Sri Sarada Vidya Peetham , Hyderabad V. Income Tax Officer, Ward-15(2), Hyderabad

ITA 1123/Hyd/2019

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 5154 (ITAT-HYDERABAD)
• Duration Of Justice: 7 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-02-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB-B
• Next Hearing Date: 27-01-2020
• Assessment Year: 2012-2013
• Appeal Filed On: 10-07-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: R S ARVIND DAKSHAN
• Assessee Lawyers: P VINOD
• Keywords: Search and seizure; Condonation of delay
• Section: 143(3); 263

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCHES B : HYDERABAD BEFORE SMT. P. MADHAVI DEVI, JUDICIAL MEMBER AND SHRI A. MOHAN ALANKAMONY, ACCOUNTANT MEMBER I.T.A. NO. 1123/HYD/2019 ASSESSMENT YEAR: 2012-13 M/S.SRI SARADA VIDYA PEETHAM, HYDERABAD [PAN: AAGTS3296J] VS INCOME TAX OFFICER, WARD-15(2), HYDERABAD (APPELLANT) (RESPONDENT) FOR ASSESSEE : SHRI P.VINOD, AR FOR REVENUE : SHRI R.S.ARVIND DAKSHAN, DR DATE OF HEARING : 27-01-2020 DATE OF PRONOUNCEMENT : 19-02-2020 O R D E R PER SMT. P. MADHAVI DEVI, J.M. : THIS IS ASSESSEES APPEAL FOR THE AY.2012-13, DIREC TED AGAINST THE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS)-7, HYDERABAD, DATED 19-06-2019, DISMISSING THE ASSESSEES APPEAL WITHOUT CONDONING THE DELAY OF 376 DAYS IN FILING OF THE APPEAL BEFORE HIM. 2. THE ASSESSEE HAS RAISED THE FOLLOWING GROUNDS OF APPEAL: 1. THE ORDER OF THE LEARNED CIT(A) DISMISSING THE APPEAL IN LIMINE IS ERRONEOUS BOTH ON FACTS AND IN LAW. 2. THE LEARNED CIT(A) ERRED IN DISMISSING THE APPEA L WITHOUT ADMITTING THE SAME ON THE REASON THAT THE REASONS M ENTIONED FOR THE ITA NO. 1123/HYD/2019 :- 2 -: DELAY IN FILING THE APPEAL ARE NOT ACCEPTED. THE LE ARNED CIT(A) FAILED TO APPRECIATE THAT THE ASSESSEE WAS PREVENTED BY SU FFICIENT CAUSE FOR NOT FILING THE APPEAL WITHIN TIME OF LIMITATION. 3. THE LD.CIT(A) OUGHT TO HAVE APPRECIATED THAT WHE N THERE IS A STRONG CASE ON MERITS, DELAY CANNOT BE A REASON TO DISMISS THE APPEAL. 3. AT THE OUTSET, LD.COUNSEL FOR THE ASSESSEE REITERATED THE SUBMISSIONS MADE BY THE ASSESSEE BEFORE THE CIT(A), EXPLAINING THE REASONS FOR THE DELAY. FOR THE SAKE OF READY REFERENCE, RELEVANT PARAGRAPH IS REPRODUCED HERE UND ER: 4. IN THIS CASE, THERE WAS A DELAY OF 376 DAYS IN FILING AN APPEAL. IN THIS REGARD, THE APPELLANT FILED THE FOLLOWING PETITION FOR COND ONATION OF DELAY: I.PENDYALA VENKAT REDDY, SON OF SRI LATE PENDYALA NARAYAN REDDY, AGED ABOUT 60 YEARS, R/O. FLAT NO.102, SRI L AXMI NARSIMHA, APARTMENTS, BARKATPURA, HYDERABAD - 500 027, DO HER EBY SOLEMNLY STATE AND AFFIRM AS UNDER: I AM THE SECRETARY OF THE APPELLANT SOCIETY IN RESP ECT OF THE APPEAL FILED, AGAINST THE ORDER U/S 143(3) RWS 263 FOR THE ASSESSMENT YEAR 2012-13, BEFORE THE HONORABLE COMMISSIONER OF INCOM E-TAX (APPEALS)- 7, HYDERABAD, AND AS SUCH I AM CONVERSANT WITH ALL THE FACTS RELATING THERETO. THE DUE DATE FOR FILING AN APPEAL AGAINST THE SAID ORDER WAS EXPIRED ON 28.01.2018. HOWEVER, THE SAME WAS FILED ON 09.02 .2019, WITH A DELAY OF 376 DAYS. IN THIS REGARD, IT IS HUMBLY SUB MIT THAT, THE SECRETARY OF THE APPELLANT SOCIETY WAS NOT OF THE F ACTUM OF PASSING OF THE ASSESSMENT ORDER IN QUESTION, BECAUSE OF THE FA CT THAT, THERE WERE DISPUTES AMONG THE MEMBERS, AFTER A RAID BY THE CCS OFFICIALS WAS CARRIED ON THE COLLEGE PREMISES AND SEIZED THE SEVE RAL RECORDS OF THE INSTITUTION, AS A RESULT THE COLLEGES WERE CLOSED A ND THE COMMUNICATION BETWEEN THE MEMBERS WERE HALTED. BUT, THE APPELLANT CAME TO KNOW ABOUT ORDER ONLY ON 29.01.2019 WHEN TH E NOTICE FROM THE DEPARTMENT WAS SERVED ON THE APPELLANT REGARDIN G PENDING OUTSTANDING DEMAND OF RS. 15,34,770/- FOR THE AY.20 12-13. IMMEDIATELY THEREAFTER, THE SECRETARY OF THE APPELL ANT SOCIETY APPROACHED MR.P.JITENDER REDDY, CHARTERED ACCOUNTAN T WHO HAD ITA NO. 1123/HYD/2019 :- 3 -: BEEN ITS AUTHORIZED REPRESENTATIVE TO HANDLE THE TA X MATTERS TO FILE AN APPEAL BEFORE CIT (APPEALS)-7. I, THEREFORE, SUBMIT THAT THE DELAY IN FILING THE A PPEAL WAS NEITHER INTENTIONAL NOR OUT OF NEGLIGENCE, BUT DUE TO THE C IRCUMSTANCES BEYOND THE APPELLANT'S CONTROL, AS EXPLAINED ABOVE. IN VIE W OF THE SAME, THE HON'BLE CIT(A)-7 IS PRAYED TO CONDONE THE DELAY OF 376 DAYS AND ADMIT THE APPEAL. WHAT IS STATED ABOVE IS TRUE TO THE BEST OF MY KNOW LEDGE AND BELIEF. 3.1. LD.COUNSEL FOR THE ASSESSEE FURTHER SUBMITTED THAT THE FACT OF THE RAID BY THE CCS OFFICIALS ON THE COLLEGE PREMISES AN D THAT AS A RESULT OF THE SAME, THE COLLEGES RUN BY THE AS SESSEE SOCIETY ARE CLOSED DOWN IS NOT UNDER DISPUTE. HE SUB MITTED THAT IT IS BECAUSE OF THESE REASONS THAT THERE WAS NO COMMUNICATION BETWEEN THE MEMBERS OF THE SOCIETY RESUL TING IN THE DELAY IN FILING OF THE APPEAL BEFORE THE CIT(A) . HE THEREFORE SUBMITTED THAT THE DELAY MAY BE CONDONED AND TH E MATTER MAY BE REMANDED TO THE FILE OF CIT(A) FOR DECIDI NG THE MERITS OF THE ISSUE. 4. LD.DR, HOWEVER, OPPOSED THE CONDONATION OF DELAY A ND SUBMITTED THAT THE ASSESSEE HAS NOT EXPLAINED THE REASON ABLE CAUSE FOR THE DELAY IN FILING OF THE APPEAL BEFORE THE CIT(A) BELATEDLY, DUE TO WHICH THE CIT(A) HAS REFUSED TO COND ONE THE DELAY. 5. HAVING REGARD TO THE RIVAL CONTENTIONS AND MATERIAL ON RECORD, WE FIND THAT THE FACTUM OF THE RAID BY THE CCS OF FICIALS AND THE CLOSURE OF THE COLLEGES THEREFORE IS NOT DISPUT ED BY THE DEPARTMENT. IN SUCH CIRCUMSTANCES, WE ARE CONVINCED TH AT THE DELAY IN FILING OF THE APPEAL IS NEITHER WILLFUL NOR WANTON BUT IS ITA NO. 1123/HYD/2019 :- 4 -: DUE TO THE REASONS BEYOND THE CONTROL OF THE ASSESSEE. H ENCE, THE DELAY IN FILING OF THE APPEAL BEFORE THE CIT(A) IS CONDONED AND THE CIT(A) IS DIRECTED TO CONSIDER THE APPEAL ON M ERITS AFTER GIVING THE ASSESSEE A FAIR OPPORTUNITY OF HEARI NG. 6. IN THE RESULT, THE APPEAL OF ASSESSEE IS TREATED AS A LLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 19 TH FEBRUARY, 2020 SD/- SD/- ( A. MOHAN ALANKAMONY ) ( P. MADHAVI DEVI ) ACCOUNTANT MEMBER JUDICIAL MEMBER HYDERABAD, DATED: 19-02-2020 TNMM ITA NO. 1123/HYD/2019 :- 5 -: COPY TO : 1. M/S.SRI SARADA VIDYA PEETHAM, NO.6-16/2, SAVARKA R NAGAR, NACHARAM, HYDERABAD. 2. THE INCOME TAX OFFICER, WARD-15(2), HYDERABAD. 3. CIT(APPEALS)-7, HYDERABAD. 4. THE PR.CIT-7, HYDERABAD. 5. D.R. ITAT, HYDERABAD. 6. GUARD FILE.