PARAMSHANTI STEELS PRIVATE LIMITED,EXHIBITION ROAD, PATNA vs. ITO, WARD-2(2), LOK NAYAK BHAWAN

ITA 359/PAT/2026Status: DisposedITAT Patna13 October 2026AY 2015-163 pages

AI SummaryPartly Allowed

What did the Tribunal hold?

The Tribunal condoned the delay of 617 days in filing the appeal, considering the explanation provided in the assessee's affidavit. Regarding the substantive issue, the Tribunal observed that the assessment order was passed ex-parte, and the assessee had not complied with the hearing notices issued by the Ld. CIT(A) due to family disputes. Recognizing that the matter was adjudicated ex-parte at both levels, the Tribunal held that, to meet the ends of justice, the assessee should be granted one more opportunity to defend its case on merits before the Ld. CIT(A). Accordingly, the appeal was restored to the file of the Ld. CIT(A) with a direction to adjudicate the issues on merits after affording the assessee a reasonable opportunity of hearing. The assessee was also directed to comply with future hearing notices. The appeal was allowed for statistical purposes.

What were the facts?

The assessee, Paramshanti Steels Pvt. Ltd., filed an appeal before the Income Tax Appellate Tribunal (ITAT) against the order of the Commissioner of Income Tax (Appeals)-NFAC, Delhi, for Assessment Year 2015-16. There was a delay of 617 days in filing the appeal, which the assessee sought to condone by filing a petition with an affidavit explaining the reasons. The assessee's counsel argued that the Ld. CIT(A) had passed an ex-parte order without considering the merits of the case and requested an opportunity to defend the case before the lower authorities. The Revenue objected, stating that despite multiple opportunities, the assessee failed to appear.

What were the issues?

1. Whether the delay of 617 days in filing the appeal should be condoned? (Question of fact) 2. Whether the assessee should be granted another opportunity to present its case on merits before the Ld. CIT(A), given that the assessment and appeal proceedings were conducted ex-parte? (Question of mixed law and fact, turning on principles of natural justice and procedural fairness under the Income Tax Act, 1961). Assessee's Contentions: The assessee argued that the Ld. CIT(A) passed an ex-parte order and sought a restoration of the appeal to get an opportunity to defend its case on merit before the lower authorities, citing family disputes as the reason for non-compliance. The assessee relied on the explanation in its affidavit for condonation of delay. Revenue's Contentions: The Revenue strongly objected to the assessee's request, submitting that the assessee did not appear despite several opportunities granted, and therefore, the request should be dismissed.

Which sections of the Income-tax Act were involved?

Section 250

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “SMC” BENCH: PATNA

Before: Shri Pradip Kumar Choubey & Shri Gopalan Gurusamy

IN THE INCOME TAX APPELLATE TRIBUNAL “SMC” BENCH: PATNA (VIRTUAL HEARING AT KOLKATA) Before Shri Pradip Kumar Choubey, Judicial Member & Shri Gopalan Gurusamy, Accountant Member I.T.A. No. 359/Pat/2026 Assessment Year: 2015-16 Paramshanti Steels Pvt. Ltd. Vs. ITO, Ward-2(2), Patna

(PAN: AAFFP 5359 L) ) अपीलार्थी ( Respondent / प्रत्यर्थी Appellant / Date of Hearing / 12.10.2026 सुनवाई की तिथर्थ Date of 13.10.2026 Pronouncement/ आदेश उद्घोषणा की तिथर्थ For the Appellant/ Shri Nishant Maitin, AR तनर्ाारििी की ओि से For the Respondent/ Shri Ravi Kant Chowdhary, AR िाजस्व की ओि से ORDER / आदेश Per Gopalan Gurusamy, AM: This is the appeal preferred by the assessee against the separate orders of the Ld. Commissioner of Income Tax (Appeals)- NFAC, Delhi (hereinafter referred to as the “Ld. CIT(A)”] passed u/s 250 of the Act dated 28.06.2024 for the AY 2015-16, vide Appeal No. CIT(A), Patna-2/10219/2017-18.

2 I.T.A. No.359/Pat/2026 Assessment Year: 2015-16 Paramshanti Steels Pvt. Ltd. 2. There is a delay of 617 days in the filing of the appeal. The assessee has filed petition for condonation of delay along with affidavit and requested that the delay may be condoned. Considering the explanation given in the affidavit, we condone the delay and take up the appeal for adjudication.

The Ld. Counsel for the assessee submitted that the Ld. CIT(A) has passed an ex-parte order without considering the merit of the case. The ld. Counsel of the assessee prayed before the Bench that the assessee may kindly be given one more opportunity to defend its case on merit before the lower authorities by restoring this appeal of the assessee.

The Ld. D.R on the other hand strongly objected by submitting that despite several opportunities granted, the assessee did not appear and therefore the said request of the counsel of the assessee may kindly be dismissed.

After hearing the rival parties and perusing the material on record, we observe that the assessment order was passed in an ex-parte manner. Before the Ld CIT(A), there was no compliance on the part of the assessee to the various hearing notices issued by the Ld. CIT(A) and therefore the appeal was disposed off in an ex-parte manner. It was represented that there was some family dispute and hence the appeal hearings could not be complied with. Considering that the matter has been adjudicated ex parte at both levels, we are of the view that, in order to meet the ends of justice, the assessee be given one more opportunity to defend its case on merits before the Ld. CIT(A). Accordingly we restore the appeal to the file of the Ld. CIT(A) for the reasons cited above with a direction to adjudicate the issues on merits by affording the assessee a reasonable opportunity of hearing.

3 I.T.A. No.359/Pat/2026 Assessment Year: 2015-16 Paramshanti Steels Pvt. Ltd. Simultaneously we also direct the assessee to comply with the hearing notices issued by the Ld. CIT(A) . 6. In the result, the appeal of the assessee is partly allowed for statistical purposes. Order is pronounced on 13th October, 2026 Sd/- Sd/- (Pradip Kumar Choubey) (Gopalan Gurusamy) Judicial Member/न्याययक सदस्य Accountant Member/लेखा सदस्य Dated: 13th October, 2026 SM, Sr. PS

Copy of the order forwarded to: 1. Appellant- Paramshanti Steels Pvt. Ltd., Room No. 1, Suprabhat Building, 4th Floor, Exhibition Road, Patna, Bihar-800001 2. Respondent – ITO, Ward-2(2), Patna 3. Ld. CIT(A)- NFAC, Delhi 4. Ld. Pr. CIT- , Patna 5. DR, Patna Bench, Patna

//True Copy// By Order

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