STERLING HOSPITALS LTD, MUMBAI V. ADDL CIT 7(2), MUMBAI

ITA 1315/MUM/2013

• Counselvise Citation: 131519914 RSA 2013
• Duration Of Justice: 2 year(s) 3 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-06-2015
• Appeal Filed By: Assessee
• Bench Allotted: E
• Next Hearing Date: 01-06-2015
• Assessment Year: 2006-2007
• Appeal Filed On: 15-02-2013
• Court: TRIBUNAL
• Department Lawyers: NEIL PHILIP
• Assessee Lawyers: SANJAY R PARIKH
• Keywords: Opportunity of being heard; Reasonable cause

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL E , BENCH MUMBAI . . , , BEFORE SHRI R.C.SHARMA , A M & MS. SUSHMA CHOWLA , J M ./ I TA NO. 1315&1316 / MUM/20 1 3 ( / ASSESSMENT YEAR : 200 6 - 0 7 ) STERLING HOSPITALS LTD., E - 8, SARASWAT COLONY, SITALADEVI TEMPLE ROAD, MAHIM, MUMBAI - 400016 VS. ADCIT - 7(2), MUMBAI ./ ./ PAN/GIR NO. : A A A C S 6526 Q ( / A PPELLANT ) .. ( / RESPONDENT ) /ASSESSEE BY : SHRI SANJAY R. PARIKH /REVENUE BY : SHRI NEIL PHILIP / DATE OF HEARING : 0 1 /0 6 / 2015 / DATE OF PRONOUNCEMENT 10/06 /2015 / O R D E R PER R.C.SHARMA (A.M) : TH ESE ARE THE APPEALS FILED BY THE ASSESSEE AGAINST THE EX - PARTY ORDER OF CIT(A) , MUMBAI FOR THE ASSESSMENT YEAR 2006 - 07 , IN THE MATTER OF IMPOSITION OF PENALTY U/S.271D & 271E OF THE I.T. ACT. 2. IN THE GR OUNDS OF APPEAL, ASSESSEE HAS TAKEN A GROUND TO THE EFFECT THAT THE CIT(A) HAS NOT GRANTED REASONABLE AND SUFFICIENT OPPORTUNITY OF BEING HEARD . LD. AR DREW OUR ATTENTION TO THE AFFIDAVIT PLACED ON RECORD ACCORDING TO WHICH THE DIRECTOR OF THE COMPANY DR. PRAKASH V KASBEKAR WAS SUFFERING FROM ACUTE FISSURE IN ANO. A CERTIFICATE ISSUED BY DR. GAUTAM WAS ALSO PLACED ON RECORD IN SUPPORT OF NON - APPEARANCE BEFORE ITA NO S . 1315&1316 /1 3 2 THE LD. CIT(A) . THROUGH THIS AFFIDAVIT THE ASSESSEE HAS EXPLAINED THAT M ARGINAL DELAY OF 13 DAYS IN FILING THE APPEAL BEFORE THE CIT(A) WAS DUE TO LATE RECEIPT OF THE NOTICE FROM THE INCOME TAX DEPARTMENT AT THE ADDRESS OF PARENT OF THE DIRECTOR, WHO BEING VERY OLD COULD NOT COME AND DELIVER THE NOTICE TO THE ASSESSEE. 3. WE HAVE CONSIDERED THE RIVAL C ONTENTIONS AND FOUND THAT THE LD. CIT(A) HAS PASSED EX - PARTE ORDER, WHEREIN THE APPEAL WAS DISMISSED FOR DELAY IN FILING OF APPEAL AND ALSO ON THE GROUND OF NON - APPEARANCE ON BEHALF OF THE ASSESSEE. HOWEVER, THE LD. CIT(A) HAS NOT DECIDED THE APPEALS ON ME RITS. AFTER GOING THROUGH THE REASONS STATED FOR DELAY IN FILING THE APPEAL BEFORE THE CIT(A), WE ARE SATISFIED THAT THERE WAS REASONABLE CAUSE INSOFAR AS NOTICE BY OFFICE OF CIT(A) WAS SERVED AT THE REGISTERED OFFICE WHICH WAS THE RESIDENCE OF DIRECTORS PARENTS AND DUE TO THEIR OLD AGE, THEY COULD NOT DELIVER THE NOTICE TO THE ASSESSEE. WE ALSO FIND THAT DUE TO HEAVY LOSSES IN THE BUSINESS, THE BUSINESS OF THE ASSESSEE WAS ALMOST CLOSED AND THE EMPLOYEES WERE TERMINATED OR LEFT ON ACCOUNT OF NON - PAYMENT O F THEIR SALARIES IN TIME. AS PER THE MEDICAL CERTIFICATE AND AFFIDAVIT PLACED ON RECORD, WE ARE SATISFIED THAT THERE WAS REASONABLE CAUSE FOR MARGINAL DELAY OF 13 DAYS IN FILING THE APPEAL. ACCORDINGLY, WE CONDONE THE DELAY AND THE MATTER IS RESTORED BACK TO THE FILE OF THE LD. CIT(A) FOR DECIDING THE MATTER ON MERIT AFTER GIVING DUE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. ITA NO S . 1315&1316 /1 3 3 4 . IN THE RESULT, BOTH APPEAL S OF THE ASSESSEE ARE ALLOWED FOR STATISTICAL PURPOSES . O RDER PRONOUNCED IN THE OPEN COURT ON T HIS 10/06 / 201 5 . SD/ - SD/ - ( ) ( SUSHMA CHOWLA ) ( . . ) ( R.C.SHARMA ) / JUDICIAL MEMBER / ACCOUNTANT MEMBER MUMBAI ; DATED 10/06 /20 1 5 . . /PKM , . / PS / COPY OF THE ORDER FORWARDED TO : / BY ORDER, / ( ASSTT. REGISTRAR) , / ITAT, MUMBAI 1. / THE APPELLANT 2. / THE RESPONDENT. 3. ( ) / THE CIT(A), MUMBAI. 4. / CIT 5. , , / DR, ITAT, MUMBAI 6. / GUARD FILE. //TRUE COPY/