The Southern India Chamber of Commerce and Industry, CHENNAI V. ITO Exemption Ward 2, CHENNAI

ITA 1070/CHNY/2019

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 0369 (ITAT-CHENNAI)
• Duration Of Justice: 4 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-09-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2013-2014
• Appeal Filed On: 15-04-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: VANA SRINIVASA RAO
• Keywords: Opportunity of being heard; Condonation of delay

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH: CHENNAI , .. , BEFORE SHRI INTURI RAMA RAO, ACCOUNTANT MEMBER AND SHRI DUVVURU R.L.REDDY, JUDICIAL MEMBER ./ ITA NO.1070/CHNY/2019 ! ! /ASSESSMENT YEAR: 2013-14 M/S.THE SOUTHERN INDIA CHAMBER- OF COMMERCE AND INDUSTRY, INDIAN CHAMBER BUILDING, NO.6, ESPLANADE, CHENNAI-600 108. VS. THE INCOME TAX OFFICER, EXEMPTION WARD-2, CHENNAI. [PAN: AAAAT 2550 R ] ( $ /APPELLANT) ( %&$ /RESPONDENT) $ ' / APPELLANT BY : MR. SAROJ KUMAR PARIDA, ADV. %&$ ' /RESPONDENT BY : MR. VANA SRINIVASA RAO, JCIT ' /DATE OF HEARING : 18.07.2019 ' /DATE OF PRONOUNCEMENT : 06.09.2019 / O R D E R PER DUVVURU R.L.REDDY, JUDICIAL MEMBER : THIS IS AN APPEAL FILED BY THE ASSESSEE DIRECTED A GAINST THE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS)-9, CHENNAI , IN ITA NO.64/16- 17/CIT(A)-9 DATED 21.03.2019 FOR THE AY 2013-14. 2. BRIEF FACTS OF THE CASE OF THE ASSESSEE ARE THAT T HE ASSESSEE, A TRADE ORGANIZATION REGISTERED U/S.25 OF THE COMPANIES ACT , 1956 AS WELL AS REGISTERED U/S.12AA OF THE ACT, FILED ITS RETURN OF INCOME ON 28.09.2013 FOR THE AY 2013-14 ADMITTING NIL INCOME AFTER CLA IMING EXEMPTION U/S.11 ITA NO.1070/CHNY/2019 :- 2 -: OF THE ACT. THE AO COMPLETED THE ASSESSMENT U/S.14 3(3) OF THE IT ACT VIDE ORDER DATED 29.03.2016 ASSESSING THE TOTAL INC OME OF RS.43,66,090/- BY ADDING THE EXCESS OF INCOME OVER EXPENDITURE INC LUDING PROFIT ON SALE OF LAND AFTER DENYING THE CLAIM OF EXEMPTION U/S11 OF THE ACT. 3. AGGRIEVED BY THE ASSESSEE, THE ASSESSEE PREFERRED AN APPEAL BEFORE THE LD.CIT(A). SINCE THE ASSESSEE COULD NOT E-FILE THE APPEAL, THE LD.CIT(A) DISMISSED THE APPEAL FILED BY THE ASSESSE E. 4. ON BEING AGGRIEVED, THE ASSESSEE IS IN APPEAL BEFO RE THE TRIBUNAL. THE COUNSEL FOR THE ASSESSEE HAS SUBMITTED THAT THE LD.CIT(A) HAS ERRONEOUSLY DISMISSED THE APPEAL SUMMARILY WITHOUT GOING INTO THE MERITS OF THE CASE AND WITHOUT APPRECIATING THE FACT THAT THE ASSESSEE HAS FILED MANUAL APPEAL WITHIN THE TIME STIPULATED UNDER THE ACT, BESIDES E-FILING OF THE APPEAL IMMEDIATELY. HE FURTHER SUBMITTED THAT SUITABLE DIRECTIONS MAY BE GIVEN TO THE LD.CIT(A) TO ADJUDICATE THE ISSUE O N MERITS BY GIVING AN OPPORTUNITY TO THE ASSESSEE. 5. PER CONTRA, THE LD.DR REFERRED TO THE ORDER OF THE LD.CIT(A) AND SUBMITTED THAT THE ASSESSEE HAS FAILED TO FILE THE APPEAL ELECTRONICALLY WHICH IS MANDATED BY THE AMENDMENT TO RULE 45 OF TH E IT RULES MODIFIED BY THE CBDT VIDE NOTIFICATION NO.S.O.637(E) DATED 0 1.03.2016, THE MANUAL APPEAL FILED HAS BEEN RIGHTLY TREATED BY THE LD.CIT(A) AS NON-EST. THEREFORE, THE ORDER PASSED BY THE LD.CIT(A) HOLDS GOOD. ITA NO.1070/CHNY/2019 :- 3 -: 6. WE HAVE HEARD BOTH THE PARTIES, PERUSED THE MATERI ALS AVAILABLE ON RECORD AND GONE THROUGH THE ORDERS OF AUTHORITIES B ELOW. 7. IT IS AN ADMITTED FACT THAT AGAINST THE ASSESSMENT ORDER, THE ASSESSEE FILED A MANUAL APPEAL BEFORE THE LD.CIT(A) ON 27.04.2016 WHICH IS WELL WITHIN THE TIME PROVIDED UNDER THE ACT. SI NCE THE ASSESSEE DID NOT COMPLY WITH RULE 45 OF THE IT RULES WHICH MANDATES COMPULSORY E-FILING OF APPEALS BEFORE THE LD.CIT(A) W.E.F. 01.03.2016 IN R ESPECT OF PERSONS WHO ARE REQUIRED TO FURNISH RETURN OF INCOME ELECTRONIC ALLY, THE LD.AR OF THE ASSESSEE WAS REQUESTED TO CLARIFY ON THE AFORESAID ASPECT VIDE OFFICE NOTING DATED 20.03.2019. IN RESPONSE, THE LD.AR AP PEARED ON 21.03.2019 BEFORE THE LD.CIT(A) AND SUBMITTED THAT THE APPEAL IN FORM 35 HAS BEEN E-FILED ON 21.03.2019 AND REQUESTED FOR CONDONATION OF DELAY OF 1055 DAYS IN E-FILING THE APPEAL VIDE PETITION D ATED 21.03.2019. THE LD.CIT(A) DISMISSED THE APPEAL FILED BY THE ASSESSE E WITHOUT ADJUDICATING THE ISSUE ON MERITS. ON SIMILAR FACTS AND CIRCUMST ANCES IN AN IDENTICAL ISSUE THE MUMBAI BENCH OF THIS TRIBUNAL IN THE CASE OF ALL INDIA FEDERATION OF TAX PRACTITIONERS V. ITO REPORTED IN [2016] 166 DTR 276 (MUMBAI TRIB.) AS ALSO THE DECISION OF THE DELHI BENCHES OF THE TR IBUNAL IN THE CASE OF SHRI GURINDER SINGH DHILLON V. ITO IN ITA NO.6595/DEL/20 16 DATED 19.04.2017 HAD HELD THAT THE DELAY WAS LIABLE TO BE CONDONED. APART FROM THIS, WE HAVE PERUSED THE PRINCIPLES LAID DOWN BY THE HONBL E SUPREME COURT IN THE CASE OF STATE OF PUNJAB V. SHYAMALAL MURARI & O THERS REPORTED IN AIR 1976 (SC) 1177 SAYING THAT THE DELAY IN E-FILING OF THE APPEAL IS CONDONED ITA NO.1070/CHNY/2019 :- 4 -: AND THE ISSUES IN THIS APPEAL ARE RESTORED TO THE F ILE OF THE LD.CIT(A) FOR ADJUDICATION ON MERITS IN ACCORDANCE WITH LAW BY AL LOWING AN OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. 8. THUS, RESPECTFULLY FOLLOWING THE PRINCIPLES LAID D OWN BY THE HONBLE SUPREME COURT IN THE CASE OF STATE OF PUNJAB V. SHY AMALAL MURARI & OTHERS, REFERRED TO SUPRA, WE ARE OF THE VIEW THAT THIS IS A FIT CASE TO RESTORE THE APPEAL TO THE FILE OF THE LD.CIT(A) FOR ADJUDICATION ON MERITS IN ACCORDANCE WITH LAW BY AFFORDING AN OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. 9. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE I S ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED ON THE 06 TH DAY OF SEPTEMBER, 2019 IN CHENNAI. SD/- SD/- ( ) ( INTURI RAMA RAO ) 0 /ACCOUNTANT MEMBER ( 1 2 . . 5 ) ( DUVVURU R.L.REDDY ) 0 /JUDICIAL MEMBER /CHENNAI, 7 /DATED: 06 TH SEPTEMBER, 2019. TLN ' % 89 :9 /COPY TO: 1. $ /APPELLANT 4. ; /CIT 2. %&$ /RESPONDENT 5. 9 % /DR 3. ; ( ) /CIT(A) 6. ! /GF