Kalkoori Srinivas, Vemulawada, Hyderabad V. Income Tax Officer, Ward-3, Karimnagar

ITA 476/HYD/2012

• Counselvise Citation: [2012] 140 COUNSELVISE.COM (IT) 61956 (ITAT-HYDERABAD)
• Duration Of Justice: 3 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-07-2012
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: B
• Assessment Year: 2005-2006
• Appeal Filed On: 02-04-2012
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: AMISHA SRIVASTAVA GUPTA
• Assessee Lawyers: SHRI S RAMA RAO
• Keywords: Reasonable cause
• Section: 144

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH B, HYDERABAD BEFORE SMT. ASHA VIJAYARAGHAVAN, JUDICIAL MEMBER AND SHRI D.KARUNAKARA RAO, ACCOUNTANT MEMBER ITA NO.476/HYD/2012 (ASSESSMENT YEAR 2005-06) SHRI KATKOORI SRINIVAS, VEMULAVADA ( PAN - ADSPG 4645 C ) (APPELLANT) V/S INCOME-TAX OFFICER, WARD-3, KARIMNAGAR. (RESPONDENT) APPELLANT BY : SHRI SHRI SRAMA RAO RESPONDENT BY : SMT. AMISHA SRIVASTAVA GUPTA DATE OF HEARING 5.7.2012 DATE OF PRONOUNCEMENT 11.7.2012 O R D E R PER D.KARUNAKARA RAO, ACCOUNTANT MEMBER: THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST T HE ORDER OF THE COMMISSIONER OF INCOME-TAX(APPEALS) III, HYDERA BAD DATED 6.3.2012 FOR THE ASSESSMENT YEAR 2005-06. 2. EFFECTIVE GROUNDS OF THE ASSESSEE IN THIS APPEA L READ AS FOLLOWS- 1) THE ORDER OF THE LEARNED COMMISSIONER OF INCOME-TAX (APPEALS) IS ERRONEOUS BOTH ON FACTS AND IN LAW. 2) THE LEARNED COMMISSIONER OF INCOME-TAX(APPEALS) ERR ED IN NOT ADMITTING THE APPEAL WITHOUT CONSIDERING THE FACT T HAT THE APPELLANT FILED AN APPLICATION FOR CONDONATION OF D ELAY ENCLOSING THE CERTIFICATE ISSUED BY THE APOLLO HOSPITALS. THE LEARNED COMMISSIONER OF INCOME-TAX(APPEALS) OUGHT TO HAVE C ONSIDERED THE FACT THAT THE DELAY WAS FOR GOOD AND SUFFICIENT REASONS, AND THEREFORE, OUGHT TO HAVE CONDONED THE DELAY. 3) THE LEARNED COMMISSIONER OF INCOME-TAX(APPEALS) ERR ED IN NOT CONSIDERING THE GROUNDS OF APPEAL ON MERITS AND FUR THER ERRED IN CONFIRMING THE ASSESSMENT MADE U/S. 144 OF THE I.T . ACT ITA NO.476/HYD/2012 SHRI KATKOORI SRINIVAS, VEMULAVADA 2 DETERMINING THE TOTAL INCOME AT RS.10,22,9090/-. T HE LEARNED COMMISSIONER OF INCOME-TAX(APPEALS) OUGHT TO HAVE S EEN THAT THE ASSESSING OFFICER ADDED ALL THE DEPOSITS MADE INTO THE BANK ACCOUNT WITHOUT CONSIDERING THE FACTS OF THE CASE, AND, THEREFORE, OUGHT TO HAVE DIRECTED THE ASSESSING OFFICER TO DEL ETE THE ADDITION MADE BY HIM OF RS.10,22,990./-. 3. WE HEARD BOTH SIDES AND PERUSED THE IMPUGNED OR DERS OF THE LOWER AUTHORITIES AND OTHER MATERIAL AVAILABLE ON R ECORD. IT IS EVIDENT FROM THE IMPUGNED ORDER OF THE CIT(A) THAT THE ASSE SSEE HAS FILED THE FIRST APPEAL BEFORE HIM ON 14.10.2009, WITH A DELAY OF 70 DAYS. ASSESSEE FILED A PETITION BEFORE THE CIT(A) SEEKING CONDONATION OF DELAY, WHEREIN SICKNESS WAS EXPLAINED TO BE THE REASON FOR THE DELAY. THE CIT(A) WAS NOT CONVINCED WITH THE REASONS EXPLAINED FOR THE DELAY AND HENCE DID NOT CONDONE THE SAME. HE ALSO FOUND NO M ERIT IN THE GROUNDS RAISED IN THE APPEAL BEFORE HIM, AND HENCE DISMISSE D THE APPEAL ON MERITS AS WELL. THE LEARNED COUNSEL FOR THE ASSESS EE HAS FILED BEFORE US A COPY OF THE CONDONATION FILED BEFORE THE CIT(A). I T IS EVIDENT FROM THE SAID LPETITION THAT THE ASSESSEE WAS SERIOUSLY ILL DURING THE RELEVANT PERIOD AND HE WAS IN FACT ADMITTED IN APOLLO HOSPITAL, HYD ERABAD FOR NECESSARY TREATMENT. EVEN AFTER DISCHARGE, IT WAS EXPLAINED, ASSESSEE WAS IN FURTHER REST, AND AS SUCH HE COULD NOT TRAVEL TO HIS PLACE AND CONSULT THE ADVOCATE WITH NECESSARY PAPERS FOR FILING THE APPEA L BEFORE THE CIT(A). A COPY OF THE PRESCRIPTION/CERTIFICATE GIVEN BY THE D OCTOR OF THE APOLLO HOSPITAL, WHO ATTENDED HIM, HAS BEEN FILED BY THE A SSESSEE WITH THE SAID PETITION FOR CONDONATION. ON CAREFUL CONSIDERATI ON OF THE MATTER, WE FIND THAT PRIMA FACIE, THERE IS REASONABLE CAUSE FOR THE DELAY IN THE FILING OF THE APPEAL BY THE ASSESSEE BEFORE THE CIT(A). THE CIT(A) IN OUR CONSIDERED OPINION, WAS NOT JUSTIFIED IN BRUSHING A SIDE THE CONDONATION PETITION OF THE ASSESSEE AS NOT CONVINCING AND EVEN DISMISSING THE APPEAL ON MERITS IN THE SAME SPIRIT, WITHOUT MUCH DISCUSSI ON. IN THE INTERESTS OF JUSTICE, AND MORE PARTICULARLY IN VIEW OF THE FACT THAT THE ASSESSMENT IN THIS CASE HAS BEEN FRAMED UNDER S.144 OF THE ACT, T HE CIT(A) SHOULD HAVE CONDONED THE DELAY AND ADMITTED THE APPEAL AND DISPOSED OFF THE ITA NO.476/HYD/2012 SHRI KATKOORI SRINIVAS, VEMULAVADA 3 APPEAL ON MERITS DULY DELIBERATING ON THE CONTENTIO NS OF THE ASSESSEE ON THE GROUNDS RAISED. WE ACCORDINGLY, SET ASIDE THE IMPUGNED ORDER OF THE CIT(A), AND RESTORE THE MATTER TO THE FILE OF THE C IT(A) FOR ADJUDICATION OF THE APPEAL OF THE ASSESSEE BEFORE HIM ON MERITS, AF TER CONDONING THE DELAY IN THE FILING OF THE APPEAL, BY PASSING A SPE AKING ORDER IN ACCORDANCE WITH LAW, AND AFTER GIVING REASONABLE OP PORTUNITY OF HEARING TO THE ASSESSEE. 4. IN THE RESULT, ASSESSEES APPEAL IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE COURT ON 11.7.2012 SD/- SD/- ( ASHA VIJAYARAGHAVAN) (D.KARUNAKARA RAO) JUDICIAL MEMBER. ACCOUNTANT MEMBER. DT/- 11TH JULY, 2012 COPY FORWARDED TO: 1. 2 3 4 5. SHRI KATKOORI SRINIVAS, (VEMULAVADA) C/O. SHRI S.R AMA RAO, FLAT NO.102, SHIRYA'S ELEGANCE, NO.3-6-643, STREET NO.9, HIMAYATNAGAR, HYDERABAD 500029 INCOME-TAX OFFICER, WARD-3, KARIMNAGAR COMMISSIONER OF INCOME-TAX(APPEALS)-III HYDERABAD COMMISSIONER OF INCOME-TAX II HYDERABAD DEPARTMENTAL REPRESENTATIVE, ITAT, HYDERABAD B.V.S.