M/S. PRAKASH SUPPLIES, CHENNAI V. ACIT, NCC - 22, , TAMBARAM,

ITA 317/CHNY/2020

• Counselvise Citation: [2020] 110 COUNSELVISE.COM (IT) 1981 (ITAT-CHENNAI)
• Duration Of Justice: 9 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-12-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2015-2016
• Appeal Filed On: 10-02-2020
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Capital asset converted into stock in trade; Set aside
• Section: 201

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL , A B ENCH, CHENNAI . , ! . , ! ' BEFORE SHRI DUVVURU RL REDDY,JUDICIAL MEMBER AND SHRI G.MANJUNATHA, ACCOUNTANT MEMBER ./ I.T.A.NO.315/CHNY/2020 ( / ASSESSMENT YEAR: 2015-16) M/S. J.K.SUPPLIES, NO.20, ALAGESAN STREET, WEST TAMBARAM, CHENNAI-600045. VS ASSISTANT COMMISSIONER OF INCOME TAX, NON-CORPORATE CIRCLE-22, TAMBARAM CHENNAI-600 045. PAN : AADFJ9401H ( /APPELLANT) ( /RESPONDENT) ./ I.T.A.NO.317/CHNY/2020 ( / ASSESSMENT YEAR: 2015-16) M/S. PRAKASH.SUPPLIES, NO.20, ALAGESAN STREET, WEST TAMBARAM, CHENNAI-600045. VS ASSISTANT COMMISSIONER OF INCOME TAX, NON-CORPORATE CIRCLE-22, TAMBARAM CHENNAI-600 045. PAN : AAHFP4527C ( /APPELLANT) ( /RESPONDENT) ./ I.T.A.NO.318/CHNY/2020 ( / ASSESSMENT YEAR: 2011-12) M/S. R.S.ENTERPRISES NO.20, ALAGESAN STREET, WEST TAMBARAM, CHENNAI-600045. VS ASSISTANT COMMISSIONER OF INCOME TAX, NON-CORPORATE CIRCLE-22, TAMBARAM CHENNAI-600 045. PAN : AAHFR 8636G ( /APPELLANT) ( /RESPONDENT) / APPELLANT BY : MR. K.BALASUBRAMANIAN, ADVOCATE /RESPONDENT BY : MR. SURESH PERIASAMY,JCIT /DATE OF HEARING : 05.11.2020 /DATE OF PRONOUNCEMENT : 04.12.2020 2 ITA NO.315, 317 & 318/CHNY/2020 / O R D E R PER BENCH: THESE THREE APPEALS ARE FILED BY DIFFERENT ASSESSEE S AGAINST THE SEPARATE, BUT IDENTICAL ORDERS OF COMMI SSIONER OF INCOME TAX (APPEALS)10, CHENNAI DATED 10.01.2020, 10.01.2020 AND 23.01.2020 AND PERTAIN TO ASSESSMENT YEARS 201 5-16, 2015-16 AND 2011-12 RESPECTIVELY. SINCE, THE FACTS ARE IDE NTICAL AND ISSUES ARE COMMON, FOR THE SAKE OF CONVENIENCE, THEY WERE CLUBBED, HEARD TOGETHER AND DISPOSED OF BY WAY OF THIS CONSOLIDATE D ORDER. 2. WE HAVE HEARD BOTH THE PARTIES AND PERUSED THE M ATERIAL AVAILABLE ON RECORD ALONG WITH THE ORDER OF THE LEA RNED CIT(A). WE FIND THAT THE LEARNED CIT(A) HAS DISMISSED THE APPE AL FILED BY THE ASSESSEE ON THE GROUND THAT ALTHOUGH THE ASSESSEE I S COVERED UNDER RULE 45(2)(A)(I) OF INCOME TAX RULES, 1962, T HE PRESENT APPEAL HAS BEEN FILED UNDER RULE 45(2)(A)(II) OF I. T.RULES, 1962, IN CONTRAVENTION OF PRESCRIBED RULES FOR FILING APPEAL BEFORE THE FIRST APPELLATE AUTHORITY. 3 ITA NO.315, 317 & 318/CHNY/2020 3. BEFORE US, THE LEARNED AR FOR THE ASSESSEE SUB MITTED THAT NEW RULES HAS BEEN NOTIFIED FOR FILING APPEALS BY USING DSC AND MANY PEOPLE ARE NOT AWARE OF THE PROCEDURE FOR FIL ING APPEAL AND CONSEQUENTLY, ASSESSEE HAS FILED APPEAL BY EVC THR OUGH AADHAAR OTP BUT THE SUCH APPEAL HAS BEEN FILED WITHIN THE T IME PRESCRIBED UNDER THE ACT. NO DOUBT, THE APPEAL SHOULD BE FILE D IN ACCORDANCE WITH THE PRESCRIBED PROCEDURE PROVIDED UNDER THE R ULE. IN CASE, THE APPEAL IS NOT FILED IN ACCORDANCE WITH THE PRESCRIB ED RULES, THE SAID APPEAL BECOMES INVALID AND NOT MAINTAINABLE. HOWE VER, WHEN THE ASSESSEE EXPLAINS THE REASONS FOR DEFECTS IN FILING THE APPEAL AND SUCH REASONS ARE BONAFIDE, THEN IT IS THE DUTY OF T HE APPELLATE AUTHORITY TO PROVIDE OPPORTUNITY TO THE ASSESSEE TO RECTIFY MISTAKES IN FILING THE APPEAL, BECAUSE DURING TRANSITION PERIO D MANY PEOPLE MAY NOT AWARE OF THE CHANGES MADE IN THE RULES FOR FILING APPEAL. MOREOVER, WHILE DECIDING THE APPEAL INSTEAD OF LOOK INTO TECHNICALITIES SUBSTANTIAL ISSUE INVOLVED IN APPEAL NEEDS TO BE CONSIDERED TO ADVANCE SUBSTANTIAL JUSTICE. IN THIS CASE, THE LEARNED CIT(A) DISMISSED THE APPEAL FILED BY THE ASSESSEE O N TECHNICAL GROUNDS, EVEN THOUGH THE ASSESSEE RECTIFIED THE SAID MISTAKES BY FILING REVISED FORM 35 BY USING DSC. THEREFORE, WE ARE OF THE 4 ITA NO.315, 317 & 318/CHNY/2020 CONSIDERED VIEW THAT LEARNED CIT(A) HAS ERRED IN DI SMISSING THESE APPEALS FILED BY THE ASSESSEES ON TECHNICAL GROUNDS AND HENCE, WE SET ASIDE THE ORDERS PASSED BY THE LEARNED CIT(A) A ND RESTORE THESE APPEALS TO THE FILE OF THE LEARNED CIT(A) TO DECIDE THE APPEALS ON MERITS IN ACCORDANCE WITH LAW. 4. IN THE RESULT, THESE THREE APPEALS FILED BY THE ASSESSES ARE ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 4 TH DECEMBER, 2020 SD/- SD/- ( . ) ( . ) (DUVVURU RL REDDY) (G.MANJUNATHA ) ' $ / JUDICIAL MEMBER $ / ACCOUNTANT MEMBER ' /CHENNAI, ' /DATED 4 TH DECEMBER, 2020 DS )* +* /COPY TO: 1. APPELLANT 2. RESPONDENT 3. , () /CIT(A) 4. , /CIT 5. * 1 /DR 6. /GF .