New Reddy Timbers, Kurnool, Hyderabad V. ITO, Ward-1, Kurnool, Kurnool

ITA 133/HYD/2015

• Counselvise Citation: 13322514 RSA 2015
• Duration Of Justice: 2 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 01-05-2015
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 30-04-2015
• Assessment Year: 2010-2011
• Appeal Filed On: 06-02-2015
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: RAJAT MITRA
• Assessee Lawyers: K A SAI PRASAD
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCHES B : HYDERABAD BEFORE SHRI G.C. GUPTA, VICE PRESIDENT AND SHRI P.M. JAGTAP, ACCOUNTANT MEMBER ITA.NO.133/HYD/2015 ASSESSMENT YEAR 2010-2011 NEW REDDY TIMBERS KURNOOL 518 004. PAN AAEFN5191P VS. THE INCOME TAX OFFICER WARD-1 KURNOOL. (APPELLANT) (RESPONDENT) FOR ASSESSEE : MR. K.A. SAI PRASAD FOR REVENUE : MR. RAJAT MITRA DATE OF HEARING : 30.04.2015 DATE OF PRONOUNCEMENT : 01.05.2015 ORDER PER P.M. JAGTAP, A.M. THIS APPEAL IS FILED BY THE ASSESSEE AGAINST THE ORDER OF THE LD. CIT(A)-IV, HYDERABAD DATED 07.11.2 014 WHEREBY HE DISMISSED THE APPEAL OF THE ASSESSEE IN LIMINI HOLDING THE SAME TO BE BARRED BY LIMITATION. 2. THE ASSESSEE IN THE PRESENT CASE IS A PARTNERSH IP FIRM WHICH IS ENGAGED IN THE BUSINESS OF PURCHASE A ND SALE OF TIMBER. THE RETURN OF INCOME FOR THE YEAR UNDER CON SIDERATION WAS FILED BY IT ON 30.09.2010 DECLARING TOTAL INCOM E OF RS.5,47,325. IN THE ASSESSMENT COMPLETED UNDER SECT ION 143(3) VIDE ORDER DATED 28.03.2012, THE TOTAL INCOM E OF THE ASSESSEE WAS DETERMINED BY THE A.O. AT RS.32,38,698 AFTER MAKING ADDITION OF RS.26,91,373 ON ACCOUNT OF GROSS PROFIT ESTIMATED ON SUPPRESSED SALES. AGAINST THE ORDER OF THE A.O. PASSED UNDER SECTION 143(3), AN APPEAL WAS FILED BY THE ASSESSEE BEFORE THE LD. CIT(A) BELATEDLY WITH A DEL AY OF 198 2 ITA.NO.133/HYD/2015 NEW REDDY TIMBERS, KURNOOL. DAYS. APPLICATION SEEKING FOR CONDONATION OF THE SA ID DELAY WAS ALSO FILED BY THE ASSESSEE WHEREIN IT WAS SUBMITTED THAT THE ASSESSMENT ORDER RECEIVED BY THE ASSESSEE WAS KEPT WITH HIM WITHOUT TAKING THE REQUIRED STEPS TO FILE AN APPEAL BEFORE THE LD. CIT(A) AS HE COULD NOT CONTACT THE AUDITOR DUE TO SOME PRE-OCCUPATION AND OTHER PRESSING PROBLEMS. IT WAS SUBMITTED THAT WHEN THE AUDITOR ASKED THE ASSESSEE AT THE TIM E OF PENALTY PROCEEDINGS REGARDING THE ASSESSMENT ORDER, THE ASSESSEE REALIZED HIS MISTAKE AND FILED THE APPEAL WHICH RESULTED IN DELAY OF 198 DAYS. IT WAS CONTENDED THA T THERE WAS THUS A SUFFICIENT CAUSE FOR THE SAID DELAY AND REQU EST WAS MADE TO THE LD. CIT(A) TO CONDONE THE SAME. THE LD. CIT(A) DID NOT FIND MERIT IN THE STAND OF THE ASSESSEE THAT TH E DELAY WAS FOR A SUFFICIENT CAUSE AND RELYING ON THE DECISION OF THE TRIBUNAL IN THE CASE OF JETHA DRUMS AND CONTAINERS P. LTD., 17 SOT 11 (URO) (MUM.) HE DISMISSED THE APPEAL OF T HE ASSESSEE IN LIMINI TREATING THE SAME AS BARRED BY L IMITATION. AGGRIEVED BY THE ORDER OF THE LD. CIT(A), THE ASSES SEE HAS PREFERRED THIS APPEAL BEFORE THE TRIBUNAL. 3. WE HAVE HEARD THE ARGUMENTS OF BOTH THE SIDES AND ALSO PERUSED THE RELEVANT MATERIAL ON RECORD. I T IS OBSERVED THAT THE APPLICATION FILED BY THE ASSESSEE FOR COND ONATION OF DELAY OF 198 DAYS IN FILING THE APPEAL WAS REJECTED BY THE LD. CIT(A) MAINLY RELYING ON THE DECISION OF THE TRIBUN AL IN THE CASE OF JETHA DRUMS AND CONTAINERS P. LTD., (SUPRA) . A PERUSAL OF THE RELEVANT PORTION OF THE ORDER OF THE TRIBUNA L PASSED IN THE SAID CASE HOWEVER SHOWS THAT THE FACTS INVOLVED IN THE SAID CASE WERE ENTIRELY DIFFERENT FROM THE FACTS INVOLVE D IN THE PRESENT CASE INASMUCH AS THERE WAS AN INORDINATE DE LAY OF MORE THAN 12 YEARS ON THE PART OF THE ASSESSEE IN F ILING HIS 3 ITA.NO.133/HYD/2015 NEW REDDY TIMBERS, KURNOOL. APPEAL AND THE ONLY REASON GIVEN BY THE ASSESSEE FO R SUCH INORDINATE DELAY WAS RECEIPT OF PROSECUTION NOTICE WHICH COMPELLED HIM TO FILE THE APPEAL BEFORE THE TRIBUNA L AFTER LONG PERIOD OF ABOUT 13 YEARS WHICH WAS NOT ACCEPTED BY THE TRIBUNAL AS SUFFICIENT CAUSE. 4. IN THE PRESENT CASE, THE DELAY ON THE PART OF T HE ASSESSEE IN FILING HIS APPEAL BEFORE THE LD. CIT(A) WAS ONLY 198 DAYS AND THE SAME WAS ALSO DULY EXPLAINED BY THE AS SESSEE BY POINTING OUT THAT THE REQUIRED STEPS TO FILE AN APP EAL ON RECEIPT OF THE ASSESSMENT ORDER COULD NOT BE TAKEN INTIME D UE TO SOME OTHER PRE-OCCUPATION AND PRESSING PROBLEMS AND IT W AS ONLY DURING THE COURSE OF PENALTY PROCEEDINGS THAT THE A SSESSEE REALIZED AFTER HAVING ASKED BY THE AUDITOR REGARDIN G THE ASSESSMENT ORDER THAT THE APPEAL AGAINST IT HAD REM AINED TO BE FILED BEFORE THE LD. CIT(A). 5. IN THE CASE OF SHAKTI CLEARING AGENCY P. LTD., VS. ITO 127 TXMAN 49 (RAJKOT) (MAG), CITED BY THE LD. C OUNSEL FOR THE ASSESSEE RAJKOT BENCH OF THIS TRIBUNAL HAS CONDONED THE DELAY OF 345 DAYS ON THE PART OF THE ASSESSEE I N FILING THE APPEAL BEFORE THE FIRST APPELLATE AUTHORITY AS THE SAME WAS ATTRIBUTABLE TO NEGLIGENCE OR INACTION ON THE PART OF THE TAX CONSULTANT AND THERE WAS NO MALAFIDE IMPUTABLE TO T HE ASSESSEE. IT WAS HELD BY THE TRIBUNAL IN THIS CONTE XT THAT THE EXPRESSION SUFFICIENT CAUSE SHOULD RECEIVE LIBERA L CONSTRUCTION SO AS TO ADVANCE THE SUBSTANTIAL JUSTI CE WHEN NO NEGLIGENCE OR INACTION OR WANT OF BONAFIDE IS IMPUT ABLE TO THE PARTY. KEEPING IN VIEW THE DECISION OF SHAKTI CLEAR ING AGENCY P. LTD., (SUPRA) AND HAVING REGARD TO THE FACTS OF THE CASE, WE CONDONE THE DELAY OF 198 DAYS ON THE PART OF THE AS SESSEE IN FILING ITS APPEAL BEFORE THE LD. CIT(A) AND REMIT T HE MATTER BACK 4 ITA.NO.133/HYD/2015 NEW REDDY TIMBERS, KURNOOL. TO THE LD. CIT(A) WITH A DIRECTION TO DISPOSE OF TH E APPEAL OF THE ASSESSEE ON MERIT. 6. IN THE RESULT, APPEAL OF THE ASSESSEE IS TREATE D AS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 01.0 5.2015. SD/- SD/- (G.C. GUPTA) (P.M. JAGTAP) VICE PRESIDENT ACCOUNTANT MEMBER HYDERABAD, DATED 01 ST MAY, 2015 VBP/- COPY TO 1. NEW REDDY TIMBERS, 40-305, BHAGYA NAGAR, KURNOOL - 518004 C/O. CH. PARTHASARATHY & CO., 1-1-298/2/B/3, 1 ST FLOOR, SOWBHAGYA AVENUE, ST. NO.1, ASHOKNAGAR, HYDERABAD 500 020. 2. THE INCOME TAX OFFICER, WARD-1, KURNOOL 3. CIT(A)-IV, HYDERABAD. 4. CIT-III, HYDERABAD 5. D.R. ITAT B BENCH, HYDERABAD. 6. GUARD FILE.