Indira Educational and Charitable Trust, CHENNAI V. ACIT, CPC - TDS, GHAZIABAD

ITA 2178/CHNY/2019

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 3724 (ITAT-CHENNAI)
• Duration Of Justice: 7 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-02-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2013-2014
• Appeal Filed On: 23-07-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MRS VIJAYA PRABHA
• Assessee Lawyers: NITYA SANKARAN
• Keywords: Rectification of order; Charitable institution; Principle of natural justice; TDS; Set aside
• Section: 234E; 200A; 246A; 153; 154

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH: CHENNAI , ! ' # , $ %& BEFORE SHRI MAHAVIR SINGH , VICE PRESIDENT AND SHRI M. BALAGANESH, ACCOUNTANT MEMBE R ./ ITA NOS. ' ( )( /ASSESSMENT YEARS 2173/CHNY/2019 2013 - 14 2174/CHNY/2019 2013 - 14 2175/CHNY/2019 2013 - 14 2176/CHNY/2019 2013 - 14 2177/CHNY/2019 2014 - 15 2178/CHNY/2019 2014-15 2179/CHNY/2019 2014 - 15 2180/CHNY/2019 2014 - 15 2 181/CHNY/2019 2015 - 16 2182/CHNY/2019 2015-16 2183/CHNY/2019 2015 - 16 2184/CHNY/2019 2015 - 16 2185/CHNY/2019 2015 - 16 2186/CHNY/2019 2016 - 17 2187/CHNY/2019 2014 - 15 M/S. INDIRA EDUCATIONAL AND CHARITABLE TRUST, NO.19, GOVINDAN STREET, AYYAVOO COLONY, AMINJIKARAI, CHENNAI 600 029. [PAN: AAATI 3027K] VS. THE ASST. COMMISSIONER OF INCOME TAX, CENTRALIZED PROCESSING CELL (TDS), GHAZIABAD. ( *+ /APPELLANT) ( ,-*+ /RESPONDENT) *+ . / / ASSESSEE BY : MS. NITYA SANKARAN, C.A ,-*+ . / /REVENUE BY : MRS. VIJAYAPRABHA, JCIT 0 . 1$ /DATE OF HEARING : 26.02.2020 23) . 1$ /DATE OF PRONOUNCEMENT : 26.02.2020 ITA NOS.2173 TO 2187/CHNY/2019 (A.Y 2013-14 TO 2016 -17) M/S. INDIRA EDUCATIONAL AND CHARITABLE TRUST :- 2 -: %# / O R D E R PER BENCH : I N ALL THESE APPEALS OF THE ASSESSEE, THE FIRST COMM ON ISSUE IS AS REGARDS TO THE ORDER OF CIT(A) NOT CONDONING THE DE LAY IN FILING OF THESE APPEALS BEFORE HIM. THE FACTS AND CIRCUMSTANCES ARE IDENTICAL IN ALL THE APPEALS, HENCE, THE GROUNDS RAISED IN ALL THE Y EARS ARE BEING REPRODUCED FROM ITA NO. 2173/CHNY/ 2019 FOR ASSESSM ENT YEAR 2013- 14: 1. FOR THAT THE ORDER OF COMMISSIONER OF INCOME TA X (APPEALS) IS CONTRARY TO LAW, FACTS AND CIRCUMSTANCES OF THE CAS E TO THE EXTENT PREJUDICIAL TO THE INTEREST OF THE APPELLANT AND AT ANY RATE IS OPPOSED TO THE PRINCIPLES OF EQUITY, NATURAL JUSTICE AND FAIR PLAY. 2. FOR THAT THE COMMISSIONER OF INCOME TAX (APPEALS ) FAILED TO APPRECIATE THAT THE ORDER OF THE ASSESSING OFFICER IS WITHOUT JURISDICTION. 3. FOR THAT THE COMMISSIONER OF INCOME TAX (APPEALS ) ERRED IN NOT CONDONING THE DELAY IN FILING THE APPEAL BEFORE HIM . 4. FOR THAT THE COMMISSIONER OF INCOME TAX (APPEALS ) FAILED TO APPRECIATE THAT THE APPELLANT HAD SUFFICIENT REASON ABLE CAUSE FOR THE DELAY IN FILING THE APPEAL BEFORE HIM. 5. FOR THAT THE COMMISSIONER OF INCOME TAX (APPEALS ) FAILED TO APPRECIATE THAT THE APPELLANT COULD HAVE DERIVED NO BENEFIT BY FILING THE APPEAL BELATEDLY AND THAT THE SAME COULD NOT HAVE B EEN THE INTENT OF THE APPELLANT. 6. FOR THAT THE COMMISSIONER OF INCOME TAX (APPEALS ) FAILED TO APPRECIATE THAT FEES ULS.234E IS NOT LEVIABLE IN TH E FACTS AND CIRCUMSTANCES OF THE CASE. 7. FOR THAT THE COMMISSIONER OF INCOME TAX (APPEALS ) FAILED TO APPRECIATE THAT THE APPELLANT HAS DULY DISCHARGED I TS OBLIGATIONS IN RESPECT OF DEDUCTION OF TAX AT SOURCE. 8. FOR THAT THE COMMISSIONER OF INCOME TAX (APPEALS ) FAILED TO APPRECIATE THAT THE LEVY OF FEE ULS.234E THROUGH SE CTION 200A IS MADE APPLICABLE ONLY FROM 01.06.2015. ITA NOS.2173 TO 2187/CHNY/2019 (A.Y 2013-14 TO 2016 -17) M/S. INDIRA EDUCATIONAL AND CHARITABLE TRUST :- 3 -: 9. FOR THAT WITHOUT PREJUDICE TO THE ABOVE, THE DEL AY IN FILING TDS RETURNS WAS DUE TO CIRCUMSTANCES BEYOND THE CONTROL OF THE APPELLANT. 2. BEFORE US THE LD. COUNSEL FOR THE ASSESSEE FILED CHART INDICATING THE TOTAL DELAY IN EACH OF THE APPEAL AND THE RELEV ANT CHART IS BEING REPRODUCED AS UNDER: 1 2 3 4 ITA NO. 2173/CHNY/2019 2174/CHNY/2019 2175/CHNY/2019 2176/CHNY/2019 A.Y AND QUARTER 2013-14(Q2) 2013-14(Q3) 2013-14(Q4) 2013-14(Q4) PARTICULARS FORM 26Q FORM 26Q FORM 26Q FORM 26Q DATE OF (RECEIPT OF) INTIMATION U/S. 200A 11.12.2013 11.12.2013 25.12.2013 11.12.2013 DATE OF ORDER U/S. 154 25.06.2016 25.06.2016 25.06. 2016 25.06.2016 DATE OF FILING CIT(A) APPEAL AGAINST ORDER U/S. 154 09.06.2018 09.06.2018 09.06.2018 09.06.2018 DATE OF CIT(A) ORDER AGAINST 154 APPEAL 27.06.2018 27.06.2018 27.06.2018 27.06.2018 DATE OF FILING APPEAL BEFORE ITAT AGAINST CIT(A) ORDER 27.08.2018 27.08.2018 27.08.2018 27.08.2018 DATE OF ITAT HEARING 08.01.2019 08.01.2019 08.01.20 19 08.01.2019 DATE OF WITHDRAWAL OF APPEAL BEFORE ITAT 08.01.2019 08.01.2019 08.01.2019 08.01.2019 DATE OF FILING APPEAL BEFORE CIT(A) AGAINST INTIMATION U/.S 200A 28.02.2019 28.02.2019 28.02.2019 28.02.2019 DATE OF CIT(A) ORDER AGAINST 200A APPEAL 20.05.2019 20.05.2019 20.05.2019 20.05.2019 NO. OF DAYS DELAY IN FILING APPEAL AGAINST 200A INTIMATION 1876 1876 1876 1876 ITA NOS.2173 TO 2187/CHNY/2019 (A.Y 2013-14 TO 2016 -17) M/S. INDIRA EDUCATIONAL AND CHARITABLE TRUST :- 4 -: 5 6 7 8 9 ITA NO. 2177/CHNY/2019 2178/CHNY/2019 2179/CHNY/2019 2180/CHNY/2019 2187/CHNY/2019 A.Y AND QUARTER 2014-15(Q1) 2014-15(Q2) 2014-15(Q3) 2014-15(Q4) 2014-15(Q4) PARTICULARS FORM 26Q FORM 26Q FORM 26Q FORM 24Q FORM 26Q DATE OF (RECEIPT OF) INTIMATION U/S. 200A 29.07.2014 29.07.2014 29.07.2014 29.07.2014 26.07.2 014 DATE OF ORDER U/S. 154 02.07.2016 02.07.2016 02.07.2016 02.07.2016 02.07.2 016 DATE OF FILING CIT(A) APPEAL AGAINST ORDER U/S. 154 11.06.2018 11.06.2018 11.06.2018 11.06.2018 11.06.2018 DATE OF CIT(A) ORDER AGAINST 154 APPEAL 27.06.2018 27.06.2018 27.06.2018 27.06.2018 27.06.2018 DATE OF FILING APPEAL BEFORE ITAT AGAINST CIT(A) ORDER 27.08.2018 27.08.2018 27.08.2018 27.08.2018 27.08.2018 DATE OF ITAT HEARING 08.01.2019 08.01.2019 08.01.2019 08.01.2019 08.01.2019 DATE OF WITHDRAWAL OF APPEAL BEFORE ITAT 08.01.2019 08.01.2019 08.01.2019 08.01.2019 08.01.2019 DATE OF FILING APPEAL BEFORE CIT(A) AGAINST INTIMATION U/.S 200A 28.02.2019 28.02.2019 28.02.2019 28.02.2019 01.03.2019 DATE OF CIT(A) ORDER AGAINST 200A APPEAL 20.05.2019 20.05.2019 20.05.2019 20.05.2019 20.05.2019 NO. OF DAYS DELAY IN FILING APPEAL AGAINST 200A INTIMATION 1646 1646 1646 1646 1650 ITA NOS.2173 TO 2187/CHNY/2019 (A.Y 2013-14 TO 2016 -17) M/S. INDIRA EDUCATIONAL AND CHARITABLE TRUST :- 5 -: 15 ITA NO. 2186/CHNY/2019 A.Y AND QUARTER 2016-17(Q1) PARTICULARS FORM 26Q DATE OF (RECEIPT OF) INTIMATION U/S. 200A 30.10.2015 DATE OF ORDER U/S. 154 24.06.2016 DATE OF FILING CIT(A) APPEAL AGAINST ORDER U/S. 154 19.09.2017 DATE OF CIT(A) ORDER AGAINST 154 APPEAL 27.06.2018 DATE OF FILING APPEAL BEFORE ITAT AGAINST CIT(A) ORD ER 27.08.2018 DATE OF ITAT HEARING 08.01.2019 DATE OF WITHDRAWAL OF APPEAL BEFORE ITAT 08.01.2019 DATE OF FILING APPEAL BEFORE CIT(A) AGAINST INTIMATI ON U/.S 200A 04.03.2019 DATE OF CIT(A) ORDER AGAINST 200A APPEAL 20.05.2019 NO. OF DAYS DELAY IN FILING APPEAL AGAINST 200A INTIM ATION 1192 10 11 12 12 14 ITA NO. 2181/CHNY/2019 2182/CHNY/2019 2183/CHNY/2019 2185/CHNY/2019 2184/CHNY/2019 A.Y AND QUARTER 2015-16(Q1) 2015-16(Q2) 2015-16(Q3) 2015-16(Q4) 2015-16(Q4) PARTICULARS FORM 26Q FORM 26Q FORM 26Q FORM 24Q FORM 26Q DATE OF (RECEIPT OF) INTIMATION U/S. 200A 23.06.2015 23.06.2015 26.06.2015 05.10.2015 07.08.2 015 DATE OF ORDER U/S. 154 26.06.2016 25.06.2016 30.04.2016 02.07.2016 20.06.2 016 DATE OF FILING CIT(A) APPEAL AGAINST ORDER U/S. 154 11.06.2018 11.06.2018 11.06.2018 11.06.2018 11.06.2018 DATE OF CIT(A) ORDER AGAINST 154 APPEAL 27.06.2018 27.06.2018 27.06.2018 27.06.2018 27.06.2018 DATE OF FILING APPEAL BEFORE ITAT AGAINST CIT(A) ORDER 27.08.2018 27.08.2018 27.08.2018 27.08.2018 27.08.2018 DATE OF ITAT HEARING 08.01.2019 08.01.2019 08.01.2019 08.01.2019 08.01.2019 DATE OF WITHDRAWAL OF APPEAL BEFORE ITAT 08.01.2019 08.01.2019 08.01.2019 08.01.2019 08.01.2019 DATE OF FILING APPEAL BEFORE CIT(A) AGAINST INTIMATION U/.S 200A 01.03.2019 01.03.2019 01.03.2019 01.03.2019 01.03.2019 DATE OF CIT(A) ORDER AGAINST 200A APPEAL 20.05.2019 20.05.2019 20.05.2019 20.05.2019 20.05.2019 NO. OF DAYS DELAY IN FILING APPEAL AGAINST 200A INTIMATION 1319 1319 1316 1214 1273 ITA NOS.2173 TO 2187/CHNY/2019 (A.Y 2013-14 TO 2016 -17) M/S. INDIRA EDUCATIONAL AND CHARITABLE TRUST :- 6 -: 3. BRIEFLY STATED FACTS ARE THAT THE ASSESSEE IS A CHARITABLE TRUST AND HAS FILED APPEAL BEFORE CIT(A) AGAINST THE INTIMATI ON U/S. 200A OF THE INCOME TAX ACT, 1961 (HEREINAFTER THE ACT) PASSE D BY DCIT, CENTRAL PROCESSING CELL (TDS), CHENNAI. THE ASSESSEE CONTE NDED THAT THESE APPEALS SHOULD HAVE BEEN FILED WITHIN 30 DAYS FROM THE SERVICE OF INTIMATION U/S. 200A OF THE ACT BEFORE CIT(A), THE DETAILS OF EACH APPEAL IS REPRODUCED ABOVE. THESE APPEALS WERE HOW EVER FILED ADMITTEDLY WITH THE DELAY BEYOND THE TIME ALLOWED F OR FILING OF THESE APPEALS, DELAY RANGING FROM 876 TO 1192 DAYS. THE LD. COUNSEL FOR THE ASSESSE STATED ASSESSE WAS PURSUING ALTERNATIVE REMEDY BEFORE THE AO AND CONSEQUENT APPELLATE PROCEEDINGS AGAINST THE ORDERS PASSED U/S. 154 OF THE ACT. THE LD. COUNSEL FOR THE ASSESSEE BEFORE US STATED THAT THE ASSESSEE RECEIVED ORDER PASSED U /S. 154 OF THE ACT I.E. RECTIFICATION ORDER ON THE INSTANCE OF THE ASS ESSEE AGAINST THE INTIMATION U/S. 200A OF THE ACT (Q.II) FOR THE ASSE SSMENT YEAR 2013-14. IT WAS CONTENDED THAT THE ASSESSEE AGGRIEVED BY THE ORDER OF LATE FEE U/S. 234E OF THE ACT BUT NOT INADVERTENTLY FILED AP PEAL BEFORE THE CIT(A) AGAINST THE ORDERS PASSED ON THE INTIMATION PASSED U/S. 200A OF THE ACT BUT FILED APPEALS AGAINST THE ORDERS PAS SED U/S. 154 OF THE ACT. THE CIT(A) VIDE ORDER DATED 27.06.2018 DISMI SSED THE APPEALS OF THE ASSESSEE AND UPHELD THE LATE FEE LEVIED BY T HE ASSESSING OFFICER U/S. 234E OF THE ACT. THE FACT NARRATED IN THE ABOVE CHART ARE ITA NOS.2173 TO 2187/CHNY/2019 (A.Y 2013-14 TO 2016 -17) M/S. INDIRA EDUCATIONAL AND CHARITABLE TRUST :- 7 -: THAT THE DATE OF RECEIPT OF INTIMATION U/S. 200A OF THE ACT WAS 11.12.2013 AND DATE OF ORDER PASSED BY ASSESSING OF FICER U/S. 154 OF THE ACT IS ON 09.06.2018. THE ASSESSEE CHALLENGED THIS RECTIFICATION ORDER PASSED BY ASSESSING OFFICER U/S. 154 OF THE A CT BY FILING APPEAL BEFORE CIT(A) ON 27.08.2018. THE CIT(A)S ORDER AGA INST SECTION 154 OF THE ACT WAS CHALLENGED BEFORE ITAT ON 27.08.2018 . THE DATE OF HEARING FIXED BEFORE ITAT WAS 08.01.2019, WHEREIN T HE ASSESSEE REALIZED THAT THIS ALTERNATIVE REMEDY OF CHALLENGIN G RECTIFICATION ORDER U/S.154 OF THE ACT IS NOT MAINTAINABLE AND HENCE, T HIS APPEAL WAS WITHDRAWN BY THE ASSESSEE AND CONSEQUENTLY, THE ASS ESSEE FILED APPEAL BEFORE THE CIT(A) AGAINST INTIMATION U/S. 20 0A OF THE ACT. THEREBY, THE DELAY IN FILING APPEAL AGAINST SECTION 200A OF THE ACT IS 1876 DAYS IN THIS APPEAL WHICH IS MAXIMUM OUT OF TH ESE APPEALS. BEFORE US NOW THE ASSESSE COUNSEL STATED THAT IT WA S ONLY AT THE TIME OF HEARING BEFORE THE TRIBUNAL THAT THE ASSESSEE BE CAME AWARE THAT THE APPEALS WHICH WERE FILED AGAINST THE INTIMATION PASSED U/S. 154 OF THE ACT WERE NOT MAINTAINABLE IN TERMS OF S. 246A R /W S. 253 OF THE ACT AND THAT THE APPEALS SHOULD HAVE BEEN FILED AGAINST THE ORIGINAL INTIMATION ISSUED BY ASSESSING OFFICER U/S. 200A OF THE ACT. 4. IN VIEW OF THE ABOVE FACTS, THE LD. COUNSEL FURT HER STATED THAT IN THE MEANTIME THE MANAGEMENT GOT ENGAGED WITH THE PR EPARATION FOR ITA NOS.2173 TO 2187/CHNY/2019 (A.Y 2013-14 TO 2016 -17) M/S. INDIRA EDUCATIONAL AND CHARITABLE TRUST :- 8 -: ITS MANAGING TRUSTEES DAUGHTER'S MARRIAGE AND HENCE , THE APPEALS WERE FURTHER DELAYED AND IT WAS ONLY AFTER THE MARR IAGE OF THE MANAGING TRUSTEES DAUGHTER APPEALS WERE FILED AGAI NST THE INTIMATION PASSED BY ASSESSING OFFICER U/S. 200A OF THE ACT. T HESE APPEALS WERE THEN DRAFTED BY CONCERNED CHARTERED ACCOUNTANT AND THE ASSESSEE SIGNED THESE APPEALS ON 26.02.2019 AND THESE WERE F ILED FINALLY ONLINE ON 28.02.2019 FOR VARIOUS QUARTERS INDICATING THE T OTAL DELAY AS MENTIONED IN THE ABOVE TABLE. 5. IN VIEW OF THE ABOVE REASONS, THE LD. COUNSEL PR AYED THAT THE DELAY WAS DUE TO THE FACT THAT THE ALTERNATIVE REME DY BEING PURSUED BY THE ASSESSE AND DUE TO THIS REASON THE ASSESSEE COU LD NOT FILE APPEALS AGAINST INTIMATION U/S. 200A OF THE ACT AND THEREBY THE REASONS WERE BEYOND THE CONTROL OF THE ASSESSEE AND THIS BEING R EASONABLE AND SUFFICIENT CAUSE FOR NOT FILING OF THE APPEALS ON T IME, THE DELAY SHOULD HAVE CONDONED. IN THIS CONNECTION, THE LD. COUNSEL ALSO RELIED ON THE DECISION OF HONBLE MADRAS HIGH COURT IN THE CASE O F CIT VS. KSP SHANMUGAVEL NADAR [1985] 153 ITR 596 (MAD), WHEREIN IT IS HELD BY THE HONBLE HIGH COURT THAT THE ASSESSEE PURSUING T HE ALTERNATIVE REMEDIES, THE TIME TAKEN IN THIS PROCEEDINGS SHOULD BE TAKEN INTO ACCOUNT WHILE DETERMINING WHETHER THE ASSESSEE HAS SUFFICIENT CAUSE FOR NOT PRESENTING THE APPEALS IN TIME OR NOT? ITA NOS.2173 TO 2187/CHNY/2019 (A.Y 2013-14 TO 2016 -17) M/S. INDIRA EDUCATIONAL AND CHARITABLE TRUST :- 9 -: 6. ON THE OTHER HAND, THE LD. SR. DR COULD NOT C ONTROVERT THE ABOVE STATED FACTS AND REASONS FOR THE DELAY. SHE COULD NOT ATTRIBUTE ANY MALAFIDE FOR DELAY IN FILING OF THESE APPEALS. 7. WE HAVE HEARD THE RIVAL CONTENTIONS AND GONE THROUG H THE FACTS AND CIRCUMSTANCES OF THE CASE. WE NOTED THAT THE ASSESSEE HAS TAKEN STEPS TO FILE ALL THESE APPEALS WITH THE RELEVANT A PPELLATE AUTHORITY BUT WAS PURSUING ONLY ALTERNATIVE REMEDY BY FILING APPL ICATION U/S. 154 OF THE ACT I.E., RECTIFICATION PROCEEDINGS WERE TAKEN UP TO THE TRIBUNAL AND CONSEQUENTLY, THE ASSESSEE WAS MADE AWARE BY THEIR CHARTERED ACCOUNTANT ABOUT THE CONSEQUENCES OF THESE RECTIFIC ATION PROCEEDINGS, THE ASSESSEE IMMEDIATELY PREPARED THE APPEALS AND F ILED WITH THE CIT(A) AGAINST INTIMATION U/S. 200A OF THE ACT. A DMITTED FACTS ARE THAT THE ASSESSEE WAS PURSUING ALTERNATIVE REMEDY, EVEN THOUGH THE DELAY IS VERY LONG, WE FEEL THAT THE ASSESSEE HAS REASONA BLE AND SUFFICIENT CAUSE FOR NOT FILING THESE APPEALS AGAINST INTIMATI ON U/S. 200A OF THE ACT PASSED BY ASSESSING OFFICER U/S. 200A OF THE AC T BEFORE CIT(A). SINCE, WE NOTICED REASONABLE AND SUFFICIENT CAUSE I N NOT FILING THESE APPEALS BEFORE CIT(A), WE REVERSE THE ORDERS OF CIT (A) AND CONDONE THE DELAY. WE, SET ASIDE ALL THESE APPEALS TO THE FILE OF CIT(A). ITA NOS.2173 TO 2187/CHNY/2019 (A.Y 2013-14 TO 2016 -17) M/S. INDIRA EDUCATIONAL AND CHARITABLE TRUST :- 10 -: 8. SINCE, WE ARE CONDONED THE DELAY AND THE CIT(A) HAS NOT ADJUDICATED ON MERITS, WE HAVE SET ASIDE ORDER OF C IT(A), WE ARE NOT GOING INTO THE MERITS AND DIRECTING THE CIT(A) TO A DJUDICATE THE ISSUE ON MERITS AFTER PROVIDING REASONABLE OPPORTUNITY BE ING HEARD TO THE ASSESSEE. 9. IN THE RESULT, ALL THE APPEALS OF THE ASSESSEE A RE ALLOWED FOR STATISTICAL PURPOSE. ORDER PRONOUNCED ON 26 TH DAY OF FEBRUARY, 2020 IN CHENNAI. SD/- SD/- ) (M. BALAGANESH) /ACCOUNTANT MEMBER ( ) (MAHAVIR SINGH) /VICE PRESIDENT /CHENNAI, 4% /DATED: 26 TH FEBRUARY, 2020 . EDN, SR. P.S %# . ,'15 65)1 /COPY TO: 1. *+ /APPELLANT 2. ,-*+ /RESPONDENT 3. 0 71 ( )/CIT(A) 4. 0 71 /CIT 5. 58' ,'1' /DR 6. '9( : /GF