Shree Rudra Shakti Industries Pvt Ltd., Hyderabad, Hyderabad V. DCIT, Circle-16(2), Hyd, Hyderabad

ITA 670/HYD/2016

• Counselvise Citation: [2016] 131 COUNSELVISE.COM (IT) 6204 (ITAT-HYDERABAD)
• Duration Of Justice: 4 month(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-09-2016
• Appeal Filed By: Assessee
• Bench Allotted: A
• Assessment Year: 2005-2006
• Appeal Filed On: 10-05-2016
• Court: TRIBUNAL
• Department Lawyers: K E SUNIL BABU
• Assessee Lawyers: A V RAGHURAM
• Keywords: Principle of natural justice; Condonation of delay
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCHES A (SMC), HYDERABAD BEFORE SHRI B. RAMAKOTAIAH, ACCOUNTANT MEMBER I.T.A. NO. 670/HYD/2016 ASSESSMENT YEAR: 2005-06 M/S. SHREE RUDRA SHAKTI INDUSTRIES PVT. LTD., (EARLIER KNOWN AS M/S. MAHENDRA INDUSTRIES PVT. LTD.,) HYDERABAD [PAN: AABCM3737C] VS DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE-16(2), HYDERABAD (APPELLANT) (RESPONDENT) FOR ASSESSEE : SHRI A.V. RAGHU RAM, AR FOR REVENUE : SHRI K.E. SUNIL BABU, DR DATE OF HEARING : 06-09-2016 DATE OF PRONOUNCEMENT : 14-09-2016 O R D E R THIS IS AN APPEAL BY ASSESSEE AGAINST THE ORDER OF TH E COMMISSIONER OF INCOME TAX (APPEALS)-4, HYDERABAD D ATED 10-02-2016. THERE IS A CHANGE OF ASSESSEES NAME F ROM MAHENDRA INDUSTRIES PVT. LTD., TO SHREE RUDRA SHAKTI INDUSTRIES PV T. LTD., VIDE FRESH CERTIFICATE OF INCORPORATION, CONSEQUENT UPO N THE CHANGE OF NAME, GRANTED BY THE REGISTRAR OF COMPANIES ON 3 RD DAY OF APRIL, 2014. HENCE, THE APPEAL IS CONSIDERED IN THE NAME OF SHREE RUDRA SHAKTI INDUSTRIES PVT. LTD. 2. ASSESSEE HAS RAISED THE FOLLOWING GROUNDS IN ITS APPEAL: 1. THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS )-4, ERRED IN DISMISSING THE APPEAL IN LIMINI WITHOUT CONDONING T HE DELAY OF 130 DAYS IN FILING THE APPEAL. I.T.A. NO. 670/HYD/2016 :- 2 -: 2. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CAS E, THE LD. COMMISSIONER OF INCOME TAX APPEALS ERRED IN HOLDING THAT THERE I S NO REPRESENTATION ON 05.08.2015 ON WHICH DATE, THE APPELLANT HAS DELIVER ED TO THE OFFICE OF COMMISSIONER (APPEALS) TWO AFFIDAVITS ONE OF THE DI RECTOR AND ANOTHER OF THE EMPLOYEE (SUPPORTING AFFIDAVIT) SEEKING CONDONA TION OF DELAY IN FILING THE APPEAL ALONG WITH WRITTEN SUBMISSION AS THE LD. COMMISSIONER OF INCOME TAX (APPEALS) WAS SAID TO BE OUT ON OFFICIAL MEETING BY HER OFFICE. 3. THE LD. COMMISSIONER OF INCOME TAX (APPEALS) FUR THER ERRED IN HOLDING THAT HEARINGS WERE CONDUCTED SUBSEQUENTLY ON 27.01. 2016, 29.01.2016 AND 09.02.2016 IN AS MUCH NO NOTICE WAS SERVED ON T HE APPELLANT WITH RESPECT TO THE ABOVE NOTICES. 4. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CAS E, THE ORDER OF THE LD. COMMISSIONER OF INCOME TAX (APPEALS) IS PASSED IN G ROSS VIOLATION OF PRINCIPLES OF NATURAL JUSTICE. 3. BRIEFLY STATED, AN ASSESSMENT U/S. 143(3) OF THE INC OME TAX ACT [ACT] WAS COMPLETED ON ASSESSEE VIDE ORDER DT. 24- 12-2007, MAKING CERTAIN DISALLOWANCES U/S. 40(A)(IA) OF THE A CT. ASSESSEE PREFERRED AN APPEAL AS EARLY AS ON 16-06-2008. LD. CIT(A) NOTICED THAT THE APPEAL WAS FILED WITH A DELAY OF 130 (ONE HUND RED AND THIRTY) DAYS AND SINCE THERE IS NO CONDONATION APPLI CATION ON RECORD, THE APPEAL WAS DISMISSED. HOWEVER, VIDE PAR A 5, LD. CIT(A) ALSO RECORDS THAT VARIOUS NOTICES U/S. 250 WERE ISSUE D ON 20-07- 2015 AND 14-01-2016 FIXING THE APPEALS FOR HEARING O N 05-08-2015 AND 27-01-2016 RESPECTIVELY. SINCE THERE IS NO RESPO NSE TO THE NOTICES NOR ANY PETITION FOR CONDONATION OF DELAY, LD . CIT(A) DISMISSED THE APPEAL BY NOT CONDONING THE DELAY. 3.1. IT WAS SUBMITTED THAT THERE WAS CHANGE IN THE NAME O F ASSESSEE, HENCE THE NOTICES WERE NOT RECEIVED BY ASSE SSEE AND FURTHER, ASSESSEE DID FILE AFFIDAVITS FOR CONDONATION OF DELAY BEFORE I.T.A. NO. 670/HYD/2016 :- 3 -: THE LD. CIT(A) ON 05-08-2015 WHICH WAS NOT CONSIDERED BY THE LD. CIT(A). 4. CONSIDERING THE RIVAL CONTENTIONS AND PERUSING THE DOCUMENTS ON RECORD, I AM OF THE OPINION THAT DUE OPPO RTUNITY TO ASSESSEE WAS NOT GIVEN BY THE LD. CIT(A). IN FACT THE CHANGE OF NAME IS NOT THERE ON THE RECORDS OF CIT(A) AS WELL A S THE APPEAL WAS FILED WAY BACK IN 16-06-2008. CONSIDERING THE F ACTS ON RECORD, I AM OF THE OPINION THAT ANOTHER OPPORTUNITY TO ASSESSEE CAN BE GIVEN FOR INCORPORATING THE NAME CHANGE AND S ERVING PROPER NOTICES. LD. CIT(A) IS ALSO DIRECTED TO TAKE ON REC ORD THE AFFIDAVITS FILED ON 05-08-2015 ALONG WITH PRAYER FOR CONDONATIO N AND CONSIDER THE ISSUE ON ITS MERITS. THEREFORE, I SET A SIDE THE ORDER OF CIT(A) AND RESTORE THE APPEAL TO THE FILE OF THE LD. CI T(A) TO CONSIDER IT AFRESH, AFTER GIVING DUE OPPORTUNITY TO A SSESSEE. 5. IN THE RESULT, APPEAL OF ASSESSEE IS ALLOWED FOR S TATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 14 TH SEPTEMBER, 2016 SD/- (B. RAMAKOTAIAH) ACCOUNTANT MEMBER HYDERABAD, DATED 14 TH SEPTEMBER, 2016 TNMM I.T.A. NO. 670/HYD/2016 :- 4 -: COPY TO : 1. M/S. SHREE RUDRA SHAKTI INDUSTRIES PVT. LTD., (EARLIER KNOWN AS M/S. MAHENDRA INDUSTRIES PVT. LTD.,) C/O. A.V. RAGHU RAM, P. VINOD & M. NEELIMA DEVI, ADVOCATES, 6 10, BABUKHAN ESTATE, BASHEERBAGH, HYDERABAD. 2. THE DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE-16 (2), HYDERABAD. 3. COMMISSIONER OF INCOME TAX(APPEALS)-4, HYDERABAD 4. PR. COMMISSIONER OF INCOME TAX-4, HYDERABAD. 5. D.R. ITAT, HYDERABAD. 6. GUARD FILE.