Pandyan Grama Bank, Virudhunagar V. ACIT Circle 1, Virudhunagar

ITA 688/CHNY/2018

• Counselvise Citation: [2018] 112 COUNSELVISE.COM (IT) 4701 (ITAT-CHENNAI)
• Duration Of Justice: 7 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-10-2018
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: C
• Assessment Year: 2010-2011
• Appeal Filed On: 26-02-2018
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Assessee Lawyers: P GURUSAMY ITP SHRI S SRIDHAR
• Keywords: Rectification of order; Right to appeal; Condonation of delay; TDS
• Section: 244A; 246A; 154

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH, CHENNAI , , $ BEFORE SHRI GEORGE MATHAN, JUDICIAL MEMBER AND SHRI S. JAYARAMAN, ACCOUNTANT MEMBER /. I.T.A. NOS. 685, 684, 687 & 688/CHNY/2018 & 2443, 2444 & 2445/CHNY/2016 / ASSESSMENT YEARS : 2007-08, 2008-09, 2009-10 & 2010 - 11 PANDYAN GRAMA BANK, ADMN. OFFICE, NO. 2-70-1, COLLECTROATE COMPLEX, VIRUDHUNAGAR, 626 002. [PAN: AAAAAP 0895P] VS. THE ASSISTANT COMMISSIONER OF INCOME TAX, KATCHERI ROAD, VIRUNDHUNAGAR, 626 001. ( / APPELLANT) ( %&' /RESPONDENT ) ASSESSEE BY : SHRI P. GURUSAMY, ITP SHRI S. SRIDHAR, ADVOCATE REVENUE BY : SHRI CLEMENT RAMESH KUMAR, ADDL. CIT 0 /DATE OF HEARING : 25.10.2018 0 /DATE OF PRONOUNCEMENT : 25.10.2018 / O R D E R PER BENCH : THE ASSESSEE FILED THESE APPEALS AGAINST THE ORDE RS OF THE COMMISSIONER OF INCOME TAX (APPEALS)-1, MADURAI IN ITA NOS. 154, 155, 156 & 153/16-17 DATED 23.01.2018 FOR ASSESSMENT YEA RS 2007-08, 2008-09, 2009-10 & 2010-11, RESPECTIVELY AND THE CONSOLIDATE D ORDERS OF THE COMMISSIONER OF INCOME TAX (APPEALS)-3, MADURAI IN ITA NOS. 125, 126 & :-2-: ITA NO. 684, 685, 687 & 68/CHNY/2018 & 2443, 2444 & 2445/CHNY/2016 127/13-14 DATED 31.05.2016 FOR ASSESSMENT YEARS 200 7-08, 2008-09 & 2009-10, RESPECTIVELY. 2. THE AR SUBMITTED THAT THE PANDYAN GRAMA BANK, FI LED NIL INCOME AFTER CLAIMING DEDUCTION U/S. 80P(2)(A)(I) FOR ASSE SSMENT YEARS 2007-08, 2008-09 & 2009-10. ON SCRUTINY, THE AO DENIED THE DEDUCTION CLAIMED U/S. 80P(2)(A)(I). DISSATISFIED WITH THOSE ORDERS, THE ASSESSEE FILED APPEALS BEFORE THE LD. CIT(A)- MADURAI, WHO TOO CONFIRMED T HE ORDERS OF THE AO. AGGRIEVED AGAINST THOSE ORDERS, THE ASSESSEE FILED AN APPEAL BEFORE THIS TRIBUNAL. THIS TRIBUNAL IN ITS ORDERS IN ITA NOS. 1088, 1091 & 1092/MDS/2012 DATED 23.08.2012 ALLOWED THE DEDUCTIO N U/S. 80P(2)(A)(I) FOR ASSESSMENT YEARS 2007-08, 2008-09 & 2009-10. T HE AO GAVE EFFECT TO THE ORDERS OF THE ITAT ON 13.05.2013, 14.03.2013 & 08.03.2013 FOR ASSESSMENT YEARS 2007-08, 2008-09 & 2009-10, RESPEC TIVELY. SINCE, THERE WERE MISTAKES IN THE QUANTIFICATION OF INTEREST U/S . 244A, GIVING CREDIT TO TDS IE., TO RECTIFY THE SHORTFALL IN CREDIT OF TDS IN THE COMPUTATION FORMED PART OF THE EFFECT GIVING ORDERS OF THE HONBLE ITA T, THE ASSESSEE FILED RECTIFICATION PETITIONS U/S. 154 DATED 12.07.2013 O N 29.07.2013 FOR ALL THESE ASSESSMENT YEARS. SINCE, THE ASSESSING OFFICER HAS NOT PASSED THE RECTIFICATION ORDERS, THE ASSESSEE FILED APPEALS BE FORE THE LD CIT(A)-3, MADURAI ON 17.02.2014 FOR ASSESSMENT YEARS 2007-08, 2008-09, 2009-10, RESPECTIVELY. THE LD. CIT(A) DISMISSED THE APPEALS BY A COMMON APPELLATE ORDERS IN ITA NOS. 125, 126 & 127/13-14 DATED 31.05 .2016 STATING THAT THE :-3-: ITA NO. 684, 685, 687 & 68/CHNY/2018 & 2443, 2444 & 2445/CHNY/2016 SECTION 246A PROVIDES THE LIST OF APPEALABLE ORDERS IN WHICH IT HAS NOT PROVIDED THAT THE APPEALS MAY BE FILED AFTER A PERI OD OF 6 MONTHS FROM THE DATE OF FILING OF PETITION U/S. 154, IF THE SAME HA S NOT BEEN DECIDED BY THE ASSESSING OFFICER. THE RIGHT OF APPEAL IS NOT AN A UTOMATIC RIGHT BUT IS CONFIRMED BY THE STATUE. IN THE ABSENCE OF PROVIDI NG APPEAL IN SECTION 246A, HE IS UNABLE TO ADMIT THESE APPEALS AND THEY ARE DISMISSED IN LIMINIE. 3. THEREAFTER, THE ASSESSEE FILED APPEALS ON 14.09. 2016 AGAINST THE ORDERS PASSED BY THE AO GIVING EFFECT TO THE ORDERS OF THE HONBLE ITAT. WITH CONDONATION PETITIONS FOR ASSESSMENT YEARS 200 7-08, 2008-09 & 2009- 10, RESPECTIVELY. THE LD. CIT(A)-1, DID NOT CONDON E THE DELAY IN FILING THE APPEALS, IE., DELAY OF 3 YEARS 66 DAYS FOR THE ASSE SSMENT YEAR 2007-08, DELAY OF 3 YEARS 154 DAYS FOR ASSESSMENT YEAR 2008- 09 AND A DELAY OF 3 YEARS 151 DAYS FOR ASSESSMENT YEAR 2009-10 . CONSI DERING THE ABOVE FACTS AND CIRCUMSTANCES, DATES AND EVENTS, THE AR PLEADED TO CONDONE THE DELAY IN FILING THE APPEALS FOR ASSESSMENT YEARS 2007-08, 2008-09 & 2009-10 AND RENDER JUSTICE. 4. WE HEARD THE RIVAL SUBMISSIONS. CONSIDERING THE ABOVE FACTS AND CIRCUMSTANCES, WE CONDONE THE ABOVE DELAY IN FILING THE ABOVE APPEALS IN THE INTERESTS OF JUSTICE. :-4-: ITA NO. 684, 685, 687 & 68/CHNY/2018 & 2443, 2444 & 2445/CHNY/2016 5. THE AR REITERATED THE ABOVE FACTS AND CIRCUMSTAN CES AND SUBMITTED THAT THE AO MAY BE DIRECTED TO VERIFY AND GRANT DUE CREDIT FOR THE TDS AND DUE INTEREST U/S. 244A ON THE ORDERS PASSED BY HIM GIVING EFFECT TO THIS TRIBUNAL ORDERS, SUPRA. 6. WE HEARD THE RIVAL SUBMISSIONS AND REMIT THE ISS UES TO THE LD. CIT(A) FOR GIVING DUE OPPORTUNITY TO THE ASSESSEE AND DECI DE THE MATTER ON MERITS. THE LD. CIT(A) IS AT FULL LIBERTY TO REMAND/SEEK AP PROPRIATE REPORTS FROM THE AO AND DECIDE THE ISSUES IN ACCORDANCE WITH LAW, AF TER AFFORDING ADEQUATE OPPORTUNITY TO THE ASSESSEE. HENCE, THE ASSESSEES APPEALS IN ITA NOS. 685,684 & 687/CHNY/2018 FOR ASSESSMENT YEARS 2007-0 8, 2008-09 & 2009- 10 ARE TREATED AS PARTLY ALLOWED FOR STATISTICAL PU RPOSES 7. IN RESPECT OF ASSESSMENT YEAR 2010-11, THE AR S UBMITTED THAT THE AO REJECTED THE ASSESSEES CLAIM OF DEDUCTION U/S. 80P(2)(A)(I) U/S. 143(3). AGGRIEVED AGAINST THAT ORDER, THE ASSESSEE FILED AN APPEAL BEFORE THE LD. CIT(A) AND THE LD. CIT(A) ALLOWED THE ASSESSEES AP PEAL. IN THE CONSEQUENTIAL ORDER PASSED BY THE AO DATED 13.04.20 15, RECEIVED BY THE ASSESSEE ON 08.05.2015, IT IS MENTIONED THAT RS. 12 ,04,75,740/- IS REFUNDABLE TO THE ASSESSEE. TILL DATE THE ASSESSEE HAS NOT RECEIVED THE AMOUNTS MENTIONED AS REFUNDABLE IN THAT ORDER. THE RE WAS NO MENTION ABOUT ADJUSTMENT OF THE REFUND AGAINST ANY TAX PAYM ENTS RAISED FOR ANY OF THE ASSESSMENT YEARS ALSO. THE ASSESSEE ALSO FILED A PETITION U/S. 154 :-5-: ITA NO. 684, 685, 687 & 68/CHNY/2018 & 2443, 2444 & 2445/CHNY/2016 SEEKING TO GRANT INTEREST U/S. 244A ON 01.06.2015 V IDE ACKNOWLEDGEMENT NO. 048010615000608 WHICH HAS NOT ACTED UPON EVEN A S ON TODAY. IN THE ABSENCE OF CONCRETE MATERIAL ON RECORD, THE ASSESSE E WAS UNABLE TO FILE THE APPEAL WITHIN THE TIME. COUPLED WITH THEM AND THE GENUINE HARDSHIP FACED BY THE ASSESSEE WITH REFERENCE TO THE EARLIER YEARS , THE ASSESSEE SOUGHT CONDONATION OF DELAY OF 1 YEAR 101 DAYS FOR FILING THE APPEAL AGAINST THE CONSEQUENTIAL ORDER PASSED BY AO FOR ASSESSMENT YEA R 2010-11. HOWEVER, THE LD. CIT(A) DISMISSED THE APPEAL WITHOUT CONDONI NG THE DELAY. 8. WE HEARD THE RIVAL SUBMISSIONS. ON THE ABOVE FA CTS AND CIRCUMSTANCES AND IN THE INTERESTS OF JUSTICE, WE C ONDONE THE DELAY. 9. THE AR REITERATED THE ABOVE FACTS AND CIRCUMSTAN CES AND SUBMITTED THAT THE AO MAY BE DIRECTED TO VERIFY AND GRANT DUE CREDIT FOR THE TDS AND INTEREST U/S. 244A ON THE CONSEQUENTIAL ORDER PASSE D BY THE AO. 10. WE HEARD THE RIVAL SUBMISSIONS AND REMIT THE IS SUES TO THE LD. CIT(A) FOR GIVING DUE OPPORTUNITY TO THE ASSESSEE AND DECI DE THE MATTER ON MERITS. THE LD. CIT(A) IS AT FULL LIBERTY TO REMAND/SEEK AP PROPRIATE REPORT FROM THE AO AND AFTER AFFORDING ADEQUATE OPPORTUNITY TO THE ASSESSEE DECIDE THE ISSUES IN ACCORDANCE WITH LAW. HENCE, THE ASSESSEE S APPEAL IN ITA NO. 688/CHNY/2018 FOR ASSESSMENT YEAR 2010-11 IS TREATE D AS PARTLY ALLOWED FOR STATISTICAL PURPOSES. :-6-: ITA NO. 684, 685, 687 & 68/CHNY/2018 & 2443, 2444 & 2445/CHNY/2016 11. WITH REGARD TO THE APPEALS IN ITA NOS. 2443, 24 44 & 2445/CHNY/2016 FOR ASSESSMENT YEARS 2007-08, 2008-09 & 2009-10, SI NCE, THE APPEALS IN ITA NOS. 685, 684 & 687/CHNY/2018 ARE TREATED AS PA RTLY ALLOWED FOR STATISTICAL PURPOSES, THESE APPEALS ARE TREATED AS INFRUCTUOUS AND HENCE THEY ARE DISMISSED. 12. IN THE RESULT, THE ASSESSEES APPEAL IN ITA NOS . 685, 684,687 & 688/CHNY/2018 FOR ASSESSMENT YEARS 2007-08, 2008-09 , 2009-10 & 2010-11 ARE TREATED AS PARTLY ALLOWED FOR STATISTICAL PURPO SES, AND THE APPEALS IN ITA NOS 2443, 2444 & 2445/CHNY/2016 FOR ASSESSMENT YEAR S 2007-08, 2008-09 & 2009-10 ARE TREATED AS INFRUCTUOUS AND HENCE THEY ARE DISMISSED. ORDERS PRONOUNCED IN THE OPEN COURT ON 25 TH OCTOBER, 2018 AT CHENNAI. SD/- ( ) (GEORGE MATHAN) ! /JUDICIAL MEMBER SD/- ( ) (S. JAYARAMAN) ! /ACCOUNTANT MEMBER /CHENNAI, 5 /DATED: 25 TH OCTOBER, 2018 JPV 0%7898 /COPY TO: 1. ' / APPELLANT 2. %&' /RESPONDENT 3. ; ) ( /CIT(A) 4. ; /CIT 5. 8% /DR 6. /GF