VINTA LABORATORIES PVT LTD,VISHAKHAPATNAM vs. DCIT CIRCLE 3(1), VISAKHAPATNAM
Facts
The assessee, Vinta Laboratories Private Limited, filed a NIL income return for AY 2021-22. The case was selected for scrutiny, and notices under Sections 143(2), 142(1), and 144 were issued. Due to non-compliance, the AO framed an ex-parte assessment under Section 144, making an addition of Rs. 1,23,31,092/- under Section 37. The CIT(A) upheld the AO's order ex-parte. The assessee explained the non-compliance and a one-day delay in filing the appeal to the Tribunal, citing that notices were sent to an old email ID following a change in management.
Held
The Tribunal condoned the one-day delay in filing the appeal, acknowledging the assessee's claim of non-receipt of notices due to an incorrect email ID used by the tax authorities after a change in management. Applying principles of natural justice, the Tribunal remitted the case back to the Ld. CIT(A) to provide the assessee one final opportunity to present its case and furnish relevant documents.
Key Issues
1. Condonation of a one-day delay in filing the appeal before the Tribunal. 2. Validity of ex-parte assessment and appellate order where notices were allegedly sent to an incorrect email ID after a change in management, preventing the assessee from presenting its case.
Sections Cited
144, 143(2), 142(1), 37
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, VISAKHAPATNAM “DIVISION” BENCH, VISAKHAPATNAM
Before: SHRI RAVISH SOOD, HON’BLE & SHRI S BALAKRISHNAN, HON’BLE
आदेश /O R D E R
PER SHRI S BALAKRISHNAN, ACCOUNTANT MEMBER: 1. This appeal is filed by the assessee against order of Learned Commissioner of Income Tax (Appeals), National Faceless Appeal centre, Delhi [hereinafter in short “Ld.CIT(A)”] vide DIN & Order No.
I.T.A.No.467/VIZ/2025 Vinta Laboratories Private Limited ITBA/NFAC/S/250/2025-26/1076555490(1) dated 29.05.2025 for the A.Y.2021-22 arising out of the order passed under section 144 of Income Tax Act, 1961 (in short ‘Act’) dated 21.12.2022.
At the outset, it is noticed from the appeal record that there is a delay of one (1) day in filing the appeal before the Tribunal. Explaining the reasons for belated filing of the appeal, the Ld. AR drew our attention to the affidavit filed by the assessee along with a petition seeking for condonation of delay and read out the contents of the petition which is as under: -
“I, Prakash Reddy Vinta Director of Vinta Laboratories Private Limited (Previous Known as Swaasa Pharma Private Limited) do hereby declare on solemn affirmation as under that the control of the Company was taken by our Group by purchasing 60% stake in the Company as on 16/12/2021. The Email ID which is there on Income Tax Portal is finance1@vintalabs.com. Also the same Email was given while filing form 35. I solemn affirmation Even if the Notices/Order were send on old email id, I state & affirm that we have not received any notice/order from CIT (A) on the above stated email being as informed by the Previous Management. I affirm that we came to Know regarding Ex-Party CIT(A) Order only after a telephone call from JAC while he was preparing rectification order for AY 2021-2022 on Monday i.e. 28/07/2025. to check the reason for rectification. When we logged-in to the Income Tax Portal we came to know regarding Ex-Party CIT(A) Order being passed. It took us 2 days to contact and discuss with our Chartered Accountant N R Agrawal & Company and hence there was a delay in filing appeal by 1 day. I request your honour to Kindly Condone the Delay in filling the appeal in Form no. 36. That I hereby declare and verify that the whatever stated as above, are true and correct to the best of my knowledge and belief and no part of it is false.
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I.T.A.No.467/VIZ/2025 Vinta Laboratories Private Limited Delay in filling form No. 36 is not due to any wilful neglect on our part. I also I solemnly affirm that their is no managing Director appointed in Vinta Laboratories Private Limited, Company is run by Board of Directors.”
On perusal of the contents of the affidavit filed by the assessee as well as the submission of the Ld. AR, we find that the assessee is prevented by a reasonable and sufficient cause in filing the appeal beyond the prescribed time limit with a delay of one (1) day. Therefore, we hereby condone the delay of one (1) day in filing the appeal before the Tribunal and proceed to adjudicate the appeal on merits in the following paragraphs.
Brief facts of the case are that, the assessee, a company, filed its return of income for A.Y.2021–22 declaring NIL income. Subsequently, the case was selected for scrutiny under CASS. Accordingly, notice under section 143(2) of the Act was issued and served on the assessee. During the course of assessment proceedings, the Ld. Assessing Officer [hereinafter in short “Ld. AO"] issued several statutory notices and communications to the assessee including notices under section 142(1) and multiple show-cause notices under section 144 of the Act. In response to the said notice assessee neither complied with the notice nor submitted the information called for. Considering the non-compliances by the assessee, Ld. AO framed the assessment under section 144 of the Act by making addition of Rs.1,23,31,092/- being 10% of total expenses i.e., Rs.12,33,10,917/- under section 37 of the Act.
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I.T.A.No.467/VIZ/2025 Vinta Laboratories Private Limited 5. On being aggrieved by the order of the Ld. AO, assessee filed an appeal before Ld. CIT(A). Ld. CIT(A) upheld the order of the Ld. AO, since assessee has not responded to any of the notice / opportunities provided to the assessee.
On being aggrieved by the order of the Ld. CIT(A), assessee is in appeal before us by raising following grounds of appeal: -
“1. The learned CIT (Appeals) erred in dismissing the appeal & confirming the ex-parte order u/s 144 passed by AO 2. The learned CIT (Appeals) erred in passing ex-parte order without serving proper notices on correct email id. 3. The learned CIT (Appeals) erred in confirming the addition of Rs.1,23,31,092/- @ 10% of various expenses as per the assessment order. Which includes 10% of depreciation Rs. 3,99,24,824/- & Interest paid to Banks Rs. 2,82,95,559/-.”
At the outset, Ld. Authorised Representative [hereinafter “Ld.AR”] submitted that the Ld. CIT(A) has passed the order without providing sufficient opportunities to the assessee. Ld.AR contended that the Ld. CIT(A) has wrongly communicated notices to the old e-mail ID and not to the new e-mail ID though the portal was updated with the new e-mail ID, consequent to change in the management. Further, Ld.AR of the assessee also contended that the notice dated 11.11.2022 sent by Ld. AO through speed post was also not received by the assessee. Ld.AR also further submitted that, even before the Ld.AO, assessee could not appear and respond to the notices issued by the Ld.AO. He therefore prayed for remitting the matter back to the file of
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I.T.A.No.467/VIZ/2025 Vinta Laboratories Private Limited Ld.CIT(A) by providing one final opportunity to the assessee, following principles of natural justice
Per contra, Ld. Departmental Representative [hereinafter in short “Ld.DR”] strongly objected to the plea of the Ld.AR and vehemently argued that the Ld. AO and Ld. CIT(A) has provided ample opportunities to the assessee as detailed in their respective orders. However, assessee has failed to comply with the notices issued by the Revenue Authorities. She therefore pleaded that the no further opportunity should be granted and prayed of upholding the order of the Ld. CIT(A).
We have heard rival contentions and perused the material available on record. It is an undisputed fact that the assessee has not complied with the notices before Ld. AO and has also not responded to the various notices issued to the assessee as detailed in the order of the Ld. CIT(A), due to the reason that it was communicated to the wrong e-mail ID. In these circumstances, considering the prayer of the Ld.AR and following principles of natural justice, we consider it deem fit to provide one more final opportunity to the assessee to represent its case before the Ld.CIT(A). The Ld. CIT(A) is directed to provide one more opportunity of being heard to the assessee and the assessee is directed for furnish relevant documents before Ld. CIT(A) without seeking unnecessary adjournments, failing which the Ld. CIT(A) is at liberty to pass order based on
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I.T.A.No.467/VIZ/2025 Vinta Laboratories Private Limited the material available on record. Accordingly, the ground Nos.1 &2 raised by the assessee are allowed for statistical purposes.
The grounds raised on merits are not adjudicated as the appeal is remitted back to the file of Ld. CIT(A).
In the result, appeal of the assessee is allowed for statistical purposes.
Order pronounced in the open court on 31st October, 2025.
Sd/- Sd/- (रिीश सूद) (एस बालाकृष्णन) (RAVISH SOOD) (S. BALAKRISHNAN) न्याधयक सदस्य/JUDICIAL MEMBER लेखा सदस्य/ACCOUNTANT MEMBER Dated: 31.10.2025 Giridhar, Sr.PS आदेश की प्रनतनलनप अग्रेनर्त/ Copy of the order forwarded to:- 1. निर्धाररती/ The Assessee : Vinta Laboratories Private Limited Plot No. 23-D, APSEZ- De-notified Area APIIC Rambilli Mandal Visakhapatnam – 531011 Andhra Pradesh 2. रधजस्व/ The Revenue : DCIT – Circle – 3(1) 1st Floor, Infinity Towers D.No. 50-92-34/1/1 Sankarmatham Road Resapuvanipalem, Shanthipuram Visakhapatnam – 530016 Andhra Pradesh 3. The Principal Commissioner of Income Tax नवभधगीयप्रनतनिनर्, आयकरअपीलीयअनर्करण, नवशधखधपटणम /DR,ITAT, Visakhapatnam 4. 5. The Commissioner of Income Tax 6. गधर्ाफ़धईल / Guard file आदेशधिुसधर / BY ORDER Sr. Private Secretary ITAT, Visakhapatnam
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