Gi Retail Private Limited, CHENNAI V. ACIT Corporate Circle 2(1), CHENNAI

ITA 2498/CHNY/2018

• Counselvise Citation: [2019] 112 COUNSELVISE.COM (IT) 6901 (ITAT-CHENNAI)
• Duration Of Justice: 6 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 01-03-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Assessment Year: 2013-2014
• Appeal Filed On: 28-08-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: DR M SRINIVASA RAO
• Assessee Lawyers: V P KURIACHAN
• Keywords: Depreciation; Set aside
• Section: 139(1); 139

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL D BENCH, CHENNAI . . . , . !', $ '% BEFORE SHRI N.R.S. GANESAN, JUDICIAL MEMBER AND SHRI S. JAYARAMAN, ACCOUNTANT MEMBER ./ ITA NO.2498/CHNY/2018 ' (' / ASSESSMENT YEAR : 2013-14 M/S GI RETAIL PRIVATE LIMITED, C-9, THIRU-VI-KA INDUSTRIAL ESTATE, GUINDY, CHENNAI - 600 032. PAN : AADCG 4893 R V. THE ASSISTANT COMMISSIONER OF INCOME TAX, CORPORATE CIRCLE 2(1), CHENNAI. (*+/ APPELLANT) (,-*+/ RESPONDENT) *+ . / / APPELLANT BY : SHRI V.P. KURIACHAN, CA ,-*+ . / / RESPONDENT BY : DR. M. SRINIVASA RAO, CIT 0 . 1$ / DATE OF HEARING : 05.02.2019 23( . 1$ / DATE OF PRONOUNCEMENT : 01.03.2019 / O R D E R PER N.R.S. GANESAN, JUDICIAL MEMBER : THIS APPEAL OF THE ASSESSEE IS DIRECTED AGAINST T HE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS) -6, CHENNAI, D ATED 26.06.2018 AND PERTAINS TO ASSESSMENT YEAR 2013-14. 2. SHRI V.P. KURIACHAN, THE LD. REPRESENTATIVE FOR THE ASSESSEE, SUBMITTED THAT THE ASSESSEE FILED THE RETURN OF INC OME ON 30 TH SEPTEMBER, 2013. DUE TO CONGESTION IN THE WEBSITE OF THE DEPA RTMENT, ACCORDING TO 2 I.T.A. NO.2498/CHNY/18 THE LD. REPRESENTATIVE, THE ASSESSEE COULD NOT UPLO AD IT BEFORE 12.00 PM ON 30 TH SEPTEMBER, 2013. HOWEVER, THE ASSESSEE SUCCEEDED IN UPLOADING THE RETURN AT 12.15 AM ON 1 ST OCTOBER, 2013. ACCORDING TO THE LD. REPRESENTATIVE, THE 15 MINUTES DELAY IN UPLOADI NG THE RETURN OF INCOME THROUGH INTERNET WAS FOUND TO BE A MISTAKE B Y THE ASSESSING OFFICER AND DENIED CARRY FORWARD OF THE LOSSES AS C LAIMED IN THE RETURN OF INCOME. REFERRING TO THE CIRCULAR ISSUED BY THE CB DT, A COPY OF WHICH IS AVAILABLE AT PAGE 22 OF THE PAPER-BOOK, THE LD. REP RESENTATIVE SUBMITTED THAT THE DUE DATE FOR FILING RETURN OF INCOME WAS E XTENDED UPTO 31 ST OCTOBER, 2013. THIS CIRCULAR OF THE CBDT WAS NOT F OLLOWED BY THE ASSESSING OFFICER AS WELL AS THE CIT(APPEALS). INV ITING OUR ATTENTION TO THE ORDER OF THE CIT(APPEALS), THE LD. REPRESENTATI VE SUBMITTED THAT THE CIT(APPEALS) INTERPRETED THE CIRCULAR AS IF IT IS A PPLICABLE ONLY TO SUCH CASES WHERE ACCOUNTS WERE REQUIRED TO BE AUDITED UN DER THE INCOME-TAX ACT. ACCORDING TO THE LD. REPRESENTATIVE, A PLAIN READING OF CIRCULAR ISSUED BY THE CBDT CLEARLY SHOWS THAT THE TIME LIMI T FOR FILING RETURN OF INCOME WAS EXTENDED BY THE CBDT FOR ALL THE ASSESSE ES INCLUDING THOSE ASSESSEES WHO ARE REQUIRED TO FILE THE AUDIT REPORT . THEREFORE, ACCORDING TO THE LD. REPRESENTATIVE, THE RETURN FILED BY THE ASSESSEE IS WELL WITHIN THE TIME, HENCE, THE LOSSES CLAIMED BY THE ASSESSEE HAVE TO BE DETERMINED AND ALLOWED TO BE CARRIED FORWARD. 3 I.T.A. NO.2498/CHNY/18 3. WE HEARD DR. M. SRINIVASA RAO, THE LD. DEPARTMEN TAL REPRESENTATIVE ALSO. THE LD. D.R. VERY FAIRLY SUBM ITTED THAT THE CIRCULAR ISSUED BY THE CBDT ON 24 TH OCTOBER, 2013 UNDER SECTION 119 OF THE ACT IS APPLICABLE TO ALL THE TAXPAYERS INCLUDING THE AS SESSEE HEREIN. 4. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS ON EITH ER SIDE AND PERUSED THE RELEVANT MATERIAL AVAILABLE ON RECORD. AS PER THE SCHEME OF INCOME-TAX ACT, FOR THE PURPOSE OF CLAIMING LOSSES TO BE CARRIED FORWARD, THE ASSESSEE IS EXPECTED TO FILE RETURN OF INCOME W ITHIN THE DUE DATE PROVIDED UNDER SECTION 139(1) OF THE ACT. IN THIS CASE, ADMITTEDLY, THE DUE DATE WAS 30 TH SEPTEMBER, 2013. IT IS NOT IN DISPUTE THAT THE ASSESSEE MADE ITS ATTEMPT TO FILE THE RETURN OF INC OME WITHIN THE DUE DATE. BUT, DUE TO CONGESTION IN THE WEBSITE OF THE DEPARTMENT, THE ASSESSEE WAS SUCCEEDED IN UPLOADING THE RETURN AT 1 2.15 AM ON 1 ST OCTOBER, 2013. THEREFORE, THERE WAS A DELAY OF 15 MINUTES IN UPLOADING THE RETURN. MOREOVER, THE CBDT WELL IN ADVANCE, I. E. ON 24 TH OCTOBER, 2013, ANTICIPATING THE DIFFICULTIES OF TAXPAYERS IN UPLOADING THE RETURN, EXTENDED THE TIME LIMIT TILL 31 ST OCTOBER, 2013. A BARE READING OF THIS CIRCULAR CLEARLY SHOWS THAT IT IS APPLICABLE EVEN F OR THE PRESENT ASSESSEE ALSO. FOR THE PURPOSE OF CONVENIENCE, WE ARE REPRO DUCING THE CIRCULAR ISSUED BY THE CBDT:- 4 I.T.A. NO.2498/CHNY/18 F.NO. 225/117/2013/ITA.II GOVERNMENT OFLNDIA MINISTRY OF FINANCE DEPARTMENT OF REVENUE CENTRAL BOARD OF DIRECT TAXES NORTH-BLOCK, I.T.A. NO.II DIVISION NEW DELHI, THE 24 TH OF OCTOBER, 2013 ORDER UNDER SECTION 119 OF THE INCOME-TAX ACT, 1961 IN EXERCISE OF POWERS CONFERRED UNDER SECTION 119 O F THE INCOME- TAX ACT, 1961, THE CENTRAL BOARD OF DIRECT TAXES, IN CON TINUATION TO ORDER U/S 119 DATED 26.09.2013 IN F.NO.225/117/2013/ITA.II, HEREBY DIRE CTS THAT IN CASES WHERE THE DUE DATE OF FURNISHING RE PORTS OF AUDIT AND CORRESPONDING INCOME-TAX RETURNS WAS 30 TH SEPTEMBER, 2013 AND WHERE THE SAME ARE FURNISHED ELECTRONICALLY ON OR BEFORE 31 ST OCTOBER, 2013, SUCH REPORTS OF AUDIT AND RETURNS OF INCOME SHALL B E DEEMED TO HAVE BEEN FURNISHED WITHIN THE DUE DATE PRESCRIBED UNDER SE CTION 139 OF THE INCOME-TAX ACT, 1961. SD/- (ROHIT GARG) DEPUTY SECRETARY TO GOVERNMENT OF INDIA 5. IN VIEW OF THE ABOVE, THIS TRIBUNAL IS OF THE CO NSIDERED OPINION THAT DUE DATE FOR FILING RETURN OF INCOME UNDER SEC TION 139(1) OF THE ACT WAS 31 ST OCTOBER, 2013. THE ASSESSEE ADMITTEDLY FILED THE RETURN OF INCOME ON 1 ST OCTOBER, 2013 AT 12.15 AM. THEREFORE, THE ASSESSE E IS ADMITTEDLY ELIGIBLE TO CARRY FORWARD THE BUSINESS L OSSES AND DEPRECIATION. HOWEVER, IT IS FOR THE ASSESSING OFFICER TO QUANTIF Y THE SAME AFTER EXAMINING THE RECORDS. 5 I.T.A. NO.2498/CHNY/18 6. IN VIEW OF THE ABOVE, WE ARE UNABLE TO UPHOLD TH E ORDERS OF THE LOWER AUTHORITIES. ACCORDINGLY, ORDERS OF BOTH THE AUTHORITIES BELOW ARE SET ASIDE AND THE ENTIRE ISSUE RAISED BY THE ASSESS EE IS REMITTED BACK TO THE FILE OF THE ASSESSING OFFICER. THE ASSESSING O FFICER SHALL RE-EXAMINE THE MATTER AS IF THE RETURN WAS FILED WITHIN THE TI ME LIMIT PROVIDED UNDER SECTION 139(1) OF THE ACT AND THEREAFTER DECIDE THE ISSUE AFRESH IN ACCORDANCE WITH LAW, AFTER GIVING A REASONABLE OPPO RTUNITY TO THE ASSESSEE. 7. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED. ORDER PRONOUNCED IN THE COURT ON 1 ST MARCH, 2019 AT CHENNAI. SD/- SD/- (. !') ( . . . ) (S. JAYARAMAN) (N.R.S. GANES AN) $ / ACCOUNTANT MEMBER /JUDICIAL MEMBER /CHENNAI, 5 /DATED, THE 1 ST MARCH, 2019. KRI. . ,167 87(1 /COPY TO: 1. *+/ APPELLANT 2. ,-*+/ RESPONDENT 3. 0 91 () /CIT(A)-6, CHENNAI 4. PRINCIPAL CIT- 2, CHENNAI 5. 7: ,1 /DR 6. ' ; /GF.