Chikoti Srihari, Hyderabad V. ITO,Ward - 3, Karimnagar

ITA 670/HYD/2014

• Counselvise Citation: 67022514 RSA 2014
• Duration Of Justice: 4 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-08-2014
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2008-2009
• Appeal Filed On: 11-04-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: S RAMA RAO
• Keywords: Unexplained cash credit; Gift; Opportunity of being heard; Condonation of delay
• Section: 68

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH B, HYDERABAD BEFORE SHRI B. RAMAKOTAIAH, ACCOUNTANT MEMBER AND SHRI SAKTIJIT DEY, JUDICIAL MEMBER ITA NO. 670/HYD/2014 ASSESSMENT YEAR 2008-09 SRI CH I KOTI SRIHARI VEMULAWADA, KARIMNAGAR PAN: AAXPC8130G VS. THE INCOME TAX OFFICER WARD-3 KARIMNAGAR APPELLANT RESPONDENT APPELLANT BY: SRI S. RAMA RAO RESPONDENT BY: SRI SOLGY JOSE T. KOTTARAM DATE OF HEARING: 21 .0 8 .2014 DATE OF PRONOUNCEMENT: 28 .08.2014 ORDER PER SAKTIJIT DEY, J.M.: THIS APPEAL OF THE ASSESSEE IS DIRECTED AGAINST TH E ORDER DATED 10.2.2014 PASSED BY CIT(A)-III, HYDERAB AD DISMISSING ASSESSEE'S APPEAL PERTAINING TO A.Y. 200 8-09 IN LIMINE WITHOUT CONDONING DELAY IN FILING THE APPEAL. 2. BRIEFLY THE FACTS ARE, ASSESSEE IS AN INDIVIDUAL DERIVING INCOME FROM BUSINESS AND HOUSE PROPERTY. FOR THE ASSESSMENT YEAR UNDER DISPUTE ASSESSEE FILED RE TURN OF INCOME ON 18.9.2008 DECLARING INCOME OF RS. 1,51 ,770. DURING THE SCRUTINY ASSESSMENT PROCEEDINGS, THE ASSESSING OFFICER WHILE EXAMINING THE BALANCE SHEET FOUND A CREDIT OF RS. 5,00,000 INTRODUCED DURING TH E YEAR. WHEN ASKED TO EXPLAIN BY THE ASSESSING OFFICER, THE ASSESSEE STATED THAT INVESTMENT WAS MADE BY THE HUF OUT OF THE GIFTS RECEIVED FROM HIS NRI SON ON VARIOUS D ATES AS WELL AS FROM WITHDRAWALS MADE. IN SUPPORT OF SUCH EXPLANATION THE ASSESSEE ALSO FURNISHED BANK ACCOUN T 2 ITA NO. 670/HYD/2014 SRI CHIKOTI SRIHARI ======================= COPY AND ACCOUNT COPY OF M/S. HARI INDUSTRIES. THE ASSESSING OFFICER, HOWEVER, REJECTING THE EXPLANATI ON OF THE ASSESSEE TREATED THE CREDIT OF RS. 5 LAKHS AS UNEXPLAINED CASH CREDIT U/S. 68 OF THE ACT AND ADDE D IT TO THE INCOME OF THE ASSESSEE. THE ASSESSING OFFICER ALSO MADE A COUPLE OF ADDITIONS BY DISALLOWING CERTAIN EXPENDITURE CLAIMED. AS A RESULT, TOTAL INCOME WAS DETERMINED AT RS. 7,08,970. 3. BEING AGGRIEVED OF THE ASSESSMENT ORDER SO PASSED, THE ASSESSEE PREFERRED AN APPEAL BEFORE THE CIT(A). HOWEVER, THE APPEAL WAS FILED WITH A DELAY OF 136 D AYS. BEFORE THE CIT(A), ALONG WITH THE APPEAL PAPERS THE ASSESSEE FILED A PETITION FOR CONDONATION OF DELAY DULY SUPPORTED BY AN AFFIDAVIT EXPLAINING THEREIN THAT T HE APPEAL PAPERS HANDED OVER TO THE CHARTERED ACCOUNTA NT WERE LOST/MISPLACED, HENCE THE APPEAL COULD NOT BE FILED IN TIME. THE CIT(A) ON EXAMINING THE EXPLANATION O F THE ASSESSEE WITH RESPECT TO THE CAUSE OF DELAY, HOWEVE R, DID NOT ACCEPT THE SAME AND BY RELYING UPON SOME JUDICI AL PRECEDENTS HELD THAT ASSESSEE HAVING FAILED TO PROP ERLY EXPLAIN EACH DAY'S DELAY, HIS PRAYER FOR CONDONATIO N OF DELAY CANNOT BE ACCEPTED. ACCORDINGLY, HE DISMISSE D THE APPEAL IN LIMINE . OBSERVATION OF THE CIT(A) IN THIS REGARD IS EXTRACTED HEREUNDER: '5.3 IN THE PRESENT CASE, THE LD. AR HAS STATED THAT THE ASSESSEE RESIDES IN KARIMNAGAR DISTRICT AND HAS A LOCAL CHARTERED ACCOUNTANT THERE. THE AR FROM HYDERABAD WAS BUSY IN EXAMS AND THEN HE LOST THE FILES AND THERE WAS A LOT OF CONFUSION. THEREFORE, THE DELAY SHOULD BE CONDONED. FIRST OF ALL, THIS IS A VERY GENERAL AND GENERIC EXPLANATION. THE APPELLANT IS SUPPOSED TO EXPLAIN THE DELAY 3 ITA NO. 670/HYD/2014 SRI CHIKOTI SRIHARI ======================= WITH RESPECT TO EACH AND EVERY DAY. THIS HAS NOT BEEN DONE. SECONDLY, THE ASSESSEE HAD THE SERVICES OF TWO CHARTERED ACCOUNTANTS. IT IS SURPRISING THAT NONE OF THEM BOTHERED TO FILE THE APPEAL IN TIME. THE LAW CANNOT BE HELD HOSTAGE TO CONFUSION CREATED BY PROFESSIONALS WHO CANNOT MANAGE THEIR FILES. IT ALSO DISPLAYS A LAX ATTITUDE TOWARDS THE LAW. 5.4 IN VIEW OF THE ABOVE FACTS, I DO NOT FIND THE EXPLANATION OF THE APPELLANT REGARDING THE LATE FILING OF THE APPEAL TO BE SATISFACTORY OR TO BE BASED ON ANY VERIFIABLE AND PROPER FACTS. THEREFORE, I CANNOT CONDONE THE DELAY IN FILING OF THE APPEAL. 6. FOR THE STATISTICAL PURPOSES, THE APPEAL IS DISMISSED IN LIMINE.' 4. WE HAVE CONSIDERED THE SUBMISSIONS OF THE PARTIES AND PERUSED THE MATERIALS ON RECORD. THE SOLE GRIE VANCE OF THE ASSESSEE IS THAT AS THERE IS A REASONABLE CA USE FOR DELAY IN FILING THE APPEAL, THE CIT(A) SHOULD NOT H AVE DISMISSED ASSESSEE'S APPEAL WITHOUT CONDONING THE D ELAY. AFTER EXAMINING THE CAUSE OF DELAY EXPLAINED BY THE ASSESSEE AS CONTAINED IN THE AFFIDAVIT FILED BEFORE THE CIT(A), WE ARE OF THE VIEW THAT THERE WAS A REASONA BLE CAUSE FOR NOT FILING THE APPEAL IN TIME. IN THE AF FIDAVIT FILED BY THE CHARTERED ACCOUNTANT, A CATEGORICAL AV ERMENT HAS BEEN MADE TO THE EFFECT THAT THE APPEAL PAPERS WERE LOST BY HIM WHICH RESULTED IN DELAY IN FILING THE A PPEAL. WE DO NOT FIND ANY REASON TO DOUBT OR DISBELIEVE TH E AVERMENTS MADE BY A PROFESSIONAL IN AN AFFIDAVIT. FURTHER, WE ARE OF THE VIEW, ASSESSEE SHOULD NOT BE MADE TO SUFFER FOR THE MISTAKE OR LAPSES OF THE COUNSEL. WE, THEREFORE, SET ASIDE THE ORDER OF THE CIT(A) AND RE STORE THE MATTER BACK TO HIS FILE WITH A DIRECTION TO DECIDE THE APPEAL ON MERIT AFTER CONDONING THE DELAY. THE CIT (A) 4 ITA NO. 670/HYD/2014 SRI CHIKOTI SRIHARI ======================= MUST AFFORD A REASONABLE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. 5. IN THE RESULT, ASSESSEE'S APPEAL IS ALLOWED FOR STATISTICAL PURPOSES. PRONOUNCED IN THE OPEN COURT ON 28 TH AUGUST, 2014 SD/ - (B. RAMAKOTAIAH) ACCOUNTANT MEMBER SD/ - (SAKTIJIT DEY) JUDICIAL MEMBER HYDERABAD, DATED THE 28 TH AUGUST, 2014 TPRAO COPY TO: 1. SRI CH I KOTI SRIHARI, C/O. SRI S. RAMA RAO, ADVOCATE, FLAT NO. 102, SHRIYA'S ELEGANCE, H. NO. 3-6-643, ST . NO. 9, HIMAYATNAGAR, HYDERABAD-500 029. 2. THE INCOME TAX OFFICER , WARD - 3, KARIMNAGAR . 3 . THE CIT(A) - III , HYDERABAD . 4 . THE CIT - II, HYDERABAD. 5 . THE DR, B - BENCH, ITAT, HYDERABAD.