Indian Chain Pvt. Ltd. Vs DCIT (ITAT Kolkata)
Summary: The Income Tax Appellate Tribunal (ITAT), Kolkata bench, has remitted the case of Indian Chain Pvt. Ltd. back to the Commissioner of Income Tax (Appeals) [CIT(A)] after identifying a significant factual error in the first appellate authority’s order. The CIT(A) had mistakenly treated the private limited company as a cooperative society, applying provisions related to Section 80P of the Income Tax Act, 1961, which grants deductions specifically to cooperative societies.
The appeal before the ITAT, decided on March 4, 2025, for the Assessment Year 2020-21, stemmed from an intimation order issued under Section 143(1) of the Act by the DCIT, Central Processing Centre (CPC), dated December 24, 2021.
Appeal Dismissed on Delay: Initially, the assessee, Indian Chain Pvt. Ltd., faced a hurdle at the first appellate stage. The CIT(A), Addl/JCIT(A)-2, Delhi, had dismissed the company’s appeal primarily on the grounds of delay in filing. The appeal was filed 230 days beyond the statutory time limit. The CIT(A) concluded that the assessee had not demonstrated sufficient cause for this considerable delay, thus refusing to condone it.
Before the ITAT, the assessee’s counsel argued strongly against the CIT(A)’s decision on delay. The primary reason cited for the delay was the non-receipt of the hard copy of the Section 143(1) intimation order dated December 24, 2021. Furthermore, it was contended that no email notification regarding the order was sent to the assessee, rendering them unaware of the order’s existence and contents for a significant period. This lack of knowledge, the assessee argued, constituted a sufficient and bonafide reason for the delay in filing the appeal before the CIT(A).
