Bhagyanagar India Limited , Secunderabad V. Dy. Commissioner of Income Tax , Circle-1(2), Hyderabad

ITA 358/Hyd/2019

• Counselvise Citation: [2021] 108 COUNSELVISE.COM (IT) 7596 (ITAT-HYDERABAD)
• Duration Of Justice: 2 year(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-03-2021
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: DB-A
• Assessment Year: 2013-2014
• Appeal Filed On: 18-03-2019
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Keywords: Competent authority; Condonation of delay
• Section: 143(3); 201; 22

Judgement Text

1 IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH A, HYDERABAD (THROUGH VIRTUAL HEARING) BEFORE SMT. P. MADHAVI DEVI, JUDICIAL MEMBER AND SHRI A. MOHAN ALANKAMONY, ACCOUNTANT MEMBER ITA NO. 358/HYD/2019 A.Y. 2013 - 14 BHAGYANAGAR INDIA LIMITED, SECUNDERABAD. PAN: AAACB 8963 C VS. DCIT, CIRCLE - 1(2), HYDERABAD. (APPELLANT) (RESPONDENT) ASSESSEE BY: SHRI K.C. DEVDAS REVENUE BY: SHRI SUNIL KUMAR PANDEY, DR DATE OF HEARING: 16/03/2021 DATE OF PRONOUNCEMENT: 22 /03/2021 ORDER PER A. MOHAN ALANKAMONY, A.M: THIS APPEAL IS FILED BY THE ASSESSEE AGAINST THE ORDER OF THE LD. CIT(A) - 1, HYDERABAD IN APPEAL NO. 0110/CIT(A) - 1/HYD /2016 - 17/2017 - 18, DATED 23/03/2018 PASSED U/S. 143(3) R.W.S 250(6) OF THE ACT FOR THE A.Y. 2013 - 14. 2. AT THE OUTSET, LD. AR SUBMITTED BEFORE US THAT THERE IS A DELAY OF 266 DAYS IN FILING THE APPEAL BEFORE THE TRIBUNAL. IN THIS REGARD, THE ASSESSEE HAD FILED AN AFFIDAVIT SEEKING CONDONATION OF DELAY WHEREIN THE 2 REASONS FOR NOT FILING THE APPEAL WITHIN THE PRESCRIBED TIME LIMIT WAS EXPLAINED. FOR REFERENCE, THE RELEVANT PORTION FROM THE AFFIDAVIT IS EXTRACTED HEREIN BELOW: - .. 1. POST DEMERGER WORK BETWEEN OUR GROUP COMPANIES AND FINALIZATION OF ACCOUNTS OF OUR LISTED COMPANIES NAME LY M/S. BHYAGYANAGAR INDIA LIMITED M/S. SURANA TELCOM AND POWER LIMITED, M/S. SURANA SOLAR LTD AND M/S. BHAGYANAGR PROPERTIES LIMITED DURING THE PERIOD FROM 01/04/2018 TO 30/06/2018 WHICH INCLUDED QUARTERLY REVIEW OF ACCOUNTS. 2. FILING OF INCOME TAX RETURNS OF OUR GROUP COMPAN IES, PREPARATION OF TAX AUDIT REPORTS (40 NOS) AND TIME BARRING INCOME TAX ASSESSMENT PROCEEDINGS OUR GROUP COMPANIES FOR THE A.Y. 2013 - 14 & 2016 - 17, DURING THE PERIOD FORM 01/07/2018 TO 31/12/2018. 3. FINALIZATION OF QUARTERLY ACCOUNTS OF OUR LISTED COMPANIES AS MENTIONED ABOVE FOR THE 3 RD QUARTER ENDING 31/1/2018 DURING THE PERIOD FROM 01/01/2019 TO 28/02/2019. IN THE MAZE OF THE AFORESAID COMPLIANCES THE FILING OF THE APPEAL WAS LOST SIGHT OF AND IT WAS ONLY WHEN NOTICES FOR LEVY OF PENALTY PROCEEDI NGS WAS SERVED IN THE MONTH OF MARCH 2019 IT WAS FOUND THAT APPEAL WAS NOT FILED. IMMEDIATE STEPS WERE TAKEN TO FILE THE APPEAL AT THE EARLIEST THAT IS BY 18/03/2019. THE COMPANY HAS NEVER IN THE PAST DEFAULTED IN COMPLYING WITH STATUTORY LIMITS AND HAS A LWAYS RESPECTED THE RULE OF LAW. THERE WAS NO INTENTION TO DEFER. IT IS FOR THE FIRST TIME IN THE ANNALS OF THE APPELLANT COMPANY RECORDS THAT A DELAY HAS OCCURRED IN FILING AN APPEAL. 3. ON PERUSAL OF THE AFFIDAVIT FILED BY THE ASSESSEE, WE FIND THE REASON FOR THE DELAY WAS DUE TO POST DEMERGER ACTIVITIES BETWEEN THE ASSESSEE AND ITS GROUP COMPANIES AND FINALIZATION OF ACCOUNTS OF ITS LISTED COMPANIES DURING THE RELEVANT PERIOD DUE TO WHIC H THE ASSESSEE COULD NOT FILE THE APPEAL WITHIN THE STIPULATED TIME. CONSIDERING THE SAME AND SINCE THE ASSESSEE DESIRES TO AVAIL THE VIVAD - SE - VISHWAS SCHEME FOR THE A.Y. 201 3 - 14 , IN THE INTEREST OF JUSTICE, WE HEREBY CONDONE THE DELAY OF 3 266 DAYS IN FILIN G THE APPEAL BEFORE THE TRIBUNAL AND PROCEED TO HEAR THE APPEAL. 4 . AT THE OUTSET, LD. AR SUBMITTED BEFORE US THAT THE ASSESSEE DESIRES TO AVAIL VIVAD SE VISWAS SCHEME FOR THE A.Y. 2013 - 14 . HE FURTHER SUBMITTED THAT, THE ASSESSEE COULD NOT FILE FORM NO.1 & 2 DUE TO PAUCITY OF TIME, HOWEVER HE ASSURED THE BENCH THAT THE FORM NO.1&2 SHALL BE FILED SHORTLY. 5 . THE LD. DR SUBMITTED THAT IF THE ASSESSEE DESIRES TO AVAIL THE VIVAD SE VISHWAS SC HEME, THE REVENUE HAS NO OBJECTION. 6 . HAVING HEARD BOTH THE PARTIES THROUGH VIDEO CONFERENCE, WE ARE INCLINED TO TREAT THE INSTANT APPEAL OF THE ASSESSEE AS WITHDRAWN RELYING ON THE DECISION OF THE HONBLE HIGH COURT OF MADRAS IN THE CASE OF DCIT VS. M/S . KEYARAM HOTELS P. LTD IN T.C.A. NO. 694 OF 2019, DATED 13/10/2020 WHEREIN IT WAS HELD AS UNDER: - 3. THE LEARNED COUNSEL FOR THE RESPONDENT / ASSESSEE, ON INSTRUCTIONS, SUBMITTED THAT THE RESPONDENT / ASSESSEE INTENDS TO AVAIL THE BENEFIT OF VIVAD SE VISHWAS SCHEME (VVS SCHEME FOR BREVITY) AND IN THIS REGARD, THE ASSESSEE IS TAKING STEPS TO FILE THE APPLI CATION / DECLARATION IN FORM NO.1. . .. 7. AS OBSERVED, THE ASSESSEE IS GIVEN LIBERTY TO RESTORE THIS APPEAL IN THE EVENT THE ULTIMATE DECISION TO BE TAKEN ON THE DECLARATION TO BE FILED 4 BY THE ASSESSEE UNDER SECTION 4 OF THE SAID ACT IS NOT IN FAVO UR OF THE ASSESSEE. IF SUCH A PRAYER IS MADE, THE REGISTRY SHALL ENTERTAIN THE PRAYER WITHOUT INSISTING UPON ANY APPLICATION TO BE FILED FOR CONDONATION OF DELAY IN RESTORATION OF THE APPEAL AND ON SUCH REQUEST MADE BY THE ASSESSEE BY FILING A MISCELLANEOU S PETITION FOR RESTORATION, THE REGISTRY SHALL PLACE SUCH PETITION BEFORE THE DIVISION BENCH FOR ORDERS. 8. IN THE LIGHT OF THE ABOVE, WE DIRECT THE RESPONDENT / ASSESSEE TO FILE FORM NO.1 ON OR BEFORE 09/11/2020 AND THE COMPETENT AUTHORITY HTTP://WWW.JUDIS.NIC.IN5/6 T.C.A.NO.694 OF 2019. ACCORDINGLY, WE HEREBY DISMISS THE INSTANT APPEAL OF THE ASSESSEE FOR THE A.Y. 2013 - 14 AS WITHDRAWN. HOWEVER, WE ALSO MAKE IT CLEAR THAT, IF THE ASSESSEES CASE IS NOT ACCEPTED IN THE VIVAD - SE - VISHWAS SCHEME BY THE REVENUE FOR WHATSOEVER MAY BE REASON ON A SUBSEQUENT DATE, THEN THE ASSESSEE SHALL BE AT LIBERTY TO FILE MISCELLANEOUS PETITION BEFORE THE TRIBUNAL WITHIN THE TIME LIMIT PRESCRIBED UNDER THE ACT TO REIN STATE ITS APPEAL. IT IS ORDERED ACCORDINGLY. 7 . IN THE RESULT, APPEAL OF THE ASSESSEE IS DISMISSED AS WITHDRAWN. PRONOUNCED IN THE OPEN COURT ON THE 22 ND MARCH, 2021. S D/ - SD/ - ( SMT. P. MADHAVI DEVI ) ( A. MOHAN ALANKAMONY ) JUDICIAL MEMBER ACCOUNTANT MEMBER HYDERABAD, DATED: 22 ND MARCH, 2021. OKK 5 COPY TO: - 1) M/S. BHAGYANAGAR INDIA LIMITED C/O. SEKHAR & CO., 133/4, RP ROAD, SECUNDERABAD 500 003. 2) THE DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE - 1(2), INCOME TAX TOWERS, AC GUARDS, HYDERABAD. 3) THE CIT (A) - 1, HYDERABAD. 4) THE PRINCIPAL COMMISSIONER OF INCOME TAX - 1, HYDERABAD. 5) THE DR, ITAT, HYDERABAD 6) GUARD FILE