Harjinder Singh, Germany V. DCIT, International Taxation, Circle, Chandigarh

ITA 1571/CHANDI/2019

• Counselvise Citation: [2021] 104 COUNSELVISE.COM (IT) 8002 (ITAT-CHANDIGARH)
• Duration Of Justice: 1 year(s) 11 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-11-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2011-2012
• Appeal Filed On: 09-12-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Capital asset converted into stock in trade; Capital asset
• Section: 148; 144; 48

Judgement Text

आयकर अपील य अ धकरण,च डीगढ़ यायपीठ, “ए” च डीगढ़ I N T H E I N C O M E T A X A P P E L L A T E T R I B U N A L D I V I S I O N B E N C H , “ A ” , C H A N D I G A R H ी संजय गग , या यक सद य एवं ीमती अ नप ू णा ग ु &ता, लेखा सद य B E F O R E S H R I S A N J A Y G A R G , J U D I C I A L M E M B E R A N D M s . A N N A P U R N A G U P T A , A C C O U N T A N T M E M B E R आयकर अपील सं./ ITA No. 1571/C H D / 2 0 1 9 नधा रण वष / Assessment Year : 2 0 1 1 - 1 2 Sh. Harjinder Singh S/o S. Davinder Singh, 25-Arhenweg, D-85275, New Farhan, Germay C/o S. K. Vatta of M/s S.K.Vatta & Co., 814-Vasant Vihar, First Floor, Opp Andh Vidalaya, Jaldandhar बनाम The DCIT, Circle (International Taxation) Chandigarh थायी लेखा सं./PAN NO: LOYPS5931R अपीलाथ /Appellant यथ /Respondent Hearing though video Conferencing नधा रती क" ओर से/Assessee by : Shri S.K. Vatta, Advocate राज व क" ओर से/ Revenue by : Smt.Ranjeet Kaur, Sr. DR स ु नवाई क" तार'ख/Date of Hearing : 22.11.2021 उदघोषणा क" तार'ख/Date of Pronouncement : 23.11.2021 आदेश/Order P er S an jay G ar g, Ju d ic i a l Me mb er : T he p re s e n t ap pe a l ha s b e e n p r e f e r re d by t h e as s e s se e a g a i ns t t h e or d e r d a t e d 30. 0 9. 2 0 19 o f t he Co m mi s s i one r o f I n c o me Ta x ( A p pe a l s )- 43 , N e w D e lh i [ he r e in a ft e r r e fe rr e d t o a s ‘ CIT (A )’ ] 2. T he a s s e s se e in t hi s a pp e a l ha s ta ke n fo l l ow i ng g ro un ds of a pp e a l : - ITA No. 1571-Chd-2019 Sh. Harjinder Singh, Germany 2 1. That the Id. CIT(Appeals)-43, have erred and unjustified, in law on facts and in relevant circumstances, in dismissing the impugned appeal of the assessee as manually filed in Paper form within the time prescribed u/s 249(2) of the Income tax Act merely on technical flaw of non filling of e-appeal disregarding the applicable provisions of Rule 45(2)(b) read with Rule 12(5) of the Income Tax Rules invoking the rules/provisions of 12(3) as amended in 01.03.2016 disregarding the applicable provisions of 12(3) as applicable & governed by IT (Seventh Amendment Rules 2010 w.e.f. 9.7.2010 which was governing provisions for the impugned asstt. year 2011-12. 2. That without prejudice to above, the mandatory e- filing of appeal has not been stipulated in section 246/249/250 of the Income tax and also Rule 12(5) read with Rule 45(2)(b) which provided that the appeal could be filed in e-filing or in paper Form at the option of the assessee and the Ld. CIT(Appeals)-43, was thus unjustified and erred in law and facts to have summarily rejected merely on technical grounds disregarding the explanations/circumstances of the assessee appellant and surrounding circumstances for filing the appeal manually in Paper form. 3. That even otherwise, the appeal could not be filed electronically on account of lack of legal knowledge involving no deliberate default on the part of the assessee, who being non resident never have been assessed in India. 4. That the Id. CIT(Appeals)-43, have erred in law and was unjustified to have rejected the appeal in Limine disregarding the principles of natural law and justice that in the event/situation when technicalities and substantial justice is petted against each other, the substantive justice deserves to be prevailed over, technicalities. 5. That in view of apparent facts that the formation of the Reasons to believe in respect of alleged escapement of income was of the Assessing Officer, ward 2(1) Jalandhar, who held ITA No. 1571-Chd-2019 Sh. Harjinder Singh, Germany 3 no jurisdiction over the matter as the relevant case was admittedly transferred to jurisdictional Authority, DOT (International Taxation) Chandigarh, who had not issued any notice u/s 148 of the Act, thus the assessment as farmed itself u/s 144/147 of the Act was bad in law without complying with the mandatory conditions u/s 142(1), 144, 147/148, 151 of the Income Tax Act. 6. That the Ld. DCIT (Int. Taxation) was unjustified and erred both on facts and in Law to have framed assessment and treating the whole sale consideration as income without effecting any proper enquiries as to the cost of the said capital assets and even in computing whether the capital gains, if any, was of long term or short term in view of the specific provisions of law u/s 48 of the Income Tax Act, since have failed to appreciate that entire sale consideration could not be held or assessable as income of the assessee without first determining the set off the cost of the said capital assets/ indexed cost thereof resorting to ex-parte decision u/s 144 of the Act without judicious application of mind. 7. That the impugned assessment is entirely wrong and unjustified on fact and in Law since the impugned transfer of the property was a fraudulent transaction for which no sales consideration was ever accrued/arisen or received by the assessee whatsoever as the Power of Attorney holder have been held and found guilty of fraud in respect of said alleged sale/transfer of the impugned property. 8. That the assessee craves to add, modify, delete any ground of appeal during the course of the appeal proceedings. 3. A t t h e out s e t, t he L d. C ou ns e l for t h e a s s es s e e h a s s ub m i t t e d t h a t t he a s s es s e e is a N RI. T h e as s e s s ee d id no t h av e PA N nu m ber I n I nd i a be c aus e o f w hi c h t he as s e s s ee co u l d not f i le t h e a ppe a l el e ct ro n i c a l l y ITA No. 1571-Chd-2019 Sh. Harjinder Singh, Germany 4 be fo r e t he L d . CI T (A ). Th a t th e a p p e a l w as p re fe r re d w i t hi n li mi t at i o n pe r i o d ma nu a l ly / i n p ap e r fo r m i n F or m N o. 3 5, h ow ev er , t h e Ld . CI T(A ) re j e c te d t h e a p pe al o f th e a ss e s s e e ci t i n g re l e v a nt pr o vi s i ons o f s e ct i on 45 o f t h e I n co me T a x A c t , 196 1 ( i n s ho rt ‘ th e A c t ’) r eq u ir i n g t he a s s es s e e t o fi l e t he ap p e a l el e ct ro n i c a l l y. 4. Be i ng a gg ri ev ed b y t he o r d e r p as s e d by th e Ld . CI T (A ), t h e a s s es s e e ha s c ome i n app ea l b e f or e us . 5. We h av e h e ar d t h e r i v a l c o n t e n t i on s o f th e pa rt ie s a nd g on e t hr o u gh t h e r e c or d. Th e L d. c o uns e l fo r t he as s e s s ee h as s ub m it t ed t h a t , t ho u g h, a s p e r t h e pr ov i s io ns o f I nc o me T a x A c t , t he a pp ea l w as re q u i r e d to be f il e d e l e c tr oni c a l l y , h o w eve r, s i n ce t he a s se s s e e di d no t ha v e P A N nu mbe r, an d t h e s o ft w a re / i n co m e –t a x po r ta l w a s s o de vi se d t ha t t he ap p e a l c o u l d n ot b e fi l ed w i t ho ut P A N nu mb e r, t h e re f o re , u nde r t he c o mp e l l i ng c ir cu ms t an c e s , t h e as s e s s ee fil e d t he a p pe a l ma nu a ll y w i th i n t he ti m e p e r i od a l l ow e d fo r fi li n g t h e a p p e al . T he L d . Co u ns e l f o r t he as s e s s ee ha s s ub m it t ed th at t he a s s e s s ee w as prev e n t e d f ro m fi l i n g t he a pp e a l el e ct ro n i ca ll y du e to c i r c u ms t an ce s b e y ond t h e c on t r ol o f th e a s s es s e e. H e h as fu rt he r s ub m i t t e d t h a t t he as s e s s ee n o w ha s obt a i ne d t he P A N n u mb e r a n d t h at th e as s e s s ee ma y be a l l ow e d to f il e t he a pp e a l e le c t r o ni c a l ly an d th e C I T ( A ) ma y b e di re c t e d to d ec i de t h e ap pe a l o f t he as s e s s ee on me r i t s . ITA No. 1571-Chd-2019 Sh. Harjinder Singh, Germany 5 6. T he L d. D R , o n t h e ot he r ha nd, h a s s u b mi t t e d t h at s i nc e t he a pp ea l w as re q u i r ed t o be fi l e d e l e c t r on i c al l y, t h e re fo r e, t he L d. C I T( A ) h as ri g h t l y d i s mi s s e d t h e a pp e a l o f th e a s s es s e e. 7. In o ur v i e w , in t h is ca s e t h e Ld . CI T (A ) w as n ot j us t i f ie d i n re j ec t in g / d i s mi s s i ng t h e a pp e a l o f t h e as s e s s ee str ai g h t a w ay w i t h ou t c ons i de ri ng t he s ub m is s i ons o f t he a s s e ss e e th a t due t o th e c ir cu ms t a n c e s b e y on d t he c o nt ro l o f t he as s e s s ee , th e a ss e s s e e w as pr e v e nt e d b y s u ffi c ie nt c a us e fr o m fi l in g t he a pp e al el e ct ro ni c a l ly . H ow e ver , th e a s s es s e e b e in g di li ge n t , fi l ed t he a p pe al m anu al l y w i t h i n t he l i m i t a ti on pe r i od. U nd e r t h e c i rc u ms t a nc es , i n o ur v ie w , t h e L d . CI T(A ) s h o u l d h av e g ra nt ed o p p or t u ni t y t o t he as s e ss ee t o ge t th e P A N nu mb e r a n d s u b mi t t he c o p y o f t h e ap p e a l e l ec t r on ic a l l y, as s t ra i gh t a w a y r e j e c t i o n o f t he ap pe a l in t hi s c a s e , i n o ur vi e w , w a s n ot j us t i fi e d . 8. Co n s id e r i n g t he ov e ra ll fa ct s a n d ci rc u ms ta nc es o f t he c a s e, t he i mpu gne d o r de r o f t he C I T ( A ) i s s et a s i de an d t h e as s es s e e is g i v en 30 da ys t i m e fr o m t he d at e o f r e c e i p t o f c op y o f t h e or d er t o fi l e t he a pp e a l e le c t r o ni c a l ly a n d t he r e a ft e r L d . CI T ( A ) w il l d e c id e t h e a pp e a l o f t h e a s s es s e e on m er it s . T he p er i o d fr o m th e d a t e o f s ervi ce o f th e a s s es s men t or de r t i l l t h e f il i n g o f t h e ap p e a l el e ct r on i c a ll y w i l l n ot b e c ons i de re d fo r t he pu r pos e o f c o mp u t a t i o n o f l i m i t ati on pe r i o d b e c a u s e o f t h e ex tr a or di na r y ci r c u ms t a n c e s o f t h is c as e w hi c h c ons t i t ut e d t h e s uf fi ci e nt r ea s o n f o r no n - f il i ng o f t h e ap pe al e l e ct r o n i c a ll y . ITA No. 1571-Chd-2019 Sh. Harjinder Singh, Germany 6 Wi t h t h e a bo ve d i r e ct i o ns , t he a pp e a l o f t h e as s e s see is t r ea t e d as a ll ow e d for s ta t is t i ca l p ur p os es . In t h e r e su l t , t he ap p e a l o f t h e as s e s s ee i s he re by a l l o w e d f o r s t at i s t i c a l pu r p os e s . O r d e r p r o n o u n c e d o n 2 3 . 1 1 . 2 0 2 1 . Sd/- Sd/- (अ नप ू णा ग ु &ता / ANNAPURNA GUPTA) लेखा सद य/ Accountant Member (संजय गग / SANJAY GARG) या यक सद य/ Judicial Member Dated : 23.11.2021 “आर.के .” आदेशक" त.ल/पअ0े/षत/ Copy of the order forwarded to : 1. अपीलाथ / The Appellant 2. यथ / The Respondent 3. आयकरआय ु 1त/ CIT 4. आयकरआय ु 1त (अपील)/ The CIT(A) 5. /वभागीय त न4ध, आयकरअपील'यआ4धकरण, च6डीगढ़/ DR, ITAT, CHANDIGARH 6. गाड फाईल/ Guard File आदेशान ु सार/ By order, सहायकपंजीकार/ Assistant Registrar