Nangan Motors Private Limited Vs DCIT (ITAT Chennai)
In this case, the assessee company, engaged in the business of running a car service centre, did not file its return of income for Assessment Year 2018-19 despite having substantial financial transactions, including cash deposits and contract receipts totaling ₹1,30,70,358. The Assessing Officer (AO) issued notices regarding the cash deposits, but no response was received from the assessee. Consequently, the AO computed a penalty under Section 270A at 50% of the tax on the under-reported income and levied a penalty of ₹45,793. A separate penalty under Section 272A was also imposed.
Aggrieved by the AO’s orders, the assessee filed appeals before the Commissioner of Income Tax (Appeals) [CIT(A)] and sought condonation of a delay of 700 days in filing the appeals. The assessee explained that it had not received the physical notices issued by the AO because the notices were delivered to an incorrect address where the company had previously operated. Despite this explanation, the CIT(A), by order dated 21.11.2025, dismissed the appeals in limine on account of the 700-day delay and upheld the AO’s orders.
The assessee then appealed before the Income Tax Appellate Tribunal (ITAT). Before the Tribunal, the assessee argued that the CIT(A) had passed an arbitrary order without properly considering the sufficient cause shown for the delay. It was further contended that no proper opportunity had been provided regarding the issues under consideration. The assessee also relied on an earlier decision of a co-ordinate bench of the Tribunal in its own cases (ITA Nos. 590 to 594/CHNY/2026 dated 27.04.2026), where delays had been condoned and the matters remitted back to the CIT(A) for adjudication on merits after providing an opportunity of hearing.
