MNS Printers Private Limited, Bangalore V. The Principal Commissioner, Bangalore

ITA 1073/BANG/2015

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 0357 (ITAT-BANGALORE)
• Duration Of Justice: 10 month(s) 14 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-05-2016
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: C
• Next Hearing Date: 27-07-2017
• Assessment Year: 2010-2011
• Appeal Filed On: 13-07-2015
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Assessee Lawyers: A N KAPALI
• Keywords: Condonation of delay; Ignorance of law
• Section: 12A; 32; 263

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH, BANGALORE BEFORE SHRI VIJAY PAL RAO, JUDICIAL MEMBER AND SHRI INTURI RAMA RAO, ACCOUNTANT MEMBER ITA NO. 1073/ BANG/20 15 (ASSESSMENT YEAR: 20 10 - 11 ) M/S.MNS PRINTERS PVT. LTD., NO.345/4, OLD MADRAS ROAD, BHATTARAHALLI, BANGALORE - 560049. PAN: AABCM 9873 F VS. APPELLANT INCOME - TAX OFFICER, WARD 12(1), BANGALORE. RESPONDENT APPELLANT BY : SHRI A.N.KAPALI, CA. RESPONDENT BY : SHRI SANJAY KUMAR, CIT(DR) DATE OF HEARIN G : 28/04/2016 DATE OF PRONOUNCEMENT : 27 /05/2016 O R D E R PER I NTURI RAMA RAO, AM : THIS IS AN APPEAL FILED BY THE ASSESSEE - COMPANY DIRECTED AGAINST THE ORDER OF THE PRINCIPAL COMMISSIONER OF INCOME - TAX, BANGALORE - 4 PASSED U/S 263 OF THE INC OME - TAX ACT, 1961 [HEREINAFTER REFERRED TO AS 'THE ACT' FOR SHORT] DATED 19/03/2015 FOR THE ASSESSMENT YEAR 2010 - 11. ITA NO . 1073 /BANG/201 5 PAGE 2 OF 4 2 . AT THE OUTSET, IT IS NOTICED THAT THERE IS A DELAY OF 47 DAYS IN FILING THE PRESENT APPEAL. THE ASSESSEE HAD FILED A PETITION PR AYING FOR CONDONATION OF THE SAID DELAY STATING THAT IT WAS UNDER A BONA FIDE BELIEF THAT APPEAL WAS REQUIRED TO BE FILED ONLY AGAINST THE CONSEQUENTIAL ORDER PASSED PURSUANT TO DIRECTIONS OF THE CIT U/S 263. IT WAS FURTHER STATED THAT IT IS ONLY AFTER RE ALIZING THAT APPEAL WAS REQUIRED TO BE FILED AGAINST THE IMPUGNED ORDER, THE APPEAL WAS FILED WITH THE DELAY. THE ASSESSEE HAS RELIED ON THE DECISION OF THE HON BLE SUPREME COURT IN THE CASE OF N.BALAKRISHNAN VS. M.KRISHNAMURTHY REPORTED IN AIR 1998 SC 32 22 FOR THE PROPOSITION THAT THE DELAY ON ACCOUNT OF NEGLIGENCE OF ADVOCATE SHOULD BE CONDONED. AFTER PERUSAL OF THE AVERMENTS MADE IN THE CONDONATION PETITION, IT IS CLEAR THAT THE ASSESSEE HAD NOT DISCLOSED THE SOURCE OF LEGAL ADVICE WHO HAS GIVEN ADVIC E THAT NO APPEAL WAS REQUIRED TO BE FILED AGAINST IMPUGNED ORDER AND THE DAY - TODAY DELAY WAS ALSO NOT EXPLAINED. THE HON'BLE JURISDICTIONAL HIGH COURT IN THE CASE OF SPPORTHI SADAN CONVENT VS. CIT (68 TAXMANN.CO. 245)(KAR) , ON IDENTICAL FACTS , HELD THAT T HE DELAY CANNOT BE CONDONED AS IGNORANCE OF LAW IS NOT AN EXCUSE AND THE ASSESSEE HAD NOT REVEALED SOURCE OF ILL - ADVICE GIVEN. THE HON BLE HIGH COURT HELD IN PARAT.7 TO TELL AS FOLLOWS: 7. THIS IS NOT A CASE WHEREIN THE APPELLANT IS AN ILLITERATE PERS ON, WHO MAY NOT KNOW THE REPERCUSSION IN LAW. FURTHER, IT IS THE SPECIFIC CASE OF THE APPELLANT THAT THE TRUST WAS UNDER BONA FIDE IMPRESSION THAT ITA NO . 1073 /BANG/201 5 PAGE 3 OF 4 REGISTRATION UNDER SECTION 12A WAS NOT A CONDITION PRECEDENT AND SUCH IMPRESSION WAS BASED ON ADVISE. BUT, NO NETHELESS, THE APPELLANT NEITHER CHOSE TO REVEAL THE SOURCE OF SUCH ADVICE NOR REPLIED TO THE QUESTIONS POSED BY THE TRIBUNAL. IN SUCH CIRCUMSTANCES, THE APPEAL CHALLENGING THE ORDER OF THE TRIBUNAL IS ONLY A REITERATION OF GROUNDS URGED BEFORE THE TRIBUNA L. 8. THE LEARNED COUNSEL FOR THE APPELLANT CONTENDED THAT THOUGH THE COUNSEL APPEARING FOR THE APPELLANT OFFERED TO FURNISH THE DETAILS SOUGHT FOR BY THE TRIBUNAL, NO TIME WAS GRANTED BY THE TRIBUNAL. NO SPECIFIC GROUND IS URGED IN THIS BEHALF IN THE PLEADINGS EITHER IN THE FORM OF STATEMENT OF FACTS OR AFFIDAVIT TO SUBSTANTIATE SUCH CONTENTION. 9. IGNORANCE OF LAW IS NO EXCUSE. WE MAY USEFULLY REFER TO THE JUDGMENT OF THE HON'BLE SUPREME COURT IN THE CASE OF THE SWADESHI COTTON MILLS CO. LTD. V. G OVERNMENT OF U.P. [1975] 4 SCC 378, WHEREIN IT IS HELD AS FOLLOWS: BUT WE ARE IN AGREEMENT WITH THE HIGH COURT ON THE OTHER TWO GROUNDS. AS MENTIONED EARLIER, THE IMPUGNED ASSESSMENTS WERE MADE IN 1949. THE WRIT PETITION WAS FILED IN 1 956. THE EXPLANATIO N GIVEN BY THE PETITIONER FOR THIS LONG DELAY IS THAT HE DID NOT KNOW THE CORRECT LEGAL POSITION AND LIE CAME TO KNOW ABOUT THE SAME AFTER THE DECISION OF THE ALLAHABAD HIGH COURT IN THE COMMISSIONER OF SALES TAX, UP. V. MODI FOOD PRODUCTS LID. EVERY INDIV IDUAL IS DEEMED TO KNOW THE LAW OF THE LAND. THE COURTS MERELY INTERPRET THE LAW AND DO NOT MAKE LAW. IGNORANCE OF LAW IS NOT AN EXCUSE FOR NOT TAKING APPROPRIATE STEPS WITHIN LIMITATION. THEREFORE THE ARGUMENT THAT THE APPELLANT DID NOT KNOW THE TRUE LEGA L POSITION IS NOT ONE THAT CAN BE ACCEPTED IN LAW....... 10. IN THE CIRCUMSTANCES, WE ARE OF THE CONSIDERED VIEW THAT THE APPELLANT HAS NOT MADE OUT ANY GROUND FOR CONDONATION OF DELAY OF 997 DAYS BEFORE THE TRIBUNAL. WE SEE NO ERROR IN THE ORDER PASSED BY THE TRIBUNAL. ACCORDINGLY, THE APPEAL FAILS AND STANDS DISMISSED. THE HON BLE HIGH COURT HAD FOLLOWED THE RATIO LAID DOWN BY THE HON BLE SUPREME COURT IN THE CASE OF SWADESHI COTTON MILLS CO. ITA NO . 1073 /BANG/201 5 PAGE 4 OF 4 LTD. VS. GOVERNMENT OF UP (1975) 4 SCC 378 THAT IGNORANCE OF LAW IS NOT AN EXCUSE AND THEREFORE, DELAY IN FILING OF APPEAL CANNOT BE CONDONED ON ACCOUNT OF IGNORANCE OF LAW. THE RATIO LAID DOWN BY THE HON'BLE JURISDICTIONAL HIGH COURT IN THE CASE CITED SUPRA IS SQUARELY APPLICABLE TO THE PRESENT CASE. IN THE PR ESENT CASE ALSO, THE ASSESSEE NOT REVEALED THE ILL - ADVICE NOR PRODUCE D ANY MATERIAL IN SUPPORT OF THE AVERMENTS MADE IN AFFIDAVIT. THEREFORE, WE HOLD THAT IT IS NOT A FIT CASE TO CONDONE THE DELAY IN FILING THE PRESENT APPEAL AND THE PETITION FOR CONDONA TION OF DELAY IS DISMISSED. 7. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS DISMISSED IN LIMINE. ORDER PRONOUNCED IN THE OPEN COURT ON THIS 27 TH MAY , 2016 S D/ - S D/ - (VIJAY PAL RAO) (INTURI RAMA RAO) JUDICIAL MEMBER ACCOUNTANT MEMBER PLACE : BANGALORE D A T E D : 27 /0 5 /2016 SRINIVASULU, SPS COPY TO : 1 APPELLANT 2 RESPONDENT 3 CIT(A) - II BANGALORE 4 CIT 5 DR, ITAT, BANGALORE. 6 GUARD FILE BY ORDER ASSISTANT REGISTRAR INCOME - TAX APPELLATE TRIBUNAL BANGALORE