Crystal Crop Protection Limited, Delhi V. DCIT Circle 4(2)/6(2), Delhi

ITA 626/DEL/2022

AI Insights

The case involves Crystal Crop Protection Limited appealing against the order of the Commissioner of Income Tax (Appeals)-II, New Delhi, which arose from the assessment order passed by the Assessing Officer under Section 143(3) of the Income Tax Act, 1961 for the Assessment Year 2014-15. The appeal was filed significantly late, approximately four years after the initial appellate order. The tribunal confronted the assessee regarding the delay during the hearing, but no satisfactory justification was provided. The assessee also attempted to introduce additional grounds related to bonus shares and Education Cess, which were not part of the original assessment or earlier appeals. The tribunal found these additional claims to be without merit and not justifiable at this late stage.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 121542 (ITAT-DELHI)
• Duration Of Justice: 1 year(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-05-2023
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 07-05-2023
• Assessment Year: 2014-2015
• Appeal Filed On: 10-04-2022
• Other Referred Cases: DCIT vs. M/s. Jindal Worldwide Limited (ITA 1843/Ahd/2016)
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Assessee Lawyers: S.S. NAGAR
• Section: 37; 143(3); 43

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “B” DELHI BEFORE SHRI CHANDRA MOHAN GARG, JUDICIAL MEMBER & SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER I.T.A. No.626/DEL/2022 Assessment Year 2014-15 Crystal Crop Protection Limited B-95, Wazirpur Industrial Area New Delhi Vs. Deputy Commissioner of Income Tax Circle-4(2)/6(2) New Delhi TAN/PAN: AABCJ3574E (Appellant) (Respondent) Appellant by: Shri S.S. Nagar, CA Shri Gaurav Sachdeva, CA. Respondent by: Shri Sanjay Kumar Yadav, Sr.DR Date of hearing: 08 05 2023 Date of pronouncement: 08 05 2023 O R D E R PER PRADIP KUMAR KEDIA, A.M.: T he capt ione d a ppeal has bee n file d by t he assess ee a gainst the order of th e ld. Com mi ssioner of Income Ta x (A ppe als )- II, N ew D elhi ( ‘C IT (A )’ i n s hor t) da te d 19. 03. 2018 a rising fr om the assess me nt orde r dat ed 28. 12. 20 16 pass ed by th e Assessing O fficer (A O) unde r Sect ion 143(3) of t he Inc ome T ax A ct, 19 61 (t he Act ) co ncerning AY 2014-1 5. 2. T he grou nds of appea l ra ised b y the assesse e read as unde r: “ 1 . 0 Th a t o n t h e f a c t s a n d c i r c u m s t a n c e s o f t he c ase , t he C I T ( A ) ha s pa s s e d t he o r d e r a s p e r t he p r ov i s i o n o f th e A ct a n d h e n c e t he ap pe a l f i l e d b y t he a pp e l l an t i s n ot m a i n t a i n ab l e . 2. 0 A d d i t i on a l G r o u n d N o . 1 O n t h e f a c ts a nd c ir c um s t a n c e s of th e c a s e , t he e x pe n d it u r e in c u r r e d by t h e r e s po n de n t i n r e l a ti o n t o i s s u e of B o n u s S ha r e s I.T.A. No.626/Del/2022 2 s ho u l d be al l o w e d u / s 3 7 o f t h e A c t i n c o m p ut i n g t ax l ia b i li t y un de r t he p r o v i s i o n of t h e i nc o m e t a x A c t . 3. 0 A d d i t i on a l G r o u n d N o . 2 O n t h e f a c t s a n d c i r c u m s t a nc e s o f t h e c a s e , t he r e sp on d e n t w i s h e s to l o d ge c l a i m f o r d e du c t i on o f E du c at i o n C e s s o n in c om e t ax in c om p u t in g t ax l i a bi l i t y un d e r t he p r o v is i o n of t h e i nc o m e t a x A c t . 4. 0 Th a t i n v i e w of t h e j ud g m e nt o f H o n 'b le A h m e d aba d I T A T i n th e c as e o f D C I T v s . M / s . J i nd a l W o r l dw i de Li m i t e d (I TA 18 43 / A h d / 2 0 1 6 ) a n d ot h e r j u d i c ia l p r o n o u nc e m e n t s , the r e s p on de n t i s e n ti t l e d t o r ai s e t he ab o v e ad d i ti o n al g r o u n d s of ap pe a l b e f o r e I T A T, s i nc e I TA T h a s j ur is di c t i o n t o c on s i d e r n e w an d/ o r a d d i t i o n a l c l a i m s / d e d uc t i o n s s u b s e q ue n t l y wh i c h w a s n ot c la i m e d i n r e t u r n of i n c om e &/ o r b e f or e t h e l d. A O &/ or b e f o r e t he H o n 'b l e C I T ( A ). ” 3. When the mat ter w as calle d f or he ar ing, i t w as inte r al i a obs erve d that t he first appe llat e o rde r w as se rved on the asse ssee on 19. 0 3. 2018. It is als o seen t ha t t he assessee h as fi led capt ione d appea l on 11. 04.2 022. T hus, there is a dela y of a bout four yea rs in fi ling t he appeal. N o justi fi cati on has been gi ven for such w oef ul l y bel ate d filing of a ppe al. T he ma tter w as confront ed t o the asses see in t he cours e of hear ing. N o justi fia ble reasons could be p laced be fore the T ri bunal to enable it to condone the inord inate del ay. N eedl ess to sa y, a li ti gant i s e xp ec ted t o per for m his dut ies d il igentl y and wi t h c ommi tment. Co ndonatio n of de la y is an exception a nd shoul d not us ed as ant ici pated bene fit. The assessee cannot e scape the bur den of proof for such pr ol onge d dela y. The ass essee has f iled app licati on for c ondonati on of dela y but howeve r no valid re ason w ha tsoever co ul d be e nvis aged fro m suc h app li cat i on exce pt ca tas troph ic sit ua tion owi ng t o out brea k of C ovi d-19. Alt hou gh, a re ference w as made t o the j udgment re ndered b y th e Hon’b le Su pre me Co urt in M isc. A pplicat ion N o. 21 of 2022 in recogniza nce f or ext ensi on of l i mita t io n but how e ver th e asses see w as alr ead y c ons ide rabl y la te i n fil in g the I.T.A. No.626/Del/2022 3 appea l beyond li mitat ion pe ri od of 60 da ys ava ilable. E ven aft er exclus i on of l i mi t ati on pe ri od extended by the H on’ble Supreme Cour t ow i ng to dis rup ti on caus ed b y C ovi d-19, the del ay in f il ing the a ppe al is i n t he league of e xt ra o rdi na ry and wit hout a ny justi fia bl e reas on show n. T he as sess ee is ordinarily expect ed to explain e ve r yda y dela y and doe s n ot have inde feasi ble right to cla im condonati on. N on- des cri pt and c ryp ti c reas on s cannot be appreci ated w hil e adopti ng a li be ra l appr oach i n t he matt e r. The assessee ca nnot esca pe t he bu rde n of proof to s up port the pur ported cause f or de la y. T here fo re, i t is dif fi cult for u s t o endorse a flippant affidavit of sel f-s erving na tu re in j usti fi cat i on of lac ka daisic al att it ud e of t he Assess ee. Therefo re, in t he abs ence of an y me ri t in th e peti tion for con dona tion of dela y, w e dec line to e nt er ta in the p ra yer of t he ass esse e. Cou pled w it h th is, we also obs erve t ha t t he a ssessee ha s raised grieva nc es only b y w a y o f addi ti onal grounds seeking to c la i m e xpe ndi tu re i n relat i on to issu e of bonus s ha res. T he clai m is bei ng ma de for th e first ti me be fore the T rib unal b y w a y o f additi onal gr ound at t his bel ate d sta ge w i th out re levant facts on recor d. N o jus ti fiable r eason is avail able to e nter tain th e addi tional gro und at this bel ate d stage eit he r. 4. N oti ceabl y, as sessee hi ms elf a dmits as per Ground No.1 of the appea l t hat it i s no t agg rieved b y the orde r o f t he CIT (A) but seeks to rake up e nt irel y the fres h is sue unc onnected to the o rder of t he C IT(A ) by w a y of A dditional Grounds. We see n o reas on t o ente rta in suc h grounds at this bela ted stage in a bela ted a ppea l. Simila rl y, ot he r groun d rai sed b y w ay of add it i onal grou nds tow ard s c lai m of E ducati on Cess is als o devoi d of any merit as dul y a dmi tted on b ehal f of t he ass ess ee. I.T.A. No.626/Del/2022 4 5. In su mmat ion, w e dec line to e nter tain appea l f iled b eyo nd the li mi tati on pe riod p rovi de d in S ec tion 253(3) of the A ct i n the facts an d ci rc ums tances subs is ti ng in the prese nt case. 6. In the res ul t, the appeal o f the as sessee i s dismi ssed in lim i ne. Order was pronounced in the open Court on 08/05/2023 Sd/- Sd/- [CHANDRA MOHAN GARG] [PRADIP KUMAR KEDIA] JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: /05/2023 prabhat