MEDOPHARM, CHENNAI V. ACIT NON CORPORATE CIRCLE-13(1), CHENNAI

ITA 1376/CHNY/2019

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 0367 (ITAT-CHENNAI)
• Duration Of Justice: 4 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-09-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2013-2014
• Appeal Filed On: 06-05-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ARV SREENIVASAN JCIT
• Assessee Lawyers: D ANAND
• Keywords: Revised return

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH: CHENNAI . . , . , BEFORE SHRI DUVVURU R.L. REDDY, JUDICIAL MEMBER AND SHRI S. JAYARAMAN, ACCOUNTANT MEMBER ./ ITA NO.1376/CHNY/2019 /ASSESSMENT YEAR: 2013-14 M/S.MEDOPHARM, NO.25, PULIYUR, 2 ND MAIN ROAD, TRUSTPURAM, CHENNAI. VS. THE ASST. COMMISSIONER- OF INCOME TAX, NON-CORPORATE CIRCLE-13(1), CHENNAI. [PAN: AAAFM 4227 H] ( # /APPELLANT) ( $%# /RESPONDENT) # & / APPELLANT BY : MR. D.ANAND, ADV. $%# & /RESPONDENT BY : MR. AR.V.SREENIVASAN, JCIT & /DATE OF HEARING : 10.07.2019 & /DT. OF PRONOUNCEMENT : 06.09.2019 / O R D E R PER SHRI DUVVURU R.L. REDDY, JUDICIAL MEMBER : THE ASSESSEE FILED THIS APPEAL AGAINST THE ORDER O F THE COMMISSIONER OF INCOME TAX (APPEALS)-14, CHENNAI, IN ITA NO.38/C IT(A)-14/2016-17 DATED 28.02.2019 FOR THE AY 2013-14 BESIDES CHALLE NGING THE ISSUE ON MERIT, THE ASSESSEE HAS MAINLY CHALLENGED THE EX-PA RTE ORDER PASSED BY THE LD.CIT(A). 2. BRIEF FACTS OF THE CASE OF THE ASSESSEE ARE THAT T HE ASSESSEE DERIVES INCOME FROM THE BUSINESS OF MANUFACTURE OF PHARMACE UTICAL PRODUCTS. ITA NO.1376/CHNY/2019 :- 2 -: THE RETURN OF INCOME FOR THE AY 2013-14 WAS FILED O N 25.09.2013 ADMITTING A TAXABLE INCOME OF RS.2,51,78,890/- AND A REVISED RETURN WAS FILED ON 30.11.2012 ADMITTING TAXABLE INCOME OF RS. 2,51,78,890/-. THE CASE WAS SELECTED FOR SCRUTINY UNDER CASS AND NOTIC E U/S.143(2) DATED 02.09.2014 FOLLOWED BY NOTICE U/S.142(1) DATED 22.0 7.2015 ALONG WITH THE QUESTIONNAIRE WERE ISSUED AND DULY SERVED ON TH E ASSESSEE. AFTER CONSIDERING THE INFORMATION GIVEN DURING THE ASSESS MENT PROCEEDINGS AND SUBMISSIONS MADE BY THE LD.AR, THE ASSESSMENT WAS C OMPLETED AND ASSESSED AT A TOTAL INCOME OF RS.4,06,19,840/-. 3. AGGRIEVED BY THE ASSESSEE, THE ASSESSEE PREFERRED AN APPEAL BEFORE THE LD.CIT(A). SINCE THE ASSESSEE COULD NOT E-FILE THE APPEAL, THE LD.CIT(A) DISMISSED THE APPEAL FILED BY THE ASSESSE E. 4. ON BEING AGGRIEVED, THE ASSESSEE IS IN APPEAL BEFO RE THE TRIBUNAL. THE COUNSEL FOR THE ASSESSEE HAS SUBMITTED THAT THE LD.CIT(A) HAS ERRONEOUSLY DISMISSED THE APPEAL SUMMARILY WITHOUT GOING INTO THE MERITS OF THE FACTS AND WITHOUT APPRECIATING THE FACT THAT THE ASSESSEE HAS FILED MANUAL APPEAL WITHIN THE TIME STIPULATED UNDER THE ACT, BESIDES E-FILING OF THE APPEAL IMMEDIATELY. HE FURTHER SUBMITTED THAT SUITABLE DIRECTIONS MAY BE GIVEN TO THE LD.CIT(A) TO ADJUDICATE THE ISSUE O N MERITS BY GIVING AN OPPORTUNITY TO THE ASSESSEE. ITA NO.1376/CHNY/2019 :- 3 -: 5. PER CONTRA, THE LD.DR REFERRED TO THE ORDER OF THE LD.CIT(A) AND SUBMITTED THAT THE ASSESSEE HAS FAILED TO FILE THE APPEAL ELECTRONICALLY WHICH IS MANDATED BY THE AMENDMENT TO RULE 45 OF TH E IT RULES MODIFIED BY THE CBDT VIDE NOTIFICATION NO.S.O.637(E) DATED 0 1.03.2016, THE MANUAL APPEAL FILED HAS BEEN RIGHTLY TREATED BY THE LD.CIT(A) AS NON-EST. 6. WE HAVE HEARD BOTH THE PARTIES, PERUSED THE MATERI ALS AVAILABLE ON RECORD AND GONE THROUGH THE ORDERS OF AUTHORITIES B ELOW. 7. IT IS AN ADMITTED FACT THAT AGAINST THE ASSESSMENT ORDER, THE ASSESSEE FILED A MANUAL APPEAL ON 29.04.2016 WHICH IS WELL WITHIN THE TIME PROVIDED UNDER THE ACT. SINCE THE ASSESSEE DI D NOT COMPLY WITH RULE 45 OF THE IT RULES WHICH MANDATES COMPULSORY E-FILI NG OF APPEALS BEFORE THE LD.CIT(A) W.E.F. 01.03.2016 IN RESPECT OF PERSO NS WHO ARE REQUIRED TO FURNISH RETURN OF INCOME ELECTRONICALLY AND DISMISS ED THE APPEAL FILED BY THE ASSESSEE MANUALLY. IT WAS THE SUBMISSION OF THE ASSESSEE THAT THE ASSESSEE FIRM HAD FILED ITS APPEAL BEFORE THE LD.CI T(A) MANUALLY ON 29.04.2016 WHICH WAS WITHIN THE DUE DATE OF FILING OF THE APPEAL AND FOLLOWED UP WITH E-FILING APPEAL ONLINE ON 07.06.20 16. THERE WAS A SMALL DELAY IN E-FILING OF THE APPEAL, THEREFORE, THE LD. CIT(A) ERRONEOUSLY DISMISSED THE APPEAL FILED BY THE ASSESSEE. HE WAS FURTHER SUBMITTED THAT ON SIMILAR FACTS AND CIRCUMSTANCES IN AN IDENTICAL ISSUE THE MUMBAI BENCH OF THIS TRIBUNAL IN THE CASE OF ALL INDIA FEDERATIO N OF TAX PRACTITIONERS V. ITO REPORTED IN [2016] 166 DTR 276 (MUMBAI TRIB.) A S ALSO THE DECISION ITA NO.1376/CHNY/2019 :- 4 -: OF THE DELHI BENCHES OF THE TRIBUNAL IN THE CASE OF SHRI GURINDER SINGH DHILLON V. ITO IN ITA NO.6595/DEL/2016 DATED 19.04. 2017 HAD HELD THAT THE DELAY WAS LIABLE TO BE CONDONED. APART FROM T HIS, WE HAVE PERUSED THE PRINCIPLES LAID DOWN BY THE HONBLE SUPREME COU RT IN THE CASE OF STATE OF PUNJAB V. SHYAMALAL MURARI & OTHERS REPORTED IN AIR 1976 (SC) 1177 SAYING THAT THE DELAY IN E-FILING OF THE APPEAL IS CONDONED AND THE ISSUES IN THIS APPEAL ARE RESTORED TO THE FILE OF THE LD.C IT(A) FOR ADJUDICATION ON MERITS IN ACCORDANCE WITH LAW BY ALLOWING AN OPPORT UNITY OF BEING HEARD TO THE ASSESSEE. 8. THUS, RESPECTFULLY FOLLOWING THE PRINCIPLES LAID D OWN BY THE HONBLE SUPREME COURT IN THE CASE OF STATE OF PUNJAB V. SHY AMALAL MURARI & OTHERS, REFERRED TO SUPRA, WE ARE OF THE VIEW THAT THIS IS A FIT CASE TO RESTORE TO THE FILE OF THE LD.CIT(A) FOR ADJUDICATI ON ON MERITS IN ACCORDANCE WITH LAW BY ALLOWING AN OPPORTUNITY OF B EING HEARD TO THE ASSESSEE. 9. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE I S ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED ON THE 06 TH DAY OF SEPTEMBER, 2019, IN CHENNAI. SD/- SD/- ( . ) (S. JAYARAMAN) /ACCOUNTANT MEMBER ( - . . . / ) (DUVVURU R.L. REDDY) /JUDICIAL MEMBER ITA NO.1376/CHNY/2019 :- 5 -: /CHENNAI, 1 /DATED: 06 TH SEPTEMBER, 2019. TLN & $23 43 /COPY TO: 1. # /APPELLANT 4. 5 /CIT 2. $%# /RESPONDENT 5. 3 $ /DR 3. 5 ( ) /CIT(A) 6. /GF