ANDHRA PRADESH STATE CIVIL SUPPLIES CORPORATION LIMITED,KANURU V. ITO, TDS, WARD(1), ELURU, ELURU

ITA 29/VIZ/2025

AI Insights

The case involves the Andhra Pradesh State Civil Supplies Corporation Limited, a government undertaking, which appealed against the order of the Income Tax Officer (TDS), Eluru, for non-deduction of TDS on payments made for 'Paddy Procuring Commission'. Initially, a TDS of Rs. 2,36,43,317 was calculated, which was later rectified to Rs. 84,33,151 due to a mistake apparent on record. The assessee sought an extension to respond to a show cause notice but failed to file the appeal within the prescribed time, leading to a significant delay. The Tribunal's decision focused solely on the procedural aspect of the delay, dismissing the appeal without considering the substantive issues.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 312557 (ITAT-VISAKHAPATNAM)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-04-2025
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2019-2020
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: APARNA VILLURI
• Assessee Lawyers: NO REPRESENTATION
• Keywords: Condonation of delay; Period of limitation; TDS; Rectification of order; Time period of passing order
• Section: 154; 201(1)

Judgement Text

" आयकर अपीलीयअिधकरण, िवशाखापटणम पीठ, िवशाखापटणम IN THE INCOME TAX APPELLATE TRIBUNAL, VISAKHAPATNAM “DIVN” BENCH, VISAKHAPATNAM ᮰ी िवजय पाल राव, उपा᭟यᭃ एवं ᮰ी एस बालाकृ᭬णन, लेखा सद᭭य के समᭃ BEFORE SHRI VIJAY PAL RAO, HON’BLE VICE PRESIDENT & SHRI S BALAKRISHNAN, HON’BLE ACCOUNTANT MEMBER आयकर अपील सं./ I.T.A. No.29/Viz/2025 (िनधाᭅरण वषᭅ / Assessment Year : 2019-20) Andhra Pradesh State Civil Supplies Corporation Limited, Kanuru, Andhra Pradesh. PAN: AABCA7161R Vs. Income Tax Officer, TDS, Ward-(1), Eluru. (अपीलाथᱮ/ Appellant) (ᮧ᭜यथᱮ/ Respondent) अपीलाथᱮ कᳱ ओर से/ Assessee by : No Representation ᮧ᭜याथᱮ कᳱ ओर से / Revenue by : Dr. Aparna Villuri, Sr. AR सुनवाई कᳱ तारीख / Date of Hearing : 22/04/2025 घोषणा कᳱ तारीख/Date of Pronouncement : 28/04/2025 O R D E R PER S. BALAKRISHNAN, AM: This appeal filed by the assessee is against the order of the Learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi (“Ld. CIT(A)”) vide DIN & Order No. ITBA/NFAC/S/250/2024-25/1071996850(1), dated 08/01/2025 2 for the AY 2019-20 arising out of the order passed U/s. 154 of the Income Tax Act, 1961 (“the Act”), dated 02/12/2019. 2. Brief facts of the case are that the assessee being a Government Undertaking owned by the Government of Andhra Pradesh for supply of essential commodities to public in general under Public Distribution System. It was noticed by the Ld. AO that the assessee has not deducted TDS on the payments made for “Paddy Procuring Commission for Velugu Centers” and “Paddy Procuring Commission for PAC Societies” and passed order U/s. 201(1) of the Act working out the TDS totaling to Rs. 2,36,43,317/-. Subsequently, the Ld. AO observed that a mistake apparent on record in the calculation of non-deduction of TDS for Paddy Procuring Commission and later passed a rectification order U/s. 154 of the Act dated 02/12/2019 by enhancing tax by Rs. 84,33,151/-. The Ld. AO issued a show cause notice requiring the assessee to file its objections on or before 27/11/2019. However, the assessee sought 30 days time vide letter dated 25/11/2019. The Ld. AO did not consider the submission of the assessee and proceeded to enhance the tax payable for Rs. 84,33,151/-. The 3 order passed U/s. 154 of the Act was delivered to the assessee on 03/12/2019. On being aggrieved by the order of the Ld. AO, the assessee filed an appeal before the Ld. CIT(A) on 16/11/2022 against the order passed U/s. 154 of the Act. 3. The Ld. CIT(A) observed that there is a delay of 1049 days in filing the appeal before the Ld. CIT(A) and therefore dismissed the appeal of the assessee in limine. On being aggrieved by the order of the Ld. CIT(A), the assessee is in appeal before us by raising various grounds. Grounds No. 1 to 3 relate to rejection of the petition for condonation of delay before the Ld. CIT(A). 4. Before us, at the time of hearing none appeared on behalf of the assessee. 5. On this issue, the Learned Departmental Representative (“Ld. DR”) heavily relied on the order of the Ld. Revenue Authorities. 6. We have heard the Ld. DR and gone through the written submissions filed by the assessee. It is an undisputed fact that the assessee was served the order passed U/s. 154 of the Act dated 02/12/2019 on 03/12/2019 which was duly acknowledged by the 4 assessee. Accordingly, the due date for filing the appeal before the First Appellate Authority expires on 02/01/2020 whereas the assessee has filed the appeal on 16/11/2022 with an inordinate delay of 1049 days from the due date. In the written submissions, the assessee has partly attributed the delay due to prevalence of COVID Pandemic from the period 15/03/2020 to 28/02/2022. However, the period of limitation for filing the appeal before the First Appellate Authority expires on 02/01/2020 wherein the relaxation in the limitation period allowed by the Hon’ble Supreme Court commenced w.e.f 15/03/2020. Further, it is also noticed that even after the end of the relaxation period due to COVID Pandemic on 15/03/2022, the assessee filed the appeal before the First Appellate Authority on 16/11/2022 which is 260 days from the end of the relaxation period allowed by the Hon’ble Supreme Court. On perusal of the condonation petition filed by the assessee before the Ld. CIT(A), the assessee has not given any reasonable and sufficient cause preventing them to file the appeal before the First Appellate Authority within the limitation period. Therefore, we do not have any hesitation to confirm the order of the Ld. CIT(A) and accordingly, the Grounds No. 1 to 3 raised by the assessee are 5 dismissed. Since the petition for condonation of delay is not admitted, we are not proceeding to adjudicate the Ground No.4 on merits. 7. In the result, appeal of the assessee is dismissed. Pronounced in the open Court on 28th April, 2025. Sd/- Sd/- (VIJAY PAL RAO) (S. BALAKRISHNAN) उपा᭟यᭃ/VICE PRESIDENT लेखा सद᭭य/ACCOUNTANT MEMBER Dated :28/04/2025 OKK - SPS आदेश कᳱ ᮧितिलिप अᮕेिषत/Copy of the order forwarded to:- 1. िनधाᭅᳯरती/ The Assessee – Andhra Pradesh State Civil Supplies Corporation Limited, 10-152/1, 4th Floor, Sai Towers, Ashok Nagar, Bandar Road, Kanuru, Andhra Pradesh-520007. 2. राज᭭व/The Revenue: Income Tax Officer, TDS, Ward-(1), Eluru. 3. The Principal Commissioner of Income Tax, 4. आयकर आयुᲦ (अपील)/ The Commissioner of Income Tax 5. िवभागीय ᮧितिनिध, आयकर अपीलीय अिधकरण, िवशाखापटणम/ DR, ITAT, Visakhapatnam 6. गाडᭅ फ़ाईल / Guard file आदेशानुसार / BY ORDER Sr. Private Secretary ITAT, Visakhapatnam "