Mrs. Seema Rajesh Babar, Pune V. ITO Ward-3(3), , Pune

ITA 2044/PUN/2019

• Counselvise Citation: [2020] 110 COUNSELVISE.COM (IT) 3996 (ITAT-PUNE)
• Duration Of Justice: 10 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-11-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 24-11-2020
• Assessment Year: 2014-2015
• Appeal Filed On: 18-12-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Reasonable cause

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH SMC, PUNE VIRTUAL COURT BEFORE SHRI R.S. SYAL, VICE PRESIDENT ITA NO.2044/PUN/2019 / ASSESSMENT YEAR : 2014-15 MRS. SEEMA RAJESH BABAR, FLAT NO.8, BUILDING NO.A2, NEAR TAPODHAM, WARJE, PUNE 411 052 PAN : ATOPB7345L VS. ITO, WARD-3(3), PUNE APPELLANT RESPONDENT / ORDER PER R.S.SYAL, VP : THIS APPEAL BY THE ASSESSEE IN RELATION TO THE ASSESSMENT YEA R 2014-15 IS DIRECTED AGAINST THE ORDER PASSED BY THE COMMIS SIONER OF INCOME-TAX (APPEALS)-3, PUNE ON 14-10-2019 DISMISS ING THE APPEAL FOR WANT OF DELAY. 2. BRIEFLY STATED, THE FACTUAL MATRIX IS THAT THE ASSESSEE IS AN INDIVIDUAL WHO FILED HER RETURN DECLARING TOTAL INCOME AT RS.19,49,317/-. DURING THE COURSE OF THE ASSESSMENT PR OCEEDINGS, THE ASSESSING OFFICER (AO) OBSERVED THAT THERE WAS A DIFF ERENCE OF RS.26,40,071/- IN THE FIGURE OF SALES AS PER ITS DATA AND THE PROFIT AND LOSS ACCOUNT. SIMILARLY, THE AO FOUND THAT THE ASSESSE E HAD ASSESSEE BY SHRI PRATIK B.SANDBHOR REVENUE BY SHRI PRASHANT GADEKAR DATE OF HEARING 03-11-2020 DATE OF PRONOUNCEMENT 03-11-2020 ITA NO.2044/PUN/2019 MRS. SEEMA RAJESH BABAR 2 CLAIMED DEDUCTION TOWARDS DIWALI BONUS AT RS.1,56,000/- AN D INTEREST PAID ON SERVICE TAX AT RS.1,11,115/-. THE ASSESS EE WAS CALLED UPON TO EXPLAIN HER STAND IN RESPECT OF THE ABOVE ITEM S. IN THE ABSENCE OF ASSESSEE MAKING PROPER SUBMISSION, THE AO MADE THESE ADDITIONS. 3. THE APPEAL WAS FILED BELATEDLY BEFORE THE LD. CIT(A) BY 638 DAYS. IN SUPPORT OF CONDONATION OF THE DELAY, THE ASSESS EE SUBMITTED THAT SHRI BALAJI GAIKWAD, ACCOUNTANT ATTENDED THE PROCEEDINGS BEFORE THE AO WHO COULD NOT PROPERLY FURNISH THE DETAILS. ON PASSING OF THE ASSESSMENT ORDER, THE ASSESSEE HANDED OVER THE SAME TO SHRI BALAJI GAIKWAD FOR FILING OF APPEAL, WHIC H HE FORGOT TO FILE. IN SUPPORT OF SUCH CONTENTION, THE ASSESSEE FURNISHED AN AFFIDAVIT FROM SHRI BALAJI GAIKWAD ASSERTING THAT HE FORGOT TO FILE THE APPEAL BEFORE THE LD. CIT(A). THE ASSESSEE ALSO CONTENDED BEFORE THE LD. CIT(A) THAT SHE CAME TO KNOW ABOUT THE NON- FILING OF APPEAL WHEN THE NEW REPRESENTATIVE BROUGHT THIS FACT TO HER NOTICE AT THE TIME OF FILING OF NEXT RETURN. THE LD. CIT(A) NO TED IN PARA 6.5 OF THE IMPUGNED ORDER THAT THE ASSESSEE CLAIME D TO HAVE GOT KNOWLEDGE ABOUT NON-FILING OF THE APPEAL ONLY AT THE TIME OF FILING RETURN FOR THE NEXT YEAR, AND THE APPEAL WAS ACTUALLY F ILED ON 02-11-2018. HE DID NOT ACCEPT THE ASSESSEES CONTENTION ON THE GROUND THAT THE DUE DATE FOR FILING OF RETURN WAS 31-07-201 8 AND ITA NO.2044/PUN/2019 MRS. SEEMA RAJESH BABAR 3 FILING OF APPEAL ON 02-11-2018 DID NOT JUSTIFY THE DELAY SINCE AS PER ASSESSEES OWN ADMISSION THE FACT OF FILING APPEAL FOR THE PRECEDING YEAR HAD COME TO HER NOTICE BEFORE THE DUE DATE. THIS IS HOW, THE LD. CIT(A) DISMISSED THE APPEAL OF THE ASSESSEE IN LIMINE ON THE ASPECT OF DELAY. AGGRIEVED THEREBY, THE ASSESSEE HAS APP ROACHED THE TRIBUNAL. 4. I HAVE HEARD THE RIVAL SUBMISSIONS THROUGH VIRTUAL COURT A ND SCANNED THE RELEVANT MATERIAL ON RECORD. IT IS AMPLY BORNE OUT FROM THE ASSESSMENT ORDER THAT THE ASSESSMENT PROCEEDINGS WERE ATTENDED BY SHRI BALAJI GAIKWAD, THE ACCOUNTANT OF THE ASSESSE E WHO DID NOT FURNISH THE REQUISITE RECONCILIATION AND RELEVANT DE TAILS BEFORE THE AO, WHICH LED TO THE MAKING OF THE ADDITIONS. T HE APPEAL WAS FILED BELATEDLY BEFORE THE LD. CIT(A) ON THE PRE MISE THAT THE ASSESSEE WAS UNAWARE OF THE NON-FILING OF APPEAL B Y SHRI BALAJI GAIKWAD WHO WAS DIRECTED TO FILE APPEAL IMMEDIATELY ON RECEIPT OF THE ORDER. IN SUPPORT OF SUCH A CONTENTION, THE ASSESSEE FILED HER AFFIDAVIT AND ALSO THAT OF SHRI BALAJI GAIKWAD, COPIES O F WHICH HAVE BEEN PLACED AT PAGE 4 ONWARDS AND 7 ONWARDS OF THE PAPER BOOK. THIS EVIDENCES THAT THOUGH THERE WAS A DELAY IN THE FILING OF APPEAL BUT IT WAS NOT DUE TO THE MISTAKE OF THE ASSESS EE INASMUCH AS IT WAS FOR THE FIRST TIME THAT HER CASE WAS SELEC TED FOR SCRUTINY AND SHE REQUIRED HER ACCOUNTANT TO FILE THE APPEAL, WHICH ITA NO.2044/PUN/2019 MRS. SEEMA RAJESH BABAR 4 ASSERTION IS BORNE OUT FROM THE AFFIDAVITS. THE LD. CIT(A) IN PARA 6.5 HAS RECORDED THAT THE DUE DATE FOR FILING OF THE RETURN WAS 31- 07-2018 AND IF THE ASSESSEE CAME TO KNOW ABOUT THIS FACT ONLY BY THAT TIME, THE APPEAL SHOULD HAVE BEEN PREFERRED IMMEDIATELY AND NOT ON 02-11-2018. AS AGAINST THAT, THE CORRECT POSITION, A S STATED BY THE LD. AR, IS THAT THE ASSESSEE WAS SUBJECTED TO TAX A UDIT AND THE DUE DATE WAS 31-10-2018. IMMEDIATELY ON COMING TO KNO W OF THE NON-FILING OF THE APPEAL BY 31-10-2018, THE ASSESSEE S WUNG INTO ACTION AND FILED APPEAL WITHIN TWO DAYS, I.E. ON 02-11-20 18. UNDER THE GIVEN FACTS AND CIRCUMSTANCES, I AM SATISFIED THAT THERE WAS A REASONABLE CAUSE FOR THE ASSESSEE IN NOT PRESENTING THE APPEAL BEFORE THE LD. CIT(A) WITHIN THE STIPULATED PERIOD. THE DELAY IS CONDONED AND THE MATTER IS RESTORED TO THE FILE OF LD. CIT( A) FOR DISPOSAL ON MERITS. 5. IN THE RESULT, THE APPEAL IS ALLOWED FOR STATISTICAL PURPOSES . ORDER PRONOUNCED IN THE OPEN COURT ON 03 RD NOVEMBER, 2020. SD/- (R.S.SYAL) / VICE PRESIDENT PUNE; DATED : 03 RD NOVEMBER, 2020 ITA NO.2044/PUN/2019 MRS. SEEMA RAJESH BABAR 5 / COPY OF THE ORDER IS FORWARDED TO : 1. / THE APPELLANT; 2. / THE RESPONDENT; 3. ( ) / THE CIT (APPEALS)-3, PUNE 4. THE PR.CIT-2, PUNE 5. , , SMC / DR SMC, ITAT, PUNE; 6. / GUARD FILE. / BY ORDER, // TRUE COPY // SENIOR PRIVATE SECRETARY , / ITAT, PUNE DATE 1. DRAFT DICTATED ON 03-11-2020 SR.PS 2. DRAFT PLACED BEFORE AUTHOR 03-11-2020 SR.PS 3. DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER - JM 4. DRAFT DISCUSSED/APPROVED BY SECOND MEMBER. - JM 5. APPROVED DRAFT COMES TO THE SR.PS/PS SR.PS 6. KEPT FOR PRONOUNCEMENT ON SR.PS 7. DATE OF UPLOADING ORDER SR.PS 8. FILE SENT TO THE BENCH CLERK SR.PS 9. DATE ON WHICH FILE GOES TO THE HEAD CLERK 10. DATE ON WHICH FILE GOES TO THE A.R. 11. DATE OF DISPATCH OF ORDER. *