Indrani M. Bhattiprolu, Nashik V. Income tax Officer,

ITA 2901/PUN/2016

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 9104 (ITAT-PUNE)
• Duration Of Justice: 1 year(s) 3 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-03-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2009-2010
• Appeal Filed On: 20-12-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: DR VI VEK AG GR AWAL
• Keywords: Reasonable cause
• Section: 143(3)

Judgement Text

- IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH SMC , PUNE , , . , BEFORE MS. SUSHMA CHOWLA, JM AND SHRI D. KARUNAKARA RAO , AM . / ITA NO. 2 901 /P U N/201 6 / ASSESSMENT YEAR : 20 09 - 10 SMT. INDRANI M. BHATTIPROLU, PROP. M/S. 3S ENGINEERS & TRADERS, FLAT NO.9, SHANILA APPT., GANDHARVA NAGARI, NASHIK ROAD, NASHIK 422101 . / APPELLANT PAN: A EZPB0037K VS. THE INCOME TAX OFFICER , WARD 1(1), NASHIK . / RESPONDENT / APPELLANT BY : SHRI SANKET JOSHI / RESPONDENT BY : DR. VI VEK AG GR AWAL / DATE OF HEARING : 2 1 . 0 3 .201 8 / DATE OF PRONOUNCEMENT: 26 . 0 3 .201 8 / ORDER PER SUSHMA CHOWLA, J M : THE APPEAL FILED BY ASSESSEE IS AGAINST ORDER OF CIT (A) - 1 , NASHIK , DATED 21 . 0 9 .20 1 6 RELATING TO ASSESSMENT YEAR 20 09 - 10 AGAINST ORDER PASSED UND ER SECTION 143(3) R.W.S. 147 OF THE INCOME - TAX ACT , 1961 (IN SHORT THE ACT) . 2. THE ASSESSEE HAS RAISED THE FOLLOWING GROUND S OF APPEAL: - ITA NO. 2 901 /P U N/20 1 6 SMT. INDRANI M. BHATTIPROLU 2 ON FACTS AND IN LAW, 1] THE LEARNED CIT(A) ERRED IN NOT ADMITTING THE APPEAL ON MERITS OF THE CASE ON THE GROUND THAT THE DELAY IN FILING THE APPEAL OF 147 DAYS WAS NOT CONDONABLE. 2] THE LEARNED CIT(A) FAILED TO APPRECIATE THAT THE DELAY OF 147 DAYS IN FILING THE APPEAL WAS ON ACCOUNT OF REASONABLE CAUSE ON THE PART OF THE APPELLANT AND HENCE, THE DELAY SHOULD HAVE BEEN CONDONED IN THE INTEREST OF JUSTICE. 3] THE LEARNED CIT(A) ERRED IN NOT APPRECIATING THAT THE ASSESSEE DID NOT RECEIVE PROPER LEGAL ADVICE AND EVEN IN THE COURSE OF THE ASST. PROCEEDINGS, HE WAS NOT GUIDED BY A CHARTERED ACCOUNTANT AND HENCE, THERE WAS A DELAY IN FILING THE APPEAL AND THUS, THE DELAY SHOULD HAVE BEEN CONDONED IN THE INTEREST OF JUSTICE. 4] THE ASSESSEE PRAYS BEFORE HONBLE ITAT THAT THE ISSUE MAY BE RESTORED TO THE FIE OF THE LEARNED CIT(A) WITH A DIRECTION TO CONDONE THE DELAY AND DECIDE THE ISSUE ON MERITS OF THE CASE. 3. THE ASSESSEE IS AGGRIEVED BY THE ORDER OF CIT(A) IN NOT ADMITTING THE APPEAL ON THE GROUND THAT THE APPEAL WAS FILED AFTER DELAY OF 147 DAYS. 4. THE LEARNED AUTHORIZED REPRESENTATIVE FOR THE ASSESSEE BEFORE US P OINTED OUT THAT THE ASSESSEE WAS PREVENTED BY REASONABLE CAUSE FROM NON APPEARANCE BEFORE THE CIT(A). HOWEVER, THE CONDONATION APPLICATION MOVED BY THE ASSESSEE WAS NOT ACCEPTED BY THE CIT(A) AND APPEAL WAS DISMISSED IN LIMINE. HE HAS ALSO REFERRED TO TH E AFFIDAVIT OF ASSESSEE IN THIS REGARD. 5. THE LEARNED DEPARTMENTAL REPRESENTATIVE FOR THE REVENUE PLACED RELIANCE ON THE ORDERS OF AUTHORITIES BELOW. 6. WE HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED THE RECORD. THE FIRST ISSUE WHICH IS RAISED BY THE ASSESSEE IN THE PRESENT APPEAL IS AGAINST DISMISSAL OF APPEAL BY THE CIT(A) ON THE GROUND THAT THERE WAS DELAY OF 147 DAYS IN FILING THE APPEAL, WHICH WAS NOT CONDONABLE. THE HUSBAND OF ASSESSEE, WHO IS LOOKING AFTER THE BUSINESS OF ASSESSEE HAS FILED AN AFFIDAVIT STATING AS UNDER: - ITA NO. 2 901 /P U N/20 1 6 SMT. INDRANI M. BHATTIPROLU 3 AFFIDAVIT I , MAHESH SWAMI BHATTIPROLU, AGE - 63 YEARS, SON OF LATE SHRI B. MUTHUSWAMI, RESIDING AT NASHIK ROAD, NASHIK SOLEMNLY AFFIRM AS HEREUNDER MY WIFE, SMT. INDRANI MAHESH BHATTIPROLU, AGED 54 YEARS IS ENGAG ED IN THE BUSINESS OF MANUFACTURE OF INDUSTRIAL MATERIAL HANDLING EQUIPMENT. I WAS EMPLOYED AS A MAINTENANCE IN - CHARGE WITH CROMPTON GREAVES LTD., NASHIK FOR AROUND 18 YEARS. AFTER TAKING RETIREMENT THEREFROM, I STARTED ACTIVELY LOOKING AFTER THE BUSINESS OF MY WIFE. I WISH TO STATE THAT THE INCOME TAX ASSESSMENT PROCEEDINGS WERE TAKEN UP FOR THE F IRST TIME IN THE CASE OF MY WIFE FOR ASSESSMENT YEAR 2009 - 10 AND THE ASSESSMENT ORDER U/S 143 (3) R.W.S. 147 WAS PASSED ON 16.0 1.2015. I WISH TO STATE THAT ON REC EIPT OF THE ASSESSMENT ORDER ON 21.01 2015 I HAD IMMEDIATELY FORWARDED THE SAME TO MY TAX AUDITOR, MR. DILIP PALDE . I HEREBY STATE THAT HE HAD ASSURED ME THAT HE SHALL TA K E CARE OF THE APPROPRIATE ACTION TO BE TAKEN IN ORDER TO CHALLENGE THE TAX DEMAND RA ISED VIDE THE SAID ORDER . I WISH TO STATE THAT I AM A PERSON FROM TECHNICAL BACKGROUND AND I DID NOT HAVE ANY PRIOR EXPERIENCE REGARDING INCOME TAX PROCEDURES AND PROCEEDINGS . HOWEVER, THEREAFTER, IN THE MONTH OF JULY, 2015, I RECEIVED ANOTHER NOTICE REGA RDING LEVY OF PENALTY U/S 271( 1 )(C) OF THE INCOME TAX ACT FOR ASSESSMENT YEAR 2009 - 10. AT THAT TIME, I TRIED TO CONTACT MR PALDE HOWEVER, HE REFUSED TO ENTERTAIN MY CASE ON THE PRETEXT THAT HE WAS BUSY WITH AUDITS. HAVING LEFT WITH NO EXPERT LEGAL HELP, I MYSELF VISITED THE OFFICE OF INCOME TAX OFFICER, WARD 1(1), NASHIK AND SOUGHT ADVICE FROM HIM WITH RESPECT TO THE REQUIRED ACTION TO BE TAKEN. I WISH TO STATE THAT AT THAT TIME, THE OFFICER MR. DHANRAJ BORADE, ADVISED ME TO APPROACH, CA MILIND H. JOSHI FR OM NASHIK FOR FURTHER LEGAL ADVICE. I HEREBY STATE THAT ON GETTING THE SAID ADVICE, I PROMPTLY CONTACTED MR. MILIND JOSHI AND THE APPEAL WAS FILED IMMEDIATELY ON 1 7.07.20 1 5. 7. AFTER GOING THROUGH THE SAID AFFIDAVIT, WE FIND THAT THE ASSESSEE WAS PREVENT ED FROM SUFFICIENT CAUSE IN NOT FILING THE APPEAL IN TIME BEFORE THE CIT(A). ACCORDINGLY, WE CONDONE THE SAME. HOWEVER, WE RESTORE THE APPEAL BACK TO THE FILE OF CIT(A) TO DECIDE THE ISSUE ON MERITS, IN ACCORDANCE WITH LAW AFTER ALLOWING REASONABLE OPPOR TUNITY OF HEARING TO THE ASSESSEE. THE GROUNDS OF APPEAL RAISED BY THE ASSESSEE ARE THUS, ALLOWED. 8 . IN THE RESULT, THE APPEAL OF ASSESSEE IS ALLOWED AS INDICATED ABOVE. ORDER PRONOUNCED ON THIS 26 TH DAY OF MARCH , 201 8 . SD/ - SD/ - ( D.KARUNAKARA RAO ) (SUSHMA CHOWLA ) / ACCOUNTANT MEMBER / JUDICIAL MEMBER / PUNE ; DATED : 26 TH MARCH , 201 8 . GCVSR ITA NO. 2 901 /P U N/20 1 6 SMT. INDRANI M. BHATTIPROLU 4 / COPY OF THE ORDER IS FORWARDED TO : 1. / THE APPELLANT ; 2. / THE RESPONDENT; 3. ( ) / THE CIT(A) - 1 , NASHIK ; 4. THE PR. CIT - 1 , NASHIK ; 5. 6. , , , - / DR SMC , ITAT, PUNE; / GUARD FILE . / BY ORDER , // TRUE COPY // / SR. PRIVATE SECRETARY , / ITAT, PUNE