PALANISAMY THIAGARAJAN,TIRUPPUR vs. ITO, WARD-2(4), TIRUPPUR

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ITA 729/CHNY/2026Status: DisposedITAT Chennai19 May 2026AY 2020-216 pages
AI SummaryPartly Allowed

What did the Tribunal hold?

The Tribunal held that the CIT(A) ought to have condoned the delay as the averments in the affidavit regarding sickness remained uncontroverted. The Tribunal directed the CIT(A) to admit the appeal for adjudication on merits.

What were the facts?

The assessee filed an appeal before the CIT(A) with a delay of 69 days, citing the appellant's sickness as the reason. The CIT(A) dismissed the appeal in limine without condoning the delay, stating that no plausible explanation was provided.

What were the issues?

Whether the CIT(A) was justified in dismissing the appeal in limine without condoning the delay, and if the explanation for the delay was sufficient.

Which sections of the Income-tax Act were involved?

Section 139(1),Section 148,Section 148A,Section 142(1),Section 147,Section 144,Section 144B,Section 250

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, CHENNAI BENCHES, CHENNAI

Before: HON’BLE INTURI RAMA RAO & HON’BLE MANU KUMAR GIRI

आयकर अपीलीय अिधकरण, चे�नई पीठ�, चे�नई INCOME TAX APPELLATE TRIBUNAL, CHENNAI BENCHES, CHENNAI BENCH: A BEFORE HON’BLE INTURI RAMA RAO, ACCOUNTANT MEMBER AND HON’BLE MANU KUMAR GIRI, JUDICIAL MEMBER ITA 729/CHNY/2026 िनधा�रण वष�/Assmt. Year: 2020-21) Permanent Account Number: AEPPT3439R PALANISAMY THIAGARAJAN ITO, WARD-2(4) NO.120-A, EARIPALAYAM, - UDAMALPET H.O.,, TIRUPPUR-641602, TAMIL Vs. TIRUPPUR-642126, TAMIL NADU NADU (अपीलाथ� Appellant) (��यथ� Respondent)

िनधा�रती �ारा/Assessee represented by: Mr.S.Bhupendran, Advocate राज� व �ारा/Revenue represented by: Ms.Sandhya Rani Kure, JCIT

सुनवाई क� तारीख / Date of conclusion of hearing: 16-04-2026 घोषणा क� तारीख / Date of pronouncement: 19-05-2026 आदेश / ORDER PER INTURI RAMA RAO, ACCOUNTANT MEMBER: This appeal is filed by the Assessee against the order of Learned Commissioner of Income Tax(Appeal)[NFAC], dated 06.01.2026 passed u/s.250 of the Income Tax Act, 1961 for the Assessment Year 2020-21.

ITA 729/CHNY/2026 PALANISAMY THIAGARAJAN

2.

The Assessee has raised the following grounds of appeal: “1) The Impugned Order is bad, erroneous and unsustainable in law

2) The Learned Commissioner (Appeals) erred in dismissing the appeal in limine without affording even single opportunity of hearing, thereby violating natural justice principles and acting audaciously.

3) Without prejudice, the Learned Commissioner (Appeals) erred in not seeking explanation from the Appellant regarding why the medical certificate, stated to be attached with Form 35 was not attached, especially when the reason relates to sickness, thereby acting arbitrarily.

4) Without prejudice, the Learned Commissioner (Appeals) erred in dismissing the appeal without considering that the Appellant didn't gain anything by filing the appeal belatedly, thereby acting narrowly and unreasonably.

And for all other reasons that may be adduced at the time of hearing, the Appellant humbly prays that the appeal be admitted, considered and justice be rendered.”

3.

Briefly stated that facts of the case are that the appellant is an Individual engaged in the business of manufacturing, trading and exporting Coco Peat, Coir Fibre, Coco Husk and Fibre Blocks. No regular return of income under the provisions of section 139(1) of the Income Tax Act was filed for the Assessment Year 2020-21. Based on the information that the appellant had business trade turnover as per the GST Returns, the Assessing Officer formed an opinion that income got escaped assessment from tax. Accordingly, a notice u/s.148 was

ITA 729/CHNY/2026 PALANISAMY THIAGARAJAN issued on 23.04.2024 after duly complying with the procedure laid down u/s.148A of the Act. The appellant neither complied with the notice u/s.148 of the Act nor notices issued u/s.142(1) of the act. In the circumstances, Faceless e-Assessment Unit of the Department (hereinafter called ‘AO’) had proceeded with framing best judgement assessment order vide order dated 29.09.2025 passed u/s.147 r.w.s 144 r.w.s 144B of the Income Tax Act at a total income of Rs.43,08,196/-. While doing so, the Assessing Officer estimated 18% income of business turnover of Rs.5,13,09,657/-, accordingly, made an addition under ‘Business Income” of Rs.41,04,773/- and also made addition of income from other sources of Rs.2,03,423/-.

4.

Being aggrieved by the above assessment order, an appeal was filed before the ld.CIT(A) with a delay of 69 days. However, ld.CIT(A) had dismissed the appeal in limine without condoning the delay on the ground of delay by holding that the appellant has not given any plausible explanation for such a huge delay of 61 days which justifies the condonation of delay. The appellant filed a petition seeking the condonation of delay on the ground that the delay in filing of appeal occurred due to sickness of the appellant and unable to sign the application for which a medical certificate was enclosed. However, the ld.CIT(A) had dismissed the appeal in limine on the grounds of delay by

ITA 729/CHNY/2026 PALANISAMY THIAGARAJAN refusing to condone the delay by holding that the appellant could not demonstrate any sufficient cause for the delay after referring to numerous judicial precedents.

5.

Being aggrieved, the appellant is in appeal before us in the present appeal. The Learned Counsel submits that the ld.CIT(A) ought not have dismissed the appeal in limine by refusing to condone the delay as the appellant had filed an Affidavit explaining reasons for the delay.

6.

On the other hand, ld.Sr.DR vehemently opposed the above submissions.

7.

We heard rival submissions and perused the material available on record. The issue that arises for our consideration is whether the ld.CIT(A) was justified in dismissing the appeal on the grounds of delay by refusing the condonation of delay. Admittedly, there is a delay of 69 days in presenting the appeal before the ld.CIT(A). The appellant filed a petition seeking the condonation of delay on the ground that the delay in filing of appeal occurred due to sickness of the appellant and unable to sign the application, appellant not to file the appeal within the stipulated time. However, ld.CIT(A) had refused to condone the delay by stating that no sufficient cause was shown for the delay. On careful perusal of the findings of ld.CIT(A), it would be clear that the ld.CIT(A) had not

ITA 729/CHNY/2026 PALANISAMY THIAGARAJAN given findings as to how the explanation offered by the appellant for delay does not constitute a reasonable cause. The averments made in the affidavit remain uncontroverted by the learned Sr.DR.

8.

In M.Kalappa Sethi Vs. M.V.Laxmi Narain Rao AIR 1973 SC 627, it was held that an uncontroverted affidavit shall be taken as an affidavit on fact. The averments made in the Affidavit seeking the condonation of delay in filing appeal before the ld.CIT(A), remain uncontroverted by the learned ld.CIT(A). In the absence of any material to the contrary, the averments made in the affidavit cannot be brushed aside. Therefore, we are of considered opinion that the ld.CIT(A) ought to have condoned the delay in filing the appeal and admitted the appeal for adjudication on merits. In the circumstances, we direct ld.CIT(A) to admit the appeal for adjudication on merits.

9.

In the result, appeal of the assessee is partly allowed for statistical purpose

Order pronounced in the open court on 19th May, 2026.

Sd/- Sd/- MANU KUMAR GIRI INTURI RAMA RAO JUDICIAL MEMBER ACCOUNTANT MEMBER Chennai; �दनांक / Dated : 19th May, 2026 SGR, Sr.PS

ITA 729/CHNY/2026 PALANISAMY THIAGARAJAN आदेश क� ��त�ल�प अ�े�षत / Copy of the Order forwarded to : अपीलाथ� / The Appellant. 1. ��यथ� / The Respondent. 2. 3. The CIT Chennai/Madurai/Coimbatore/Salem. 4. �वभागीय ��त�न�ध,आयकर अपील�य अ�धकरण, “ए” ब�च, चे�नई/ DR, ITAT Chennai. गाड� फ़ाइल / Guard File. 5.

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