M/s Benara Udyog Ltd., Kanpur V. Assistant Commissioner of Income Tax, Range-V, Kanpur, Kanpur

ITA 119/LKW/2021

AI Insights

The case involves M/s Benara Udyog Ltd., which appealed against the order of the learned Commissioner of Income Tax (Appeals) [CIT(A)] for the assessment year 2014-15. The CIT(A) had dismissed the appeal due to a delay of 77 days in filing the appeal, which was not condoned. The assessee contested that the CIT(A) had erred in rejecting the appeal without providing a proper and sufficient opportunity to file the reasons for the delay. The Tribunal found that the opportunity provided by the CIT(A) was insufficient and thus set aside the CIT(A)'s order, directing a re-evaluation.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 113230 (ITAT-LUCKNOW)
• Duration Of Justice: 1 year(s) 7 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-06-2023
• Appeal Filed By: Assessee
• Order Result: PartlyAllowed
• Bench Allotted: B
• Next Hearing Date: 21-06-2023
• Assessment Year: 2014-2015
• Appeal Filed On: 14-11-2021
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Condonation of delay; Set aside

Judgement Text

I.T.A. No.119/Lkw/2021 Assessment year:2014-15 1 IN THE INCOME TAX APPELLATE TRIBUNAL LUCKNOW BENCH ‘B’, LUCKNOW BEFORE SHRI SUDHANSHU SRIVASTAVA, JUDICIAL MEMBER AND SHRI ANADEE NATH MISSHRA, ACCOUNTANT MEMBER I.T.A. No.119/Lkw/2021 Assessment Year: 2014-15 M/s Benara Udyog Ltd., 24/4, The Mall, Kanpur. PAN:AAACB6515A Vs. A.C.I.T., Range-V, Kanpur. (Appellant) (Respondent) O R D E R PER ANADEE NATH MISSHRA:A.M. (A) This appeal vide I.T.A. No.119/Lkw/2021 has been filed by the assessee for assessment year 2014-15 against impugned appellate order dated 26/10/2021 vide DIN & Order No.ITBA/NFAC/S/250/2021- 22/1036573162(1) of learned Commissioner of Income Tax (Appeals) [learned “CIT(A)” for short]. The grounds of appeal are as under: “1. That the ld.CIT(A) has erred in rejecting the appeal of the appellant without providing proper and sufficient opportunity to the appellant to file the reasons for condonation of delay in filing the appeal. Appellant by None Respondent by Shri Amit Nigam, D.R. Date of hearing 22/06/2023 Date of pronouncement 23/06/2023 I.T.A. No.119/Lkw/2021 Assessment year:2014-15 2 2. That the ld.CIT(A) has erred in violating the principle of audi alteram partem and caused miscarriage of justice in not providing proper and sufficient opportunity to file condonation and also not deciding the case on merits. 3. That the ld. CIT(A) as well as ld. AO has erred in making adhoc disallowances on account of Establishment Expenses and Freight and Forwarding Expenses of Rs.7,26,449/-. 4. That the ld. CIT(A) as well as ld.AO has erred in making adhoc disallowances on account of Travelling and Conveyance Expenses of Rs. 11,66,577/-. 5. That the ld. CIT(A) as well as ld. AO has erred in making adhoc disallowances on account of Vehicle Running & Maintenance Expenses of Rs. 1,80,952/-. 6. That the ld. CIT(A) as well as ld. AO has erred in making adhoc disallowances on account of Telephone Expenses of Rs.1,05,793/-. 7. That the ld. CIT(A) as well as ld. AO has erred in making adhoc disallowances without rejection of books of account. 8. That the ld. CIT(A) as well as ld. AO has erred in not providing proper and sufficient opportunity to the appellant. 9. That the order passed by ld. CIT(A) as well ld. AO are arbitrary, prejudice and unlawful and that appropriate relief deserve to be allowed to appellant.” (B) In this case assessment order was passed by the Assessing Officer u/s 143(3) of the Income Tax Act, 1961 (“IT Act” for short) wherein the assessee’s total income was determined at Rs.7,33,66,101/- (rounded off to Rs.7,33,66,110/-) as against returned income of Rs.7,11,86,330/-. The assessee filed appeal against the assessment order in the office of learned CIT(A) . The learned CIT(A) dismissed the assessee’s appeal, holding that the delay of 77 days in filing of the appeal was not fit to be condoned. The I.T.A. No.119/Lkw/2021 Assessment year:2014-15 3 present appeal has been filed by the assessee against the aforesaid impugned appellate order dated 26/10/2021 of learned CIT(A). (B.1) At the time of hearing before us, the appellant assessee was represented by none. In the absence of any representation from the assessee’s side, we heard the learned Sr. D.R. for the Revenue who left the matter to the discretion of the Bench. (B.2) On perusal of the impugned appellate order dated 26/10/2021 of learned CIT(A), we find that the learned CIT(A) issued a letter on 04/10/2021 asking the assessee to furnish the grounds of condonation of delay in filing of appeal, within five days. In the absence of any response from the assessee, the learned CIT(A) dismissed the assessee’s appeal. The relevant portion of the order of learned CIT(A) is reproduced as under: “3. Since the appellant has not filed any reasons for condoning the delay in filing appeal, the appeal of appellant is hereby rejected, as the delay is not found fit to be condoned.” (C) We are of the view that learned CIT(A) did not provide reasonable opportunity to the assessee for furnishing grounds for condonation of delay in filing of the appeal. Although, the learned CIT(A) issued letter dated04/10/2021 to the assessee, the opportunity of five days given by learned CIT(A) was not sufficient. Therefore, we set aside the impugned appellate order dated 26/10/2021 of learned CIT(A) and we direct the learned CIT(A) to provide reasonable opportunity to the assessee for furnishing grounds for condonation of delay in filing of the appeal. We further direct the learned CIT(A), if the delay in filing of the appeal is I.T.A. No.119/Lkw/2021 Assessment year:2014-15 4 condoned, to pass appellate order on merits, after providing reasonable opportunity to the assessee. (D) In the result, the appeal is partly allowed for statistical purposes. (Order pronounced in the open court on 23/06/2023) Sd/. Sd/. (SUDHANSHU SRIVASTAVA) (ANADEE NATH MISSHRA) Judicial Member Accountant Member Dated:23/06/2023 *Singh Copy of the order forwarded to : 1. The Appellant 2. The Respondent. 3. Concerned CIT 4. D.R., I.T.A.T., 5. CIT(A) Assistant Registrar