned in Form No. 35.Therefore,the service of notices on an incorrect and unauthorized email address has caused complete absence of effective communication and consequently deprived it of an opportunity to appear and defend the matter before the ld.CIT(A).The non- appearance was neither intentional, deliberate nor with any mala fide intention to delay proceedings, but occurred solely due to lack of proper and valid service of notices upon the assessee.It has a strong and bona fide case on merits and it is in possession of Form No. 26A duly supported by necessary documents evidencing that the deductees have already disclosed the corresponding income in their respective returns and discharged due taxes thereon.The Form No. 26A and supporting evidences could not be furnished before the Learned CIT(A) solely because it did not receive effective notice of hearing and therefore, was prevented by sufficient cause from placing the same on record.Non-consideration of the relevant form would result in serious miscarriage of justice and unwarranted tax demand despite compliance by the deductees, which is otherwise curable under the provisions of the Act.

ITA No. 2496/Mum/2026; Brandzstorm India Marketing Pvt. Ltd. hon’ble Supreme Court which inter alia held in Collector, Land Acquisition v Mst. Katiji And Others- 167 ITR 471 (SC) that “ordinarily, a litigant does not stand to benefit by lodging an appeal late……..Refusing to condone delay can result in a meritorious matter being thrown out at the very threshold and cause of justice being defeated….Any appeal or any application, other than an application under any of the provisions of Order XXI of the Code of Civil Procedure, 1908, may be admitted after the prescribed period if the appellant or the applicant satisfies the court that he had sufficient cause for not preferring the appeal or making the application within such period…. A litigant does not stand to benefit by resorting to delay. In fact, he runs serious risk.” We therefore, condone the delay in fling of the appeal before the appellate authority.

ITA No. 2496/Mum/2026; Brandzstorm India Marketing Pvt. Ltd. the material on record, even if the appellant fails to appear. However, it is equally true that it is the fundamental duty of the assessee to diligently pursue the appeal and comply with the notices and proceedings initiated by the Revenue authorities although in the instant case,there appears to be justifiable reasons for the non-compliance.

7.1 As the ld. AR has requested before us that the assesseemay be accorded one more opportunity and this request which was not objected by the ld.DR.In such a scenario, we are of the opinion that the scales of justice demand that the matter should be verified and revisited at the level of Assessing Officer and accordingly, the matter should be remanded back to him for de novo adjudication by him while applying the principles of natural justice after affording sufficient opportunity of being heard to the assessee. We order accordingly.The grounds of appeal are, therefore, allowed for statistical purposes.

Order pronounced in the open court on 09/06/2026.

Sd/- Sd/- AMIT SHUKLA PRABHASH SHANKAR (न्याययकसदस्य /JUDICIAL MEMBER) (लेखाकारसदस्य/ACCOUNTANT MEMBER)

Place: म ुंबई/Mumbai ददनाुंक /Date09.06.2026 Soumili Das / PS

ITA No. 2496/Mum/2026; Brandzstorm India Marketing Pvt. Ltd. आदेश की प्रयियलयि अग्रेयिि/Copy of the Order forwarded to : 1. अपीलार्थी / The Appellant 2. प्रत्यर्थी / The Respondent. 3. आयकर आयुक्त / CIT 4. विभागीय प्रविविवि, आयकर अपीलीय अविकरण DR, ITAT, Mumbai 5. गार्ड फाईल / Guard file. सत्यावपि प्रवि //True Copy// आदेशानुसार/ BY ORDER,

उि/सहायक िंजीकार (Dy./Asstt. Registrar) आयकर अिीलीअयधकरण