POWER LOGISTICS,CHENNAI vs. ITO, WARD-1(4), TIRUPPUR

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ITA 3606/CHNY/2026Status: DisposedITAT Chennai25 August 2026AY 2018-195 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal condoned the delay, acknowledging the sufficient cause shown by the assessee. However, it strongly deprecated the assessee's non-compliance and restored the matter to the AO for fresh adjudication.

What were the facts?

The assessee filed appeals with a significant delay due to the partner's ill health and financial stress. The lower authorities' orders were ex-parte as the assessee failed to respond to notices.

What were the issues?

Whether the delay in filing appeals should be condoned and if the ex-parte orders passed by lower authorities should be set aside to grant the assessee an opportunity to present its case.

Which sections of the Income-tax Act were involved?

Section 250,Section 147,Section 144,Section 144B

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, ‘C’ BENCH, CHENNAI

Before: SHRI GEORGE GEORGE K & SHRI GAGAN GOYAL

Hearing: 24.08.2026Pronounced: 25.08.2026

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 dated 23.07.2025 & 06.10.2025 passed under section 250 of the Income Tax Act, 1961 (hereinafter

ITA Nos.3605 & 3606/CHNY/2026 - 2 - Power Logistics called ‘the Act’). The relevant Assessment Years are 2017-18 and 2018-19.

2.

There is a delay of 288 days / 176 days in filing the appeals. The assessee’s partner has filed affidavits seeking condonation of delay stating therein the reasons for delay. It is submitted that the partner of the assessee-firm, due to ill health, was required to visit the hospital frequently and, consequently, could not devote sufficient attention to the business and day-to-day affairs. As a result, the assessee was unable to consult its advocate or tax consultant and collect the necessary records within the prescribed time. It was further submitted that, owing to business failure and severe financial stress, the assessee partners were constantly engaged with bankers and suppliers to sustain the business of assessee firm and meet its obligations, leaving little scope to attend to the income-tax proceedings. On perusal of the reasons stated, we are of the view that no latches can be attributed to the assessee firm 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.

3.

At the very outset, we notice that the orders of First Appellate Authority (FAA) is ex-parte, since there was no compliance from the assessee to various notices issued from the office of the First Appellate

ITA Nos.3605 & 3606/CHNY/2026 - 3 - Power Logistics Authority. Further, we also note that the assessments have been completed on best judgment basis r.w.s.147 r.w.s 144 r.w.s.144B of the Act.

4.

The Ld. AR submitted that the partner of the assessee firm had suffered from Covid-19 during the pandemic. Subsequently, the partner of assessee firm due to his ill health, was required to visit the hospital frequently. Consequently, the assessee partners could not devote sufficient attention to his business and day-to-day affairs of assessee firm, resulting in the proceedings before the lower authorities being conducted ex-parte. In support of his submissions, the Ld. AR furnished the medical records evidencing the partner of assessee firm, continuous treatment over the past few years. The Ld. AR, therefore, pleaded that one more opportunity be granted to the assessee and the matter be restored to the file of the AO to effectively present its cases. The Ld. AR undertook that she would duly appear before the AO and furnish all necessary details as and when called for.

4.

The Ld.DR submitted that adequate opportunities were provided from the offices of the FAA & AO and there is no violation of principles of natural justice. Therefore, it was submitted that the appeals of the assessee may be dismissed.

ITA Nos.3605 & 3606/CHNY/2026 - 4 - Power Logistics 5. 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 partner of the assessee firm due to ill health could not devote sufficient attention to assessee firm’s business and day-to-day affairs, resulting in the proceedings before the lower authorities being conducted ex-parte. The Ld. AR submitted that one more opportunity may be granted to the assessee to represent its cases before the AO and undertook that she 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 FAA & AO. However, considering the submissions of the Ld. AR and in the interest of justice and fair play, we are of the view that the matter ought to be restored to the files of the AO with a condition assessee pays a cost of Rs.10,000/- in each case (Rupees ten thousand only) to be paid to Tamil Nadu State Legal Services Authority at the Hon’ble High Court of Madras. The amount of Rs.20,000/- shall be paid within a month’s time from the date of receipt of this order and shall produce the receipt for the said payment before the AO. Accordingly, the matter is 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

ITA Nos.3605 & 3606/CHNY/2026 - 5 - Power Logistics details and evidences in support of its claim and shall not seek unnecessary adjournment. It is ordered accordingly.

6.

In the result, the appeals filed by the assessee are allowed for statistical purposes.

Order pronounced in the open court on 25th August,2026 at Chennai.

Sd/- Sd/- (जॉज� जॉज� के) (गगन गोयल) (GAGAN GOYAL) (GEORGE GEORGE K) लेखा सद�य/ACCOUNTANT MEMBER उपा�य� /VICE PRESIDENT चे�नई/Chennai, �दनांक/Dated, the 25th August, 2026 RSR, Sr.PS आदेश क� ��त�ल�प अ�े�षत/Copy to: 1. अपीलाथ�/Appellant 2. ��यथ�/Respondent 3. आयकर आयु�त /CIT, Coimbatore 4. �वभागीय ��त�न�ध/DR 5. गाड� फाईल/GF. By Order Digitally signed by REKHA REKHA SENTHIL RAJ SENTHIL RAJ Date: 2026.08.28 17:41:53 +05'30'

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