Power Security Corp Pvt Ltd. vs. Income Tax Officer, Corp Ward-5(2), Chennai

Parties Involved

Facts Summary

The appellant, Power Security Corp Pvt Ltd., is a private limited company engaged in providing security, surveillance, cleaning, and building maintenance services. For the Assessment Year 2014-15, no return of income was filed under section 139 of the Act. Based on information regarding payments made to a contractor and cash deposits in the bank, the Assessing Officer (AO) formed an opinion that income had escaped assessment. Consequently, a notice under section 148 was issued on 31.07.2022. The appellant did not comply with this notice or with a subsequent notice under section 142(1). Therefore, the AO proceeded to frame an assessment order under section 147 on 18.04.2023, estimating the total income at Rs. 35,14,814/- with a profit estimation of 7% of the payments made to the contractor. The appellant filed a rectification petition, which was dismissed by the AO on 13.06.2025. An appeal was then filed before the Commissioner of Income Tax (Appeals) [CIT(A)], who dismissed the appeal for non-prosecution without addressing the merits. The assessee is now in appeal before the Tribunal.…

Legal Issues

• 1. Whether the notice under section 148 was barred by limitation.
• 2. Whether the CIT(A) was required to dispose of the appeal on merits even in cases of ex-parte dismissals.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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