M/s L K Trust, Bangalore V. DEPUTY Commissioner of Incometax, Bangalore

ITA 1259/BANG/2014

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 90063 (ITAT-BANGALORE)
• Duration Of Justice: 9 month(s) 20 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-07-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 16-07-2015
• Assessment Year: 2000-2001
• Appeal Filed On: 10-10-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: P DHIVAHAR J
• Assessee Lawyers: GURUMURTHY
• Keywords: Depreciation; Period of limitation; Time period of passing order
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH : BANGALORE BEFORE SMT. P. MADHAVI DEVI, JUDICIAL MEMBER A ND SHRI JASON P BOAZ, ACCOUNTANT MEMBER ITA NO S . 1259 TO 1261/BANG/2014 (ASSESSMENT YEAR S : 20 0 0 - 01 TO 2002 - 03 ) AND ITA NO.1262/BANG/2014 (ASSE SSMENT YEAR: 2006 - 07) M/S. L K TRUST, NO.9, SESHADRI ROAD, BANGALORE - 560009. PAN:AAATL0522A APPELLANT VS. 1. DEPUTY COMMISSIONER OF INCOME - TAX, CIRCLE 9(1), BANGALORE. 2. ADDL. COMMISSIONER OF INCOME - TAX, RANGE - 8, B ANGALORE. RESPONDENT APPELLANT BY: SHRI GURUMURTHY, ADVOCATE. RESPONDENT BY: SHRI P.DHIVAHAR, JCIT(DR). DATE OF HEARING : 16/07/2015. DATE OF PRONOUNCEMENT: 30 /07/2015. O R D E R PER BENCH : ALL THESE APPEALS BY THE ASSESSEE ARE AGA INST THE ORDERS OF THE CIT(A) - V, BANGALORE, DATED 18/07/2014 WHEREIN THE ASSESSEE S APPEALS FOR THE ASSESSMENT YEARS 2000 - 01 TO 2002 - 03 & 2006 - 07 WERE DISMISSED BY THE CIT(A) FOR WANT OF PROSECUTION. ITA NO S . 1259 TO 1262 /BANG/20 1 4 M/S. L K TRUST PAGE 2 OF 4 2. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE, AN AOP AND A PRIVATE TRUST , FILED ITS RETURNS OF INCOME FOR THE RELEVANT ASSESSMENT YEARS AND DURING THE ASSESSMENT PROCEEDINGS U/S 143(3) OF THE ACT, VARIOUS EXPENSES WERE DISALLOWED AND BROUGHT TO TAX. ON APPEAL, THE CIT(A) GRANTED PARTIAL RELIEF TO TH E ASSESSEE AGAINST WHICH THE ASSESSEE PREFERRED AN APPEAL BEFORE THE TRIBUNAL. THE TRIBUNAL SET ASIDE THE ISSUES I.E. DISALLOWANCE OF PRIOR PERIOD EXPENSE S AND DEPRECIATION ON OOTY BUILDING TO THE FILE OF THE AO FOR FRESH CONSIDERATION . THE REVENUE ALSO P REFERRED AN APPEAL BEFORE THE TRIBUNAL AND THE ISSUES RAISED IN THE REVENUE S APPEAL WERE ALSO SET ASIDE TO THE FILE OF THE AO. THE AO, WHILE GIVING EFFECT TO THE ORDER OF THE ITAT U/S 143(3) R.W.S.254 OF THE INCOME - TAX ACT, 1961, HAD MADE THE DISALLOWANC E OF PRIOR PERIOD EXPENDITURE AND DEPRECIATION CLAIMED BY THE ASSESSEE ON THE OOTY BUILDING AGAINST WHICH ASSESSEE FILED AN APPEAL BEFORE THE CIT(A). THE CIT(A) OBSERVED THAT THE ASSESSEE HAS FILED THE APPEAL AFTER THE LIMITATION PERIOD AND FURTHER THAT T HE ASSESSEE HAD NOT APPEARED BEFORE HIM FOR HEARING WHEN THE APPEAL WAS FIXED FOR HEARING ON 19/06/2014. HE, THEREFORE, DISMISSED THE ASSESSEE S APPEALS FOR WANT OF PROSECUTION. THE ASSESSEE IS IN SECOND APPEAL BEFORE US. 3. THE LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE ASSESSEE HAS FILED APPEALS WITHIN TIME AND THEREFORE APPEALS ARE NOT BARRED BY LIMITATION AND FURTHER THAT THE FIRST NOTICE OF HEARING WAS ISSUED ON 15/05/2014 ON WHICH DATE THE ASSESSEE HAD ITA NO S . 1259 TO 1262 /BANG/20 1 4 M/S. L K TRUST PAGE 3 OF 4 SOUGHT AN ADJOURNMENT AND IT WAS ADJOURNED TO 19/06/2014. HE SUBMITTED THAT ON 19/06/2014, DUE TO PERSONAL EXIGENCY, ASSESSEE S COUNSEL COULD NOT APPEAR BEFORE THE CIT(A) AND ON THE VERY SAME DATE, THE APPEALS OF THE ASSESSEE WERE DISMISSED FOR WANT OF PROSECUTION. THE LEARNED COUNSEL FOR THE ASSESSEE PRAYED THAT THE ASSESSEE MAY BE GIVEN ANOTHER OPPORTUNITY TO PRESENT ITS CASE BEFORE THE CIT(A). THE LEARNED DEPARTMENTAL REPRESENTATIVE WAS ALSO HEARD. 4. UPON CONSIDERATION OF THE RIVAL CONTENTIONS, WE FIND THAT THE CIT (A) HAD ISSUED THE FIRST NOTICE FOR HEARING ON 15/05/2014 ON WHICH DATE THE APPEAL WAS ADJOURNED TO 19/06/2014 AT THE REQUEST OF THE ASSESSEE . WE FIND THAT IT WAS ONLY ON 19/06/2014 THAT THE ASSESSEE DID NOT APPEAR BEFORE THE CIT(A). THEREFORE, WE ARE O F THE OPINION THAT THE APPEALS SHOULD BE RESTORED TO THE FILE OF THE CIT(A) FOR RE - CONSIDERATION IN ACCORDANCE WITH LAW IN THE INTEREST OF JUSTICE. ACCORDINGLY, ALL THE APPEALS OF THE ASSESSEE FOR ALL THE ASSESSMENT YEARS ARE RESTORED TO THE FILE OF THE CI T(A) WITH A DIRECTION TO RECONSIDER THE APPEALS ON THEIR MERITS IN ACCORDANCE WITH LAW. 5. IN THE RESULT, THE ASSESSEE S APPEALS ARE TREATED AS ALLOWED FOR STATISTICAL PURPOSES. PRONOUNCED IN THE OPEN COURT ON 30 TH JULY, 2015. S D/ - S D/ - (JASON P BOAZ) (SMT. P.MADHAVI DEVI) ACCOUNTANT MEMBER JUDICIAL MEMBER EKSRINIVASULU ITA NO S . 1259 TO 1262 /BANG/20 1 4 M/S. L K TRUST PAGE 4 OF 4 COPY TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR, ITAT, BANGALORE. 6. GUARD FILE BY ORDER ASSISTANT REGISTRAR INCOME - TAX APPELLATE T RIBUNAL BANGALORE