Aditya Spinners Limited , Hyderabad V. Dy. Commissioner of Income Tax , Circle-1(1), Hyderabad

ITA 289/Hyd/2019

• Counselvise Citation: [2021] 108 COUNSELVISE.COM (IT) 8111 (ITAT-HYDERABAD)
• Duration Of Justice: 2 year(s) 1 month(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-03-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB-B
• Assessment Year: 2015-2016
• Appeal Filed On: 12-02-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 154; 143(3); 115JB; 143(1); 20

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCHES B : HYDERABAD (THROUGH VIRTUAL CONFERENCE) BEFORE SHRI SATBEER SINGH GODARA, JUDICIAL MEMBER AND SHRI LAXMI PRASAD SAHU, ACCOUNTANT MEMBER IT A NO S . 289 & 1140 /H/201 9 ASSESSMENT YEAR: 20 1 5 - 16 ADITYA SPINNERS LTD., HYDERABAD. PAN A ABCA 7671H VS. DY. COMMISSIONER OF INCOME - TAX, CIRCLE 1 (1), HYDERABAD. (APPELLANT S ) (RESPONDENT) ASSESSEE BY : SHRI S. RAMA RAO REVENUE BY : SHRI ROHIT MUJUMDAR DATE OF HEARING: 1 8 /0 2 /2021 DATE OF PRONOUNCEMENT: 17/ 0 3 /2021 O R D E R PER BENCH . : TH ESE TWO A SSESSEES APPEAL S FOR AY 20 1 5 - 16 ARE DIRECTED AGAINST THE C I T(A) - 1 , HYDERABAD S SEPARATE ORDER S , DATED 14 / 11 /201 8 AND 25/03/2019 PASSED IN CASE NOS. 0073/17 - 18/DCIT - 1(1)/CIT(A) - 1/HYD/ 2018 - 19 AND 10024/18 - 19/ITO - 1(2)/CIT(A) 1/HYD/2018 - 19 INVOLVING I TA NO S . 289 & 1140 / HYD/1 9 ADITYA SPINNERS LTD., HYD. : - 2 - : PROCEEDINGS U/S 154 AND 143(3) OF THE INCOME TAX ACT, 1961 ; IN SHORT THE ACT , RESPECTIVELY. HEARD BOTH THE PARTIES AND CASE FILES PERUSED. 2. WE NOTICE AT THE OUTSET THAT ASSESSEE S INSTANT APPEAL BEING ITA NO. 289/HYD/2019 SUFFERS FROM 4 DAYS DELAY IN FILING . I T HAS FILED A CONDONATION PETITION ALONG WITH THE AFFIDAVIT AVERRING THEREIN, INTER - ALIA, THAT AT THE RELEVANT POINT OF TIME MANAGING DIRECTOR OF THE COMPANY WAS OUT OF STATION ON URGENT OFFICIAL WORK AND IN HIS ABSENCE, THE APPEAL COULD NOT HAVE BEEN FILED THEREBY CAUS ING THE IMPUGNED DELAY. CASE LAW COLLECTOR LAND ACQUISITION VS MST. KATIJI & ORS, 1987 AIR 1353 (SC) AND UNIVERSITY OF DELHI VS. UNION OF INDIA, CIVIL APPEAL NO. 9488 & 9489/2019 DATED 17 DECEMBER, 2019, HOLD THAT SUCH A DELAY; SUPPORTED BY COGENT REASONS, DESERVES TO BE CONDONED SO AS TO MAKE WAY FOR THE CAUSE OF SUBSTANTIAL JUSTICE. WE ACCORDINGLY HOLD THAT ASSESSEES IMPUGNED DELAY OF 4 DAYS IS NEITHER INTENTIONAL NOR DELIBERATE BUT DUE TO THE CIRCUMSTANCES BEYOND ITS CONTROL. THE SAME STANDS CONDONED. CASE IS NOW TAKEN UP FOR ADJUDICATION ON MERITS. I TA NO S . 289 & 1140 / HYD/1 9 ADITYA SPINNERS LTD., HYD. : - 3 - : 3. IT TRANSPIRES AT THE OUTSET THAT ASSESSEES PLEADINGS IN BOTH THE APPEALS REQUIRE A VERY BRIEF EXAMINATION ON FACTS. THIS ASSESSEE HAD FILED ITS ORIGINAL RETURN OF INCOME BY ELECTRONIC MODE ON 26/09/2015, WHICH WAS PROCESSED U/S 143(1) OF THE ACT ON 01/03/2016. THE ASSESSING OFFICER THEREAFTER RECTIFIED THE SAME ON 19/09/2017 U/S 154 BY CALCULATING TAX U/S 115JB MAT INSTEAD OF INCOME UNDER NORMAL PROVISIONS. ASSESSEES APPEAL BEFORE THE CIT(A) IN QUANTUM CASE NO. 0073/17 - 18/DCIT - 1(1)/CIT(A) - 1/HYD/ 2018 - 19 FORMS T HE SUBJECT MATTER OF ADJUDICATION IN ITA NO. 289/HYD/2019, WHICH HAS BEEN DE CLINED SOLELY ON THE GROUND THAT THE ASSESSING OFFICER HAS PASSED SECTION 143(3) ORDER ON 27/11/2017 AS AGAINST SECTION 154 ORDER IN ISSUE DATED 19/09/2017. 3.1 COMING TO SECTION 143(3) APPEAL FILED BEFORE US IN CASE NO. 10024/ 18 - 19/ ITO - 1(2) / CIT(A) 1/HYD/2018 - 19 IN ITA NO. 1140/HYD/2019 , WE FIND THAT THE CIT(A) HAS PASSED A TOTALLY NON - SPEAKING ORDER THEREBY NOT EVEN DEALING WITH THE ASSESSEES CONTENTION THAT IT WOULD NOT I TA NO S . 289 & 1140 / HYD/1 9 ADITYA SPINNERS LTD., HYD. : - 4 - : EXIGIBLE TO SECTION 115JB MAT COMPUTATION ON VARIOUS BENEFITS GRANTED BY TH E BOARD OF INDUSTRIAL AND FINANCIAL RECONSTRUCTION BIFR DATED 07/09/2011 UNDER THE SICK INDUSTRIAL COMPANIES (SPECIAL PROVISIONS)ACT, 1985 DULY RECOGNIZED IN SECTION 115JB EXPLANATION (1)(VII) OF THE ACT. THIS LEAVES THE ASSESSEE AGGRIEVED ON BOTH COU NTS. 4. WE HAVE GIVEN OUR THOUGHTFUL CONSIDERATION TO RIVAL PLEADINGS ON THE ISSUE OF INTERPLAY BETWEEN SICA LAW AND IN PROVISIONS OF INCOME - TAX. THE FACT ALSO REMAINS THAT NEITHER THE ASSESSING OFFICER NOR THE CIT(A) HAVE CONSIDERED ALL THESE INTERVENI NG DEVELOPMENTS IN THEIR RESPECTIVE ORDERS. WE THEREFORE DEEM IT FIT AND PROPER TO RESTORE ASSESSEES GRIEVANCE IN SECTION 143(3) AS WELL AS SECTION 154 PROCEEDINGS BACK TO ASSESSING OFFICER FOR HIS FRESH ADJUDICATION AS PER LAW. IT IS MADE CLEAR THAT THE ASSESSEE OR ITS REPRESENTATIVES SHALL APPEAR BEFORE THE ASSESSING OFFICER ON OR BEFORE 31 ST JULY, 2021 IN CONSEQUENTIAL PROCEEDINGS TO BE FOLLOWED BY THREE EFFECTIVE OPPORTUNITIES OF HEARING; AT ITS OWN RISK AND RESPONSIBILITY. I TA NO S . 289 & 1140 / HYD/1 9 ADITYA SPINNERS LTD., HYD. : - 5 - : 5. IN THE RESULT, BOTH TH E SE ASSESSEES APPEALS ARE ALLOWED FOR STATISTICAL PURPOSES IN ABOVE TERMS. PRONOUNCED IN THE OPEN COURT ON 17 TH MARCH , 2021 . SD/ - SD/ - (LAXMI PRASAD SAHU) (S.S. GODARA) ACCOUNTANT MEMBER JUDICIAL MEMBER HYDE RABAD, DATED : 17 TH MARCH , 20 2 1 . K V C OPY TO : 1 ADITYA SPINNERS LTD., 6 - 3 - 668/10/66, DURGA NAGAR COLONY, PUNJAGUTTA, HYDERABAD 500 82. 2 D C IT , CIRCLE 1(1) , HYDERABAD 3 C I T(A) - 1 , HYDERABAD 4 PR. CIT - 1 HYDERABAD 5 ITAT, DR, HYDERABAD. 6 GUARD FILE.