Sh. Lal Chand, Chandigarh V. ACIT, C-2(1), Chandigarh

ITA 1108/CHANDI/2017

• Counselvise Citation: [2018] 126 COUNSELVISE.COM (IT) 5193 (ITAT-CHANDIGARH)
• Duration Of Justice: 8 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-03-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2012-2013
• Appeal Filed On: 03-07-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: CHANDRA KANTA
• Keywords: Period of limitation; Reasonable cause; Non compliance; Time period of passing order; Condonation of delay
• Section: 143(3); 131

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DIVISION BENCHA, CHANDIGARH BEFORE SMT. DIVA SINGH, JUDICIAL MEMBER AND DR. B.R.R. KUMAR, ACCOUNTANT MEMBER ITA NOS.1107 TO 1109/CHD/2017 (ASSESSMENT YEAR : 2012-13) SHRI. LAL CHAND VS. THE ASSTT. CIT H.NO. 2382, SECTOR 22C, CIRCL 2(1) CHANDIGARH CHANDIGARH PAN: AFNPC4579C (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI PARIKSHIT AGGARWAL DEPARTMENT BY : SMT. CHANDRAKANTA DATE OF HEARING : 05.03.2018 DATE OF PRONOUNCEMENT : 05/03/2018 O R D E R PER BENCH : ALL THE ABOVE APPEALS HAVE BEEN FILED BY THE ASSES SEE AGAINST THE SIMILAR ORDER OF LD. CIT(A)-1, CHANDIGA RH DT. 31/03/2017. SINCE THE ISSUES RAISED IN ALL THE ABOVE APPEALS AR E COMMON THEREFORE THEY ARE BEING DECIDED TOGETHER FOR THE SAKE OF CON VENIENCE. WE SHALL TAKE ITA NO. 1107/CHD/2017 AS A LEAD CASE. 2. THE ASSESSEE HAS RAISED THE FOLLOWING EFFECTIVE GROUNDS IN ITA NO. 1107/CHD/2017: 2 2. THAT ON THE FACTS, CIRCUMSTANCES AND LEGAL POSIT ION OF THE CASE, THE WORTHY CIT(A) WAS UNJUSTIFIED IN DISMISSING THE APPEAL OF THE APPELLANT IN LIMINE BY HOLDING THAT THE APPEAL WAS FILED BEYOND LIMITATION PERIOD AND THERE DID NOT EXIST REASONABLE CAUSE FOR CONDONATION OF DELAY EVEN WHEN THE APPEAL WAS NOT FILED LATE FROM DATE OF ACTUAL RECEIPT AND ALTERNATIVELY, THERE EXISTED REASONABLE CAUSE FOR DELAY WHICH DESERVED TO BE CONDONED. 3. THAT ON THE FACTS, CIRCUMSTANCES AND LEGAL POSIT ION OF THE CASE, THE WORTHY CIT(A) WAS UNJUSTIFIED IN CONFIRMING THE ACTION OF THE LD. ASSESSING OFFICER WHEREIN HE HAS ERRED IN LEVYING THE IMPUGNED PENALTY OF RS. 10,000/- UNDER SECTION 272A(1)(C) FOR ALLEGED DEFAULT OF FAILURE TO APPEAR IN RESPONSE TO SUMMONS UNDER SECTION 131 OF THE ACT IN RESPECT OF ONGOING ASSESS MENT PROCEEDINGS OF M/S SARVILLA BUILDERS & DEVELOPERS PVT. LTD. 3. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSMENT IN THIS CASE WAS FRAMED U/S 143(3) OF THE ACT. PENALTY PROCEEDINGS U/S 272A(L)( C) WAS LEVIED FOR NON COMPLIANCE OF NOTICE ISSUED UNDER SECTION 131 OF TH E INCOME TAX ACT, 1961. 4. THE LD. CIT(A) CONFIRMED THE PENALTY AS THERE WA S DELAY IN FILING OF THE APPEAL BY 1.5 MONTHS. THE LD. CIT(A) HELD THAT SANC TITY ATTACHED TO THE LIMITATION PRESCRIBED UNDER THE LAW HAS TO BE FOLLO WED IN LETTER AND SPIRIT AND THUS THE CASE IS DISMISSED IN LIMINE. 5. BEFORE US THE ASSESSEE SUBMITTED THAT THE NOTICE WAS SERVED ON THE REPRESENTATIVE OF M/S SARVILLA BUILDERS & DEVELOPER S PVT. LTD. AND THE ASSESSEE SHRI. LAL CHAND DID NOT RECEIVED THE NOTICE IN TIME . IT WAS PLEADED THAT GIVEN AN OPPORTUNITY RELEVANT SUBMISSIONS WOULD BE MADE BEFO RE THE LD. CIT(A). 6. WE FIND THAT THE PENALTY HAS BEEN CONFIRMED AS T HE ASSESSEE COULD NOT FILE THE APPEAL IN TIME DUE TO NON RECEIPT OF THE N OTICE. THE LATE FILING OF THE APPEAL IS DUE TO A REASONABLE CAUSE WHICH CAN BE CO NDONED, HENCE WE REMAND THE MATTER BACK TO THE FILE OF THE CIT(A) TO ACCORD ONE OPPORTUNITY AND TO CONSIDER THE SUBMISSIONS OF THE ASSESSEE. AND WE BELIEVE THAT THE ASSESSEE WILL NOT BELAY THE CONFIDENCE REPOSED UPON AND WILL NOT ABUSE THE OPPORTUNITY GIVEN WHILE SUBM ITTING COMPLIANCE BEFORE THE LD. CIT(A). 3 7. IN THE RESULT, ALL THE ABOVE APPEALS OF THE ASSESSE E ARE ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT. SD/- SD/- (DIVA SINGH) (DR. B.R.R. KUMAR) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED : 05/03/2018 AG COPY TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT(A) 4. THE CIT 5. THE DR