G.V. Puntambekar & Sons Pvt. Ltd., V. Assistant Commissioner of Income-tax,

ITA 1706/PUN/2015

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 1606 (ITAT-PUNE)
• Duration Of Justice: 6 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-06-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2007-2008
• Appeal Filed On: 29-12-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: HITENDRA NINAWE
• Keywords: Depreciation; Condonation of delay
• Section: 154

Judgement Text

- IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH SMC, PUNE , BEFORE MS. SUSHMA CHOWLA, JM / ITA NO.1706/PN/2015 ! ' ' / ASSESSMENT YEAR : 2007-08 G. V. PUNTAMBEKAR & SONS PVT. LTD., 555, NARAYAN PETH, PUNE 411 030 . / APPELLANT PAN: AAACG6706A VS. THE ASSTT. COMMISSIONER OF INCOME TAX, CIRCLE 1(2), PUNE . RESPONDENT / APPELLANT BY : SHRI M. K. KULKARNI / RESPONDENT BY : SHRI HITENDRA NINAWE DATE OF HEARING : 30.06.2016 / DATE OF PRONOUNCEMENT: 30.06.2016 # / ORDER PER SUSHMA CHOWLA, JM: THIS APPEAL FILED BY THE ASSESSEE IS AGAINST THE OR DER OF CIT(A)-I, PUNE, DATED 31.12.2014 RELATING TO ASSESSMENT YEAR 2007-0 8 AGAINST ORDER PASSED UNDER SECTION 154 OF THE INCOME-TAX ACT, 1961 (IN S HORT THE ACT). 2. THE ASSESSEE HAS RAISED THE FOLLOWING GROUNDS OF APPEAL:- 1) ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW THE LD. CIT(A) WAS NOT JUSTIFIED IN DISMISSING THE APPEAL OF THE A SSESSEE IN LIMINE FOR NON ITA NO.1706/PN/2015 2 COMPLIANCE OF THE PROVISIONS OF S. 249(2) OF THE AC T. THE LD. CIT(A) WAS EXPECTED TO TAKE A LIBERAL VIEW IN THE MATTER OF CO NDONATION OF DELAY. 2) ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND I N LAW THE LD. CIT(A) WAS THEN NOT JUSTIFIED IN DISMISSING THE APPEAL OF THE ASSESSEE HOLDING THAT THE APPELLANT WAS NOT ENTITLED TO DEPRECIATION AN BUILD ING. THE LD. CIT(A) OUGHT TO HAVE ALLOWED THE PROPER OPPORTUNITY TO EXPLAIN THE POSITION OF LAW ON THE ISSUE SINCE THE APPEAL WAS DISMISSED IN LIMINE. 3) ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND I N LAW THE ORDER OF THE LD CIT(A) BE SET ASIDE AND BE DIRECTED TO AD MIT THE APPEAL BY CONDONING THE DELAY AND DECIDE THE ISSUE AFTER GRANT OF PROPE R OPPORTUNITY TO EXPLAIN THE CASE OF THE ASSESSEE. 4) THE APPELLANT CRAVES TO LEAVE, ADD/AMEND OR ALTE R ANY OF THE ABOVE GROUNDS OF APPEAL. 3. THE PRELIMINARY ISSUE RAISED BY THE ASSESSEE IS AGAINST THE DISMISSAL OF THE APPEAL OF THE ASSESSEE BY THE CIT(A) IN LIMINE FOR NON-COMPLIANCE OF PROVISIONS OF SECTION 249(2) OF THE ACT. THE PRESE NT APPEAL FILED BY THE ASSESSEE WAS AFTER A DELAY OF 3 DAYS. THE LD. AUTH ORIZED REPRESENTATIVE FOR THE ASSESSEE FILED AN AFFIDAVIT OF THE EX-DIRECTOR OF THE ASSESSEE COMPANY AND HE POINTED OUT THAT THE BUSINESS OF THE ASSESSEE CO MPANY WAS CLOSED SINCE 2013 AND THERE WAS AN EXERCISE OF REVIVAL OF THE BU SINESS WHICH FAILED. IN THESE CIRCUMSTANCES, THERE WAS DELAY IN FILING THE APPEAL LATE BEFORE THE TRIBUNAL BY 3 DAYS. I FIND MERIT IN THE CLAIM OF T HE ASSESSEE IN THIS REGARD AND APPEAL OF THE ASSESSEE IS TAKEN UP FOR HEARING. 4. THE ASSESSEE IS AGGRIEVED BY THE DISMISSAL ORDER OF THE CIT(A) IN LIMINE WHEREIN THE APPEAL BEFORE THE CIT(A) WAS FILED AFTE R A DELAY OF 180 DAYS. THE ASSESSEE ALSO FILED AN AFFIDAVIT IN THIS REGARD BEF ORE US, OF HIS EX-DIRECTOR THAT BECAUSE OF THE FINANCIAL CRUNCHES AND THE ASSESSEE COMPANY OUT OF BUSINESS DUE TO LOSSES, THE APPEAL COULD NOT BE FILED IN TIM E BEFORE THE CIT(A). IN THE SAID AFFIDAVIT, THE ASSESSEE FURTHER STATED THAT TH E DELAY IN FILING THE APPEAL LATE BEFORE THE CIT(A) WAS BECAUSE OF UNAVOIDABLE CIRCUM STANCES, SINCE THE ASSESSEE COMPANY WAS COMPLETELY OUT OF BUSINESS IN THE YEAR 2013. IN THE ENTIRETY OF THE FACTS AND CIRCUMSTANCES, I FIND MER IT IN THE PLEA OF THE ASSESSEE. HOWEVER, I RESTORE THE MATTER BACK TO THE FILE OF T HE CIT(A) WITH A DIRECTION TO ITA NO.1706/PN/2015 3 THE ASSESSEE TO FILE THE NECESSARY EVIDENCE BEFORE THE CIT(A) TO JUSTIFY ITS CLAIM OF CONDONATION OF DELAY IN FILING THE APPEAL LATE B EFORE THE CIT(A) BY 180 DAYS. THE CIT(A) SHALL DECIDE THE ISSUE IN ACCORDANCE WIT H LAW AFTER AFFORDING A REASONABLE OPPORTUNITY OF HEARING TO THE ASSESSEE A ND ALSO DECIDED THE APPEAL ON MERITS IN CASE THE DELAY IN FILING THE APPEAL IS CONDONED. 5. IN VIEW THEREOF, THE GROUNDS OF APPEAL RAISED BY THE ASSESSEE ARE THUS, ALLOWED. 6. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALL OWED. ORDER PRONOUNCED IN THE OPEN COURT ON THIS 30 TH DAY OF JUNE, 2016. SD/- (SUSHMA CHOWLA) / JUDICIAL MEMBER / PUNE ; DATED : 30 TH JUNE, 2016 . ! #$%&'()(& / COPY OF THE ORDER IS FORWARDED TO : THE APPELLANT; THE RESPONDENT; ' ' # () THE CIT(A)-I, PUNE; ' ' # THE CIT-I, PUNE &'( ))*+, ' *+ , , - . // / DR SMC, ITAT, PUNE; (01 2 / GUARD FILE. #! / BY ORDER & ) // TRUE COPY // 345 )! *6 / SR. PRIVATE SECRETARY ' *+ , ITAT, PUNE