Bhavithasri Chit Funds Private Limited , Warangal V. Income Tax Officer, Ward-1, Warangal

ITA 1511/Hyd/2018

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 1539 (ITAT-HYDERABAD)
• Duration Of Justice: 11 month(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-06-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB-B
• Assessment Year: 2013-2014
• Appeal Filed On: 10-07-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: NILANJAN DEY
• Assessee Lawyers: S RAMA RAO
• Section: 271(1)(c); 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH B HYDERABAD BEFORE SMT. P. MADHAVI DEVI, JUDICIAL MEMBER AND SHRI S. RIFAUR RAHMAN, ACCOUNTANT MEMEBR ITA NO. 1511/HYD/2018 ASSESSMENT YEAR: 2013-14 BHAVITHASRI CHIT FUNDS PVT LTD, WARANGAL. PAN AAECB6022A VS. ITO WARD 1, NIRMAL. (APPLICANT) (RES PONDENT) ASSESSEE BY : SHRI S. RAMA RAO REVENUE BY : SHRI NILANJAN DEY DATE OF HEARING : 03-06-2019 DATE OF PRONOUNCEMENT : 14-06-2019 ORDER PER P. MADHAVI DEVI, J.M.: THIS IS ASSESSEES APPEAL FOR THE A.Y 2013-14 AGAI NST THE ORDER OF THE LD. CIT(A)-3, HYDERABAD DATED 12.0 4.2018, DISMISSING THE ASSESSEES APPEAL FOR NON-FILING OF THE APPEAL ELECTRONICALLY. 2. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE CO MPANY RUNNING CHIT FUND BUSINESS, FILED ITS RETURN OF INC OME FOR THE A.Y 2013-14 ON 01.10.2013, DECLARING PROFIT OF RS. 6,52,647/- AND SET IT OFF AGAINST CARRY FORWARD LOS S OF RS. 52,67,509/- RESULTING IN NIL INCOME. DURING THE ASSESSMENT PROCEEDIGS U/S 143(3) OF THE ACT PURSUAN T TO 2 ITA.NO. 1511/HYD/2018 BHAVITHASRI CHIT FUNDS PVT LTD. WARANGAL. SELECTION OF THE RETURN FOR SCRUTINY UNDER CASS GUI DELINES, THE A.O NOTICED THAT THE ASSESSEE HAS RECEIVED INTE REST INCOME OF RS. 24,51,933/- BUT HAS CREDITED ONLY RS. 2,51,343/- TO THE PROFIT AND LOSS ACCOUNT. THEREFO RE, THE A.O BROUGHT THE DIFFERENCE OF RS. 22,00,590/- TO TA X AS UNDISCLOSED INTEREST INCOME. AGGRIEVED, THE ASSESS EE FILED AN APPEAL BEFORE THE CIT(A), ON 07.05.2016. THE CI T(A) DISMISSED THE SAME, ON THE GROUND THAT VIDE CIRCULA R NO. 20 OF 2016 DATED 26.05.2016, THE ASSESSEE WAS REQUI RED TO FILE THE APPEALS ELECTRONICALLY, WHEREAS THE ASSESS EE HAS FILED THE APPEAL IN PAPER FORMAT. THE ASSESSEE IS IN SECOND APPEAL BEFORE US BY RAISING THE FOLLOWING GROUNDS O F APPEAL: 1) THE ORDER OF THE LEARNED COMMISSIONER OF INCOME -TAX (APPEALS) IS ERRONEOUS BOTH ON FACTS AND IN LAW. 2) THE LEARNED COMMISSIONER OF INCOME-TAX (APPEALS) OUGHT TO HAVE PROVIDED FURTHER OPPORTUNITY TO THE APPELLANT BEFORE DISPOSING THE APPEAL. 3) THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS) OUGHT NOT TO HAVE DISMISSED THE APPEAL IN LIMINI WITHOUT PROV IDING PROPER OPPORTUNITY ON THE GROUND THAT THE APPEAL WAS NOT F ILED ELECTRONICALLY. 4) THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS) OUGHT TO HAVE ADMITTED THE APPEAL AND OUGHT TO HAVE DECIDED THE APPEAL ON MERITS. 5) THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS) OUGHT TO HAVE HELD THAT PENALTY NOTICE IS NOT VALID AND THAT THE ORDER OF PENALTY IS NOT LEGAL. 6) THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS) OUGHT TO HAVE HELD THAT PENALTY U/S 271(1)(C) OF THE IT ACT OF 3 ITA.NO. 1511/HYD/2018 BHAVITHASRI CHIT FUNDS PVT LTD. WARANGAL. RS.6,80,OOO/- IS NOT LEVIABLE AND OUGHT TO HAVE CAN CELLED THE PENALTY. 7) ANY OTHER GROUND THAT MAY BE URGED AT THE TIME O F HEARING. 3. AFTER HEARING BOTH THE PARTIES, WE FIND THAT THE ASSESSEE HAS FILED THE APPEAL IN PAPER FORMAT MUCH PRIOR TO THE ISSUANCE OF CIRCULAR NO. 20 OF 2016 DATED 26.0 5.2016. THEREFORE, IT CANNOT BE SAID THAT THE ASSESSEE HAS NOT COMPLIED WITH THE DIRECTIONS OF THE CBDT. THE HON BLE JURISDICTIONAL HIGH COURT IN THE CASE OF M/S. RAYAL ASEEMA BULLION PVT LTD., IN WP NO. 21099 OF 2018 HAS CONSI DERED THAT THE CIRCULAR ITSELF ALLOWS THE APPEALS TO BE F ILED UP TO 15.06.2016. THE HONBLE HIGH COURT HAS DIRECTED TH E ASSESSEE THEREIN TO FILE ITS APPEAL ELECTRONICALLY AND THE APPELLATE AUTHORITY TO CONSIDER THE APPEAL IN ITS O WN MERITS WITHOUT REFERRING TO THE LIMITATION ASPECT AS IT IS AN ADMITTED FACT THAT THE SAID APPEAL WAS ORIGINALLY F ILED IN TIME. THE HONBLE HIGH COURT ALSO ALLOWED THE ASS ESSEE THEREIN TO RAISE THE ADDITIONAL GROUNDS IN THE APPE AL TO BE FILED BEFORE THE CIT(A) AND OFFER PERSONAL HEARING. RESPECTFULLY THE FOLLOWING THE SAME, AND ALSO CONSI DERING THE FACT THAT THE ASSESSEE HAS FILED THE APPEAL IN PAPER FORMAT WITHIN TIME AND THERE WAS NO DELAY, WE DIREC T THE ASSESSEE TO FILE THE APPEAL AFRESH ELECTRONICALLY B EFORE THE CIT(A) AND THE CIT(A) SHALL CONSIDER THE SAME ON ME RITS 4 ITA.NO. 1511/HYD/2018 BHAVITHASRI CHIT FUNDS PVT LTD. WARANGAL. WITHOUT ANY REFERENCE TO THE DELAY. NEEDLESS TO ME NTION THAT THE ASSESSEE SHALL BE GIVEN FAIR OPPORTUNITY O F HEARING INCLUDING ALLOWING THE FILING OF THE ADDITIONAL GRO UNDS OF APPEAL AND EVIDENCE, IF ANY, IF REQUIRED. ACCORDIN GLY, THE ASSESSEE APPEAL IS ALLOWED. 4. IN THE RESULT THE APPEAL FILED BY THE ASSESSEE I S ALLOWED. PRONOUNCED IN THE OPEN COURT ON 14 TH JUNE, 2019 SD/- SD/- (S. RIFAUR RAHMAN) (P. MADHAVI DEVI) ACCOUNTANT MEMBER JUDICIAL MEMBER HYDERABAD, DATED: 14 TH JUNE, 2019 KRK/VINODAN 1) BHAVITHASRI CHIT FUNDS PVT LTD, D.NO. 14-1-141, M.G. ROAD, WARANGA, 2) ITO, WARD 1, WARANGAL. 3) CIT(A)-3, HYDERABAD. 4) PR.CIT-5, HYDERABAD. 5) THE DEPARTMENTAL REPRESENTATIVE, I.T.A.T., H YDERABAD. 6) GUARD FILE.