Madras Lamps Private Limited, CHENNAI V. ITO Corporate Ward 4(1), CHENNAI

ITA 2055/CHNY/2018

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 0127 (ITAT-CHENNAI)
• Duration Of Justice: 11 month(s) 20 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-06-2019
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: D
• Assessment Year: 2012-2013
• Appeal Filed On: 29-06-2018
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: MRS M SUBASHRI
• Keywords: Reasonable cause; Condonation of delay; Liquidation; Capital Gains
• Section: 143(3); 142(1); 143(2)

Judgement Text

, , IN THE INCOME-TAX APPELLATE TRIBUNAL D BENCH, CHENNAI . , , BEFORE SHRI DUVVURU RL REDDY, JUDICIAL MEMBER & SHRI S. JAYARAMAN, ACCOUNTANT MEMBER ./ I.T.A.NO.2055/CHNY/2018 / ASSESSMENT YEAR :2012-13 M/S. MADRAS LAMPS PRIVATE LIMITED [IN LIQUIDATION] O/O THE OFFICIAL LIQUIDATOR, 29, CORPORATE BHAVAN, RAJAJI SALAI, CHENNAI 600 001. [PAN:AAHCM3410G] VS. THE INCOME TAX OFFICER, CORPORATE WARD 4(1), CHENNAI. ( /APPELLANT ) ( / RESPONDENT ) / APPELLANT BY : NONE / RESPONDENT BY : MRS. M. SUBASHRI, JCIT / DATE OF HEARING : 13.06.2019 /DATE OF PRONOUNCEMENT : 19.06.2019 / O R D E R PER DUVVURU RL REDDY, JUDICIAL MEMBER: THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF THE LD. COMMISSIONER OF INCOME TAX (APPEALS) 8, CHENNAI DATED 18.01.2018 RELEVANT TO THE ASSESSMENT YEAR 2012-13 RAISING VARIOUS GROUNDS. 2. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE COMPANY (IN LIQUIDATION) FILED THE RETURN OF INCOME FOR THE ASSESSMENT YEAR 2012-13 ON 06.09.2012 ADMITTING NIL INCOME. THE CASE WAS SELECTED FOR SCRUTINY AND ACCORDINGLY NOTICE UNDER SECTION 143(2) OF THE INCOME TAX ACT, 1961 [ACT IN SHORT] WAS I.T.A. NO.2055/CHNY/18 2 ISSUED ON 06.08.2013 AND DULY SERVED ON THE ASSESSEE COMPANY (IN LIQUIDATION). SUBSEQUENTLY, NOTICE UNDER SECTION 142(1) OF THE ACT WAS ALSO ISSUED ON 18.06.2014 AND 11.02.2015 CALLING FOR VARIOUS DETAILS AGAINST WHICH THE AR OF THE ASSESSEE FILED THE DETAILS CALLED FOR. AFTER VERIFICATION OF THE DETAILS FURNISH AND CONSIDERING THE SUBMISSIONS OF THE ASSESSEE, THE ASSESSING OFFICER COMPLETED THE ASSESSMENT UNDER SECTION 143(3) OF THE ACT BRINGING THE LONG TERM CAPITAL GAINS OF .1,40,00,000/- AND SHORT TERM CAPITAL GAINS OF .45 LAKHS FOR TAXATION. ON APPEAL, THE LD. CIT(A) PARTLY ALLOWED THE APPEAL FILED BY THE ASSESSEE. 3. ON BEING AGGRIEVED, THE ASSESSEE IS IN APPEAL BEFORE THE TRIBUNAL. 4. AT THE OUTSET, THE BENCH HAS NOTICED THAT THE APPEAL OF THE ASSESSEE IS FOUND TO HAVE BEEN FILED LATE BY 91 DAYS BEFORE THE TRIBUNAL. NONE APPEARED ON BEHALF OF THE OFFICIAL LIQUIDATOR DESPITE RECEIPT OF NOTICE OF HEARING. THE CONTENTS IN THE AFFIDAVIT FILED FOR CONDONATION OF DELAY ARE REPRODUCED AS UNDER: IN THE MATTER OF FOR ASSESSMENT YEAR: 2012-13 I, K. THIRUMALAI MUTHU, INDIAN INHABITANT, IN THE CAPACITY OF OFFICIAL LIQUIDATOR IN THE MATTER OF MADRAS LAMPS PRIVATE LIMITED (IN LIQUIDATION) HEREBY SOLEMNLY AFFIRM AND DECLARE AS UNDER: 1. THAT THE ASSESSEE COMPANY WAS ASSESSED TO INCOME TAX BY THE ASSESSING OFFICER, CORPORATE WARD -4(1) ON FILE BEARING THE PERMANENT ACCOUNT NUMBER (PAN)-AAHCM3410G. I.T.A. NO.2055/CHNY/18 3 2. THAT THE ASSESSEE COMPANY PREFERRED AN APPEAL BEFORE THE COMMISSIONER (APPEALS)-8 AGAINST THE ASSESSING OFFICERS ORDER OF ASSESSMENT DATED 25.02.2015 FOR THE ASSESSMENT YEAR. 3. THAT THE ASSESSEE COMPANY RECEIVED THE ORDER OF THE SAID COMMISSIONER (APPEALS) 8 ON 29.01.2018. 4. THAT BEING AGGRIEVED BY THE SAID ORDER, I PLACED THE CASE BEFORE THE JUDGE OF THE COMPETENT COURT WHICH IS SUPERVISING THE LIQUIDATION PROCESS FOR OBTAINING THE PERMISSION TO PREFER AN APPEAL BEFORE THE HONOURABLE APPELLATE TRIBUNAL. THE PROCESS TOOK SOME TIME AND HENCE DELAY. THE APPEAL HAS BEEN FILED ON . I FURTHER DECLARE THAT THE ABOVE STATEMENT IS TRUE AND CORRECT TO THE BEST OF MY KNOWLEDGE AND BELIEF. PLACE: CHENNAI SD/- DATE: DEPONENT (SEAL OF) OFFICIAL LIQUIDATOR HIGH COURT, MADRAS THE ABOVE CONTENT OF THE AFFIDAVIT DID NOT CONTAIN ANY REASONABLE CAUSE FOR THE DELAY. MOREOVER, THE AFFIDAVIT FILED BY THE OFFICIAL LIQUIDATOR IS NOT NOTARIZED. THE ASSESSEE COMPANY IS UNDER LIQUIDATION MUCH MORE YEARS PRIOR TO THE PRESENT ASSESSMENT YEAR, IN FACT, THE ASSESSMENT NOTICES HAVE BEEN SERVED ON THE OFFICIAL LIQUIDATOR. ON PERUSAL OF THE AFFIDAVIT, THE OFFICIAL LIQUIDATOR LEAST BOTHER TO PUT NUMBER OF DAYS OF DELAY IN FILING THE APPEAL AND KEPT BLANK, WHICH SHOWS LASSITUDE APPROACH. WHEN IT WAS POINTED OUT THROUGH DEFECT MEMO, IT WAS RECTIFIED. THE PROCESS FOR OBTAINING THE PERMISSION TO PREFER AN APPEAL BEFORE THE TRIBUNAL TOOK SOME TIME CANNOT BE A REASONABLE CAUSE FOR THE DELAY OF 91 DAYS IN FILING APPEAL. APPEAL IS TO BE FILED BEFORE THE TRIBUNAL WITHIN 60 DAYS OF THE DATE ON WHICH ORDER APPEALED AGAINST IS COMMUNICATED TO THE TAXPAYER. THE LAW OF LIMITATION I.T.A. NO.2055/CHNY/18 4 BINDS EVERYBODY INCLUDING THE GOVERNMENT OFFICIALS. THE LAW ASSISTS THOSE WHO ARE VIGILANT AND NOT THOSE WHO SLEEP OVER THEIR RIGHTS. THIS PRINCIPLE IS EMBODIED IN THE DICTUM: VIGILANTIBUS NON DORMIENTIBUS JURA SUBVENIUNT . ON GOING THROUGH THE REASONS STATED IN THE AFFIDAVIT FOR THE DELAY IN FILING THE APPEAL, WE FIND THAT THERE EXISTS NO SUFFICIENT CAUSE TO CONDONE THE DELAY. SINCE THE OFFICIAL LIQUIDATOR HAS NOT EXPLAINED THE REASONABLE CAUSE FOR THE DELAY OF 91 DAYS IN FILING THE APPEAL BEFORE THE TRIBUNAL SATISFACTORILY, THE CONDONATION PETITION DATED NIL (KEPT BLANK) FILED BY THE OFFICIAL LIQUIDATOR STANDS REJECTED. 5. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS DISMISSED. ORDER PRONOUNCED ON THE 19 TH JUNE, 2019 AT CHENNAI. SD/- SD/- (S. JAYARAMAN) ACCOUNTANT MEMBER (DUVVURU RL REDDY) JUDICIAL MEMBER CHENNAI, DATED, THE 19.06.2019 VM/- /COPY TO: 1. / APPELLANT, 2. / RESPONDENT, 3. ( ) /CIT(A), 4. /CIT, 5. /DR & 6. /GF.