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Facts
The assessee, Geetham Steels Private Ltd., filed a belated return for AY 2016-17 and no return for AY 2017-18, despite significant financial transactions. Its cases were selected for scrutiny and reassessment, but the assessee failed to respond to statutory notices, leading to the AO making substantial additions and the CIT(A) confirming these orders due to non-participation. The assessee filed the current appeal with a 563-day delay, which was condoned by the Tribunal after reviewing the submitted affidavit.
Held
The Tribunal set aside the orders of the ld.CIT(A) and remitted the matter back to the Assessing Officer (AO) to frame de novo assessment orders in accordance with law, after providing reasonable opportunity to the assessee. The Tribunal also levied a cost of Rs. 50,000 (Rs. 25,000 per appeal) on the assessee due to its failure to participate diligently in the earlier proceedings, to be paid to the State Legal Aid Authority.
Key Issues
Whether the delay in filing the appeal should be condoned, and if the assessment orders should be set aside and remitted back to the AO for fresh adjudication due to the assessee's non-participation in the original and first appellate proceedings.
Sections Cited
143(3), 260, 147, 144, 194A
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Income Tax Appellate Tribunal, ‘B’ BENCH, CHENNAI
Before: SHRI ABY T VARKEY & SHRI S.R.RAGHUNATHA
आदेश / O R D E R
PER S.R.RAGHUNATHA, AM. These appeals of the assessee are filed against the separate orders of the learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi, (in short ‘ld.CIT(A)’) for the assessment year 2016-17 and 2017-18, vide both the orders dated 15.01.2024 against the assessment orders passed by the Assessing Officer, NFAC, Delhi, u/s.143(3) r.w.s 260 of the Income Tax Act, 1961 (in short ‘the Act’) dated 04.08.2022 and u/s.147 r.w.s 144 of the Act dated 31.03.2022 respectively.
At the threshold, we observe that there is a delay of 563 days in the filing of the present appeal by the assessee. The assessee has furnished an affidavit explaining that the said delay occurred on account of medical reasons and the assessee became aware only after receiving of recovery letter dated 26.09.2025 in the e-mail id provided in the e-portal. Upon perusal of the affidavit and after affording due opportunity of hearing from both parties, we are satisfied that the assessee has demonstrated sufficient and reasonable cause for not presenting the appeal within the statutory period prescribed under law. Accordingly, in the interest of justice, the delay in filing the appeal is hereby condoned, and the appeal is admitted for adjudication on merits.
Brief facts of the case are that the assessee is a private limited company and engaged in the business of manufacturing and trading of ingots and has filed belated return of income on 29.03.2018 for A.Y.2016-17, declaring a total loss of Rs.6,77,66,460/- and also the assessee had not filed its return of income for A.Y.2017-18. Based on the information available with the department, the assessee made cash deposits to the tune of Rs.2,83,57,000/- and withdrawn to the tune of Rs.29,00,000/- and received an interest u/s.194A amounting to Rs.7,15,505/- during the A.Y.2017-18. The case was selected for scrutiny under CASS for A.Y 2016-17, the Assessing Officer issued statutory notices and details called for. In response, the assessee submitted its reply for the along with details called for consideration. Subsequently, the case was re-opened u/s.147 of the Act for A.Y 2017-18 and the Assessing Officer issued statutory notices and called for details, but the assessee failed to respond to any of the notices. On perusal of the documents received from the assessee and the details available on record, the AO made additions by arriving a total income of Rs.23,62,43,664/- for the A.Y 2016-17 and Rs.3,76,47,064/- for the A.Y.2017-18 and concluded the assessment proceedings by passing separate orders u/s.143(3) r.w.s 260 dated 04.08.2022 and u/s.147 r.w.s 144 of the Act dated 31.03.2022 respectively.
Aggrieved by the orders of the AO, the assessee preferred two separate appeals before the ld.CIT(A), NFAC, Delhi on 30.08.2022 and 27.04.2022 respectively.
At the outset, we observed that ld.CIT(A) has provided six opportunities for the assessee to appear for hearings as detailed in paragraph 5 of the ld.CIT(A) orders to support the appeal of the assessee. However, the assessee chose to be silent and did not respond to any of the notices and hence, the ld. CIT(A) passed separate orders dated 15.01.2024 by confirming the order of the Assessing Officer.
The ld.AR submitted that the assessee had not checked the income tax portal and its email ID during the relevant period and hence the assessee was not aware of the notices issued by the ld.CIT(A) and hence he could not appear and submit the valid evidence before the Assessing Officer as well as the ld.CIT(A). In view of the above, the ld.AR prayed to set aside the order of ld.CIT(A) and remit the issues to the file of Assessing Officer. Further, ld.AR assured the bench that the ld.AR will represent on behalf of the assessee before the AO to complete the assessment proceedings effectively.
Per contra, the ld.DR submitted that both the Assessing Officer and the ld.CIT(A) provided sufficient opportunity to appear before them. However, the assessee has been negligent in responding to the statutory notices and hence, prayed for confirming the order of the ld.CIT(A).
We have heard the rival parties and perused the material available on record and gone through the orders of the lower authorities. We note that the AO has passed orders by considering the submissions made by the assessee along with the information available with the department and the same have been dismissed by the ld.CIT(A), NFAC due to non-participation of the assessee. Since the assessee has failed to participate before the Assessing Officer as well as the ld.CIT(A), we levy the cost of Rs.50,000/- (Rs.25,000/- for each appeal) to be paid to State Legal Aid Authority, Hon’ble High Court of Madras within 30 days from the date of receipt of this order and the assessee shall satisfy the payment of cost before the authorities.
In view of the above and to meet the ends of justice we set aside the order of ld.CIT(A) and remit the matter back to the file of AO and direct the AO to denovo frame the assessment order in accordance with law, after providing reasonable
opportunity to the assessee. Needless to say, the assessee to be diligent and file written submissions and relevant documents if advised so.
In the result, both the appeals filed by the assessee are allowed for statistical purposes.
Order pronounced in the open court on 29th December, 2025 at Chennai.