Built Up, Pune V. Deputy Commissioner of Income-Tax, Circle -2, , Pune

ITA 644/PUN/2022

AI Insights

The case involves M/s. Built up, a builder and developer, who appealed against the order of the National Faceless Appeal Centre (NFAC) which had dismissed their appeal on the grounds of limitation without considering the merits. The primary issues in the appeal were the non-condonation of delay in filing the appeal and the confirmation of disallowance of a claim under section 80IB(10) of the Income Tax Act. The Tribunal found that the NFAC had not addressed the substantive issues due to the procedural dismissal and thus remanded the case for a detailed examination on merits.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 302280 (ITAT-PUNE)
• Duration Of Justice: 7 month(s) 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-04-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 22-03-2023
• Assessment Year: 2019-2020
• Appeal Filed On: 24-08-2022
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Principle of natural justice; Set aside

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, ‘A’ BENCH, PUNE BEFORE SHRI R.S. SYAL, VICE PRESIDENT AND SHRI PARTHA SARATHI CHAUDHURY, JUDICIAL MEMBER ITA No. 644/PUN/2022 : A.Y. 2019-20 M/s. Built up, Samada Apartment, Dr. Ketkar Marg, Near Ghodke Chowk, Pune-411 004 PAN: AAEFB 6432 Appellant Vs. The dy. C.I.T. Cir. 2, Pune. Respondent Applicant by : Dr. Vardhaman L. Jain Respondent by : Shri Keyur Patel – CIT DR Date of Hearing : 23-03-2023 Date of Pronouncement : 03-04-2023 ORDER PER SHRI PARTHA SARATHI CHAUDHURY, JUDICIAL MEMBER This appeal preferred by the assessee emanates from order of the National Faceless Appeal Centre (NFAC) Delhi, dated 17-07-2022 for A.Y.2019-20 as per the following grounds of appeal. 1. The ld. CIT(A) erred in law and on facts in not condoning the delay and as a sequel not admitting the appeal. 2. The ld. CIT(A) erred in law and on facts, in confirming the disallowance of Rs. 7,40,76,995/- being the claim u/s 80IB(10). 3. The appellant craves leave to add to or alter the grounds of appeal, if deemed necessary.” 2. In this case it was observed and held by the ld. CIT(A) as follows: “It is seen that in the present case, the intimation u/s 143( 1) was received by the appellant on 29-05-2020 and subsequently rectification application was filed on 06- 06-2020 which was rejected vide order dated 12-07-2020. Thereafter, another rectification application dated 19.04.2021 filed too, was also rejected vide order dated 10.05.2021. The appeal has been filed on 27-10-2021 which is also delayed by more than five months from the date of rectification order. The reason mentioned by the appellant for delay in filing the appeal is that the status of the case was informed to them by their CA only a couple of days before the filing of appeal which is not a cogent and convincing reason. The appellant, a builder and developer is assisted by qualified chartered accountants who simply ignored the statutory order issued by assessing officer and also various limitations given in the Act for the purpose of filing appeal. The job related to statutory compliances cannot be left like this and same is to be looked after or adequately managed by the partner of the firm who has been made responsible for compliances. The appellant is required to explain normally each 2 I.T.A. No. 644 of 2022 Built up, Pune. A.Y. 2019-20 day of the delay in filing of appeal. And the law only helps those who respect it. This shows callous attitude and gross negligence on the part of the appellant. The application for condonation is filed as a routine exercise with no seriousness behind it.” 3. It is evident from the above that this appeal was dismissed by the ld. CIT(A) in limine on the ground of limitation and the delay for filing the appeal before the ld. CIT(A) was not condoned. 4. We are of the considered view that given the facts and circumstances where the NFAC has dismissed the appeal on ground of limitation in limine, therefore, rights and liabilities of the parties herein are yet to be determined vis-à-vis the facts and law involved in this case. In the interest of justice, therefore, we set aside and remand the matter back to the file of the NFAC for adjudication on merits as per law while complying with the principles of natural justice. The grounds of appeal of the assessee are allowed for statistical purposes. 5. In the result, appeal of the assessee is allowed for statistical purposes. Order pronounced in the open court on this 3 rd day of April 2023. Sd/- sd/- (R.S. SYAL) (PARTHA SARATHI CHAUDHURY) VICE PRESIDENT JUDICIAL MEMBER Pune; Dated, the 3 rd day of April 2023. Ankam Copy of the Order forwarded to : 1. The Appellant. 2. The Respondent. 3. The NFAC Delhi 4. Pr. C.I.T. concerned 5. D.R.ITAT ‘A’ Bench 6. Guard File BY ORDER, Sr. Private Secretary ITAT, Pune. /// TRUE COPY /// 3 I.T.A. No. 644 of 2022 Built up, Pune. A.Y. 2019-20 Date 1 Draft dictated on 23-03-2023 Sr.PS 2 Draft placed before author 24-03-2023 Sr.PS 3 Draft proposed and placed before the second Member JM/AM 4 Draft discussed/approved by second Member AM/JM 5 Approved draft comes to the Sr. PS/PS Sr.PS/PS 6 Kept for pronouncement on 03-04-2023 Sr.PS/PS 7 Date of uploading of order 03-04-2023 Sr.PS/PS 8 File sent to Bench Clerk 03-04-2023 Sr.PS/PS 9 Date on which the file goes to the Head Clerk 10 Date on which file goes to the A.R 11 Date of dispatch of order