M/S. PDP Steels Ltd., Kolkata V. D.C.I.T., CPC, Bengaluru, Bengaluru

ITA 698/KOL/2022

AI Insights

The case involves M/s. PDP Steels Ltd., which appealed against the order of the National Faceless Appeal Centre, Delhi, concerning the Assessment Year 2018-19. The appeal was initially dismissed by the CIT(A) due to a delay of 120 days in filing. The delay was attributed to an employee's failure to communicate the receipt of the order to the company's directors. The Tribunal found that the delay was not intentional and thus condoned it, remitting the issues back to the CIT(A) for a decision on merits, particularly focusing on the computation of book profits under section 115JB and deferred tax credit under section 143(1)(a) of the Income Tax Act, 1961.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 132601 (ITAT-KOLKATA)
• Duration Of Justice: 2 month(s) 12 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-02-2023
• Appeal Filed By: Assessee
• Order Result: PartlyAllowed
• Bench Allotted: B
• Next Hearing Date: 08-02-2023
• Assessment Year: 2018-2019
• Appeal Filed On: 07-12-2022
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Opportunity of being heard
• Section: 115JB; 250

Judgement Text

| आयकर अपीलीय अिधकरण ᭠यायपीठ, कोलकाता | IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH, KOLKATA BEFORE SHRI RAJPAL YADAV, HON’BLE VICE PRESIDENT & DR. MANISH BORAD, HON’BLE ACCOUNTANT MEMBER I.T.A. No. 698/Kol/2022 Assessment Year: 2018-19 M/s. PDP Steels Ltd. C/o. M/s. Salarpuri Jajodia & Co. 7, C.R. Avenue 3 rd Floor Kolkata - 700072 [PAN : AABCP6726C] Vs DCIT, CPC, Bengaluru अपीलाथᱮ/ (Appellant) ᮧ᭜ यथᱮ/ (Respondent) Assessee by : Shri Siddharth Jhajharia, FCA Revenue by : Shri P.P. Barman, Addl. CIT सुनवाई कᳱ तारीख/Date of Hearing : 09/02/2023 घोषणा कᳱ तारीख /Date of Pronouncement: 20/02/2023 आदेश/O R D E R PER DR. MANISH BORAD, ACCOUNTANT MEMBER : The present appeal is directed at the instance of the assessee against the order of the National Faceless Appeal Centre, Delhi, (hereinafter the “ld. CIT(A)”) dt. 25/11/2022, passed u/s 250 of the Income Tax Act, 1961 (“the Act’), for Assessment Year 2018-19. 2. At the outset, the ld. Counsel for the assessee submitted that the ld. First Appellate Authority dismissed the appeal on account of delay in filing of the appeal and issues on merit have not been adjudicated. Further he stated that the delay in filing of the appeal before the ld. CIT(A) was on account of reason that the employee Mr. Madan Mohan Sahu, who received such order, did not communicate to the Directors of the company. Soon thereafter, he travelled outside for official job and forgot to communicate about the receipt of the order u/s 143(1). Thus, prayer was made for condoning the delay in filing of the appeal before the ld. CIT(A) and direct the ld. CIT(A) to give an opportunity to plead for the issues raised on merits in the appeal. I.T.A. No. 698/Kol/2022 Assessment Year: 2018-19 M/s. PDP Steels Ltd. 2 On the other hand, the ld. D/R opposed the request of the ld. Counsel for the assessee. 3. We have heard the rival contentions and perused the record placed before us. In the impugned order, the ld. CIT(A) has dismissed the appeal of the assessee on account of delay of 120 days in filing of the appeal. On perusal of the impugned order as well as an affidavit given by the assessee company, we notice that the said delay was on account of carelessness of the employee of the assessee company, who after receiving the assessment order did not communicate to the Directors of the assessee company. We also note that the issues raised on merits are arising out of the processing made u/s 143(1)(a) of the Act, mainly pertaining to computation of book profits u/s 115JB of the Act and deferred tax credit etc. 4. We, therefore, in the larger interest of justice whilst noting that the assessee has not gained anything by not being able to file the appeal, condone the delay in filing the appeal before the ld. CIT(A), remit all the issues raised on merit to the ld. CIT(A) for adjudication on merits and pass a speaking order after providing reasonable opportunity of being heard to the assessee and to file necessary documents, if any, required and plead its case. 5. In the result, appeal of the assesse is allowed for statistical purposes. Order pronounced in the Court on 20 th February, 2023 at Kolkata. Sd/- Sd/- (RAJPAL YADAV) (DR. MANISH BORAD) VICE-PRESIDENT ACCOUNTANT MEMBER Kolkata, Dated 20/02/2023 *SC SrPs I.T.A. No. 698/Kol/2022 Assessment Year: 2018-19 M/s. PDP Steels Ltd. 3 आदेश कᳱ ᮧितिलिप अᮕेिषत/Copy of the Order forwarded to : 1. अपीलाथᱮ / The Appellant 2. ᮧ᭜यथᱮ / The Respondent 3. संबंिधत आयकर आयुᲦ / Concerned Pr. CIT 4. आयकर आयुᲦ)अपील (/ The CIT(A)- 5. िवभागीय ᮧितिनिध ,आयकर अपीलीय अिधकरण, कोलकाता/DR,ITAT, Kolkata, 6. गाडᭅ फाईल /Guard file. आदेशानुसार/ BY ORDER, TRUE COPY Assistant Registrar आयकर अपीलीय अिधकरण ITAT, Kolkata