K.Ramdevan, CHENNAI V. Additional CIT, CHENNAI

ITA 2675/CHNY/2016

• Counselvise Citation: [2018] 121 COUNSELVISE.COM (IT) 5277 (ITAT-CHENNAI)
• Duration Of Justice: 1 year(s) 7 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-04-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2004-2005
• Appeal Filed On: 15-09-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: N MADHAVAN
• Assessee Lawyers: K RAMDEVAN
• Keywords: Salary income; Period of limitation; Reasonable cause; Time period of passing order

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL , C B ENCH, CHENNAI . , ! ' . #$ , % & BEFORE SHRI A.MOHAN ALANKAMONY, ACCOUNTANT MEMBER AND SHRI DUVVURU RL REDDY, JUDICIAL MEMBER ./ I.T.A.NO.2675/CHNY/2016 ( / ASSESSMENT YEAR: 2004-05) SHRI K. RAMDEVAN, NO.2, FIRST STREET, DR. B.N. ROAD, T. NAGAR, CHENNAI 600 017. VS THE ADDL. COMMISSIONER OF INCOME TAX, COMPANY RANGE II, CHENNAI. PAN: AAEPR2346E ( /APPELLANT) ( /RESPONDENT) /ASSESSEE BY : SHRI K. RAMDEVAN, ASSESSEE /REVENUE BY : SHRI N. MADHAVAN, ADDL. CIT /DATE OF HEARING : 24.04.2018 /DATE OF PRONOUNCEMENT : 26.04.2018 / O R D E R PER A. MOHAN ALANKAMONY, AM:- THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER PASSED BY THE COMMISSIONER OF INCOME TAX (APPEALS)- 6, CHENNAI DATED 19.04.2016 IN ITA NO.128/CIT(A)-6/2009-10 FOR THE ASSESSMENT YEAR 2004-05 PASSED U/S.249(3) R.W.S. 2 71D OF THE ACT. 2. THE APPEAL WAS FILED BY THE ASSESSEE WITH A DELA Y OF 74 DAYS. THE ASSESSEE SUBMITTED THAT THE DELAY HAD OCCURRED DUE TO THE ILL- 2 ITA NO.2675/CHNY /2016 HEALTH OF THE AUDITOR OF THE ASSESSEE. THE ASSESSEE HAS ALSO FILED AN AFFIDAVIT CONFIRMING THE SAME. THE ASSESSEE WHO WAS PRESENT BEFORE THE BENCH PLEADED THAT BECAUSE OF THE AFORE STATED REASONS THE DELAY IN FILING THE APPEAL BEFORE THE TRIBUNAL MAY BE CONDONED. CONSIDERING THE PRAYER OF THE ASSESSEE, WE ARE OF T HE CONSIDERED VIEW THAT THE ASSESSEE HAD A REASONABLE CAUSE FOR N OT FILING THE APPEAL WITHIN THE LIMITATION PERIOD. THEREFORE IN T HE INTEREST OF JUSTICE, WE HEREBY CONDONE THE DELAY OF 74 DAYS IN FILING THE APPEAL BY THE ASSESSEE AND PROCEED TO HEAR THE APPEAL ON M ERITS. 3. THE ASSESSEE HAS RAISED SIX GROUNDS IN HIS APPEA L HOWEVER THE CRUX OF THE ISSUE IS THAT THE LD.CIT(A) HAS DISMISS ED THE APPEAL OF THE ASSESSEE IN LIMINI BECAUSE THE APPEAL WAS NOT F ILED WITHIN THE PERIOD OF LIMITATION BEFORE THE LD.CIT(A). 4. THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESSE E IS AN INDIVIDUAL DERIVING INCOME FROM SALARY, BUSINESS, INTEREST INC OME AND DIVIDEND, TRADING OF SHARES CLASSIFIED AS INCOME FROM NON-SPE CULATION BUSINESS AND INCOME FROM SPECULATION BUSINESS, FILE D HIS RETURN OF INCOME FOR THE ASSESSMENT YEAR 2004-05 ON 18.02.200 5, ADMITTING LOSS OF RS.2,32,717/-. INITIALLY THE RETURN WAS PR OCESSED U/S.143(1) OF THE ACT ON 30.12.2005. SUBSEQUENTLY THE CASE WA S SELECTED FOR 3 ITA NO.2675/CHNY /2016 SCRUTINY AND NOTICE U/S.143(2) OF THE ACT WAS ISSUE D ON 12.09.2005. FINALLY THE ASSESSMENT ORDER WAS PASSED U/S.143(3) OF THE ACT ON 18.10.2006 WHEREIN THE LD.AO MADE ADDITION OF RS.11 ,78,619/- TOWARDS DISALLOWANCE OF INTEREST ON SPECULATION LOS S AND RS.9,64,710/- TOWARDS DISALLOWANCE OF LOSS ON SALE OF SHARES. THEREAFTER SHOW CAUSE NOTICE U/S.271D DATED 13.10.2 008 AND PENALTY OF RS.1,98,800/- WAS LEVIED. SUBSEQUENTLY T HE ASSESSEE PREFERRED AN APPEAL BEFORE THE LD.CIT(A). HOWEVER T HE LD.CIT(A) DISMISSED THE APPEAL OF THE ASSESSEE BECAUSE THE AS SESSEE HAD NOT FILED THE APPEAL WITHIN THE PERIOD OF LIMITATIO N. AGGRIEVED BY THE ORDER OF THE LD.CIT(A), THE ASSESSEE IS NOW IN APPE AL BEFORE US. 5. AT THE OUTSET THE ASSESSEE SUBMITTED BEFORE US T HAT THE COUNSEL OF THE ASSESSEE WAS CONSISTENTLY ILL OVER A PROLONG ED PERIOD DUE TO WHICH THERE WAS A DELAY IN FILING THE APPEAL. IT W AS THEREFORE PLEADED THAT THE DELAY IN FILING THE APPEAL BEFORE THE LD.CIT(A) MAY BE CONDONED AND THE MATTER MAY BE REMITTED BACK TO THE FILE OF LD.CIT(A) TO DECIDE THE ISSUE ON MERITS. THE LD.DR STRONGLY OBJECTED TO THE SUBMISSION OF THE ASSESSEE. 6. WE HAVE HEARD THE RIVAL SUBMISSIONS AND CAREFULL Y PERUSED THE MATERIALS AVAILABLE ON RECORD. KEEPING IN VIEW OF T HE PRAYER OF THE 4 ITA NO.2675/CHNY /2016 ASSESSEE, WE HEREBY REMIT THE MATTER BACK TO THE FI LE OF LD.CIT(A) WITH DIRECTIONS TO CONDONE THE DELAY IN FILING THE APPEAL AND HEAR THE APPEAL ON MERITS AND THEREAFTER PASS APPROPRIATE OR DER IN ACCORDANCE WITH LAW. AT THE SAME TIME, WE ALSO CAU TION THE ASSESSEE TO PROMPTLY CO-OPERATE BEFORE THE LD.CIT(A ) IN HIS PROCEEDINGS IN ORDER TO EXPEDITE HIS ORDER FAILING WHICH THE LD.CIT(A) SHALL BE AT LIBERTY TO PASS APPROPRIATE O RDER BASED ON THE MATERIALS ON RECORD. 7. IN THE RESULT THE APPEAL OF THE ASSESSEE IS ALL OWED FOR STATISTICAL PURPOSES AS INDICATED HEREIN ABOVE. ORDER PRONOUNCED ON THE 26 TH APRIL, 2018 AT CHENNAI. SD/- SD/- ( ! ' . #$ ) ( . ) ( DUVVURU RL REDDY ) ( A. MOHAN ALANKAMONY ) # $% /JUDICIAL MEMBER $% / ACCOUNTANT MEMBER &# /CHENNAI, '$ /DATED 26 TH APRIL, 2018 RSR $ )* +* /COPY TO: 1. /APPELLANT 2. /RESPONDENT 3. . ( )/CIT(A) 4. . /CIT 5. */0 1 /DR 6. 02 /GF