M/s. The Farmers Co-operative Spinning Mills Limited, Gadag V. Assistant Commissioner Of Income Tax, Circle- 2(1), Bangalore

ITA 2611/BANG/2019

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 2106 (ITAT-BANGALORE)
• Duration Of Justice: 4 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-04-2020
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: A
• Next Hearing Date: 25-02-2020
• Assessment Year: 2015-2016
• Appeal Filed On: 24-12-2019
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: STANDING COUNCIL
• Keywords: Set aside
• Section: 195

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL SMC-A BENCH, BANGALORE BEFORE SHRI CHANDRA POOJARI, ACCOUNTANT MEMBER ITA NO.2611/BANG/2019: ASST.YEAR 2015-2016 M/S.THE FARMERS CO- OPERATIVE SPINNING MILLS LTD. GADAG HUBLI ROAD GADAG 582 205. PAN: AAAAT4468N. VS. THE INCOME TAX OFFICER CIRCLE 2(1) HUBLI. (APPELLANT) (RESPONDENT) APPELLANT BY: SMT.MRINALI R., ADVOCATE RESPONDENT BY: DR.GANESH R.GHALE, STANDING COUNCIL FOR DR DATE OF HEARING: 26.02.2020 DATE OF PRONOUNCEMENT:27.4.2020 O R D E R THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAIN ST THE ORDER OF THE CIT(A) DATED 23.03.2019. THE RELEVANT ASSESSMENT YEAR IS 2015-2016. 2. THE ASSESSEE HAS RAISED MANY GROUNDS AGAINST THE SUSTAINANCE OF VARIOUS ADDITIONS MADE BY THE ASSESS ING OFFICER, WITHOUT GIVING PROPER OPPORTUNITY OF HEARI NG TO THE ASSESSEE. 3. THE FACTS OF THE CASE ARE THAT THE ASSESSEE IS A CO- OPERATIVE SOCIETY, RUNNING A SPINNING MILL, FILED I TS RETURN OF INCOME FOR THE ASSESSMENT YEAR 2015-2016, DECLARING TOTAL INCOME NIL, CLAIMING CURRENT YEAR LOSS OF RS.1,29,2 6,335. THE CASE WAS SELECTED FOR SCRUTINY UNDER CASS. THE ASSE SSING OFFICER COMPLETED THE ASSESSMENT, ASSESSING THE TOT AL INCOME AT RS.12,23,630, BY DISALLOWING VARIOUS EXPENSES CL AIMED BY ITA NO.2611/BANG/2019 M/S.THE FARMERS CO-OP. SPINNING MILLS LTD.. 2 THE ASSESSEE. AGGRIEVED BY THE ORDER OF THE ASSESSI NG OFFICER, THE ASSESSEE PREFERRED APPEAL BEFORE THE CIT(A). DU RING THE COURSE OF APPELLATE PROCEEDINGS, THE ASSESSEE WAS G IVEN OPPORTUNITIES OF BEING HEARD AND MAKING SUBMISSIONS ON 21.08.2018, 17.09.2018 AND 25.09.2018, BUT THE ASSE SSEE FAILED TO APPEAR OR MAKE SUBMISSIONS, AND SOUGHT ADJOURNMENTS VIDE LETTER DATED 16.09.2018 AND 25.09 .2018. THE ASSESSEE WAS GIVEN A FINAL CHANCE TO MAKE SUBMI SSIONS, HOWEVER, THE ASSESSEE SOUGHT FOR ADJOURNMENT. SINCE NONE APPEARED ON BEHALF OF THE ASSESSEE, THE CIT(A) CONF IRMED THE EX PARTE ORDER PASSED BY THE ASSESSING OFFICER. 4. AGAINST THE ABOVE ORDERS OF THE INCOME-TAX AUTHO RITIES, THE ASSESSEE IS IN APPEAL BEFORE THE TRIBUNAL. THER E WAS A DELAY OF 195 DAYS IN FILING THIS APPEAL BEFORE THE TRIBUNAL. THE ASSESSEE HAS FILED CONDONATION PETITION ALONG WITH AN AFFIDAVIT OF THE MANAGING DIRECTOR OF THE ASSESSEE, SRI.YALLA PPA BASAPPA KARIKATTI, STATING THE REASONS AS FOLLOWS: - 1. I AM CONVERSANT WITH THE FACTS OF THE APPELLANT 'S APPEAL AND AM COMPETENT TO SWEAR TO THIS AFFIDAVIT. 2. THE ABOVE APPEAL HAS BEEN FILED QUESTIONING THE ORDER OF THE LEARNED CIT (APPEALS), HUBLI 29-03-2019. THE ORDER OF THE LEARNED CRT (A) WAS SERVED ON THE APPELLANT 13. 04.2019 AND THE APPEAL OUGHT TO HAVE BEEN FILED ON OR BEFOR E 12-6- 2019, THE PERIOD STIPULATED FOR FILING THE APPEAL. 3. I STATE THAT AFTER RECEIPT OF THE ORDER ON 13.04 .2019, I APPROACHED MY AUTHORISED REPRESENTATIVE AND SOUGHT ADVICE REGARDING FILING OF THE APPEAL BEFORE THIS HON'BLE TRIBUNAL. APPELLANT DEPOSITED INSTITUTION FEE OF RS.10,000J- PAYABLE ON 28-05-2019 UNDER CHALLAN NO.01883. APPEAL PAPERS WE RE SIGNED FOR FILING THROUGH OUR CONSULTANT'S OFFICE. APPELLANT WAS INFORMED WAS INFORMED THAT INSTITUTION FEE PAYMENT IS ON THE WRONG HEAD AND THE SAME HAS TO BE PAID UNDER PROPER HEAD ITA NO.2611/BANG/2019 M/S.THE FARMERS CO-OP. SPINNING MILLS LTD.. 3 AND PAPERS WERE RETURNED. AFTER DEPOSITING THE INST ITUTION FEE OF RS.10,000/- ON 03.06.2019 CHALLAN WAS SENT TO MY CONSULTANTS. WE WERE UNDER THE BONAFIDE IMPRESSION APPEAL HAS BEEN FILED. THE APPEAL PAPERS SIGNED REMAINED W ITH US AND WHICH WE DID NOT NOTICE. IT WAS NOTICED ON 22ND DECEMBER, 2019 WHEN WE WERE VERIFYING PENDING ACTIO NS THAT THE APPEAL PAPERS HAVE REMAINED WITH US AND APPEAL HAS NOT BEEN FILED THOUGH PAYMENT OF INSTITUTION FEE AS SUG GESTED WAS PAID UNDER PROPER HEAD. IMMEDIATELY WE TOOK STEPS T O FILE APPEAL AND APPEAL WAS FILED ON 24.12.2019 AND IN TH ESE CIRCUMSTANCES, A DELAY OF 195 DAYS HAS OCCURRED AND APPELLANT SUBMITS THE DELAY IS UNINTENTIONAL AND FO R THE BONAFIDE REASONS STATED ABOVE. 4. APPELLANT HUMBLY SUBMITS THAT, APPELLANT HAS GOO D CASE ON MERITS AND THE DELAY IN FILING THE APPEAL I S UNINTENTIONAL FOR THE BONA FIDE REASONS AND FOR THE REASONS WHICH WERE BEYOND APPELLANT'S CONTROL. WE HUMBLY PR AY THIS HON'BLE TRIBUNAL BE PLEASED TO CONDONE THE DELAY AN D IF THE DELAY IS NOT CONDONED, THE APPELLANT WILL BE PUT TO GREAT HARDSHIP AND INJURY ON THE OTHER HAND, NO INCONVENI ENCE WILL BE CAUSED TO THE LEARNED RESPONDENT, IF THE DELAY I N FILING THE APPEAL IS CONDONED AND APPEAL IS HEARD ON MERITS. 5. I HAVE CAREFULLY GONE THROUGH THE CONDONATION PE TITION AND AFFIDAVIT FILED BY THE ASSESSEE. I FIND THERE I S GOOD AND SUFFICIENT REASON FOR THE BELATED FILING OF THIS AP PEAL BEFORE THE TRIBUNAL. ACCORDINGLY, I CONDONE THE DELAY AND ADMI T THE APPEAL FOR ADJUDICATION. 6. AT THE OUTSET, IT IS OBSERVED FROM THE ORDER OF THE CIT(A) THAT THE CIT(A) HAS PASSED A NON-SPEAKING ORDER. I AM OF THE OPINION THAT WHERE THE APPEAL HAS BEEN DISPOSED OF EVEN THOUGH ON MERITS WITHOUT A SPEAKING ORDER, THE ORDE R OF CIT(A) CANNOT BE SUSTAINED. THE PROVISIONS OF SECT ION 250(6) OF THE I.T. ACT ARE IN THE NATURE OF JUDICIAL DISCR ETION TO THE APPELLATE AUTHORITY AND EMPHASIZING THAT THE ORDER DISPOSING OF THE APPEAL SHALL BE A SPEAKING ORDER. THE ORDER SHALL NOT CRYPTIC BUT SHALL BE SELF-EXPLANATORY. HENCE, I SET ASIDE THE ITA NO.2611/BANG/2019 M/S.THE FARMERS CO-OP. SPINNING MILLS LTD.. 4 ORDER OF THE CIT(A) AND RESTORE THE MATTER TO HIS F ILE FOR ADJUDICATION AFRESH, AFTER AFFORDING PROPER OPPORTU NITY OF HEARING TO THE ASSESSEE. 7. SINCE, I HAVE SET ASIDE THE ORDER OF THE CIT(A) AND RESTORED THE MATTER TO HIS FILE FOR FRESH ADJUDICAT ION, I REFRAIN FROM ADJUDICATING THE OTHER GROUNDS RAISED BY THE A SSESSEE IN THIS APPEAL, AT THIS STAGE. 8. AS A RESULT, THE APPEAL FILED BY THE ASSESSEE IS PARTLY ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED ON THIS 27 TH DAY OF APRIL, 2020. SD/- ( CHANDRA POOJARI ) ACCOUNTANT MEMBER BANGALORE ; DATED : 27 TH APRIL, 2020. DEVADAS G* COPY TO: 1. THE APPELLANT. 2. THE RESPONDENT. 3. THE CIT(A)-MYSORE. 4. THE PR.CIT-MYSORE. 5. THE DR, ITAT, BENGALURU. 6. GUARD FILE. ASST.REGISTRAR/ITAT, BANGALORE