Sunder Steels Limited , Secunderabad V. Dy. Commissioner of Income Tax , Ward-3(4), Hyderabad

ITA 1531/Hyd/2018

• Counselvise Citation: [2019] 118 COUNSELVISE.COM (IT) 3037 (ITAT-HYDERABAD)
• Duration Of Justice: 7 month(s) 14 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-02-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB-B
• Assessment Year: 2013-2014
• Appeal Filed On: 13-07-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: NILANJAN DEY
• Assessee Lawyers: ANAM SIDDIQUI
• Keywords: Opportunity of being heard; Reasonable cause
• Section: 143(3); 14A; 37; 10

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 MEMBER ITA NO. 1 531 / HYD/201 8 ASSESSMENT YEAR S : 20 1 3 - 14 SUNDER STEELS LTD., SECUNDERABAD . PAN A ACCS8222K VS. DY . COMMISSIONER OF INCOME - TAX, WARD 3 ( 4 ), HYDERABAD. APPELLANT RESPONDENT ASSESSEE BY: S MT. ANAM SIDDIQUI REVENUE BY: S HRI NILANJAN DEY DATE OF HEARING: 19 / 0 2 / 201 9 DATE OF PRONOUNCEMENT: 27 / 0 2 /201 9 O R D E R PER S. RIFAUR RAHMAN , AM: T H IS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF CIT(A) 3 , HYDERABAD, DATED, 1 1 /0 4 /201 8 FOR AY 20 13 - 14 . 2. ON PERUSAL OF RECORD, WE FIND THAT THERE WAS A DELAY OF 2 DAYS IN FILING THIS APPEAL BEFORE US. IN THIS CONNECTION, THE ASSESSEE FILED AN AFFIDAVIT AFFIRMING THEREIN THAT SINCE THE BANKER WAS UNABLE TO PROCESS AND ISSUE THE CHALLAN, TWO DAYS DELAY WAS OCCU RRED. IT WAS STATED THAT THE DELAY WAS NEITHER WILFUL NOR DELIBERATE, BUT, BONAFIDE. AS THE ASSESSEE WAS PREVENTED BY REASONABLE CAUSE IN FILING THE APPEAL BELATEDY, WE CONDONE THE SAME AND ADMIT THE APPEAL FOR HEARING AND ADJUDICATION. I.T.A. NO. 1 531 /HYD/1 8 SUNDER STEELS LTD., SECBAD. 2 3 . BRIEFLY THE FA CTS OF THE CASE ARE THAT ASSESSEE COMPANY, ENGAGED IN THE BUSINESS OF MANUFACTURING OF PIG IRON AND STEEL, FILED ITS RETURN OF INCOME FOR THE AY 2013 - 14 ON 14/05/2014 ADMITTING TOTAL INCOME OF RS. NIL. THE AO COMPLETED THE ASSESSMENT U/S 143(3) ASSESSING T HE TOTAL INCOME OF THE ASSESSEE AT RS. 33,92,020/ - , BY MAKING THE DISALLOWANCE OF RS. 16,41,868/ - UN/S 14A RWR 8D(2)(I) AND 8D(2)(III) OF THE INCOME TAX ACT, 1961 (IN SHORT THE ACT). 4 . AGGRIEVED WITH THE ORDER OF AO, THE ASSESSEE PREFERRED AN APPEAL B EFORE THE CIT(A) AND THE APPEAL WAS FILED ON 13/04/2016 IN PAPER FORMAT AND NOT E - FILED. THE ASSESSEE BROUGHT CIRCULAR NO. 20/2016 DATED 26 TH MAY, 2016 BEFORE THE CIT(A). 5 . THE CIT(A) DISMISSED THE APPEAL OF THE ASSESSEE IN - LIMINE ON THE GROUND THAT THE ASSESSEE HAS NOT FILED THE APPEAL ELECTRONICALLY, WHICH IS MANDATORY. 6 . AGGRIEVED BY THE ORDER OF CIT(A), THE ASSESSEE IS IN APPEAL BEFORE US RAISING THE FOLLOWING GROUNDS OF APPEAL: 1. IN COMPUTING THE TOTAL INCOME FOR THE A.Y 2013 - 14, A. THE LEARNED ASSESSING OFFICER HAS ERRED IN DISALLOWANCE U/S 14A READ WITH RULE 8D(2)(I) AND 8D(2)(III) AND ADDED TO TOTAL INCOME TO THE TUNE OF RS. 16,41,868/ - B. THE HONORABLE COMMISSIONER OF IN COME TAX (APPEALS) HAS ERRED IN DISALLOWING THE APPEAL OF THE ASSESSE E , WITHOUT THE OPPORTUNITY OF BEING HEARD, AGAINST THE ORDER OF THE AO ON THE GROUNDS THAT THE APPEAL WAS NOT FILED ELECTRONICALLY, THOUGH WE HAVE FILED THE APPEAL MANUALLY. 2. THE APPELLANT CRAVES RIGHT TO ADD, TO AMEND OR MODIFY THE ABOVE GROUNDS OF APPEAL EITHER BEFORE OR AT THE TIME OF HEARING OF THE APPEAL, IF IT IS CONSIDERED NECESSARY. I.T.A. NO. 1 531 /HYD/1 8 SUNDER STEELS LTD., SECBAD. 3 7 . BEFORE US, THE LD. AR OF THE ASSESSEE SUBMITTED THAT AS PER THE NOTIFICATION I SSUED BY CBDT VIDE NOTIFICATION NO. 11/2016, DATED 01/ 03/2016 WITH RESPECT TO FILING OF APPEAL ELECTRONICALLY BEFORE THE CIT(A), THE ASSESSEE HAS FILED THE RETURN OF INCOME BEFORE THE CIT(A) IN THE PAPER FORM. HE FURTHER SUBMITTED THAT AS PER THE NOTIFICAT ION CLAUSE 2(A), A PERSON WHO IS REQUIRED TO FURNISH RETURN OF INCOME ELECTRONICALLY UNDER SUB - RULE (3) OF RULE 12, THEN THE ASSESSEE IS REQUIRED TO FILE APPEAL ELECTRONICALLY AND AS PER CLAUSE 2(B), IN CASE WHERE THE ASSESSEE HAS THE OPTION TO FURNISH THE RETURN OF INCOME IN PAPER FORM, THEN THE ASSESSEE HAS THE OPTION TO FILE THE APPEAL ELECTRONICALLY IN ACCORDANCE WITH CLAUSE (A) OF SUB - RULE (2) OR IN PAPER FORM. COPY OF THE SAID NOTIFICATION IS AVAILABLE ON RECORD. 8 . THE LD. DR, ON THE OTHER HAND, RE LIED ON THE ORDER OF CIT(A). 9 . CONSIDERED THE RIVAL SUBMISSIONS AND PERUSED THE MATERIAL ON RECORD. WE FIND THAT THE CIT(A) DISMISSED THE APPEAL OF THE ASSESSEE ON TECHNICAL GROUNDS I.E. THE ASSESSEE HAS NOT FILED THE APPEAL ELECTRONICALLY AND DECIDED WITHOUT GOING INTO THE MERITS OF THE CASE. 9 .1 ON PERUSAL OF THE CIRCULAR NO. 20/2016, ALL THE ASSESSEES ARE ADVISED TO FILE THE E - APPEAL AND WHOEVER FILED MANUAL APPEAL, THEY CAN FILE E - APPEAL BEFORE 15/06/2016 IN ORDER TO TREAT THE SAME AS FILED WITHIN TIME. WE OBSERVE THAT THIS IS COMPLIANCE ADVISE AND THE ASSESSEES WHO ARE FILING THE E - APPEAL SUBSEQUENT TO 15/06/2016, THEY WILL BE TREATED AS APPEAL FILED BELATEDLY. THEREFORE, CIT(A) SHOULD NOT HAVE DISMISSED THE APPEAL IN - LIMINE , RATHER, H E SHOULD HAVE ASKED I.T.A. NO. 1 531 /HYD/1 8 SUNDER STEELS LTD., SECBAD. 4 THE ASSESSEE TO COMPLY WITH THE DIRECTIONS AS PER CIRCULAR NO. 20/2016 AND HE COULD HAVE GIVEN ONE MORE OPPORTUNITY TO ASSESSEE TO E - FILE THE APPEAL. WE ARE NOT SATISFIED WITH THE EXPLANATION OFFERED BY THE ASSESSEE NOT TO E - FILE THE APPEAL. AS PER THE CBDT CIRCULAR NO. 20/2016, ALL THE APPEALS HA VE TO BE E - FILED. THEREFORE, WE DIRECT THE ASSESSEE TO FILE THE APPEAL THROUGH E - FILING AND DIRECT THE CIT(A) TO ACCEPT THE E - APPEAL AFRESH AND ADJUDICATE THE MATTER ON MERIT . ACCORDINGLY, GROUNDS RAISED BY THE ASSESSEE ARE ALLOWED FOR STATISTICAL PURPOSE S. 10 . IN THE RESULT, APPEAL OF THE ASSESSEE IS TREATED AS ALLOWED FOR STATISTICAL PURPOSES. PRONOUNCED IN THE OPEN COURT ON 27 TH FEBRUARY , 201 9. SD/ - ( P. MADHAVI DEVI ) JUDICIAL MEMBER SD/ - ( S. RIFAUR RAHMAN ) ACCOUNTANT MEMBER HYDERABAD, DATED 27 TH FEBRUARY , 201 9. KV COPY FORWARDED TO: 1. M/S SUNDER STEELS LTD., 1 - 7 - 228/44, UNITED BUILDERS, PARADISE CIRCLE, SECUNDERABAD. 2 . D C IT, WARD 3 ( 4 ) , HYDERABAD . 3 . CIT (A) - 3 , HYDERABAD 4. PR. CIT 3 , HYDERABAD 5. THE DR, ITAT, HYDERABAD 6. GUARD FILE