KSK ENERGY COMPANY PRIVATE LIMITED,HYDERABAD vs. DCIT., CIRCLE-2(1), HYDERABAD

At the outset, it is noted that there was a delay of nine days in filing the present appeal before the Tribunal. The assessee has filed a petition for condonation of delay along with a duly sworn affidavit explaining the reason for the delay. The learned Authorised Representative (“Ld. AR”) submitted that the delay was neither intentional nor deliberate and was due to unavoidable circumstances. After perusing the affidavit and considering the submissions of both the Ld. AR and the learned Departmental Representative (“Ld. DR”), we are satisfied that there was a reasonable cause for the delay. Accordingly, the delay in filing the appeal is condoned and the appeal is admitted for adjudication.

The brief facts of the case are that, the assessee filed an appeal before the Ld. CIT(A) against the order passed by the Ld. AO u/s 143(3) read with sections 143(3A) and 143(3B) of the Income Tax Act,1961 (“the Act”) on 08/04/2021 for A.Y. 2018-19. Before the Ld. CIT(A), the assessee did not respond to the notices issued by him. Consequently, the Ld. CIT(A) dismissed the appeal of the assessee ex parte.

Aggrieved with the order of Ld. CIT(A), the assessee is in appeal before us. Before us, the Ld. AR submitted that at the time when the notices were issued by the Ld. CIT(A), the assessee-company was undergoing a change in management pursuant to the order passed by the Hon’ble National Company Law Tribunal (“NCLT”) dated 01.04.2024 under the provisions of the Insolvency and Bankruptcy Code, 2016. It was submitted that due to the transitional phase and takeover of affairs by the new management, the assessee could not effectively respond to the notices issued during the appellate proceedings before the Ld. CIT(A). The Ld. AR, prayed for one more opportunity to represent the case on merits and requested that the matter may be restored to the file of the Ld. CIT(A) for fresh adjudication.