M/s Kudos Holdings Pvt. Ltd., Chandigarh V. ACIT, CC-II, Chandigarh

ITA 1134/CHANDI/2018

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 9900 (ITAT-CHANDIGARH)
• Duration Of Justice: 6 month(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-03-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2012-2013
• Appeal Filed On: 31-08-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ASHISH GUPTA
• Keywords: Set aside
• Section: 153A

Judgement Text

, , , IN THE INCOME TAX APPELLATE TRIBUNAL, CHANDIGARH BENCH A , CHANDIGARH , ! ' # $ %! , BEFORE: SHRI SANJAY GARG, JUDICIAL MEMBER AND SMT.ANNAPURNA GUPTA, ACCOUNTANT MEMBER ./ ITA NO.1134 & 1135/CHD/2018 / ASSESSMENT YEAR : 2012-13 & 2013-14 M/S KUDOS HOLDINGS PVT. LTD., #1620, SECTOR 18D, CHANDIGARH. THE A .C.I.T. , CENTRAL CIRCLE-II, CHANDIGARH. ./PAN NO: AAECK4666M ./ ITA NO.1136/CHD/2018 / ASSESSMENT YEAR : 2008-09 ./ ITA NO.1137/CHD/2018 / ASSESSMENT YEAR : 2010-11 ./ ITA NO.1138/CHD/2018 / ASSESSMENT YEAR : 2011-12 ./ ITA NO.1139/CHD/2018 / ASSESSMENT YEAR : 2013-14 & ./ ITA NO.1140/CHD/2018 / ASSESSMENT YEAR : 2014-15 M/S KUDOS AGROHOLS LTD., #1620, SECTOR 18D, CHANDIGARH. THE A.C.I.T. , CENTRAL CIRCLE-II, CHANDIGARH. ./PAN NO: AACCK8042M ./ ITA NOS.1141 TO 1146/CHD/2018 / ASSESSMENT YEARS : 2008-09 TO 2013-14 M/S KUDOS AGROHOLS LTD., #1620, SECTOR 18D, CHANDIGARH. THE A.C.I.T. , CENTRAL CIRCLE-II, CHANDIGARH. ./PAN NO: AACCK8042M 2 /ASSESSEE BY : SHRI TEJ MOHAN SINGH, ADV. / REVENUE BY : SHRI ASHISH GUPTA, CIT DR ! ' /DATE OF HEARING : 28.03.2019 #$%& ' /DATE OF PRONOUNCEMENT: 28.03. 2019 /ORDER PER BENCH: THE PRESENT APPEALS FOR DIFFERENT ASSESSMENT YEARS HAVE BEEN PREFERRED BY DIFFERENT BUT RELATED ASSESSEES/SISTER CONCERNS AGAINST THE SEPARATE ORDE RS OF THE LD. COMMISSIONER OF INCOME TAX (APPEALS)-2 (HEREINA FTER REFERRED TO AS (LD.CIT(A), ALL DATED 24.11.2016, PASSED U/S 250(6 OF THE INCOME TAX ACT, 1961 (IN SHORT THE AC T). 2. THE ASSESSEES IN THESE APPEALS HAVE AGITATED THE CONFIRMATION OF ADDITION MADE BY THE ASSESSING OFFI CER (A.O.) IN ASSESSMENTS FRAMED U/S 153A R.W.S. 144/14 3(3) OF THE ACT. ALL THE APPEALS ARE TIME BARRED BY 559 DAY S. SEPARATE APPLICATIONS ALONGWITH AFFIDAVITS HAVE BEE N MOVED FOR CONDONATION OF DELAY. HOWEVER, FOR THE SAKE OF CONVENIENCE, WE TAKE ITA NO.1135/CHD/2018 AS LEAD C ASE FOR THE PURPOSE OF NARRATION OF FACTS/PLEADINGS. 3. IT HAS BEEN PLEADED IN THE APPLICATION FOR CONDO NATION OF DELAY THAT THE ASSESSEE COMPANY NEVER RECEIVED T HE COPY OF THE ORDER DATED 24.11.2016 ALLEGEDLY SENT BY THE CIT(A) ON THE ADDRESSES OF THE COMPANY. IT HAS BEEN PLEADE D THAT CHLOR ALKALI PLANT FOR WHICH THE PROJECT IN QUESTIO N TO BE RUN BY THE ASSESSEE COMPANY, UNFORTUNATELY, COULD N OT GET 3 THE ENVIRONMENTAL CLEARANCE AND, THEREFORE, HAD BEE N ABANDONED AND, THEREFORE, THE EMPLOYEES RETRENCHED. DUE TO THE AFORESAID FACT, THERE WAS NO EMPLOYEE OF THE AS SESSEE COMPANY TO RECEIVE THE AFORESAID IMPUGNED ORDERS OF THE CIT(A) AND THE SAME WERE NEVER SERVED UPON THE ASSE SSEE. THAT THEREAFTER THE ASSESSEE COMPANY APPOINTED NEW CONSULTANTS AND FINANCIAL TEAM WHO HELPED THE COMPA NY TO COMPLY WITH VARIOUS STATUTORY REGULATIONS INCLUDING PURSUING THE INCOME TAX MATTERS. THAT THE ORDER FOR ASSESSMENT YEAR 2009-10 WAS DULY SERVED UPON THE ASSESSEE COMPANY, FOR WHICH NECESSARY ACTION FOR FI LING THE APPEAL WAS PROMPTLY TAKEN. THAT ON RECEIPT OF THE O RDER OF THE CIT(A) FOR ASSESSMENT YEAR 2009-10, THE ASSESSE E COMPANY ENQUIRED ABOUT THE ORDER OF THE CIT(A) FOR THE ASSESSMENT YEAR UNDER CONSIDERATION AND APPROACHED THE OFFICE OF THE CIT(A) AND THEN IT WAS DISCLOSED THAT THE IMPUGNED ORDER WAS PASSED ON 24.11.2016. THE ASSESS EE COMPANY THEREAFTER APPLIED FOR THE CERTIFIED COPY O F THE SAID ORDER AND FILED THE PRESENT APPEAL. THAT THE DELAY IN FILING THE APPEAL WAS NOT INTENTIONAL BUT WAS DUE TO UNAVO IDABLE CIRCUMSTANCES, WHICH WAS BEYOND THE CONTROL OF THE ASSESSEE COMPANY. THE LD. COUNSEL FOR ASSESSEE HAS ALSO INVITED OUR ATTENTION TO THE IMPUGNED ORDER OF THE A.O. AS WELL AS OF THE CIT(A) TO SHOW THAT THE IMPUGNED ORD ER OF THE A.O. AS WELL AS OF THE CIT(A) IS EX-PARTE ORDER. 4. THE LD. DR, ON THE OTHER HAND, HAS SUBMITTED THA T THERE IS A LONG DELAY OF 559 DAYS IN FILING THE APP EAL AND 4 THAT THE ASSESSEE HAS REMAINED NEGLIGENT IN FILING THE AFORESAID APPEAL. 5. CONSIDERING THE RIVAL SUBMISSIONS AND ALSO THE AVERMENTS MADE IN THE APPLICATION FOR CONDONATION O F DELAY, WHICH IS DULY SUPPORTED WITH THE AFFIDAVIT OF SHRI GURMEET SODHI, DIRECTOR OF THE COMPANY, WHEREIN IT HAS BEEN DEPOSED THAT THERE WAS NOT ANY INTENTIONAL DEFAULT ON THE PART OF THE ASSESSEE COMPANY, RATHER THE IMPUGNED O RDER OF THE CIT(A) WAS NEVER SERVED UPON THE ASSESSEE AND T HAT THE PROJECT OF THE ASSESSEE COMPANY HAD BEEN SINCE ABAN DONED, THERE WAS NO REGULAR EMPLOYEE OF THE ASSESSEE COMPA NY. WE ARE OF THE VIEW THAT THE ASSESSEE COMPANY HAS A REA SONABLE CAUSE FOR LATE FILING OF THESE APPEALS. IN OUR VIEW , THE DELAY IN FILING THESE APPEALS, IN THE INTEREST OF JUSTICE , IS REQUIRED TO BE CONDONED. WE ORDER ACCORDINGLY. 6. NOW COMING TO THE MERITS OF THE CASE, THE ASSESS EE HAS FILED A SEPARATE AFFIDAVIT OF SHRI GURMEET SODHI, D IRECTOR OF THE ASSESSEE COMPANY, WHEREIN IDENTICAL PLEADINGS H AVE BEEN MADE AND IT HAS BEEN DEPOSED THAT DUE TO THE AFORESAID REASONS EXPLAINED, THE ASSESSEE COMPANY C OULD NOT APPEAR AND PRESENT ITS CASE DURING ASSESSMENT PROCEEDINGS CARRIED OUT BY THE A.O. U/S 153(3) R.W. S. 144/143(3) OF THE ACT. IN OUR VIEW, INTEREST OF JUS TICE WILL BE SERVED IF THE ASSESSEE IS GIVEN AN OPPORTUNITY TO P ROPERLY PRESENT ITS CASE AND GIVE DUE EXPLANATION TO THE A. O. AND THE MATTER BE DECIDED ON MERITS BY THE A.O. IN VIEW OF THIS, EX-PARTE ORDERS OF THE LOWER AUTHORITIES ARE HEREBY SET ASIDE 5 AND THE MATTER IN THIS APPEAL IS REMANDED BACK TO T HE A.O. FOR AN ASSESSMENT AFRESH. 7. SINCE THE FACTS AND CIRCUMSTANCES IN OTHER APPEA LS ARE IDENTICAL AND EVEN IDENTICAL PLEADINGS HAVE BEEN MA DE FOR CONDONATION OF DELAY, HENCE, THE FINDINGS GIVEN ABO VE WILL APPLY TO ALL THE APPEALS AND ACCORDINGLY, THE MATTE R IN ALL THE APPEALS IS REMANDED TO THE FILE OF THE A.O. FOR ASSESSMENT AFRESH. 8. IN THE RESULT, ALL THE APPEALS FILED BY THE ASSE SSEE ARE, THEREFORE, TREATED AS ALLOWED FOR STATISTICAL PURPO SES. ORDER PRONOUNCED IN THE OPEN COURT. SD/- SD/- ' # $ %! (ANNAPURNA GUPTA) (SANJAY GARG) &' /ACCOUNTANT MEMBER /JUDICIAL MEMBER )' /DATED: 28 TH MARCH, 2019 * * $'( )*+* / COPY OF THE ORDER FORWARDED TO : 1. , / THE APPELLANT 2. (-, / THE RESPONDENT 3. . / CIT 4. . ( )/ THE CIT(A) 5. */0( 1 , '1 , 23405 / DR, ITAT, CHANDIGARH 6. 046! / GUARD FILE $' / BY ORDER, / ASSISTANT REGISTRAR