The C.D. Co-Operative Credit Society Ltd., Mandi V. DCIT, Mandi

ITA 211/CHANDI/2014

• Counselvise Citation: [2014] 140 COUNSELVISE.COM (IT) 80817 (ITAT-CHANDIGARH)
• Duration Of Justice: 5 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-08-2014
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 03-07-2014
• Assessment Year: 2009-2010
• Appeal Filed On: 04-03-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: J S NAGAR
• Keywords: Reasonable cause; Condonation of delay

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL CHANDIGARH BENCH A CHANDIGARH BEFORE SHRI T.R.SOOD ACCOUNTANT MEMBER AND MS. SUSHMA CHOWLA, JUDICIAL MEMBER ITA NO.211/CHD/2014 ASSESSMENT YEAR : 2009-10 THE C.D. CO-OPERATIVE CREDIT VS THE DY.COMMISSI ONER OF INCOME TAX, SOCIETY LTD., CIRCLE MANDI, H.O. GOHAR, BHIULI, P.O. CHAIL CHOWK, DISTT.MANDI (H.P.). TEHSIL : CHACHIOT, DISTT.MANDI (HP). PAN : AAABT2301D (APPELLANT) (RESPONDENT) APPELLANT BY : S/SHRI RAVI SHANKAR & ROHIT KA URA RESPONDENT BY : SHRI J.S.NAGAR DATE OF HEARING : 03.07.2014 DATE OF PRONOUNCEMENT : 05.08.2014 ORDER PER SUSHMA CHOWLA, JM THE APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAI NST THE ORDER OF THE CIT(APPEALS) SHIMLA DATED 12.12.2013 RELATING T O ASSESSMENT YEAR 2009-10 AGAINST THE ORDER PASSED UNDER SECTION 143( 3) OF THE INCOME-TAX ACT, 1961 ( 'THE ACT' FOR SHORT). 2. THE ASSESSEE HAS RAISED PRELIMINARY GROUNDS V IDE GROUND NOS. 1 & 2 WHICH READ AS UNDER : 1. THAT THE LEARNED CIT(A), HAS ERRED IN LAW AS WELL A S ON FACTS WHILE NOT CONDONING THE DELAY IN FILING OF APPEAL AND THE REBY NOT CONSIDERING THE APPELLANT'S APPEAL ON MERITS AND DISMISSING MER ELY ON TECHNICAL GROUNDS. 2. THAT THE ORDER OF THE LD. CIT(A), IS ARBITRARY IN N OT CONSIDERING THE APPEAL ON MERITS AND AGAINST THE WELL SETTLED LAW T HAT THE FAULT OF THE COUNSEL BEING A 'REASONABLE CAUSE' TO CONDONE THE D ELAY AND NO ASSESSEE 2 SHOULD SUFFER FOR THE MISTAKE OF HIS COUNSEL SPECIF ICALLY WHEN THE ASSESSEE HAS ITSELF DULY DEPOSITED THE APPEAL FEE O F RS. 1000/- ON 16.11.2011 WELL BEFORE THE LAST DATE AND HANDED OVE R THE APPEAL PAPERS TO HIS EARLIER COUNSEL. 3. THE GRIEVANCE OF THE ASSESSEE IN THE PRESENT APP EAL IS AGAINST THE ORDER OF COMMISSIONER OF INCOME TAX (APPEALS) IN NO T CONDONING THE DELAY IN FILING THE APPEAL LATE AND DISMISSING THE APPEAL IN-LIMINE. 4. THE LD. AR FOR THE ASSESSEE POINTED OUT THAT THE APPEAL WAS FILED LATE BY ABOUT 16 MONTHS ON ACCOUNT OF THE DELAY ON THE PART OF THE CHARTERED ACCOUNTANT. IT WAS POINTED OUT BY THE AS SESSEE BEFORE THE COMMISSIONER OF INCOME TAX (APPEALS) THAT EVEN THE APPEAL FEE OF RS. 1000/- WAS DEPOSITED ON 15.11.2011, THOUGH THE APPE AL WAS FILED ON 22.03.2013. 5. THE LD. AR FOR THE ASSESSEE SUBMITTED THAT THE D ISMISSAL OF THE CASE AND NON-ADJUDICATION ON THE MERITS OF THE CASE WAS UNWARRANTED. 6. THE LD. DR FOR THE REVENUE POINTED OUT THAT THE ASSESSEE HAD RECEIVED THE ASSESSMENT ORDER IN TIME AND AS IT HAD FAILED TO FILE THE APPEAL IN TIME, THE COMMISSIONER OF INCOME TAX (APP EALS) HAD DISMISSED THE APPEAL FILED BELATEDLY. 7. WE HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED THE RECORD. UNDER THE PROVISIONS OF THE INCOME TAX ACT, AN APPEAL AGA INST THE ORDER OF THE ASSESSING OFFICER IS TO BE FILED BEFORE THE COMMISS IONER OF INCOME TAX (APPEALS) ON OR BEFORE 30 DAYS FROM THE RECEIPT OF THE ASSESSMENT ORDER. THE ASSESSMENT ORDER IN THE CASE OF THE ASSESSEE WA S SERVED UPON THE ASSESSEE ON 20.10.2011 AND THE APPEAL BEFORE THE CO MMISSIONER OF INCOME TAX (APPEALS) SHOULD HAVE BEEN FILED ON OR BEFORE 1 9.11.2011. HOWEVER, THE APPEAL WAS FILED ON 22.03.2013 I.E. AFTER A DEL AY OF ONE YEAR FOUR MONTHS AND THREE DAYS. THE PLEA OF THE ASSESSEE BE FORE THE COMMISSIONER 3 OF INCOME TAX (APPEALS) WAS THAT IT HAD FORWARDED T HE ORIGINAL DEMAND NOTICE ALONGWITH THE ASSESSMENT ORDER TO THE CHARTE RED ACCOUNTANT ON 12.11.201 AND HAD ALSO DEPOSITED THE APPEAL FEE OF RS. 1000/- ON 15.11.2011. HOWEVER, THE SAID COUNSEL DID NOT FILE THE APPEAL WITHIN TIME AND ONLY DURING THE HEARING FOR ANOTHER APPEAL ON 2 7.03.2013, THE ASSESSEE CAME TO KNOW THAT THE APPEAL RELATING TO A SSESSMENT YEAR 2009-10 WAS NOT FILED AT ALL. THE CHARTERED ACCOUNTANT IN REPLY SUBMITTED THAT THE PAPERS HAD BEEN MISPLACED AND WERE NOT TRACEABLE. THEREFORE, THE ASSESSEE FILED THE MEMO OF APPEAL ALONGWITH DUPLICA TE NOTICE OF DEMAND AND ASSESSMENT ORDER ON 22.03.2013. THE COMMISSION ER OF INCOME TAX (APPEALS) DID NOT ACCEPT THE PLEA OF THE ASSESSEE A ND THE SAME WAS REJECTED. 8. WE FIND NO MERIT IN THE ORDER OF THE COMMISSIONE R OF INCOME TAX (APPEALS) IN THIS REGARD THAT HE HAS FAILED TO CONS IDER THE APPLICATION OF THE ASSESSEE FOR CONDONATION OF DELAY. ADMITTEDLY, THE ASSESSEE IS REQUIRED TO FILE APPEAL BEFORE THE COMMISSIONER OF INCOME TAX (APPEALS) WITHIN A PERIOD OF 30 DAYS FROM THE DATE OF RECEIPT OF ASSESSMENT ORDER. HOWEVER, IN SPECIAL CIRCUMSTANCES, WHERE THE ASSES SEE IS ABLE TO BRING ON RECORD, EVIDENCE TO PROVE THAT THE DELAY IN FURNISH ING THE APPEAL IN TIME WAS WITH REASON, THEN SUCH DELAY IN FILING THE APPE AL CAN BE CONDONED. VARIOUS COURTS HAVE UPHELD THE SAID PROPOSITION. I N THE ENTIRETY OF THE FACTS AND CIRCUMSTANCES, THUS WE REMIT THE ISSUE BA CK TO THE COMMISSIONER OF INCOME TAX (APPEALS) WHO WILL FIRST DECIDE THE I SSUE OF CONDONATION OF DELAY IN FILING THE APPEAL LATE BEFORE THE COMMISSI ONER OF INCOME TAX (APPEALS) AND IF THE APPEAL IS ADMITTED, THEN DECID E THE SAME ON MERITS OF THE ISSUES RAISED. WE REMIT THE ISSUE BACK TO THE FILE OF COMMISSIONER OF INCOME TAX (APPEALS) WITH DIRECTIONS TO ALLOW REASO NABLE OPPORTUNITY OF HEARING TO THE ASSESSEE AND TO ADJUDICATE THE PRELI MINARY ISSUE OF ADMISSION OF THE APPEAL, THOUGH FILED BELATEDLY. I N THE TOTALITY OF THE 4 ABOVESAID FACTS AND CIRCUMSTANCES, THE GROUNDS OF A PPEAL RAISED BY THE ASSESSEE ARE ALLOWED FOR STATISTICAL PURPOSE. 9. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 5 TH AUGUST,2014. SD/- SD/- ( T.R.SOOD) (SUSHMA CHOWLA) ACCOUNTANT MEMBER JUDIC IAL MEMBER DATED: 5 TH AUGUST,2014 POONAM COPY TO: THE APPELLANT, THE RESPONDENT, THE CIT(A), THE CIT, DR ASSISTANT REGISTRAR ITAT,CHD.