Santosh Dattatraya Bhosale, Ratnagiri V. Income-tax Officer, Ward – 3, Ratnagiri

ITA 2716/PUN/2017

• Counselvise Citation: [2018] 118 COUNSELVISE.COM (IT) 9613 (ITAT-PUNE)
• Duration Of Justice: 1 year(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-11-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2005-2006
• Appeal Filed On: 20-11-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RAJESH GAWLI
• Keywords: Salary income; Principle of natural justice; Reasonable cause; Right to appeal; Condonation of delay
• Section: 142(1); 144

Judgement Text

, - IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH SMC , PUNE . , BEFORE SHRI D. KARUNAKARA RAO , AM . / ITA NO. 2716 /P U N/201 7 / ASSESSMENT YEAR : 20 0 5 - 0 6 SANTOSH DATTATRAYA BHOSALE, KANSE WADI, UTKAD, A/P CHIPLUN, DIST. - RATNAGIRI. PAN : ANZPB9835G . / APPELLANT VS. ITO, WARD - 3 , RATNAGIRI . . / RESPONDENT / APPELLA NT BY : SMT. DEEPA KHARE / RESPONDENT BY : SHRI RAJESH GAWLI / DATE OF HEARING : 30 . 10 .2018 / DATE OF PRONOUNCEMENT : 28 . 1 1 .201 8 / ORDER PER D. KARUNAKARA RAO, AM : THIS APPEAL I S FILED BY THE ASSESSEE AGAINST THE ORDER OF CIT(A) - 2 , KOLHAPUR DATED 20 . 09 .2017 FOR THE ASSESSMENT YEAR 20 0 5 - 0 6 . 2. THE GROUNDS RAISED BY THE ASSESSEE AS UNDER : - 1. THE LEARNED CIT ERRED IN LAW AND ON FACTS IN NOT CONDONING THE DELAY OF 11 MONTHS OCCU RRED FOR FILING THE APPEAL. 2. THE LEARNED CIT(A) ERRED IN NOT APPRECIATING THAT THE APPELLANT WAS PREVENTED BY SUFFICIENT CAUSE FOR NOT FILING THE APPEAL IN TIME. 3. THE LEARNED CIT(A) ERRED IN LAW AND ON FACTS IN CONFIRMING THE ADDITION OF RS.508200/ - WI THOUT APPRECIATING THE FACTS AND CIRCUMSTANCES OF THE CASE. 4. THE APPELLANT CRAVES TO ADD, ALTER, MODIFY OR SUBSTITUTE ANY GROUND OF APPEAL AT THE TIME OF HEARING. 3 . BRIEFLY STATED RELEVANT FACTS INCLUDE THAT THE ASSESSEE IS AN INDIVIDUAL HAVING INCOME FROM SALARY AND OTHER SOURCES. DURING THE COURSE ITA NO. 2716 /PUN /201 7 - 2 - ASSESSMENT PROCEEDINGS, THE ASSESSING OFFICER NOTICED THAT THE MUNICIPAL COUNCIL, CHIPLUN ACQUIRED CERTAIN LAND AND PAID CONSIDERATION TO VARIOUS PERSONS (INCLUDING THE ASSESSEE). THE ASSESSEE WAS SHOWN T O HAVE RECEIVED A SUM OF RS.5,08,200/ - FROM THE CHIPLUN MUNICIPAL COUNCIL, CHIPLUN. DURING THE YEAR UNDER CONSIDERATION, THE ASSESSING OFFICER ISSUED NOTICE U/S 142(1) DATED 29.09.2005 TO THE ASSESSEE FOR FILING OF THE INCOME - TAX RETURN. CONSIDERING THE N ON - COMPLIANCE TO THE SAID NOTICE, THE ASSESSING OFFICER COMPLETED THE ASSESSMENT EX - PARTE ON 31.12.2007 U/S 144 OF THE ACT AND ASSESSED THE SAID AMOUNT OF RS.5,08,200/ - UNDER THE HEAD INCOME FROM OTHER SOURCES . 4 . AGGRIEVED WITH THE ORDER OF ASSESSIN G OFFICER, THE ASSESSEE FILED AN APPEAL BEFORE THE CIT(A) WITH DELAY OF 11 MONTHS . THE CIT(A) DID NOT CONDONE THE DELAY AND DISMISSED THE APPEAL OF THE ASSESSEE WITHOUT GOING INTO MERITS. 5 . AGGRIEVED WITH THE ORDER OF CIT(A), THE ASSESSEE IS IN APPEAL BEFORE ME RAISING THE AFOREMENTIONED GROUNDS . 6 . FROM THE ABOVE, IT IS EVIDENT THAT MAKING ADDITION OF RS.5,08,200/ - IN THE EX - PARTE ASSESSMENT ORDER DATED 31.12.2007 IN CONNECTION WITH THE TRANSACTION OF SALE OF LAND IS THE ISSUE ON MERITS. THE ASSESSI NG OFFICER ASSESSED THE TOTAL INCOME AT RS.5,44,679/ - . THE ASSESSEE DID NOT FILE RETURN OF INCOME U/S 139(1) OF THE ACT FOR THE IMPUGNED ASSESSMENT YEAR. THERE IS COMPLETELY NON - ATTENDANCE TO THE NOTICE ISSUED BY THE ASSESSING OFFICER. THEREFORE, THE AS SESSING OFFICER MADE EX - PARTE ASSESSMENT U/S 144 OF THE ACT. HOWEVER, THE ASSESSEE FILED AN APPEAL BEFORE THE CIT(A) WITH THE DELAY OF 11 MONTHS, THE ASSESSEE FURNISHED AN AFFIDAVIT EXPLAINING THE SAID ITA NO. 2716 /PUN /201 7 - 3 - DELAY , REQUESTED FOR CONDONATION OF DELAY AND ALSO RE QUESTED FOR DECIDING THE ISSUE ON MERITS. THE CIT(A) DID NOT CONDONE THE DELAY. THE CIT(A) EXTRACTED THE CONTENTS OF THE AFFIDAVIT IN HIS ORDER. THE CONTENTS OF THE AFFIDAVIT BRIEFLY INCLUDES THAT THE ASSESSEE IS A GOVERNMENT EMPLOYEE WORKING WITH MSRTC AS BUS CONDUCTOR. THE ASSESSEE SOLD A PIECE OF LAND FOR A CONSIDERATION OF RS.5,08,200/ - AND INVESTED THE SAID AMOUNT IN CONSTRUCTING OF RESIDENTIAL HOUSE. WHEN THE NOTICES WERE SENT BY THE ASSESSING OFFICER, THE ASSESSEE HANDED - OVER THE SAME TO HIS COU NSEL, WHO MERELY DID NOT GIVE SERIOUS ATTENTION TO THE PROBLEM ON HAND. THE ASSESSEE NARRATED THE ENTIRE CONVERSIONS WITH MR. NAYAN BHOJANE (TAX CONSULTANT OF THE ASSESSEE). EVENTUALLY, THE ASSESSEE CHANGED THE ANOTHER TAX CONSULTANT AND FILED THE APPEAL BEFORE THE CIT(A). HOWEVER, THE SAID CONTENTS OF THE AFFIDAVIT WAS IGNORED BY THE CIT(A) AND DISMISSED THE APPEAL OF THE ASSESSEE IN LIMINE. 7 . THE LD. COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE APPEAL IS FILED IN TIME BEFORE THE TRIBUNAL AND IT REFLEC TS THE SERIOUSNESS OF THE ASSESSEE IN MATTER RELATING TO THE APPELLATE PROCEEDINGS. THE LD. COUNSEL READ OUT THE ENTIRE CONTENTS OF THE AFFIDAVIT AND SUBMITTED THAT THE ASSESSEE IN THE INCOME - TAX PROCEEDINGS HAS TRUSTED THE LOCAL TAX CONSULTANT MR. NAYAN BHOJANE AND HIS ASSISTANT MR. BHATKAR. ASSESSING OFFICER DID NOT BRING OUT ANY CONTRARY EVIDENCE AGAINST THE ASSESSEE ON THE SAID FACTS. THESE FACTS ARE NOT FOUND BOGUS EITHER BY THE CIT(A) OR BY THE ASSESSING OFFICER. THEREFORE, IN MY VIEW, THIS IS A F IT CASE FOR CONDONATION OF DELAY. NO ASSESSEE SHALL FORGO THE RIGHT OF APPEAL CONFERRED BY THE STATUTE WITHOUT REASONABLE CAUSE. THE CONTENTS OF THE AFFIDAVIT SHOULD CONSTITUTE REASONABLE CAUSE . THEREFORE, I ACCORDINGLY CONDONE THE DELAY. ITA NO. 2716 /PUN /201 7 - 4 - 8 . THEREFORE , I DIRECT THE CIT(A) TO CONDONE THE DELAY CONSIDERING THE PRINCIPLES OF NATURAL JUSTICE . I AM OF THE OPINION THAT THE CIT(A) SHOULD ADMIT THE APPEAL AND ADJUDICATE THE ISSUE ON MERIT IN ACCORDANCE WITH LAW AND THE PROVISIONS OF SUB - SECTION (6) OF SECTION 250 OF THE ACT. THE ASSESSEE IS HEREBY DIRECTED TO ATTEND THE PROCEEDINGS BEFORE THE CIT(A). THE CIT(A) IS DIRECTED TO CALL FOR REMAND REPORT IF HE REQUIRED BEFORE ADJUDICATING THE ISSUE ON MERITS. 9 . IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALLO WED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED ON THIS 28 TH D AY OF NOVEMBER , 2018 . SD/ - ( D. KARUNAKARA RAO ) / ACCOUNTANT MEMBER / ACCOUNTANT MEMBER / PUNE ; DATED : 28 TH NOVEMBER , 2018 . SUJEET / COPY OF THE ORDER IS FORWARDED TO : 1. / THE APPELLANT; 2. / THE RESP ONDENT; 3. THE CIT(A) - 2 , KOLHAPUR ; 4. THE CHIEF CIT, PUNE; 5. , , - / DR SMC , ITAT, PUNE; 6. / GUARD FILE . // TRUE COPY // / BY ORDER, //TRUE COPY// SENIOR PRIVATE SECRETARY , / ITAT, PUNE