All Glaze Enterprises, Hyderabad V. Asst. Commissioner of Income Tax, Circle-4(1), Hyderabad

ITA 1057/Hyd/2019

• Counselvise Citation: [2021] 108 COUNSELVISE.COM (IT) 3995 (ITAT-HYDERABAD)
• Duration Of Justice: 1 year(s) 11 month(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-06-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB-A
• Next Hearing Date: 31-05-2021
• Assessment Year: 2010-2011
• Appeal Filed On: 28-06-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: WASEEN UR REHMAN
• Assessee Lawyers: P MURALI MOHANA RAO
• Keywords: Opportunity of being heard; Right to appeal
• Section: 143(3); 119; 147; 148; 144

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCHES A : HYDERABAD (THROUGH VIRTUAL CONFERENCE) BEFORE SHRI SATBEER SINGH GODARA, JUDICIAL MEMBER AND SHRI LAXMI PRASAD SAHU, ACCOUNTANT MEMBER IT A NO. 1057 /H/20 1 9 ASSESSMENT YEAR: 2 0 1 0 - 1 1 ALL GLAZE ENTERPRISES, HYDERABAD. PAN A A FFA 5203 J VS. AS ST. COMMISSIONER OF INCOME - TAX, CIRCLE 4 ( 1 ), HYDERABAD. (APPELLANT) (RESPONDENT) ASSESSEE BY: SHRI P. MURALI MOHANA RAO REVENUE BY: SHRI WASEEN UR REHMAN DATE OF HEARING: 31 /0 5 /2021 DATE OF PRONOUNCEMENT: 02 /0 6 /2021 O R D E R PER L.P. SAHU, A.M. : THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAINST CIT(A) 1 , HYDERABADS ORDER DATED 07 / 0 2 /201 9 FOR AY 20 1 0 - 11 INVOLVING PROCEEDINGS U/S 143(3) OF THE INCOME TAX ACT, 1961 ; IN SHORT THE ACT. 2 . BRIEFLY, THE FACTS OF THE CASE ARE THAT THE ASSESSEE FILED ITS RETURN OF INCOME FOR THE AY 2010 - 11 ON 12/10/2010 DECLARING TOTAL INCOME AT RS. 24,25,130/ - . THE AO COMPLETED THE ASSESSMENT U/S 143(3) OF THE ACT ON I TA NO. 1057 /HYD /201 9 ALL GLAZE ENTERPRISES, HYD. : - 2 - : 26/03/2013 DETERMINING THE TOTAL INCOME AT RS. 28,29,800/ - . SUBSEQUENTLY, A NOTICE U/S 148 WAS ISSUED ON 11/08/2015 TO THE ASSESSEE. SINCE THERE WAS NO COMPLIANCE TO THE SAID NOTICE FROM THE ASSESSEE, THE AO COMPLETED THE ASSESSMENT U/S 144 RWS 147 ON 29/12/2016 BY MAKING ADDITION OF RS. 62,51,154/ - TOWARDS DISALLOWANCE OF EXPENDITURE, RS. 45,64,677/ - TOWARDS DIFFERENCE IN GROSS RECEIPTS AND RS. 7,18,950/ - TOWARDS DISALLOWANCE OF VAT AND ASSESSED THE TOTAL INCOME AT RS. 1,43,64,581/ - . 3. AGGRIEVED BY THE ORDER OF AO, THE ASSESSEE PREFERRED AN APPE AL BEFORE THE CIT(A) AND THE APPEAL WAS FILED BEFORE THE CIT(A) WITH A DELAY OF 119 DAYS. 4. BEFORE THE CIT(A), THE ASSESSEE FILED A PETITION FOR CONDONATION OF THE DELAY , WHICH WAS EXTRACTED BY THE CIT(A) IN HIS ORDER AT PAGE 4. H OWEVER, THE CIT(A) DISMISSED THE APPEAL OF THE ASSESSEE IN LIMINE ON THE GROUND THAT THE ASSESSEE WAS UNABLE TO PROVE THE SUFFICIENT CAUSE FOR DELAY IN FILING THE APPEAL. 5. AGGRIEVED BY THE O RDER OF CIT(A), THE ASSESSEE IS IN APPEAL BEFORE THE ITAT. 6. CONSIDERED THE RIVAL SUBMISSIONS AND PERUSED THE MATERIAL FACTS ON RECORD AS WELL AS GONE THROUGH THE ORDERS OF REVENUE AUTHORITIES . FROM THE FACTS, IT WAS BROUGHT ON RECORD THAT THE ASSESSEES ACCOUNTANT WHO RECEIVED THE I TA NO. 1057 /HYD /201 9 ALL GLAZE ENTERPRISES, HYD. : - 3 - : ASSESSMENT ORDER AND ACKNOWLEDGED THE ORDER COPY , LEFT EMPLOYMENT WITHOUT INTIMATING THE RECEIPT OF SUCH ORDER. THEREFORE, THE DELAY OCCURRED IN FILING THE APPEAL BEFORE THE CIT(A). WE ARE IN AGREEMENT WITH THE LD. CIT(A) THAT ASSESSEE SHOULD HAVE FOLLOWED MORE ROBUST SYSTEM OF FOLLOWING ISSUES AND SHOULD HAVE ACTED PROMPTLY. BY ALL POSSIBILITIES, NO ONE CAN DENY THAT THERE IS A DELAY IN FILING THE APPEAL. EVERY PERSON HAS A RIGHT TO APPEAL AND SPECIFICALLY IN THE CASE OF COMPAN Y, WHICH DEPENDS IN THE EFFICIENCY OF VARIOUS INDIVIDUALS. IN THE GIVEN CASE, THE ACCOUNTANT LEFT THE OFFICE WITHOUT INTIMATION TO THE ASSESSEE , WHICH IS NOT THE FAULT OF ASSESSEE. I N THE INTEREST OF JUSTICE, WE RESTORE THE MATTER BACK TO THE FILE OF TH E CIT(A) WITH A DIRECTION TO CONDONE THE DELAY IN FILING THE APPEAL BEFORE HIM AND DECIDE VARIOUS GROUNDS OF APPEAL OF THE ASSESSEE ON MERITS. ACCORDINGLY, THE CIT(A) IS DIRECTED TO AFFORD REASONABLE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE AND THEREAFTE R DECIDE THE APPEAL ON MERITS. 7 . IN THE RESULT, APPEAL OF THE ASSESSEE IS TREATED AS ALLOWED FOR STATISTICAL PURPOSES. PRONOUNCED IN THE OPEN COURT ON 2 N D JUNE , 2021 . SD/ - SD/ - ( S.S. GODARA ) (L . P . SAHU) JUDICIAL MEMBER ACCOUNTANT MEMBER HYDE RABAD, DATED : 2 ND JUNE , 20 2 1 . K V I TA NO. 1057 /HYD /201 9 ALL GLAZE ENTERPRISES, HYD. : - 4 - : C OPY TO : 1 ALL GLAZE ENTERPRISES , C/O P. MURALI & CO., CAS, 6 - 3 - 655/2/3, 1 ST FLOOR, SOMAJIGUDA, HYDERABAD 82 2 AC IT, CIRCLE 4 ( 1 ) , HYDERABAD. 3 C I T(A) 1 , HYDERABAD. 4 PR. CIT - 1 , HYDERABAD 5 ITAT, DR, HYDERABAD. 6 GUARD FILE.