Sh. Prem Singh Chankrola, Chandigarh V. ITO, W-5(1), Chandigarh

ITA 454/CHANDI/2018

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 7553 (ITAT-CHANDIGARH)
• Duration Of Justice: 3 month(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-07-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2013-2014
• Appeal Filed On: 12-04-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Reasonable cause; Condonation of delay

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL CHANDIGARH BENCHES SMD, CHANDIGARH BEFORE MS. DIVA SINGH, JUDICIAL MEMBER AND MS. ANNAPURNA GUPTA, ACCOUNTANT MEMBER ITA NOS. 454 & 455/CHD/2018 (ASSESSMENT YEAR : 2013-14) SHRI PREM SINGH CHANKROLA, VS. THE ITO, SCF-30, SECTOR-26, WARD 5(1), CHANDIGARH. CHANDIGARH. PAN : AHCPG0165H (APPELLANT) (RE SPONDENT) ASSESSEE BY : SHRI ROHIT KAUR, PROXY COUNSEL FOR SHRI PARIKSHIT AGGARWAL, CA REVENUE BY : SHRI AKHILESH GUPTA, SR.DR DATE OF HEARING : 27.06.2018 DATE OF PRONOUNCEMENT : 17.07. 2018 ORDER PER BENCH THE PRESENT APPEALS HAVE BEEN FILED BY THE ASSESSEE ASSAILING THE CORRECTNESS OF THE RESPECTIVE SEPARATE ORDERS DATED 29.12.2017 OF CIT( A)-2, CHANDIGARH PERTAINING TO 2013- 14 ASSESSMENT YEAR IN THE QUANTUM AND PENALTY PROCE EDINGS RESPECTIVELY. ITA 454/CHD/2018 2. AT THE TIME OF HEARING, AN ADJOURNMENT REQUEST W AS MADE SEEKING TIME ON BEHALF OF LD. AR. HOWEVER, CONSIDERING GROUND NO. 2 RAISED B Y THE ASSESSEE IN THE PRESENT APPEAL, IT WAS DEEMED APPROPRIATE TO PROCEED WITH THE PRESENT APPEAL AFTER TAKING INTO CONSIDERATION THE SUBMISSIONS OF PROXY COUNSEL ON BEHALF OF THE L D. AR AND HEARING THE LD. SR.DR. ON GROUND NO. 2 WHICH READS AS UNDER : 2. THAT ON THE FACTS, CIRCUMSTANCES AND LEGAL POSITION OF THE CASE, THE WORTHY CIT(A) WAS UNJUSTIFIED IN DISMISSING THE APPEAL OF THE APPELLANT IN LIMINE BY HOLDING THAT THE FILING OF APPEAL IS BARRED BY LIMI TATION EVEN WHEN THERE EXISTED REASONABLE CAUSE FOR DELAY IN FILING OF THE APPEAL AND ALSO NO OPPORTUNITY WAS GRANTED BY WORTHY CIT(A) TO REPLY ON THE ISSUE OF D ELAY IN FILING OF THE APPEAL. 3. THE RELEVANT FACTS AS ARE EVIDENT FROM THE IMPUG NED ORDER ITSELF WOULD SHOW THAT ADMITTEDLY THE ASSESSEE WAS NEVER CONFRONTED WITH T HE FACT THAT THE APPEAL FILED BY THE ASSESSEE WAS TIME BARRED. THOUGH IN PARA 5.1, COGN IZANCE IS TAKEN OF REPRESENTATION ON BEHALF OF THE ASSESSEE, HOWEVER, WHETHER THE ASSESS EE WAS CONFRONTED WITH THE FACT THAT THE APPEAL WAS DELAYED, THERE IS NO DISCUSSION IN THE O RDER. FOR READY REFERENCE, WE ARE REPRODUCING PARA 4 OF THE CIT(A)S ORDER : 4. AS PER ITNS-51 RECEIVED FROM THE ASSESSING OFFI CER, THE DEMAND NOTICE WAS SERVED ON THE ASSESSEE ON 29.12.2015. THE APPEAL H AS BEEN FILED ON 30.09.2016 AND SO IT IS LATE BY 246 DAYS. THE APPELLANT HAS NOT FILE D ANY APPLICATION FOR CONDONATION OF DELAY IN FILING THE PRESENT APPEAL ALONGWITH FORM N O. 35 OR SUBSEQUENTLY. ITA 454 & 455/CHD/2018 A.Y.2013-14 PAGE 2 OF 2 4. ACCORDINGLY, AFTER HEARING THE SUBMISSIONS OF TH E PARTIES AND PERUSING THE MATERIAL AVAILABLE ON RECORD, WE DEEM IT APPROPRIATE TO SET ASIDE THE IMPUGNED ORDER BACK TO THE FILE OF THE CIT(A) WITH DIRECTION TO PASS A SPEAKING ORD ER IN ACCORDANCE WITH LAW AFTER GIVING THE ASSESSEE A REASONABLE OPPORTUNITY OF ADDRESSIN G THE DELAY OF 246 DAYS NOTICED BY HIM. SAID ORDER WAS PRONOUNCED IN THE OPEN COURT AT THE TIME OF HEARING ITSELF. THE ASSESSEE IN ITS OWN INTEREST IS DIRECTED TO PARTICIPATE IN THE PROCEEDINGS FULLY AND FAIRLY. 5. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALL OWED FOR STATISTICAL PURPOSES. ITA 455/CHD/2018 6. SINCE IN ITA 455/CHD/2018, THE ASSESSEE ASSAILS THE LEVY OF PENALTY ON THE ADDITIONS SUSTAINED IN APPEAL BY THE CIT(A), WHICH ISSUE IS INFLUX AS THE QUANTUM APPEAL STANDS RESTORED TO THE CIT(A). ACCORDINGLY, WE DEEM IT APPROPRIATE TO SET ASIDE THE IMPUGNED ORDER ALSO BACK TO THE FILE OF CIT(A) WITH THE DIRECTION TO FIRST PASS THE ORDER IN THE QUANTUM PROCEEDINGS AND IN CASE OF ANY ADVERSE VIEW BEING TAKEN, THE PENALTY APPEAL IS DIRECTED TO BE HEARD AFTER GIVING TIME TO THE ASSES SEE TO ADDRESS THE ISSUES ARISING AFTER THE PASSING OF THE QUANTUM ORDER. THE ASSESSEE IS DIREC TED TO ENSURE HIS PARTICIPATION FULLY AND FAIRLY IN THE APPEALS BEFORE THE CIT(A) AND IT IS M ADE CLEAR THAT IN THE EVENTUALITY OF ABUSE OF THE SAME, CIT(A) WOULD BE AT LIBERTY TO PASS THE ORDER ON THE BASIS OF MATERIAL AVAILABLE ON RECORD. 7. IN THE RESULT, BOTH APPEALS OF THE ASSESSEE ARE ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 17.07. 2018. SD/- SD/- (ANNAPURNA GUPTA) (DIVA SINGH) ACCOUNTANT MEMBER JUDICIAL MEM BER POONAM COPY TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT 4. THE CIT(A) 5. THE DR ASSTT. REGISTRAR ITAT,CHANDIGARH.