Income Tax Officer, Ward-2, Dimapur V. Smt. Shreya Jain, Dimapur

ITA 19/GTY/2020

• Counselvise Citation: [2021] 109 COUNSELVISE.COM (IT) 7040 (ITAT-GUWAHATI)
• Duration Of Justice: 1 year(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-01-2021
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: SMC
• Assessment Year: 2014-2015
• Appeal Filed On: 17-01-2020
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ARATI AGARWAL
• Keywords: Question of law; Tax effect

Judgement Text

ITA NOS. 16 TO 19/GAU/2020 SHRI AJIT JAIN(HUF) & ORS. A.Y. 2014-15 1 | P A GE IN THE INCOME TAX APPELLATE TRIBUNAL GAUHATI BENCH: GUWAHATI VIRTUAL HEARING AT KOLKATA [BEFORE SHRI P. M. JAGTAP, VICE-PRESIDENT & SHRI A. T. VARKEY, JM] I.T.A. NO. 16/GAU/2020 ASSESSMENT YEAR: 2014-15 ITO, WARD-1, DIMAPUR VS. SHRI AJIT JAIN (HUF), DIMAPUR (PAN: AAJHA 3409 A ) APPELLANT RESPONDENT I.T.A. NO. 17/GAU/2020 ASSESSMENT YEAR: 2014-15 ITO, WARD-1, DIMAPUR VS. SMT. DEEPA LUHADIA, DIMAPUR (PAN: AAFPL 0206 L ) APPELLANT RESPONDENT I.T.A. NO. 18/GAU/2020 ASSESSMENT YEAR: 2014-15 ITO, WARD-1, DIMAPUR VS. SMT. KIRAN PATNI, DIMAPUR (PAN: AFWPP 2932 B ) APPELLANT RESPONDENT I.T.A. NO. 19/GAU/2020 ASSESSMENT YEAR: 2014-15 ITO, WARD-1, DIMAPUR VS. SMT. SHREYA JAIN, DIMAPUR (PAN: AAFPL 0206 L ) APPELLANT RESPONDENT DATE OF HEARING (VIRTUAL) 22.01.2021 DATE OF PRONOUNCEMENT 27.01.2021 FOR THE APPELLANT SMT. ARATI AGARWAL, AR FOR THE RESPONDENT SHRI SUBHRAJYOTI BHATTACHARYA, D .R ITA NOS. 16 TO 19/GAU/2020 SHRI AJIT JAIN(HUF) & ORS. A.Y. 2014-15 2 | P A GE ORDER PER BENCH: THESE FOUR DEPARTMENTAL APPEALS ARE PREFERRED AGAIN ST THE SEPARATE ORDERS OF LD. CIT(A)-JORHAT DATED 07.09.2017 & 08.09.2017 FO R A.Y. 2014-15. 2. AT THE OUTSET, THE LD. A.R SMT. ARATI AGARWAL SUBMITTED THAT THE DEPARTMENT HAS PREFERRED THESE APPEAL AFTER MORE THAN 700 DAYS AND THEREFORE, SHE OBJECTED TO THE ADMISSION OF THESE REVENUES APPEALS AGAINST LD. CI T(A) GIVING RELIEF TO THE ASSESSEES. ACCORDING TO HER, THE EXCEPTION MADE IN THE CIRCULAR OF CBDT PRESCRIBING MONETARY LIMITS FOR REVENUE TO PREFER APPEALS IN TR IBUNAL/HIGH COURT/ SUPREME COURT CANNOT BE READ RETROSPECTIVELY. SO, SHE WANTS US TO DISMISS THESE APPEALS AT THE THRESHOLD BEFORE ADMISSION ITSELF. PER CONTRA, THE LD. D.R SHRI SUBHRAJYOTI BHATTACHARJEE SUBMITTED THAT THE IMPUGNED ORDERS OF LD. CIT(A) GAVE ALL THE CAPTIONED ASSESSEES RELIEF ON PENNY STOCK CASES. THEREFORE, THE DEPARTMENT / CBDT HAS TAKEN OUT THESE PENNY STOCK CASES FROM THE AMBI T OF CIRCULAR (TAX EFFECT). IN RESPECT OF GRANTING CONDONATION OF DELAY, THE LD. D.R SUBMI TTED THAT THE TRIBUNAL/HIGH COURT/SUPREME COURT HAS BEEN LIBERAL IN GRANTING CO NDONATION OF DELAY PROVIDED THERE IS SUFFICIENT REASONS TO JUSTIFY THE SAME; AND SINC E THE CBDT BECAME AWARE OF THE MENACE OF PENNY STOCK CASES, HAVE TAKEN A DECISION ALBEIT LATE TO EXCLUDE THESE CASES FROM THE AMBIT OF TAX EFFECT, TO PREFER APPEAL BY T HE DEPARTMENT; AND SINCE IT WAS A POLICY DECISION, TIME WAS CONSUMED AND DELAY HAPPEN ED, SO, HE PLEADED THAT DELAY IN FILING APPEAL MAY BE CONDONED AND APPEAL BE ADMITTE D AND HEARD ON MERITS. AND IN RESPECT OF APPLICATION OF CIRCULAR RETROSPECTIVELY, THE LD DR SUBMITTED THAT THE QUESTION OF LAW RAISED BY THE ASSESSEE NEEDS TO BE ARGUED AT LENGTH AND HE PLEADED FOR ADMISSION OF THE APPEAL BY CONDONING THE 705 DAYS D ELAY. IN HER REJOINDER, THE LD. A.R SUGGESTED AN ALTERNATIVE PLEA TO LET THE APPEAL OF THE REVENUE BE ADMITTED, SO THAT IT WILL PAVE WAY FOR THE ASSESSEES TO AVAIL FOR THE DIRECT TAX VIVAD SE VISWAS SCHEME, 2020 (HEREINAFTER, THE SCHEME). ITA NOS. 16 TO 19/GAU/2020 SHRI AJIT JAIN(HUF) & ORS. A.Y. 2014-15 3 | P A GE 3. HAVING HEARD BOTH THE PARTIES AND AFTER TAKING I NTO CONSIDERATION THE CONTENTION PUT FORTH, WE NOTE THAT THESE REVENUES APPEALS PER TAIN TO PENNY STOCK MATTER. AND WE ARE INCLINED TO ALLOW THE ALTERNATE PLEA OF LD AR, SO WE CONDONE THE DELAY FOR FILING THE APPEALS BY THE DEPARTMENT. WE HASTEN TO ADD TH AT THIS ACTION OF OURS TO CONDONE THE DELAY OF 705 DAYS SHOULD NOT BE TAKEN AS A PREC EDENT, SINCE IT IS ONLY TO PAVE WAY FOR THE ASSESSEES TO AVAIL THE SCHEME. IN THE LIG HT OF THE AFORESAID DISCUSSION, WE CONDONE THE DELAY AND ADMIT REVENUES APPEALS. 4. SINCE WE HAVE ADMITTED THE APPEALS AS PER THE AL TERNATE PRAYER OF LD. A.R, WE TAKE NOTE OF THE ASSESSEES INTENTION /UNDERTAKING TO AVAIL/FILE FORM 1 AND 2 OF THE SCHEME BEFORE 31.01.2021 (CUT-OFF DATE AS ON DATE T O AVAIL FOR THE SCHEME). IN SUCH AN EVENT, THERE IS NO POINT IN KEEPING THE APPEALS OF REVENUE PENDING. THEREFORE, TAKING NOTE OF THE UNDERTAKING GIVEN BEFORE US TO AVAIL FO R THE SCHEME BY FILING FORM 1 AND 2, WE TREAT REVENUES APPEALS AS WITHDRAWN/DISMISSED. IN CASE, IF THE ASSESSEES OFFER ARE NOT ACCEPTED, THE REVENUE IS AT LIBERTY TO MOVE APP ROPRIATE APPLICATION FOR RECALLING OF THESE ORDERS. AND NEEDLESS TO SAY THAT OUR ACTION OF TREATING THE REVENUES APPEALS AS WITHDRAWN/DISMISSED EVEN BEFORE THE ASSESSEE HAD FI LED FORM 1 AND 2 AS DISCUSSED SUPRA, WILL NOT PRECLUDE THE DESIGNATED AUTHORITY U NDER THE SCHEME TO ACCEPT THE FORM 1 AND 2 TO BE FILED BY THE ASSESSEE AND THEREAFTER TO ISSUE FORM NO. 3 ETC IN ACCORDANCE TO SCHEME/LAW. 5. IN THE RESULT, ALL THE FOUR APPEALS OF THE REVEN UE ARE DISMISSED AS WITHDRAWN. ORDER IS PRONOUNCED IN THE OPEN COURT ON 27 TH JANUARY, 2021. ( SD/- SD/- ( (P. M. JAGTAP) (A. T . VARKEY) VICE PRESIDENT JUDICIAL MEMBER DATED: 27.01.2021 SB, SR. PS ITA NOS. 16 TO 19/GAU/2020 SHRI AJIT JAIN(HUF) & ORS. A.Y. 2014-15 4 | P A GE COPY OF THE ORDER FORWARDED TO: 1. APPELLANT- ITO, WARD-1, DIMAPUR, NAGALAND 2. RESPONDENT- I) SHRI AJIT JAIN (HUF) II) SMT. KIRAN PATNI III) SMT. SHREYA JAIN ALL ARE RESIDING AT 1 ST FLOOR, CITY TOWER, CIRCULAR ROAD, DIMAPUR, NAGALAN D- 797112 IV) SMT. DEEPA LUHADIA, 201, JAIN TEMPLE ROAD, DIMAPUR, NAGALAND- 797112. 3. THE CIT(A)- GUWAHATI 4. CIT- , GUWAHATI 5. DR, GAUHATI BENCH, GUWAHATI TRUE COPY BY ORDER SR. PRIVATE SECRETARY ITAT, KOLKATA BENCHES, KOLKATA