ACIT Corporate Circle 6(2), CHENNAI V. Sri Vyshnavi Dairy Specialities Pvt Ltd., CHENNAI

ITA 484/CHNY/2019

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 1524 (ITAT-CHENNAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-06-2019
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2014-2015
• Appeal Filed On: 27-02-2019
• Court: TRIBUNAL

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH : CHENNAI . . . , , [BEFORE SHRI N.R.S. GANESAN, JUDICIAL MEMBER AND SHRI INTURI RAMA RAO, ACCOUNTANT MEMBER ] ./I.T.A. NO. 484/CHNY/2019 ! / ASSESSMENT YEAR : 2014-2015. THE ASSISTANT COMMISSIONER OF INCOME TAX, CORPORATE CIRCLE 6(2) CHENNAI. VS. M/S. SRI VYSHNAVI DAIRY SPECIALITIES PVT LTD, NO.170/1B, MGR NAGAR, MANAPAKKAM, CHENNAI 600 116. [PAN AAFCS 1152D] ( / APPELLANT) ( /RESPONDENT) '# $ % / APPELLANT BY : SHRI. NATARAJA, IRS, JCIT. &' '# $ % /RESPONDENT BY : NONE ( ) $ * /DATE OF HEARING : 06-06-2019 +,! $ * /DATE OF PRONOUNCEMENT : 11-06-2019 / O R D E R PER INTURI RAMA RAO, ACCOUNTANT MEMBER THIS IS AN APPEAL FILED BY THE DEPARTMENT DIRECTE D AGAINST THE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS)-1 5, CHENNAI (CIT(A) FOR SHORT) DATED 27.09.2018 FOR THE ASSES SMENT YEAR (AY) 2014-15. ITA NO. 484/CHNY/2019. :- 2 -: 2. THE REVENUE RAISED THE FOLLOWING GROUNDS OF APPEAL : 1 THE ORDER OF THE LD. COMMISSIONER OF INCOME TAX (A PPEALS) IS CONTRARY TO THE LAW AND FACTS OF THE CASE. 2 THE LD. COMMISSIONER OF INCOME TAX (APPEALS) ERRED IN ALLOWING THE DEDUCTION OF CLAIM U/S.80IB(11A) OF C1,22,75,95 0/- BY RELYING ON THE DECISIONS OF HONBLE DELHI HIGH COUR T IN THE CASE OF HANSA DALAKOTI (2012) 50 SOT 511 (DELHI) AND ALS O THE TRIBUNAL OF HYDERABAD IN THE CASE OF ITO VS. S.VENK ATAIAH IN ITA NO.984/HYD/2011, DATED 31.05.2012. 2.1 THE LD. CO MMISSIONER OF INCOME TAX (APPEALS) ERRED IN DIRECT ING TO ALLOW THE CLAIM U/S.80IB(11A) INSPITE OF THE CLE AR PROVISIONS OF SECTION 80AC. 2.2 THE LD. COMMISSIONER OF INCOME TAX (APPEALS) OUGHT TO HAVE APPRECIATED THAT THE ASSESSEE DID NOT FILE THE RETU RN OF INCOME ON OR BEFORE THE DUE DATE AS PER SECTION 139(1) AND WA S HENCE INELIGIBLE FOR THE DEDUCTION U/S.80IB(11A). 3 FOR THESE AND OTHER GROUNDS THAT MAY BE ADDUCED AT THE TIME OF HEARING, IT IS PRAYED THAT THE ORDER OF THE LD. COM MISSIONER OF INCOME TAX (APPEALS) BE SET ASIDE AND THAT OF THE A SSESSING OFFICER BE RESTORED. 3. THE APPEAL HAS BEEN FILED WITH A DELAY OF SIXTY O NE DAYS. THE REVENUE FILED PETITION REQUESTING FOR CONDON ING THE DELAY BY STATING THAT THE DELAY HAD OCCURRED ON ACCOUNT OF PREOCCUPATION OF THE ASSESSING OFFICER ON TIME BEARING ASSESSMENTS AND THE FILE GOT MIXED UP WITH OTHER FILES. 4. NONE APPEARED ON BEHALF OF THE ASSESSEE DESPITE DUE SERVICE OF NOTICE OF HEARING. AFTER PERUSAL OF THE PETITION FOR CONDONATION OF DELAY, WE ARE OF THE CONSIDERED OPINION THAT IT IS A FIT CASE FOR CONDONOING THE DELAY AND THE APPEAL IS ADMITTED FOR ADJUDICATION. ITA NO. 484/CHNY/2019. :- 3 -: 5. THE BRIEF FACTS OF THE CASE ARE AS UNDER: THE APPELLANT NAMELY M/S. SRI VYSHN AVI DAIRY SPECIALITIES PVT LTD, IS A COMPANY INCORPORATED UNDER THE PROVI SIONS OF THE COMPANIES ACT, 1956. IT IS ENGAGED IN THE BUSINES S OF FOOD PROCESSING UNIT. THE RETURN OF INCOME FOR THE ASSES SMENT YEAR 2014-15 WAS FILED ON 01.12.2014 DISCLOSING NIL INCOME. AGAI NST THE SAID RETURN OF INCOME, THE ASSESSMENT WAS COMPLETED BY THE INCO ME TAX OFFICER CORPORATE WARD 6(2), CHENNAI (HEREIN AFTER CALLED A S ASSESSING OFFICER) VIDE ORDER DATED 08.12.2016 PASSED U/S.1 43(3) OF THE INCOME TAX ACT, 1961 (IN SHORT THE ACT) DISALLOWING T HE CLAIM FOR DEDUCTION U/S.80IB(11A) OF THE ACT ON THE GROUND THAT RETURN OF INCOME WAS NOT FILED WITHIN THE PRESCRIBED TIME UNDER THE PROVIS IONS OF SECTION 139(1) OF THE ACT, AS MANDATED BY PROVISIONS OF S ECTION 80AC OF THE ACT. 6. BEING AGGRIEVED, AN APPEAL WAS PREFERRED BEFORE THE LD.CIT(A) WHO VIDE IMPUGNED ORDER ALLOWED THE APPEA L BY HOLDING THAT IT IS ONLY A PROCEDURAL LAPSE AND ACCEPTING THE EX PLANATION OF THE ASSESSEE THAT DELAY HAD OCCURRED ON ACCOUNT OF TECH NICAL SNAG IN UPLOADING THE RETURN OF INCOME , PLACING RELIANCE ON THE JUDGMENT OF HONBLE DELHI HIGH COURT IN THE CASE OF HANSA DALAKOTI (2012) 50 SOT 511 AND DECISION OF HYDERABAD BENCH OF THE TRIBUNAL IN THE CASE OF ITO VS. S.VENKATAIAH IN ITA NO.984/HYD/2011, DATED 31.05.2012. ITA NO. 484/CHNY/2019. :- 4 -: 7. BEING AGGRIEVED, THE REVENUE IS IN APPEAL BEFORE US CHALLENGING THE CORRECTNESS OF THE ORDER OF THE LD . CIT(A). IT IS CONTENDED THAT THE LD. CIT(A) OUGHT NOT TO HAVE AL LOWED THE BENEFIT OF SECTION 80IB(11A) OF THE ACT AGAINST PLAIN PROVISIO NS OF SECTION 80AC OF THE ACT AND RATIO OF THE DECISIONS OF HONBLE DE LHI HIGH COURT IN THE CASE OF HANSA DALAKOTI (SUPRA) AND HYDERABAD BENC H OF THE TRIBUNAL IN THE CASE OF S.VENKATAIAH (SUPRA) IS NOT APPLIC ABLE, AS DECISIONS WERE RENDERED IN CONTEXT OF PROCEDURAL PROVISIONS O F LAW, WHERE PROVISIONS OF SECTION 80AC ARE MANDATORY STATUTORY PROVISIONS. 8. WE HEARD THE LD. SR. DEPARTMENTAL REPRESENTATIVE AN D PERUSED THE MATERIAL ON RECORD. ADMITTEDLY, THERE IS A DELAY IN FILING THE RETURN OF INCOME WITHIN THE STIPULATED PERIOD UNDER THE PROVISIONS OF SECTION139(1) OF THE ACT. THE DELAY IS STATED T O BE ON ACCOUNT OF TECHNICAL SNAG IN UPLOADING THE RETURN OF INCOME. THE PROVISIONS OF SECTION 80AC OF THE ACT MANDATES THAT NO DEDUCTION UNDER THE PROVISION OF SECTION 80IB(11A) OF THE ACT SHALL BE ALLOWED, IF THE RETURN IS FILED AFTER THE DUE DATE. THIS PROVISION IS MANDATORY IN NATURE AND THE EXPLANATION OFFERED FOR DELAY IN FILING THE RETURN OF INCOME STATING THAT DELAY HAD OCCURRED ON ACCOUNT OF UPLOA DING DUE TO TECHNICAL SNAG CANNOT BE ACCEPTED IN THE ABSENCE OF ANY EVIDENCE ON RECORD. FURTHER, THERE IS NO MATERIAL ON RECORD TO SHOW THAT THE RETURN WAS UPLOADED BEFORE 24 HOURS OF 30 TH NOVEMBER, 2013. IN THE ITA NO. 484/CHNY/2019. :- 5 -: CIRCUMSTANCES, THE LD. COMMISSIONER OF INCOME TAX ( APPEALS) OUGHT NOT TO HAVE ALLOWED THE APPEAL FILED BY THE ASSESSE E PLACING RELIANCE ON THE DECISIONS OF HONBLE DELHI HIGH COURT IN THE CASE OF HANSA DALAKOTI (SUPRA) AND HYDERABAD BENCH OF THE TRIBUNAL IN THE CASE OF S.VENKATAIAH (SUPRA), IN AS MUCH AS, THESE TWO DECISIONS WERE RENDERED IN CONTEXT OF PROCEDURAL PROVISIONS OF LAW WHICH CANNOT BE APPLIED IN THE CONTEXT OF MANDATORY STATUTORY PROV ISIONS . ACCORDINGLY, WE ARE UNABLE TO UPHOLD THE ORDER OF THE LD. COMMI SSIONER OF INCOME TAX (APPEALS) AND THEREFORE, WE RESTORE THE ORDER O F THE ASSESSING OFFICER. 9. IN THE RESULT, THE APPEAL OF THE REVENUE IS ALLOWE D. ORDER PRONOUNCED ON 11TH DAY OF JUNE, 2019, AT C HENNAI. SD/- SD/- ( . . . ) (N.R.S. GANESAN) /JUDICIAL MEMBER ( ) (INTURI RAMA RAO) /ACCOUNTANT MEMBER - ) / CHENNAI . / DATED:11TH JUNE, 2019. KV $ &*01 21!* / COPY TO: 1 . '# / APPELLANT 3. ( 3* () / CIT(A) 5. 16 &*7 / DR 2. &' '# / RESPONDENT 4. ( 3* / CIT 6. 8 9) / GF