TARA AUTO FINANACE P LTD, CHENNAI V. ITO CORPORATE WARD-3(1), CHENNAI

ITA 2094/CHNY/2019

• Counselvise Citation: [2019] 112 COUNSELVISE.COM (IT) 3465 (ITAT-CHENNAI)
• Duration Of Justice: 4 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-11-2019
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: A
• Assessment Year: 2013-2014
• Appeal Filed On: 15-07-2019
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Assessee Lawyers: D ANAND SHRI AJIT KUMBHATCA

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL , A BENCH, CHENNAI . . . , , BEFORE SHRI N.R.S. GANESAN, JUDICIAL MEMBER AND SHRI S. JAYARAMAN, ACCOUNTANT MEMBER ./ ITA NO.2094/CHNY/2019 [ [ /ASSESSMENT YEAR: 2013-14 M/S. TARA AUTO FINANCE (P) LTD., NO.5, THOLASINGAM LANE, SOWCARPET, CHENNAI 600 079. VS. THE INCOME TAX OFFICER, CORPORATE WARD 3(1)(I/C), CHENNAI 34. PAN: AACCT 1837D ( /APPELLANT) ( /RESPONDENT) / APPELLANT BY : SHRI D. ANAND, ADVOCATE FOR SHRI AJIT KUMBHAT,CA /RESPONDENT BY : SHRI AR.V. SREENIVASAN, JCIT /DATE OF HEARING : 25.11.2019 /DATE OF PRONOUNCEMENT : 28.11.2019 / O R D E R PER SHRI S. JAYARAMAN, ACCOUNTANT MEMBER : THE ASSESSEE FILED THIS APPEAL AGAINST THE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS)-11, CHENNAI IN ITA NO.17/18- 19/CIT(A)-11 DATED 20.05.2019 FOR THE ASSESSMENT YEAR 2013-14. 2. M/S. TARA AUTO FINANCE PVT. LTD., IS A FINANCE COMPANY. ITS ASSESSMENT U/S.143(3) R.W.S. 147 WAS COMPLETED ON 20.12.2016, ITA NO.2094/CHNY/2019 - 2 - WHEREIN THE ASSESSING OFFICER INITIATED PENALTY PROCEEDINGS U/S.271(1)(C). SUBSEQUENTLY, THE ASSESSING OFFICER LEVIED PENALTY U/S.271(1)(C) BY AN ORDER DATED 21.06.2017. AGGRIEVED AGAINST THAT ORDER, THE ASSESSEE FILED AN APPEAL BEFORE THE CIT(A) WITH A DELAY OF 362 DAYS. THE ASSESSEE SUBMITTED THAT THE DELAY WAS DUE TO TRACING OF RELEVANT PAPERS WHICH GOT MIXED UP IN THE AUDITORS OFFICE AND IT TOOK CONSIDERABLE TIME TO TRACE THEM. HOWEVER, THE LD.CIT(A) DISMISSED THE APPEAL, HOLDING THAT THE PLEA TAKEN BY THE ASSESSEE IS NOT SUFFICIENT TO CONDONE THE DELAY. AGGRIEVED AGAINST THAT ORDER, THE ASSESSEE FILED THIS APPEAL. 3. THE LD.AR SUBMITTED THAT THE LD.CIT(A) ERRED IN DISMISSING THE APPEAL WITHOUT APPRECIATING THE FACT THAT THE DELAY WAS NOT CAUSED INTENTIONALLY AND DELIBERATELY, AS THE ASSESSEES APPEAL PAPERS GOT MIXED UP IN THE AUDITORS OFFICE, WHICH RESULTED IN THE DELAY IN LOCATING THEM. AS SOON AS THE PAPERS WERE TRACED, THE ASSESSEE HURRIEDLY FILED THE APPEAL. IN THE INTEREST OF JUSTICE, THE LD.CIT(A) SHOULD HAVE CONDONED THE DELAY AND DECIDED THE MATTER ON MERITS. THEREFORE, THE LD.AR PLEADED THAT THE APPEAL BE ALLOWED. PER CONTRA, THE LD.DR SUPPORTED THE ORDER OF THE LD.CIT(A). ITA NO.2094/CHNY/2019 - 3 - 4. WE HEARD THE RIVAL SUBMISSIONS AND GONE THROUGH THE RELEVANT MATERIAL. THE ASSESSEE FILED AN APPEAL AGAINST THE LEVY OF PENALTY U/S.271(1)(C) BEFORE THE CIT(A) WITH A DELAY OF 362 DAYS. ON CONSIDERING THE ASSESSEES ABOVE PLEA, IN THE INTEREST OF JUSTICE, WE CONDONE THE DELAY IN FILING THE APPEAL BEFORE THE CIT(A) AND REMIT THE MATTER BACK TO THE LD.CIT(A) TO DECIDE THE CASE ON MERITS. 5. IN THE RESULT, THE ASSESSEES APPEAL IS TREATED AS PARTLY ALLOWED. ORDER PRONOUNCED IN THE COURT ON 28 TH NOVEMBER, 2019 IN CHENNAI. SD/- SD/- /CHENNAI, /DATED 28 TH NOVEMBER, 2019 RSR /COPY TO: 1. /APPELLANT 2. /RESPONDENT 3. ( ) /CIT(A) 4. /CIT 5. /DR 6. /GF ( . . . ) (N.R.S. GANESAN) / JUDICIAL MEMBER ( ) (S. JAYARAMAN) /ACCOUNTANT MEMBER