M/s. Atul Ltd., Ahmedabad V. The Dy. Commissioner of Income Tax, Circle-1(1)(1), Ahmedabad

ITA 186/AHD/2018

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 3376 (ITAT-AHMEDABAD)
• Duration Of Justice: 1 year(s) 3 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-04-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2007-2008
• Appeal Filed On: 22-01-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Reasonable cause
• Section: 271(1)(c); 143(3); 201; 143(2)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD B BENCH BEFORE: SHR I MAHAVIR PRASAD , JUDICIAL MEMBER AND SHRI AMARJIT SINGH, ACCOUNTANT MEMBER M/S. ATUL LTD. ATUL HOUSE, MITHILA SOCIETY, G.I. PATEL MARG, NAVRANG CROSS ROADS, AHMEDABAD - 380014 PAN: AABCA2390M (APPELLANT) VS THE D CIT, CIRCLE - 1 (1)(1)/ CIRCLE - 1(1)(2) , AHMEDABAD (RESPONDENT) R EVENUE BY : S H RI MUDIT NAGPAL , SR. D . R. ASSESSEE BY: SHRI BANDISH SOPARKAR, A.R. DATE OF HEARING : 11 - 04 - 2 019 DATE OF PRONOUNCEMENT : 24 - 04 - 2 019 / ORD ER P ER : AMARJIT SINGH, ACCOUNTANT MEMBER : - THE SOLITARY GROUND OF APPEAL OF THE ASSESSEE IS AGAINST DECISION OF LD. CIT(A) - 5, AHMEDABAD IN CONFIRMING PENALTY LEVIED BY ASSESSING OFFICER OF RS. 74 , 72 , 856/ - U/S. 271(1)(C) OF THE ACT. 2. DURING THE COU RSE OF APPELLATE PROCEEDINGS BEFORE US, AT THE OUTSET , THE LD. COUNSEL HAS BROUGHT TO OUR NOTICE THAT THE QUANTUM ADDITION ON THE BASIS I T A NO S . 186 & 187 / A HD/20 18 A SSESSMENT YEAR 200 7 - 08 & 2012 - 13 I.T.A NO S . 186 & 187 /AHD/20 18 A.Y. 2007 - 08 & 2012 - 13 PAGE NO M/S. ATUL LTD. VS. D CIT 2 OF WHICH THE AFORESAID IMPUGNED PENALTY WAS LEVIED HAS BEEN DELETED BY THE DECISION OF CO - ORDINATE BENCH OF THE ITAT VID E ITA NO. 1766/AHD/20104 DATED 11 - 07 - 2018. THE LD. DEPARTMENTAL REPRESENTATIVE WAS FAIR ENOUGH NOT TO CONTRADICT THE AFORESAID MATERIAL FACTS OF DELETING THE QUANTUM ADDITION IN THE CASE OF THE ASSESSEE BY THE AFORESAID ORDER OF THE ITAT. WITH THE ASSISTA NCE OF LD. REPRESENTATIVES, WE HAVE GONE THROUGH THE AFORESAID ORDER OF ITAT VIDE ITA NO. 1766/AHD/2014 DATED 11 - 07 - 2018 AND NOTICED THAT VIDE ABOVE ORDER , THE ITAT HAS QUASHED THE RE - ASSESSMENT PROCEEDINGS ON THE BASIS OF WHICH THE QUANTUM DISALLOWANCE WA S MADE IN THE CASE OF THE ASSESSEE. IN THE LIGHT OF THE ABOVE FACTS AND CIRCUMSTANCES, WE CONSIDER THAT THE LEVYING OF IMPUGNED PENALTY HAS BECOME INFRUCTUOUS AS THE QUANTUM ADDITION ON THE BASIS OF WHICH THIS PENALTY WAS L EVIED HAS BEEN DELETED. ACCOR DINGLY, THE APPEAL OF THE ASSESSEE IS ALLOWED. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALLOWED. ITA NO. 187 /AHD/2018 3. THE SOLITARY GROUND OF APPEAL OF THE ASSESSEE IS AGAINST THE DECISION OF LD. CIT(A) - 5, AHMEDABAD IN DISMISSING THE APPEAL OF TH E ASSESSEE ON THE GROUND THAT ASSESSEE HAS NOT FILED THE APPEAL ON E - ELECTRONIC MODE. 4. THE BRIEF FACT IS THAT THE RETURN OF INCOME DECLARING INCOME OF RS. 107 ,9 5 , 03 , 680/ - WAS E - FILED BY THE ASSESSEE ON 28 TH NOV, 2012. SUBSEQUENTLY, THE CASE WAS SELECTE D UNDER SCRUTINY BY ISSUING OF NOTICE U/S. 143(2) OF THE ACT ON 12 TH AUGUST, 2013. THE ASSESSMENT U/S. 143(3) R.W.S. 144(3) OF THE ACT WAS MADE ON 28 TH MARCH, 2016 . A FTER MAKING VARIOUS I.T.A NO S . 186 & 187 /AHD/20 18 A.Y. 2007 - 08 & 2012 - 13 PAGE NO M/S. ATUL LTD. VS. D CIT 3 ADDITION THE TOTAL INCOME WAS ASSESSED AT RS. 1095188470/ - . THE ASS ESSEE HAS FILED APPEAL BEFORE THE LD. CIT(A) ON 22 ND APRIL, 201 6. THE LD. CIT(A) HAS DISMISSED THE APPEAL ON THE GROUND THAT ASSESSEE HAS NOT FILED APPEAL ON ELECTRONIC MODE . 5. WE HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED THE MATERIAL ON RECORD CARE FULLY. THE CASE OF THE ASSESSEE WAS SUBJECT TO SCRUTINY ASSE SSMENT. THE ASSESSEE HAS FILED APPEAL BEFORE THE LD. CIT(A). THE LD. CIT(A) HAS DISMISSED THE APPEAL OF THE ASSESSEE ON THE GROUND THAT ASSESSEE HAS NOT FILED THE APPEAL ELECTRONICALLY BY REFE RRING THE NOTIFICATION NO. 11/2006 (F.NO. 149/150/2015 - TPL DATED 01/03/2016 OF THE CBDT. WE HAVE NOTICED THAT VIDE CIRCULAR NO. 20/2016 DATED 26/05/2011 OF CBDT, THE DATE OF FILING OF APPEAL BY ELECTRONIC MODE WAS EXTENDED UP TO 15/06/2016. T HE ASSESSE E HAD FILED THE APPEAL IN THE PAPER FORM IN FORM NO. 35 ON 22/04/2016. THE D ELAY IN FILI NG APPEAL ON ELECTRONIC MODE WAS BECAUSE OF UNINTENDED TECHNICAL LAPSE. IN THIS CONNECTION, WE OBSERVED THAT T HE ONLINE FILING OF APPEAL WAS NEWLY INTRODUCED DURING THE YEAR UNDER CONSIDERATION BECAUSE OF WHICH THE ASSESSEE HAD FACED DIFFICULTY IN UPLOADING THE APPEAL ELECTRONICALLY IN THE SYSTEM. THE ISSUING OF CIRCULARS BY THE CBDT FOR EXTENDIN G THE DATE OF FILING THE APPEAL IMPLICIT CONSTRAINT AND ELUCIDATE THE HICC UP IN UPLOADING THE PRESCRIBED APPEAL IN THE SYSTEM ELECTRONICALLY. THE ABOVE STATED FACTS AND FINDINGS INDEED INDICATE THAT THERE WAS A BONA FIDE REASONABLE CAUSE FOR NOT FILING THE APPEAL ELECTRONICALLY BY THE ASSESSEE, THEREFORE, AS PER OUR CONSID ERED OPINION THE LD. CIT(A) IS NOT JUSTIFIED IN DISMISSING THE APPEAL. I.T.A NO S . 186 & 187 /AHD/20 18 A.Y. 2007 - 08 & 2012 - 13 PAGE NO M/S. ATUL LTD. VS. D CIT 4 IN VIEW OF THE ABOVE FACTS AND CIRCUMSTANCES, WE RESTORE THIS APPEAL TO THE FILE OF THE LD. CIT (A ) FOR ADJUDICATION ON MERIT AFTER AFFORDING ADEQUATE OPPORTUNITIES TO THE ASSES SEE. IN THE RESULT, THE APPEAL OF THE ASSESEE IS ALLOWED FOR STATISTICAL PURPOSES. 6. IN THE COMBINED RESULT, ITA NO 186/AHD/2018 IS ALLOWED AND ITA NO. 187/AHD/2018 IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PR ONOUNCED IN THE OPEN C OUR T ON 24 - 04 - 201 9 SD/ - SD/ - ( MAHAVIR PRASAD ) ( AMARJIT SINGH ) JUDICIAL MEMBER ACCOUNTANT MEMBER AHMEDABAD : DATED 24 /04 /2019 / COPY OF ORDER FORWARDED TO: - 1. ASSESSEE 2. REVENUE 3. CONCERNED CIT 4. CIT (A) 5. DR, ITAT, AHMEDABAD 6. GUARD FILE. BY ORDER/ , / ,