Kyori Oremin Limited Vs DCIT (ITAT Hyderabad)
The appeal before the Income Tax Appellate Tribunal (ITAT), Hyderabad, was filed by the assessee against the order dated 22.09.2025 passed by the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi, for the assessment year 2013–14. The primary grievance of the assessee was that the CIT(A) dismissed the appeal on account of a delay of 42 days in filing, without condoning the delay and without adjudicating the case on merits.
The assessee raised multiple grounds, including that the order of the CIT(A) was erroneous in law and facts, and that the delay in filing the appeal occurred due to reasons beyond its control. It was contended that the CIT(A) ought to have condoned the delay and decided the appeal on merits instead of dismissing it on technical grounds. The assessee also challenged the disallowance of ₹24.30 crore made under section 40(a)(i) towards freight, legal, professional expenses, and interest, arguing that such expenses were incurred wholly and exclusively for business purposes and were allowable under section 37(1). Additionally, a disallowance of ₹5.41 lakh towards foreign exchange loss was contested.
During the hearing, the Authorised Representative submitted that the company had become non-functional and had closed its business due to financial and other difficulties. It was explained that the assessment order and related documents were misplaced by office staff and not brought to the management’s attention, resulting in the delay of 42 days in filing the appeal. An affidavit of the Managing Director was submitted in support of this explanation. The assessee further argued that the Assessing Officer had disallowed 100% of the expenses under section 40(a)(i), whereas the applicable provision prescribed disallowance of only 30%. It was contended that failure to condone the delay would result in injustice and leave the assessee without remedy.
