M/s PKN Caps and Polymers Private Limited , Bangalore V. Assistant Commissioner of Income Tax CPC TDS , Ghaziabad

ITA 337/BANG/2019

• Counselvise Citation: [2019] 112 COUNSELVISE.COM (IT) 0884 (ITAT-BANGALORE)
• Duration Of Justice: 9 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-12-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2013-2014
• Appeal Filed On: 25-02-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Principle of natural justice; Condonation of delay; TDS
• Section: 250; 234E; 200A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL BANGALORE BENCHES A BENCH: BANGALORE BEFORE SHRI A.K. GARODIA, ACCOUNTANT MEMBER AND SHRI PAVAN KUMAR GADALE, JUDICIAL MEMBER ITA NOS.337 & 338/BANG/2019 (ASSESSMENT YEARS : 2013-14 & 2014-15) M/S. PKN CAPS & POLYMERS PVT. LTD., S.NO.20, ALAHALLI TELEPHONE EXCHANGE COMPOUND, ANJANAPURA MAIN ROAD, J.P. NAGAR, 9 TH PHASE, BANGALORE-560 108 .APPELLANT PAN AABCP 2637E VS. ASST. COMMISSIONER OF INCOME TAX, CPC-TDS, GHAZIABAD-201010. RESPONDENT. ASSESSEE BY: SHRI PRANAV KRISHNA, ADVOCATE. REVENUE BY: SHRI SUNIL KUMAR AGARWAL, ADDL. CIT (D.R) DATE OF HEARING : 26.11 .2019 DATE OF PRONOUNCEMENT : 20.12. 2019 O R D E R PER SHRI PAVAN KUMAR GADALE, JM : THESE ARE THE APPEALS FILED BY THE ASSESS EE AGAINST THE DIFFERENT ORDERS OF COMMISSIONER OF INCOME TAX (APPEALS)-3, BANGALORE P ASSED UNDER SECTION 200A AND 250 OF THE INCOME TAX ACT, 1961 (THE ACT) FOR T HE ASSESSMENT YEARS 2013-14 & 2014-15. SINCE BOTH THE APPEALS ARE ON SIMILAR ISSUES, THEY ARE HEARD TOGETHER 2 ITA NOS.337 & 338/BANG/2019 AND CONSOLIDATED ORDER IS PASSED. FOR THE SAKE OF C ONVENIENCE, WE TAKE UP THE APPEAL IN ITA NO.337/BANG/2019 AND THE FACTS NARRAT ED THEREIN. THOUGH THE LEARNED AUTHORISED REPRESENTATIVE HAS RAISED THE GR OUNDS OF APPEAL ON MERITS BUT AT THE TIME OF TIME OF HEARING HE HAS RESTRICTED HI S ARGUMENTS TO THE EXTENT OF CONDONATION OF DELAY IN FILING THE APPEALS BEFORE T HE CIT(APPEALS). THE LEARNED AUTHORISED REPRESENTATIVE SUBMITTED THAT THE ASSESS EE HAS FILED APPEAL AGAINST THE ORDER OF CIT(APPEALS) BEFORE THE TRIBUNAL FOR CONDO NATION OF DELAY IN FILING THE APPEAL BEFORE THE CIT(A) AND OPPORTUNITY BE GRANTED TO SUBSTANTIATE THE CASE BEFORE THE CIT(APPEALS). CONTRA, THE LD. DR SUPPOR TED THE ORDERS OF THE CIT(APPEALS). 2. WE HEARD THE RIVAL CONTENTIONS AND PERUSED T HE MATERIAL ON RECORD. THE LEARNED AUTHORISED REPRESENTATIVE ARGUMENTS ARE SP ECIFICALLY ON CONDONATION OF DELAY IN FILING THE APPEALS BEFORE THE CIT(APPEALS) . THE LEARNED AUTHORISED REPRESENTATIVE SUBMITTED THAT THE ASSESSEE HAS SUB MITTED THE REASONS IN FORM 35 FOR DELAY IN FILING THE APPEAL 3. FURTHER THE LEARNED AUTHORISED REPRESENTATIVE S UBMITTED THAT THE ASSESSEE IS REGULAR IN SUBMITTING THE TDS RETURNS. WHEREAS THE RE WAS A DELAY IN FILING THE RETURNS AND THE ASSESSEE HAS FILED QUARTERLY RETURN S FOR QUARTER 2, 3 & 4 IN FORM NO.24Q AND 26Q. THE TOTAL LATE FEES PAYABLE UNDER SECTION 234E IS RS.95,842. WE FOUND THAT THE ASSESSEE HAS FILED THE TDS STATEM ENTS AS MENTIONED IN THE TRACES 3 ITA NOS.337 & 338/BANG/2019 INTIMATION UNDER SECTION 200A OF THE ACT IN 2013 WH ICH IS NOT DISPUTED WHEREAS THE APPEAL HAS BEEN FILED ON 16.03.2017 BEFORE THE CIT(APPEALS) ELECTRONICALLY. THE LEARNED AUTHORISED REPRESENTATIVE SUBMITTED THA T THE ASSESSEE HAS CHALLENGED THE ORDER UNDER SECTION 200A DT.14.12.2016 BUT THE FACT THAT THE INTIMATION DATES ARE ALL PERTAINING TO THE YEAR 3.9.2013 FOR THE F.Y . 2012-13 QUARTER 2 DT.30.08.2016 WHEREAS THE QUARTER 2 DT.8.9.2013 QUARTER 3 DT.8.9. 2013 QUARTER 4 DT.30.08.2016 AND QUARTER 4 DT.8.9.2013. THE CONTENTION OF THE LE ARNED AUTHORISED REPRESENTATIVE THAT THE ASSESSEE HAS PROSECUTED THE DISPUTED ISSUE ON DELAY WITH THE ASSESSING OFFICER, SINCE NO RELIEF WAS GRANTED BY THE AO THE ASSESSEE HAS FILED AN APPEAL WITH THE CIT(APPEALS) AND ALSO FILED COND ONATION PETITION. THE LEARNED CIT(APPEALS) RELIED ON THE JUDICIAL DECISIONS AND D ECLINED TO CONDONE THE DELAY. WE FIND THAT THE ASSESSEE IS REGULAR IN FILING THE RETURNS WHICH IS NOT DISPUTED AND WAS ALSO PURSUING THE REMEDY WITH THE ASSESSING OFF ICER FOR CANCELLATION OF THESE DEMANDS AND SINCE THE LETTER HAS BEEN RECEIVED ON 1 4.12.2016, THE ASSESSEE HAS FILED AN APPEAL WITH THE CIT(APPEALS) WHICH WAS DIS MISSED WITHOUT CONDONATION OF DELAY. WE FIND THE ACTIONS OF THE ASSESSEE ARE BONA FIDE WHICH CANNOT BE OVERLOOKED AND THE EXPLANATIONS OF THE ASSESSEE ARE REALISTIC. BUT FOR VARIOUS REASONS THE REMEDY COULD NOT BE AVAILABLE WITH THE ASSESSING OFFICER FOR CANCELLATION OF DEMAND. HENCE THE ASSESSEE HAS PRE FERRED AN APPEAL AND SUCH ACTS OF THE ASSESSEE ARE NOT A WANTON OR TO MISLEAD TO T HE REVENUE AUTHORITIES. HENCE 4 ITA NOS.337 & 338/BANG/2019 CONSIDERING THE PRINCIPLES OF NATURAL JUSTICE, WE A RE OF THE OPINION THAT THE REVENUE SHALL NOT BE AT A LOSS IF THE DELAY IS CONDONED AND THE MATTER IS RESTORED TO THE FILE OF CIT(APPEALS) FOR ADJUDICATION ON MERITS. ACCORDING LY, IN THE INTEREST OF JUSTICE WE CONDONE THE DELAY AND RESTORE THE ENTIRE DISPUTED ISSUE TO THE FILE OF CIT(APPEALS) FOR ADJUDICATION AFRESH ON MERITS AND PASS A SPEAKI NG ORDER AND ALLOW THE GROUNDS OF APPEAL OF ASSESSEE FOR STATISTICAL PURPOSES. 4. SIMILARLY IN ITA NO.338/BANG/2019 FOR THE ASSESSMENT YEAR 2014-15, THE ISSUES ARE IDENTICAL AS DISCUSSED IN THE ABOVE PARA GRAPH. HENCE WE CONDONE THE DELAY AND RESTORE ALL THE DISPUTED ISSUES TO THE FI LE OF CIT(APPEALS) FOR ADJUDICATION AFRESH ON MERITS AND PASS A SPEAKING ORDER. 5. IN THE RESULT, THE APPEALS OF ASSESSEE ARE A LLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 20 TH DECEMBER, 2019. SD/- SD/- (A.K. GARODIA) (PAVAN KUMAR GAD ALE) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 20 TH DECEMBER, 2019. * REDDY GP / DESAI S MURTHY / 5 ITA NOS.337 & 338/BANG/2019 COPY TO 1. THE APPELLANT 2. THE RESPONDENT 3. CIT (A) 4. PR. CIT 5. DR, ITAT, BANGALORE. 6. GUARD FILE BY ORDER ASSISTANT REGISTRAR INCOME-TAX APPELLATE TRIBUNAL BANGALORE