T C L INDIA HOLDING PRIVATE LIMITED,MUMBAI vs. COMMISSIONER, NFAC
IN THE INCOME-TAX APPELLATE TRIBUNAL “E” BENCH,
MUMBAI
BEFORE SHRI SAKTIJIT DEY, VICE PRESIDENT
&
SHRI PRABHASH SHANKAR, ACCOUNTANT MEMBER
TCL India Holding Private
Limited, 114, Mahim United
Industrial
Premises,
Moghal
Lane, Mahim (W), Mumbai –
400 016, Maharashtra v/s.
बनाम
Assistant
Commissioner of Income Tax, Circle – 11(3)(1),
Aaykar Bhavan, 427, 4th Floor,
M.K.
Road,
Mumbai
–
400020, Maharashtra
स्थायी लेखा सं./जीआइआर सं./PAN/GIR No: AABCT9975D
Appellant/अपीलार्थी
..
Respondent/प्रतिवादी
Appellant by :
Shri Stefan Richard Moraes, AR
Respondent by :
Shri Hemanshu Joshi (Sr. DR)
Date of Hearing
17.07.2025
Date of Pronouncement
04.08.2025
आदेश / O R D E R
PER PRABHASH SHANKAR [A.M.] :-
Thepresent appeal is filed 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 assessmentorder passed u/s. 144r.w.s 144C(3) of the Income-tax
Act,
1961
[hereinafter referred to as “Act”]
dated25.03.2015as passed by the ACIT - 11(3)1, Mumbaifor the Assessment Year [A.Y.] 2012-13. P a g e | 2
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T C L India Holding Private Limited
The grounds of appeal are as under:
On the facts and circumstances of the case and in law, the Commissioner of Income tax (Appeals)- National Faceless Appeal Centre (NFAC) has erred in dismissing the appellant's appeal in limine without deciding it on merit. 2. On the facts and circumstances of the case and in law, the Learned NFAC dismissed the appeal of assesse ex-parte without taking into account Remand report dated 20thNovember 2019 addressed to Commissioner of Income Tax(A)-18. 3. At the outset, the Registry informed that the instant appeal is delayed by 277 days. In this regard, a condonation application has been filed alongwith an affidavit of Sri Richard Moraes, CFO. It is submitted that the assessee company had closed business operations in India since 2011 and was struck off as per Ministry of Corporate Affairs Records. It is further submitted that after assessment order was passed u/s 144 of the Act and in its subsequent appeal, the ld.CIT(A) called for a remand report from the AO based on submissions made before him. Required details were submitted before the AOwho submitted the remand report to the ld.CIT(A) on 20.11.2019.The assessee was under a bonafide belief that having made necessary compliance in remand proceedings,it was not required to be make further submission before NFAC.However, the appellate order was passed without referring anywhere the remand report including submissions made by it already submitted by the AO to him and appeal was dismissed ex-parte manner. Further, due to health issues and subsequent surgery, there was delay in filing of appeal.
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T C L India Holding Private Limited
Moreover, preparation of appeal before ITAT required certain approvals from the parent company in China which cause further delay. Therefore, the delay occurred due to unavoidable circumstances and was not deliberate.
4. On careful consideration of the submissions of the assessee, we are of the considered opinion that the delay in filing of the present appeal was not intentional but due to sufficient cause. Such a bonafide mistake needs to be condoned. In this connection, reliance could be placed on the landmark decision of 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.
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T C L India Holding Private Limited
From the appellate order, it appears that the appeal was dismissed by the ld.CIT(A) on account of lack of compliance by the assessee. He observed that during the course of appeal proceedings, several notices were issued to it on different dates for submission of documents/explanation in support of grounds of appeal. However, the assessee chose to not to comply with any of the notices issued though it was obligatory on its part to co-operate and pursue the same before the appellant authority in effective and productive manner. The facts of non- compliance on the part of the assessee clearly revealed that the assessee by its repetitive non-compliance had shown complete lack of interest in pursuing the appeal. Therefore, in the absence of any reasonable, cogent and valid evidences/arguments/contentions advanced by the assessee in the instant appeal, it was dismissed. 6. From the above discussion, it is evident that the appellate order has been passed in ex parte manner mainly on account of lack of proper compliance by the assessee during appeal proceedings. Consequently, the ld.CIT(A) has not decided the appeal on merits which is contrary to the mandate of section 250(6) of the Act. A bare perusal of the provision makes it clear that the CIT(A) is bound to dispose of the appeal before him on merits. Once an appeal is preferred before him, then in disposing of the appeal, he is obliged to make such further inquiry that he thinks
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A.Y. 2012-13
T C L India Holding Private Limited fit or direct the AOto make further inquiry and report the result of the same to him as per section 250(4) of the Act. Section 251(1)(a) and (b) of the Act provide that while disposing of appeal the CIT(A) would have the power to confirm, reduce, enhance or annul an assessment and/or penalty. Besides Explanation to sub-section (2) of Section 251 of the Act also makes it dear that while considering the appeal, the CIT(A) would be entitled to consider and decide any issue arising in the proceedings before him in appeal filed for its consideration, even if the issue is not raised by the appellant in its appeal before the CIT(A). The appellate order is therefore, deficient in this regard.
7. During the course of hearing, the ld. AR for the assessee prayed that since the ld. CIT(A) and the AO both have passed the ex-parte orders and the assessee was not provided adequate opportunity of being heard, it may be provided one more opportunity to advance its arguments/submissions before the lower authoritiesso as to provide details in connection with the merits of its case to support its contentions. The ld.DR did not object to this proposition.
8. We have heard both the parties and perused the materials available on record. In the light of above observations, in the substantial interest of justice, we set aside the appellate order and restore the entire
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T C L India Holding Private Limited matter back to the ld.CIT(A) for passing the appellate order de novo. In case of any failure on the part of the assessee, he would be at liberty to pass order after considering the materials on record. The assessee will not seek any adjournment on frivolous ground and remain cooperative during the course of proceedings before the ld.CIT(A).
9. In the result, the appeal is allowed for statistical purposes.
Order pronounced in the open court on 04.08.2025. SAKTIJIT DEY
PRABHASH SHANKAR
(उपाध्यक्ष/ VICE PRESIDENT)
(लेखाकार सदस्य/ACCOUNTANT MEMBER)
Place: म ुंबई/Mumbai
ददनाुंक /Date 04.08.2025
Lubhna Shaikh / Steno
आदेश की प्रतितलति अग्रेतिि/Copy of the Order forwarded to :
अपीलार्थी / The Appellant 2. प्रत्यर्थी / The Respondent. 3. आयकर आयुक्त / CIT 4. विभागीय प्रविविवि, आयकर अपीलीय अविकरण DR, ITAT, Mumbai
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T C L India Holding Private Limited
गार्ड फाईल / Guard file.
सत्यावपि प्रवि ////
आदेशानुसार/ BY ORDER,
उि/सहायक िंजीकार (Dy./Asstt.