Sonali Castings Pvt.Ltd., Hyd, Hyderabad V. DCIT, Circle-3(2), Hyderabad, Hyderabad

ITA 690/HYD/2016

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 1411 (ITAT-HYDERABAD)
• Duration Of Justice: 2 year(s) 11 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-04-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB-B
• Next Hearing Date: 01-05-2019
• Assessment Year: 2008-2009
• Appeal Filed On: 13-05-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: N SWAPNA
• Assessee Lawyers: M V ANIL KUMAR
• Keywords: Business income; Reasonable cause; Condonation of delay; Capital Gains
• Section: 80HHC; 143(1); 148

Judgement Text

THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH B, HYDERABAD BEFORE SMT P. MADHAVI DEVI, JUDICIAL MEMBER AND SHRI B. RAMAKOTAIAH, ACCOUNTANT MEMBER ITA NO.689/HYD/2016 ASSESSMENT YEAR: 2001-02 SONALI CASTINGS PVT LTD., HYDERABAD. PAN AACCS8257J VS. DY. CIT, CIRCLE 3(2), HYDERBAD. (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI M.V. ANIL KUMAR REVENUE BY : SMT. N. SWAPNA DATE OF HEARING : 20-04-2018 DATE OF PRONOUNCEMENT : 25-04-2018 ORDER PER P. MADHAVI DEVI, J.M.: THIS IS ASSESSEES APPEAL FOR THE A.Y 2001-02 AGAINST THE ORDER OF THE CIT(A)-10, HYDERABAD DATED 08.01.2016. 2. BRIEF FACTS OF THE CASE ARE THAT, THE ASSESSEE COMPANY, ENGAGED IN MANUFACTURE OF C.I CASTINGS, FILED ITS RETURN FOR THE A.Y 2001-02 ON 25.10.2008 DECLARING A TOTAL INCOME OF RS. 4,97,230/- CONSISTING OF INCOME FROM LONG TERM CAPITAL GAINS OF RS. 3,85,510/-, AND BUSINESS INCOME OF RS. 1,11,720. THE RETURN WAS INITIALLY PROCESSED U/S 143(1) OF THE IT ACT. SUBSEQUENTLY, IT WAS NOTICED THAT IN THE 2 ITA NO. 689/HYD/2016. SONALI CASTINGS PVT LDT., HYDERABAD.. COMPUTATION STATEMENT, THE ASSESSEE CLAIMED DEDUCTION U/S 80HHC OF THE IT ACT AND IN THE ANNEXURES IN FORM NO. 10CAC, COMPUTATION OF THE ADJUSTED PROFIT OF THE BUSINESS WAS A NEGATIVE FIGURE BUT FOR CALCULATING THE DEDUCTION U/S 80HHC OF THE IT ACT, THE PROFIT IS TAKEN AT A POSITIVE FIGURE RESULTING IN EXCESS CLAIM OF DEDUCTION U/S 80HHC OF THE IT ACT. OBSERVING THAT THE INCOME CHARGEABLE TO TAX HAS ESCAPED ASSESSMENT, THE ASSESSMENT WAS REOPENED VIDE ISSUANCE OF NOTICE U/S 148 OF THE IT ACT AND THEREAFTER, AFTER HEARING THE ASSESSEE, THE INCOME WAS ASSESSED TO TAX AFTER REDUCING THE CLAIM OF DEDUCTION U/S 80HHC OF THE IT ACT. AGGRIEVED, THE ASSESSEE PREFERRED AN APPEAL BEFORE THE CIT(A) BELATEDLY AND FILED AN APPLICATION FOR CONDONATION OF DELAY OF 30 DAYS. THE CIT(A) DID NOT CONDONE THE DELAY ON THE GROUND THAT THE ASSESSEE HAS NOT SHOWN REASONABLE CAUSE FOR THE DELAY. AGGRIEVED, THE ASSESSEE IS IN SECOND APPEAL BEFORE US. 3. THE LD. COUNSEL FOR THE ASSESSEE, REITERATED THE SUBMISSIONS MADE BEFORE THE CIT(A) WITH REGARD TO THE DELAY AND SUBMITTED THAT THE ASSESSEES REPRESENTATIVE HAS RECEIVED THE ORDER AND THEREAFTER, 3 ITA NO. 689/HYD/2016. SONALI CASTINGS PVT LDT., HYDERABAD.. THERE WAS A DELAY ON HIS PART IN HANDING OVER THE ORDER COPY TO THE COUNSEL AND PREPARATION AND FILING OF THE APPEAL HENCE, THERE OCCURRED A DELAY OF 31 DAYS. 4. WE FIND THAT THAT THE REASONS GIVEN BY THE ASSESSEE FOR THE DELAY IN FILING OF THE APPEAL BEFORE THE CIT(A) ARE REASONABLE AND HENCE DELAY IS TO BE CONDONED. WE THEREFORE, CONDONE THE DELAY OF 30 DAYS IN FILING OF THE APPEAL BEFORE THE CIT(A) AND REMIT THE ISSUE TO THE FILE OF THE CIT(A), FOR CONSIDERATION OF THE APPEAL ON MERITS. 5. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED. PRONOUNCED IN THE OPEN COURT ON 25 TH APRIL, 2018. SD/- SD/- (B. RAMAKOTAIAH) (P. MADHAVI DEVI) ACCOUNTANT MEMBER JUDICIAL MEMBER HYDERABAD, DATED: 25 TH APRIL, 2018 KRK 1 2 SONALI CASTINGS PVT LTD., C/O M. ANANDAM & CO., CAS, 7A, SURYA TOWERS, S.D. ROAD, SECUNDERABAD. DY. CIT, CIRCLE- 3(2), HYDERABAD. 3 CIT(A)-10, HYDERABAD. 4 5 6 THE CHIEF COMMISSIONER OF INCOME TAX, (IT) (SZ) HYDERABAD. THE DR, ITAT HYDERABAD GUARD FILE