DCIT 8(3)(2), MUMBAI V. VIGHNESHWAR AIRCONDITIONER P.LTD, MUMBAI

ITA 7201/MUM/2014

• Counselvise Citation: [2017] 128 COUNSELVISE.COM (IT) 0432 (ITAT-MUMBAI)
• Duration Of Justice: 2 year(s) 6 month(s) 16 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-06-2017
• Appeal Filed By: Department
• Order Result: Partly Allowed
• Bench Allotted: F
• Assessment Year: 2009-2010
• Appeal Filed On: 03-12-2014
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: V MOHAN
• Assessee Lawyers: POOJA SWAROOP
• Keywords: Reasonable cause

Judgement Text

, INCOME-TAX APPELLATE TRIBUNAL -FBENCH MUMBAI , . . , BEFORE S/SH.RAJENDRA,ACCOUNTANT MEMBER AND C. N. PRASAD,JUDICIAL MEMBER ./I.T.A./7201/MUM/2014, /ASSESSMENT YEAR: 2009-10 DCIT-8(3)(2) ROOM NO.615, 6TH FLOOR AAYAKAR BHAVAN, M.K. ROAD MUMBAI-400 020. VS. M/S. VIGNESHWAR AIRCONDITIONER PVT.LTD. B-103, PADMAVATI DARSHAN N.M. JOSHI MARG, ELPHINSTONE ROAD MUMBAI-400 013. PAN:AABCV 8286 F ( /APPELLANT) ( / RESPONDENT) C.O. NO.217/M/2016 ARISING OUT OF / ./I.T.A./7201/MUM/2014, /ASSESSMENT YEAR: 2009-10 M/S. VIGNESHWAR AIRCONDITIONER PVT.LTD. MUMBAI-400 013. VS. DCIT-8(3)(2) MUMBAI-400 020. ( /APPELLANT) ( / RESPONDENT) / REVENUE BY: SHRI V. MOHAN /ASSESSEE BY: MS. POOJA SWAROOP / DATE OF HEARING: 19/06/2017 / DATE OF PRONOUNCEMENT: 19/06/2017 , / PER RAJENDRA A.M. - CHALLENGING THE ORDER, DATED,22.09.2014 OF THE CIT(A)-10,MUMBAI THE ASSESSING OFFICER (AO) HAS FILED THE PRESENT APPEAL,WHEREAS THE ASSES SEE HAD FILED CROSS OBJECTION(CO).ASSESSEE-COMPANY,FILED ITS RETURN OF INCOME ON 26/09/2009 DECLARING INCOME OF RS.1.17 CRORES.INITIALLY, THE RETURN OF INCOME W AS PROCESSED U/S.143(1)OF THE ACT.LATER ON A NOTICE U/S.148 OF THE ACT WAS ISSUED AS THE AO WAS OF THE OPINION THAT TAXABLE INCOME FOR THE YEAR UNDER APPEAL HAS ESCAPED ASSESSMENT.HE COMPLET ED THE ASSESSMENT,U/S.143(3)R.W.S.147 OF THE ACT,ON 18.02.2014 DETERMIN -ING THE INCOME O F THE ASSESSEE AT RS.1.60 CRORES. 2. IT WAS BROUGHT TO OUR NOTICE THAT THERE WAS DELAY O F 152 DAYS IN FILING THE CO.THE ASSESSEE HAD FILED AFFIDAVIT IN THAT REGARD AND HAS ARGUED T HAT THE SON OF THE DIRECTOR OF THE COMPANY WAS HOSPITALISED,THAT HE WAS SUFFERING FROM BLOOD-C ANCER,THAT THE DIRECTOR COULD NOT HAND OVER THE PAPERS TO THE CA IN TIME,THAT THE DELAY WA S UNINTENTIONAL.THE APPLICATION IS ACCOMPANIED BY AN AFFIDAVIT OF THE DIRECTOR WHEREIN HE HAS REITERATED THE SIMILAR ARGUMENTS. 7201/M/14&C.O.217/M/16-(09-10) VIGNESHWAR AIRCONDITIONER 2 3. DURING THE COURSE OF HEARING BEFORE US,THE AUTHORIS ED REPRESENTATIVE (AR)CONTENDED THAT THERE WAS REASONABLE CAUSE FOR NOT FILING THE CO IN TIME AND THE DELAY SHOULD BE CONDONED.THE DEPARTMENTAL REPRESENTATIVE(DR)LEFT TH E ISSUE TO THE DISCRETION OF THE BENCH. 4. AFTER CONSIDERING THE RIVAL SUBMISSIONS,WE ARE OF O PINION THAT THE ASSESSEE WAS PREVENTED BY A REASONABLE CAUSE AND COULD NOT FILE THE CO IN TIME.WE HAVE GONE THROUGH THE MEDICAL REPORT OF THE SON OF THE DIRECTOR.CONSIDERING THE P ECULIAR FACTS OF THE CASE WE CONDON THE DELAY IN FILING THE CO. 5. IN ITS CO THE ASSESSEE HAS CHALLENGED THE RE-OPENIN G OF THE ASSESSMENT.IT WAS FAIRLY CONCEDED BY THE AR THAT THE ISSUE WAS NOT RAISED BE FORE THE FIRST APPELLATE AUTHORITY(FAA)AND THAT HE HAD NO OCCASION TO DECIDE THE JURISDICTIONAL ISSUE.IN OUR OPINION,IN THE INTEREST OF JUSTICE,MATTER SHOULD BE RESTORED BACK TO THE FILE OF THE FAA FOR FRESH ADJUDICATION.HE IS DIRECTED TO DECIDE THE GRO UNDS ABOUT VALIDITY OF RE-OPENING,AFTER HEARING THE ASSESSEE.EFFECTIVE GROUND OF APPEAL,RAI SED BY THE ASSESSEE,IS DECIDED IN ITS FAVOUR,IN PART. 6. IN THE APPEAL FILED BY THE AO,MAIN ISSUE IS ABOUT B OGUS PURCHASES.THE OUTCOME OF THE CO,FILED BY THE ASSESSEE,WOULD HAVE DIRECT BEARING ON THE APPEAL OF THE AO . SO,WE ARE RESTORING BACK THE ISSUE,RAISED BY THE AO,TO THE FI LE OF FAA FOR FRESH ADJUCIACTION.HE WOULD AFFORD A REASONABLE OPPORTUNITY OF HEARING TO THE A SSESSEE.EFFECTIVE GROUND OF APPEAL OF AO IS ALLOWED IN PART. AS A RESULT,APPEAL FILED BY THE AO AND THE C O FILED BY THE ASSESSEE STAND PARTLY ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 19 TH JUNE, 2017. 19 , 2017 SD/- SD/- ( . . / C.N.PRASAD ) ( / RAJENDRA ) / JUDICIAL MEMBER / ACCOUNTANT MEMBER MUMBAI; /DATED : 19.06.2017. JV.SR.PS. / COPY OF THE ORDER FORWARDED TO : 1. APPELLANT / 2. RESPONDENT / 3. THE CONCERNED CIT(A)/ , 4. THE CONCERNED CIT / 5. DR A BENCH, ITAT, MUMBAI / , , . . . 6. GUARD FILE/ //TRUE COPY// / BY ORDER, 7201/M/14&C.O.217/M/16-(09-10) VIGNESHWAR AIRCONDITIONER 3 / DY./ASST. REGISTRAR , /ITAT, MUMBAI.