M/s Punjab Agro Food Grains Limted, Ropar V. ACIT, Chandigarh

ITA 569/CHANDI/2017

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 6765 (ITAT-CHANDIGARH)
• Duration Of Justice: 6 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-10-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2012-2013
• Appeal Filed On: 03-04-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MANJIT SINGH
• Keywords: Condonation of delay
• Section: 194C

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL CHANDIGARH BENCHES, SMC, CHANDIGARH BEFORE MS. DIVA SINGH, JUDICIAL MEMBER ITA NO 569 & 570/CHD/2017 A.Y.: 2012 -13 & 2013-14 M/S PUNJAB AGRO FOOD GRAINS LTD., VS. THE ACIT (TD S), ROPAR. CHANDIGARH. PAN NO. AADCP1290P (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI ATUL GOYAL, CA RESPONDENT BY : SHRI MANJIT SINGH, SR.DR DATE OF HEARING : 01.08.2017 DATE OF PRONOUNCEMENT : 11.10.2017 ORDER THE PRESENT APPEALS HAVE BEEN FILED BY THE ASSESSEE A SSAILING THE CORRECTNESS OF THE SEPARATE ORDERS DATED 11.11.2016 OF LD. CIT (APPEALS) CHANDIGARH PERTAINING TO 2011-12 AND 2012-13 FINANCIAL YEA R ON IDENTICAL GROUNDS. IT WAS THE COMMON STAND OF THE PARTIES THAT A RGUMENTS ADDRESSED IN ITA 569/CHD/2017 WOULD APPLY TO ITA 570/CHD/2017. AC CORDINGLY, THE GROUNDS FROM ITA 569/CHD/2017 ARE TAKEN WHEREIN THE E FFECTIVE GROUNDS ARE GROUND NOS. 1, 2 AND 8. REMAINING GROUNDS ARE, IN-FACT ARG UMENTS IN SUPPORT OF THE GROUNDS. FOR READY REFERENCE, THE EFFECTIV E GROUNDS ARE REPRODUCED HEREUNDER : 1. THAT THE ORDER PASSED BY THE HON'BLE CIT(A) UNDER P ROVISIONS OF SECTION 201(1)/201(1A) OF THE INCOME TAX ACT,1961 IS AGAINS T LAW AND FACTS ON THE FILE. 2. THAT THE CIT(A) ERRED IN LAW BY IGNORING THE FACTS OF THE MILLING AGREEMENT. 8. THAT THE CIT(A) HAS ERRED IN HOLDING THE APPELLANT AS DEEMED TO BE ASSESSEE IN DEFAULT UNDER THE PROVISIONS OF SECTION 201(1)/SECTION 201( 1A) OF THE INCOME TAX ACT. 2. BEFORE PROCEEDING TO ADDRESS THE GROUNDS, IT IS PERTINE NT TO MENTION THAT THE REGISTRY HAS POINTED OUT A DELAY OF 55 DAYS IN EACH OF THE APPEALS FILED BY THE ASSESSEE. THE LD. AR INVITING ATTENTION TO THE CONDONATION OF DELAY APPLICATIONS FILED ON 03.04.2017 AND SUPPORTED BY AN AFFIDAVIT DATED 30.05.2017 SUBMITTED THAT THE ASSESSEE IS A GOVERNMENT PROCURE MENT AGENCY ENGAGED IN PROCUREMENT OF FOOD-GRAINS IN THE STATE OF PUN JAB. THE IMPUGNED ORDERS, IT WAS SUBMITTED, WERE RECEIVED IN THE OFFICE, HOWEVE R, IN VIEW OF THE FACT THAT MOHALI AND ROPAR OFFICES WERE BEING SHIFTED FROM DE CEMBER,2016 TO FEBRUARY,2017 AND WERE INFACT MERGED, THE ORDER COULD NO T BE ENTERED IN THE ITA 569 & 570/2017 A.Y. 2012-13 & 2013-14 PAGE 2 OF 3 DIARY REGISTER AND ONLY AFTER THE SHIFTING WAS COMPLETED, T HE ORDER WAS TRACED AND ENTERED IN THE DIARY AND IMMEDIATELY THEREAFTER, IT WA S HANDED OVER TO THEIR COUNSEL FOR FILING OF THE APPEAL. IN THE CIRCUMSTANCE S, IT WAS HIS PRAYER THAT THE DELAY MAY BE CONDONED. 2.1 THE LD. SR.DR SUBMITTED THAT BEING A GOVERNMENT OFFICE, O NUS AND RESPONSIBILITY TO ADHERE TO THE DEADLINES BECOMES MORE RIG OROUS. THUS, ALTHOUGH HE WOULD HAVE NO SERIOUS OBJECTION TO THE DELAY BEING CONDONED, BUT THE STATUTORY LIMITATION SHOULD HAVE BEEN ADHERED TO. 2.2 I HAVE HEARD SUBMISSIONS AND PERUSED THE MATERIAL AV AILABLE ON RECORD. IN THE FACTS OF THE PRESENT CASE THE ASSESSEE BY WAY OF THE PRESENT CONDONATION OF DELAY PETITION HAS SUBMITTED THAT DUE TO T HE SHIFTING AND MERGING OF MOHALI AND ROPAR OFFICES, THE ORDER RECEIVED IN TH E OFFICE WAS NOT ENTERED IN THE DAK REGISTER AND HENCE, WAS NOT BROUGHT TO THE NOTICE OF THE CONCERN STAFF. THE SAID FACTS HAVE BEEN AFFIRMED BY WAY OF AN AFFIDAVIT OF THE DISTRICT MANAGER, SHRI JAGDEEP SINGH, WHO AFFIRMS AS UNDER : 4. THAT THE ORDER OF THE CIT(A) WAS RECEIVED IN OU R OFFICE. HOWEVER, DUE TO THE SHIFTING & MERGING OF OUR OFFICE FROM 01102.2016 TO 28.02.20 17, THE SAME COULD NOT ENTER IN THE OFFICE DIARY AND THE SAME ESCAPED THE SIGHT OF THE OFFICERS. 5. AFTER THE SHIFTING OF OUR OFFICE WAS COMPLETE, T HE SAME WAS LOCATED ENTERED IN THE OFFICE DIARY ON 14.03.2017. 6. THAT THE FILES WERE HANDED OVER TO THE ADVOATE S HRI ATUL GUPTA FOR FILING OF THE APPEAL IN THE CASE BEFORE THE HON'BLE APPELLATE TRI BUNAL AND THE APPEAL WAS FILED ON 03.04.2017. 2.3 ACCORDINGLY, CONSIDERING THE PECULIAR FACTUAL FACTS AND C IRCUMSTANCES, AND BEING SATISFIED BY THE EXPLANATION OFFERED ON BEHALF OF T HE ASSESSEE, THE DELAY OF 55 DAYS IS CONDONED IN EACH OF THESE APPEALS AS THE DELAY ADMITTEDLY HAS OCCURRED ON ACCOUNT OF INADVERTENT MISTAKES OF THE OFFICE STAFF DUE TO CIRCUMSTANCES BEYOND THE CONTROL OF THE ASSESSEE. 3. ON MERITS, IT WAS THE STAND OF THE LD. AR THAT THE APPE ALS ARE COVERED IN FAVOUR OF THE ASSESSEE BY VIRTUE OF THE CONSISTENT ORDER S OF THE ITAT ON THE ISSUE. RELIANCE HAS BEEN PLACED UPON ORDER DATED 11.08.2 016 IN ITA 69 TO 71/CHD/2016 IN THE CASE OF M/S PUNJAB STATE GRAIN PROC UREMENT CORPORATION LTD., BARNALA I.E IN THE DIFFERENT BRANCH OFFICE OF THE ASSESSEE ITSELF. THOUGH THE LD. SR.DR RELIES UPON THE IMPUGNED ORDER, HOWEVER, ON FACTS IT IS NOTED THAT THERE IS NO DISTINCTION. RELIANCE HAS BEEN PLACED UPON THE ORDER OF THE DELHI BENCH OF THE TRIBUNAL IN THE CASE OF AAHAR CONSUMER PRODUCTS P.LTD IN ITA NO. 2910/DEL/2010. IT MAY NOT BE OUT OF PLACE TO REFER TO ORDER DATED 04.10.2017 IN ITA 276/CHD/2017 IN THE CA SE OF THE DISTRICT MANAGER, PUNJAB STATE GRAINS PROCUREMENT CORP. LTD., ROP AR, ITA ITA 569 & 570/2017 A.Y. 2012-13 & 2013-14 PAGE 3 OF 3 274/CHD/2017 AND ITA 275/CHD/2017 ORDER DATED 04.10. 2017 IN THE CASE OF DISTRICT MANAGER, PUNJAB STATE GRAINS PROCUREMENT COR P. LTD., ROPAR WHERE THE AFORESAID ORDERS HAVE BEEN FOLLOWED. 4. ACCORDINGLY, IN THE AFOREMENTIONED PECULIAR FACTS AND CIR CUMSTANCES, DRAWING SUPPORT FROM THE AFORESAID ORDERS, WE HOLD THAT T HE ASSESSEE WAS NOT REQUIRED TO MAKE TDS U/S 194C OF THE ACT ON THE VALUE OF THE BY-PRODUCTS. RESPECTFULLY FOLLOWING, THE APPEALS OF THE ASSESSEE ARE ACCORDINGLY ALLOWED. 5. IN THE RESULT, APPEALS OF THE ASSESSEE ARE ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 11 TH OCTOBER,2017. SD/- (DIVA SINGH) JUDICIAL MEMBER POONAM COPY TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT 4. THE CIT(A) 5. THE DR ASSTT. REGISTRAR ITAT,CHANDIGARH.