VIJAYARAMA GAJAPATHI CO-OPERATIVE SUGARS LTD, VISAKHAPATNAM V. DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE-3(1), VISAKHAPATNAM

ITA 2/VIZ/2023

• Counselvise Citation: [2023] 100 COUNSELVISE.COM (IT) 4759 (ITAT-VISAKHAPATNAM)
• Duration Of Justice: 11 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-12-2023
• Appeal Filed By: Assessee
• Order Result: PartlyAllowed
• Bench Allotted: DB
• Next Hearing Date: 05-12-2023
• Assessment Year: 2012-2013
• Appeal Filed On: 02-01-2023
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MADHKAR AVES
• Keywords: Opportunity of being heard; Principle of natural justice; Liquidation

Judgement Text

आयकरअपीलीयअधिकरण, धिशाखापटणम पीठ, धिशाखापटणम IN THE INCOME TAX APPELLATE TRIBUNAL, VISAKHAPATNAM BENCH, VISAKHAPATNAM श्री द ु व्वूरु आर एल रेड्डी, न्याधयक सदस्य एिं श्री एस बालाकृ ष्णन, लेखा सदस्य के समक्ष BEFORE SHRI DUVVURU RL REDDY, HON’BLE JUDICIAL MEMBER & SHRI S BALAKRISHNAN, HON’BLE ACCOUNTANT MEMBER आयकर अपील सं./I.T.A.No.2/Viz/2023 (ननधधारण वर्ा / Assessment Year : 2012-13) Sri Vijayarama Gajapathi Co-operative Sugars Ltd. Bheemasinghi SPO Sainik School Vizianagaram [PAN : AACTS1696N] Vs. Dy.Commissioner of Income Tax Circle-3 (1) Visakhapatnam (अपीलार्थी/ Appellant) (प्रत्यर्थी/ Respondent) अपीलधथी की ओर से/ Appellant by : Shri G.V.N.Hari, AR प्रत्यधथी की ओर से / Respondent by : Shri Madhkar Aves, Sr.AR सुनवधई की तधरीख / Date of Hearing : 06.12.2023 घोर्णध की तधरीख/Date of Pronouncement : 08.12.2023 आदेश /O R D E R Per Shri Duvvuru RL Reddy, Judicial Member : This appeal is filed by the assessee against the order of the Commissioner of Income Tax (Appeal) [CIT(A)], National Faceless Appeal Centre (NFAC), Delhi vide DIN & Order No.ITBA/NFAC/S/250/2021- 22/1040766430(1) dated 15.03.2022, for the Assessment Year (A.Y.) 2012-13 with the delay of 234 days. The assessee filed petition for condonation of delay and the Ld.AR submitted that the order of the 2 I.T.A. No.2/Viz/2023, A.Y. 2012-13 Sri Vijayarama Gajapathi Co-operaive Sugars Ltd., Vizianagaram Ld.CIT(A) was passed on 15.03.2022 and the appeal ought to have been filed against the said order on or before 14.05.2022, but the assessee could file appeal on 03.01.2023 with the delay of 234 days. The Ld.AR submitted that the assessee halted the crushing operations due to technical problems from F.Y.2020-21 onwards and as per the directions of Govt. of Andhra Pradesh for closure / liquidation of non-functioning cooperative sugar factories, the assessee stopped functioning from the F.Y.2020-21 onwards. The assessee was not aware of the hearing notices issued by the Ld.CIT(A) and the order was passed by the Ld.CIT(A) on 15.03.2022. The Ld.AR further submitted that during the month of December 2022, the former Managing Director, Sri K.R.Victor Raju approached the Jt.Collector, Vizianagaram to request for sanction of the pending salaries, gratuity etc. to the employees who were given option of voluntary retirement and he was asked to submit the necessary data. While reviewing the affairs of the assessee, the Managing Director came to know about the order of the Ld.CIT(A) and without any further loss of time, the Managing Director took necessary steps and filed the appeal before the Hon’ble ITAT on 03.01.2023. The Ld.AR submitted that the delay was due to the reasons beyond the control of the assessee, which was neither intentional nor deliberate. Therefore, pleaded the Tribunal to 3 I.T.A. No.2/Viz/2023, A.Y. 2012-13 Sri Vijayarama Gajapathi Co-operaive Sugars Ltd., Vizianagaram condone the delay of 234 days in filing the appeal and to afford one more opportunity of being heard before the Ld.CIT(A) in the interest of rendering substantial justice for which the Ld.DR has not raised any objection. 2. We have heard both the parties and perused the condonation petition filed by the assessee. It was the submission of the Ld.AR that the assessee was not aware of the notices issued as the assessee was not functioning since the F.Y.2020-21 as per the directions of the Govt. of Andhra Pradesh and the order of the Ld.CIT(A) was passed on 15.03.2022. The assessee was not in a position to establish it’s case before the Ld.CIT(A) due to closure of the assessee company, therefore, it was beyond the control of the assessee. The Ld.AR pleaded to condone the delay and afford one more opportunity of being heard before the Ld.CIT(A). After considering the explanation, we are of the considered view that the assessee explained sufficient cause to prefer the appeal before the Tribunal belatedly, and therefore, we condone the delay. Further, in order to meet the principles of natural justice, we are inclined to remit the matter back to the file of the Ld.CIT(A) with a direction to afford one more opportunity of being heard to the assessee. The assessee is also directed to adhere to the notices issued and cooperate with the 4 I.T.A. No.2/Viz/2023, A.Y. 2012-13 Sri Vijayarama Gajapathi Co-operaive Sugars Ltd., Vizianagaram revenue authorities by furnishing relevant information with verifiable evidences. 2. In the result, appeal of the assessee is allowed for statistical purpose. Order pronounced in the open court on 8 th December , 2023. Sd/- Sd/- (एस बालाकृ ष्णन) (द ु व्वूरु आर.एल रेड्डी) (S.BALAKRISHNAN) (DUVVURU RL REDDY) लेखा सदस्य/ACCOUNTANT MEMBER न्याधयक सदस्य/JUDICIAL MEMBER Dated : 08.12.2023 L.Rama, SPS आदेश की प्रतितिति अग्रेतिि/Copy of the order forwarded to:- 1. ननधधाऩरती/ The Assessee– Sri Vijayarama Gajapathi Co-operative Sugars Ltd., Bheemasinghi, SPO Sainik School, Vizianagaram 2. रधजस्व/The Revenue – Dy.Commissioner of Income Tax, Circle-3 (1), Visakhapatnam 3. The Principal Commissioner of Income Tax, Visakhapatnam 4. नवभधगीय प्रनतनननध, आयकर अपीलीय अनधकरण, नवशधखधपटणम / DR,ITAT, Visakhapatnam 5..गधर्ा फ़धईल / Guard file आदेशधनुसधर / BY ORDER Sr. Private Secretary ITAT, Visakhapatnam