Eagle Steel Industries Pvt. Ltd., Ahmedabad V. The Income Tax Officer, Ward-2(1)(1), Ahmedabad

ITA 3151/AHD/2016

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 8335 (ITAT-AHMEDABAD)
• Duration Of Justice: 1 year(s) 5 month(s) 18 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-05-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2013-2014
• Appeal Filed On: 30-11-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: DINESH SINGH
• Keywords: Reasonable cause
• Section: 143(3); 194C

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD SMC BENCH BEFORE: SHR I RAJPAL YADAV , JUDICIAL MEMBER AND SHRI AMARJIT SINGH, ACCOUNTANT MEMBER EAGLE STEEL INDUSTRIES P. LTD. PLOT NO. 9, SANGHI CEMENT GODOWN, SARKHEJ SANAND HIGHWAY, VILLAGE: ULARIA, AHMEDABAD - 382210 PAN: AABCE6483F (APPELLANT) VS THE ITO, WARD - 2(1)(1), AHMEDABAD (RESPON DENT) REVENUE BY : S H RI DINESH SINGH , SR. D . R. ASSESSEE BY: NONE DATE OF HEARING : 26 - 04 - 2 018 DATE OF PRONOUNCEMENT : 18 - 05 - 2 018 / ORDER P ER : AMARJIT SINGH, ACCOUNTANT MEMBER : - THIS ASSESSEE S APPEAL FOR A.Y. 2013 - 14 , ARIS ES FROM ORDER OF THE CIT(A) - 2 , AHM EDABAD DATED 20 - 09 - 2016 , IN PROCEEDINGS UNDER SECTION 143(3) OF THE INCOME TAX ACT, 1961; IN SHORT THE ACT . 2. THE ASSESSEE HAS RAISED FOLLOWI NG GROUNDS OF APPEAL: - 1. THE LD. CIT (A) ERRED ON FACTS AND IN LAW IN DISMISSING APPEAL OF THE APPELLANT TO BE NON MAINTAINABLE RELYING UPON CBDT CIRCULAR NO. 20/2016 DATED 25/05/2016 WITHOUT APPRECIATING THAT THE APPEAL WAS ALREADY HEARD ON 29/04 /2016. 2. THE LD. CIT (A) ERRED ON FACTS AND IN LAW IN CONFIRMING DISALLOWANCE OF RS. 34,43,324/ - BY INVOKING PROVISIONS OF SECTION 40(A)(IA) OF THE ACT. I T A NO . 3151 / A HD/20 16 A SSESSMENT YEAR 2013 - 14 I.T.A NO. 3151 /AHD/20 16 A.Y. 20 13 - 14 PAGE NO EAGLE STEEL INDUSTRIES P. LTD. VS. ITO 2 3. THE BRIEF FACT OF THE CASE IS THAT RETURN OF INCOME DECLARING INCOME OF RS. 7 , 76 , 320/ - WAS FILED ON 16 TH AUGUST, 2013. SUBSEQUENTLY, THE CASE WAS SELECTED UNDER SCRUTINY BY ISSUING OF NOTICE U/S. 143(2) OF THE ACT ON 5 TH JUNE, 2015. ON SCRUTINY, IT WAS DISCERNED TO THE ASSESSING OFFICER THAT ASSESSEE HA D NOT MADE COMPLIANCE WITH THE PROVISION OF SECTION 194C BY NOT DEDUCING TAX ON PAYMENT MADE IN RESPECT OF EXPENDITURE INCURRED FOR FREIGHT AND TRANSPORT. CONSEQUENTLY, THE ASSESSING OFFICER HAS MADE DISALLOWANCE OF TRANSPORT CHARGES OF RS. 34 , 43 , 324/ - U/S. 40(A)(IA) OF THE ACT. 4. AGGRIEVED A SSESSEE FILED APPEAL BEFORE THE LD. CIT(A). THE LD. CIT A) HAS DISMISSED THE APPEAL OF THE ASSESSEE ON THE GROUND THAT ASSESSEE HAS MADE DELAY IN FILING THE APPEAL ON ELECTRONIC MODE. 5. WE HAVE HEARD THE LD. DR AND PERUSED THE MATERIAL ON RECORD CARE FULLY. THE CASE OF THE ASSESSEE WAS SUBJECT TO SCR U TINY ASSESSMENT. DURING THE COURSE OF SCRUTINY ASSESSMENT , IT WAS DISCERNED TO THE ASSESSING OFFICER THAT ASSESSE HAS FAILED TO DEDUCT TAX ON PAYMENT OF FREIGHT AND TRANSPORT EXPENSES AS PER THE PROVISION S OF SECTION 194C OF THE A C T. CONSEQUENTLY, THE ASSESSING OFFICER HAD MADE DISALLOWANCE OF RS. 34,34,324/ - UNDER TH E PROVISIONS O F SECTION 40(A)(AI) OF THE ACT. THE ASSESSEE HAS FILED APPEAL BEFORE THE LD. CIT(A). THE LD. CIT(A) HAS DISMISSED THE APPEAL OF THE AS S ESSEE ON THE GROUND THAT ASSESSEE HAS NOT FILED THE APPEAL ELECTRONICALLY BY REFERRING THE NOTIFICATION NO. 11/2006 (F.NO. 149/150/2015 - TPL DATED 01/03/2016 OF THE CBDT. WE HAVE NOTICED THAT VIDE CIRCULAR NO. 20/2016 DA T ED 26/05/2011 OF CB DT , T HE DATE OF FI L ING OF APPEAL BY ELECTRONIC MODE WAS EXTENDED UP TO 15/06/2016 , HOWEVER, THE ASS E S S EE HAD FILED IT ELECTRONICALLY ON 02/09/2016. AT THE INITIAL STAGE T HE ASSESSEE HAD FI L ED THE APPEAL IN THE PAPER FORM IN FORM NO. 35 ON 30/03/2016. WE HAVE A LSO NOTICED THAT THE ASSESSEE HAD BROUGHT TO THE NOTICE OF THE LD. CIT(A) THAT DELAY IN FILING APPEAL ON ELECTRONIC MODE WAS BECAUSE OF UNINTENDED TECHNICAL LAPSE. IN THIS CONNECTION, WE OBSERVED THAT THE ONLINE FILING OF APPEAL WAS NEWLY INTRODUCED I.T.A NO. 3151 /AHD/20 16 A.Y. 20 13 - 14 PAGE NO EAGLE STEEL INDUSTRIES P. LTD. VS. ITO 3 DURI NG THE YEAR UNDER CONSIDERATION BECAUSE OF WHICH THE ASSESSEE HAD FACED DIFFICULTY IN UPLOADING THE APPEAL ELECTRONICALLY IN THE SYSTEM. THE ISSUING OF CIRCULARS BY THE CBDT FOR EXTENDING THE DATE OF FILING THE APPEAL IMPLICIT CONSTRAINT AND ELUCIDATE THE HICCUP IN UPLOADING THE PRESCRIBED APPEAL IN THE SYSTEM ELECTRONICALLY. WE ALSO NOTICED THAT THE ASSE SSEE HAD FILED THE APPEAL ON 30/03/2016 MANUALLY WITHIN THE DUE DATE WHICH COULD NOT BE UPLOADED ELECTRONICALLY BECAUSE OF THE REASONS STAT ED SUPRA IN THIS ORDER. THE ABOVE STATED FACTS AND FINDINGS INDEED INDICATE THAT THERE WAS A BONA FIDE REASONABLE CAUSE FOR NOT FILING THE APPEAL ELECTRONICALLY BY THE ASSESSEE, THEREFORE, AS PER OUR CONSIDERED OPINION THE LD. CIT(A) IS NOT JUSTIFIE D IN DISMISSING THE APPEAL. IN VIEW OF THE ABOVE FACTS A N D CIRCUMSTANCES , WE RESTORE THIS APPEAL TO THE FILE OF THE LD. CIT (A ) FOR ADJUDICATION ON MERIT AFTER AFFORDING ADEQUATE OPPORTUNIT IES TO THE ASSESSEE. 6. IN THE RESULT, THE APPEAL OF THE ASSESEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PR ONOUNCED IN THE OPEN C OURT ON 18 - 05 - 201 8 SD/ - S D/ - ( RAJPAL YADAV ) ( AMARJIT SINGH ) JUDICIAL MEMBER ACCOUNTANT MEMB ER AHMEDABAD : DATED 18 /05 /2018 / COPY OF ORDER FORWARDED TO: - 1. ASSESSEE 2. REVENUE 3. CONCERNED CIT 4. CIT (A) 5. DR, ITAT, AHMEDABAD 6. GUARD FILE. BY ORDER/ , / ,