G.J.Trading Private Limited, Hyderabad V. Dy.CIT,Circle-2(3), Hyderabad

ITA 111/HYD/2013

• Counselvise Citation: [2013] 140 COUNSELVISE.COM (IT) 69766 (ITAT-HYDERABAD)
• Duration Of Justice: 6 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-08-2013
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2008-2009
• Appeal Filed On: 01-02-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: P SOMASEKHAR REDDY
• Assessee Lawyers: P MURALI MOHAN RAO
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCHES A : HYDERABAD BEFORE SHRI CHANDRA POOJARI, ACCOUNTANT MEMBER AND SMT. ASHA VIJAYARAGHAVAN, JUDICIAL MEMBER ITA.NO.111/HYD/2013 ASSESSMENT YEAR 2008-2009 G.J. TRADING P. LTD. HYDERABAD. PAN AAACH7620H VS. ACIT, CIRCLE 2 (3) HYDERABAD. (APPELLANT) (RESPONDENT) FOR APPELLANT : SHRI P.MURALIMOHAN RAO (AR) FOR RESPONDENT : SHRI P.SOMASEKHAR REDDY (DR) DATE OF HEARING : 26.08.2013 DATE OF PRONOUNCEMENT : 26.08.2013 ORDER PER SMT. ASHA VIJAYARAGHAVAN, J.M. THIS APPEAL FILED BY THE ASSESSEE AGAINST THE ORDER OF THE CIT(A)-III, HYDERABAD DATED 17.12.2012 FOR THE ASSESSMENT YEAR 20 08-2009. 2. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE IS A COMPANY ENGAGED IN THE BUSINESS OF TRADING IN STEEL PRODUCTS. IT FILED ITS RETURN OF INCOME FOR ASSESSMENT YEAR 2008-2009 ON 29.09.2008 DECLARING TO TAL LOSS OF RS.26,18,29,327/-. THE ASSESSING OFFICER COMPLETED THE ASSESSMENT UNDER SECTION 143(3) OF THE ACT BY REJECTING THE BOOKS AND ESTIMATED THE INCOME AND DETERMINED THE TOTAL INCOME AT RS.5,25,97,969/- . 3. AGGRIEVED, THE ASSESSEE IS IN APPEAL BEFORE THE CIT(A). THE CIT(A) OBSERVED THAT IN SPITE OF SO MANY OPPORTUNITIES SPAN NING ALMOST 12 MONTHS, THE ASSESSEE DID NOT APPEAR AND ALSO DID NOT FILED ANY WRITTEN SUBMISSIONS. THE CIT(A) HELD THAT THE ASSESSMENT ORDER WAS PASSE D ON 24.12.2010 AND SERVED ON THE ASSESSEE ON 8.01.2011. ACCORDINGLY, TH E APPEAL WAS TO BE FILED 2 BY 7.2.2011, BUT THE APPEAL WAS FILED LATE ON 11.2.2 011. THE CIT(A) HELD THAT ASSESSEE DID NOT FILED THE APPEAL IN TIME AND ALSO DID NOT FILED ANY LETTER FOR CONDONATION OF DELAY. THE CIT(A) FURTHER HELD THAT I N THE RELEVANT COLUMN IN FORM-35, THE DATE MENTIONED IN TYPED WRITTEN TEXT WIT H REFERENCE TO THE DATE OF SERVICE IS 8.1.2011 AND THE ASSESSEE HAD TAMPERE D WITH IT AND CHANGED BY HAND THE DATE TO 18.12.2011 SO THAT THE APPEAL APPE ARS TO BE IN TIME. 4. AGGRIEVED, THE ASSESSEE IS IN APPEAL BEFORE US. THE LEARNED COUNSEL FOR THE ASSESSEE SHRI P.MURALIMOHAN RAO, PRAYED THAT THE DELAY OF 3 DAYS IN FILING THE APPEAL HAS NOT BEEN CONDONED BY THE CIT(A ) AND THE TRIBUNAL SHOULD TAKE APPROPRIATE DECISION TO CONDONE THE DEL AY. THE ASSESSEE RELIED ON THE FOLLOWING CASE LAW : (I) COLLECTOR OF LAND ACQUISITION V. MRS. KATIJI & OTHERS 167 ITR 471 (SC). (II) SRI BALAJI BIO MASS POWER PVT. LTD. HYDERABAD V. DCIT, CIRCLE 3 (2), HYDERABAD VIDE ITA.NO.478/HYD/10. (III) JAIN SEVA SANGH, APPELLANT V. THE DIT (EXEMPT IONS), RESPONDENT VIDE ITA.NO.1041/HYD/2009. (IV) GOLDSTONE EXPORTS LTD. VS. ACIT (INV.), CIRCLE 1(4), HYDERABAD VIDE ITA.NO.1211/HYD/2004. (V) CHEMINOR DRUGS LTD. V. DCIT, S.R.1, HYDERABAD V IDE ITA.302/H/2005 (VI) N.BALKRISHNAN VS. M.KRISHNAMURTHY (1998) 7 SCC 123 AND (VII) STATE OF NAGALAND VS. LIPUK A.O. 2005(183) E. L.T. 337 (S.C.). 4.1. THE ASSESSEE FURTHER SUBMITTED THAT A REASONAB LE OPPORTUNITY TO THE ASSESSEE COMPANY TO RECTIFY THE DEFECTS IN APPEAL H AD NOT BEEN GIVEN BY THE CIT(A) AND RELIED ON THE FOLLOWING CASE LAWS : (I) MALANI TRADING CO. VS. CIT (2001) 252 ITR 670 (BOM.) (II) BDA LTD. VS. ITO (TDS) 281 ITR 99 (BOM.) (AUR ANGABAD BENCH) (III) CIT VS. CALCUTTA DISCOUNT 91 ITR 8 (SC) 5. THE LEARNED D.R. FAIRLY CONSIDERED THAT THE CIT( A) SHOULD HAVE CONSIDERED THE CONDONATION OF DELAY. 3 6. WE HAVE HEARD BOTH THE PARTIES. WE ARE OF THE OP INION THAT THE SHORT DELAY OF 3 DAYS IN FILING THE APPEAL SHOULD BE CONDONED IN T HE INTEREST OF JUSTICE. HENCE, THE ORDER OF THE LEARNED CIT(A) IS SET ASIDE AND THE DE LAY CONDONED AND THE APPEAL IS RESTORED TO THE FILE OF THE LEARNED CIT(A) FOR FRES H ADJUDICATION ON MERITS OF THE CASE, AFTER GIVING A REASONABLE OPPORTUNITY OF BEING TO T HE ASSESSEE. 7. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 26 TH AUGUST, 2013. SD/- SD/- (CHANDRA POOJARI) (SMT. ASHA VIJAYAR AGHAVAN) ACCOUNTANT MEMBER JUDICIA L MEMBER HYDERABAD, DATE 26 TH AUGUST, 2013. VBP/- COPY TO 1. G.J. TRADING P. LTD., HYDERABAD. C/O. P. MURALI & CO. CHARTERED ACCOUNTANTS, 6-3-655/2/3, 1 ST FLOOR, SOMAJIGUDA, HYDERABAD 82. 2. ACIT, CIRCLE 2(3), HYDERABAD. 3. COMMISSIONER OF INCOME TAX (APPEALS)-III, HYDER ABAD. 4. COMMISSIONER OF INCOME TAX-II, HYDERABAD. 5. D.R. A BENCH, ITAT, HYDERABAD.