ACIT, New Delhi V. M/s. Silver Impex, New Delhi

ITA 1825/DEL/2010

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 97475 (ITAT-DELHI)
• Duration Of Justice: 5 year(s) 5 month(s) 14 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-10-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: G
• Next Hearing Date: 29-09-2015
• Assessment Year: 1995-1996
• Appeal Filed On: 21-04-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SUJIT KUMAR SENIOR
• Assessee Lawyers: K SAMPATH
• Keywords: Opportunity of being heard; Reasonable cause
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL DELHI DELHI DELHI DELHI BENCH BENCH BENCH BENCH G GG G : NEW DELHI : NEW DELHI : NEW DELHI : NEW DELHI BEFORE SHRI G.C. GUPTA BEFORE SHRI G.C. GUPTA BEFORE SHRI G.C. GUPTA BEFORE SHRI G.C. GUPTA, VICE , VICE , VICE , VICE PRESIDENT AND PRESIDENT AND PRESIDENT AND PRESIDENT AND SHRI SHRI SHRI SHRI OM PRAKASH KANT OM PRAKASH KANT OM PRAKASH KANT OM PRAKASH KANT, , , , ACCOUNTANT ACCOUNTANT ACCOUNTANT ACCOUNTANT MEMBER MEMBER MEMBER MEMBER ITA NO ITA NO ITA NO ITA NO . .. . 1825/DEL/2010 1825/DEL/2010 1825/DEL/2010 1825/DEL/2010 ASSESSMENT YEAR ASSESSMENT YEAR ASSESSMENT YEAR ASSESSMENT YEAR : : : : 1995 1995 1995 1995 - -- - 96 9696 96 ASSISTANT COMMISSIONER OF ASSISTANT COMMISSIONER OF ASSISTANT COMMISSIONER OF ASSISTANT COMMISSIONER OF INCOME INCOME INCOME INCOME TAX, TAX, TAX, TAX, CIRCLE CIRCLE CIRCLE CIRCLE- -- -19(1), 19(1), 19(1), 19(1), N NN NEW DELHI. EW DELHI. EW DELHI. EW DELHI. VS. VS. VS. VS. M/S SILVER IMPEX, M/S SILVER IMPEX, M/S SILVER IMPEX, M/S SILVER IMPEX, H HH H- -- -236, 236, 236, 236, ASHOK VIHAR PHASE ASHOK VIHAR PHASE ASHOK VIHAR PHASE ASHOK VIHAR PHASE- -- -I, I,I, I, DELHI DELHI DELHI DELHI 110 052. 110 052. 110 052. 110 052. PAN/GIR : S PAN/GIR : S PAN/GIR : S PAN/GIR : S- -- -369. 369. 369. 369. (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI SUJIT KUMAR, SENIOR DR. RESPONDENT BY : SHRI K. SAMPATH, ADVOCATE. DATE OF HEARING : 29.09.2015 29.09.2015 29.09.2015 29.09.2015 DATE OF PRONOUNCEMENT : 05.10.2015 05.10.2015 05.10.2015 05.10.2015 ORDER ORDER ORDER ORDER PER G.C. GUPTA PER G.C. GUPTA PER G.C. GUPTA PER G.C. GUPTA, VP , VP , VP , VP : :: : THIS APPEAL BY THE REVENUE FOR THE ASSESSMENT YEAR 1995-96 IS DIRECTED AGAINST THE ORDER OF LEARNED CIT(A)-XXII, NEW DELHI DATED 1 ST FEBRUARY, 2010. 2. THE TRIBUNAL IN THIS CASE HAS PASSED A RECTIFICA TION ORDER DATED 5 TH AUGUST, 2013 IN M.A.NO.70/DEL/2011 ARISING OUT OF ITA NO.1825/DEL/2010 FOR THE RELEVANT ASSESSMENT YEAR 1 995-96 WHEREBY THE TRIBUNAL HAD DIRECTED TO RECALL THE ORDER OF TH E TRIBUNAL DATED 20 TH AUGUST, 2010 FOR THE LIMITED PURPOSE, I.E., FOR ADJ UDICATION OF GROUND OF APPEAL NO.4 OF THE REVENUES APPEAL. 3. THE GROUND OF APPEAL NO.4 OF THE REVENUES APPEA L READS AS UNDER:- ITA-1825/DEL/2010 2 THE LD.CIT(A) ERRED IN LAW AND ON FACTS IN CONDONI NG THE DELAY OF ALMOST TWELVE YEARS IN ADMITTING THE APPEA L FILED BY THE ASSESSEE. 4. LEARNED DR SUBMITTED THAT NO SPECIFIC REASON WAS GIVEN BY THE LEARNED CIT(A) FOR CONDONING THE INORDINATE DELAY O F ALMOST TWELVE YEARS IN ADMITTING THE APPEAL FILED BY THE ASSESSEE . HE SUBMITTED THAT THE ASSESSEE OWES AN EXPLANATION DAY-WISE TO EXPLAI N THE EACH DAY OF DELAY IN FILING THE APPEAL BEFORE THE CIT(A). HE S UBMITTED THAT THERE SHOULD BE FINALITY TO LITIGATION AND ONCE THE ASSES SEE HAS NOT FILED APPEAL BEFORE THE FIRST APPELLATE AUTHORITY AND THE RE IS NO VALID REASON FOR THE DELAY IN FILING THE APPEAL BEFORE THE CIT(A ), THE CIT(A) SHOULD HAVE REFUSED TO CONDONE THE DELAY. 5. LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE DELAY IN FILING THE FIRST APPEAL BEFORE THE LEARNED CIT(A) W AS FOR REASONABLE CAUSE AND THE LEARNED CIT(A) HAS PASSED A SPEAKING AND DETAILED ORDER ON THIS ISSUE CONSIDERING THE PLEA OF THE ASSESSEE AND HAS ALSO CONSIDERED THE RELEVANT CASE LAW INCLUDING THAT OF THE HON'BLE SUPREME COURT. HE RELIED ON THE ORDER OF THE LEARNED CIT(A ). 6. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS ON THE LIMITED ISSUE OF GROUND NO.4 OF THE REVENUES APPEAL REGARDING CONDO NATION OF DELAY OF ALMOST TWELVE YEARS BY THE LEARNED CIT(A). WE F IND THAT INITIALLY THERE WAS NO TAX DEMAND NOR ANY DEMAND NOTICE WAS S ERVED U/S 156 ON THE ASSESSEE ALONG WITH THE ASSESSMENT ORDER AND THE IMPRESSION WAS THAT THE APPEAL COULD BE FILED ONLY IF THERE WA S A DISPUTED DEMAND. THE CIT(A) HAS DISCUSSED THE FACTS OF THE CASE IN DETAIL IN HIS APPELLATE ORDER AND IN PARAGRAPH 5.3 OF HIS APPELLA TE ORDER, HE HAS MENTIONED THAT IN THE PECULIAR FACTS OF THIS CASE, NONE OF APPELLATE AUTHORITIES HEARD THE APPEAL ON MERITS LEADING TO N O OPPORTUNITY OF BEING HEARD GIVEN FOR THE LAST TWELVE YEARS. THE A SSESSEE, AFTER ITS ITA-1825/DEL/2010 3 APPEAL BEING REJECTED ON TECHNICAL GROUND BY THE IT AT, CAME BEFORE THE CIT(A) AGAINST THE ORIGINAL ORDER U/S 143(3) AN D THIS WHOLE PROCESS CAUSED DELAY FOR WHICH THE ASSESSEE HAS REQUESTED F OR CONDONATION. LEARNED CIT(A) HAS DISCUSSED THE RELEVANT CASE LAW APPLICABLE TO THE FACTS OF THE CASE OF THE ASSESSEE. WE FIND THAT IN THE FACTS AND CIRCUMSTANCES OF THE CASE, THERE WAS NO FAULT ON TH E PART OF THE ASSESSEE FOR THE DELAY IN FILING THE FIRST APPEAL B EFORE THE CIT(A) AND THE CIT(A) HAS RIGHTLY CONCLUDED THAT THE ASSESSEE HAS FILED THE APPEAL BEFORE THE CIT(A) AGAINST THE ORIGINAL ORDER U/S 14 3(3) AFTER ITS APPEAL BEING REJECTED ON TECHNICAL GROUND BY THE TRIBUNAL AND HAS HELD THAT THE DELAY WAS DUE TO VALID REASONS. WE, BEING IN A GREEMENT WITH THE SPEAKING ORDER PASSED BY THE LEARNED CIT(A) ON THIS ISSUE, CONFIRM THE SAME AND GROUND NO.4 OF THE REVENUES APPEAL IS DIS MISSED. 7. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISM ISSED TO THE EXTENT MENTIONED ABOVE. DECISION PRONOUNCED IN THE OPEN COURT ON 5 TH OCTOBER, 2015. SD/- SD/- ( (( ( OM PRAKASH KANT OM PRAKASH KANT OM PRAKASH KANT OM PRAKASH KANT ) )) ) (G. (G. (G. (G. C. GUPTA C. GUPTA C. GUPTA C. GUPTA ) )) ) ACCOUNTANT ACCOUNTANT ACCOUNTANT ACCOUNTANT MEMBER MEMBER MEMBER MEMBER VICE PRESIDENT VICE PRESIDENT VICE PRESIDENT VICE PRESIDENT VK. COPY FORWARDED TO: - 1. APPELLANT : ASSISTANT COMMISSIONER OF INCOME TAX, ASSISTANT COMMISSIONER OF INCOME TAX, ASSISTANT COMMISSIONER OF INCOME TAX, ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE CIRCLE CIRCLE CIRCLE- -- -19(1), NEW DELHI. 19(1), NEW DELHI. 19(1), NEW DELHI. 19(1), NEW DELHI. 2. RESPONDENT : M/S SILVER IMPEX, H M/S SILVER IMPEX, H M/S SILVER IMPEX, H M/S SILVER IMPEX, H- -- -236 236 236 236, ASHOK VIHAR PHASE , ASHOK VIHAR PHASE , ASHOK VIHAR PHASE , ASHOK VIHAR PHASE- -- -I, I,I, I, DELHI DELHI DELHI DELHI 110 052. 110 052. 110 052. 110 052. 3. CIT 4. CIT(A) 5. DR, ITAT ASSISTANT REGISTRAR