Mannem Subba Reddy Educational Society, Tirupati, Tirupathi V. ITO, Ward-1(1), Tirupati, Tirupathi

ITA 772/HYD/2017

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 2602 (ITAT-HYDERABAD)
• Duration Of Justice: 4 month(s) 18 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-09-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2013-2014
• Appeal Filed On: 04-05-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SUMAN MALIK
• Assessee Lawyers: C S SUBRAMANYAM
• Keywords: Opportunity of being heard; Reasonable cause

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH A, HYDERABAD BEFORE SMT. P. MADHAVI DEVI, JUDICIAL MEMBER AND SHRI S. RIFAUR RAHMAN, ACCOUNTANT MEMBER ITA NO. 772/HYD/2017 ASSESSMENT YEAR: 2013-14 MANNEM SUBBA REDDY EDUCATIONAL SOCIETY, TIRUPATI. PAN AACAM 4111B VS. INCOME-TAX OFFICER, WARD 1(1), TIRUPATI (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI C.S. SUBRAMANYAM REVENUE BY : SMT. SUMAN MALIK DATE OF HEARING : 11-09-2017 DATE OF PRONOUNCEMENT : 22-09-2017 O R D E R PER S. RIFAUR RAHMAN, A.M.: THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAI NST THE ORDER OF THE LEARNED COMMISSIONER OF INCOME-TAX, TIRUPATI , DATED 30/03/2017 FOR AY 2013-14. 2. BRIEFLY THE FACTS OF THE CASE ARE THAT ASSESSEE, A SOCIETY, RUNNING EDUCATION INSTITUTION AT TIRUPATI. IT FILED RETURN OF INCOME FOR THE AY 2013-14 DECLARING LOSS OF RS. 16,76,234/- ON 20/03/2014. THE RETURN WAS PROCESSED U/S 143(1) AND SUMMARY ASSESSM ENT WAS COMPLETED DETERMINING THE TOTAL INCOME AT RS. 59,80 ,880/-, WHICH WERE THE TOTAL RECEIPTS SHOWN IN THE INCOME AND EXP ENDITURE ACCOUNT. SUMMARY ASSESSMENT WAS COMPLETED ON 25/03/2015. 3. AGGRIEVED WITH THE ABOVE ORDER, ASSESSEE PREFERR ED AN APPEAL BEFORE THE CIT(A) AND THE APPEAL WAS FILED ON 05/10 /2015 WITH THE DELAY OF 152 DAYS. ASSESSEE FILED A PETITION U/S 24 9(3) SEEKING 2 ITA NO. 772/H/17 MANNEM SUBBA REDDY EDUCATIONAL SOCIETY, TIRUPATI CONDONATION OF DELAY. CIT(A) DID NOT AGREE WITH THE EXPLANATION OFFERED FOR DELAY AND DISMISSED THE APPEAL WITH THE FOLLOWING REASONS: 1. THE APPELLANT DELIBERATELY ATTEMPTED TO SUPPRES S THE FACTS EVEN THOUGH IT WERE AWARE OF THE DELAY AND FILED CO NDONATION AND TRIED TO CAMOUFLAGE THE ISSUE BY GIVING WRONG F ACTS. 2. THERE IS ACKNOWLEDGMENT ON RECORD TO SHOW THAT A PPELLANT IS SERVED THE INTIMATION ON 06/04/2015. 4. AGGRIEVED BY THE ORDER OF CIT(A) THE ASSESSEE IS IN APPEAL BEFORE US RAISING THE FOLLOWING GROUNDS OF APPEAL: 1 THE ORDER OF THE LEARNED COMMISSIONER OF INCOME-T AX (APPEALS) IS ERRONEOUS IN LAW AND ON THE FACTS OF T HE CASE. 2 ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE , THE LEARNED COMMISSIONER OF INCOME-TAX ( APPEALS) ERRED IN LAW AND FACTS OF THE CASE IN DISMISSING THE APPEAL IN LIMINE WITH OUT CONDONING THE DELAY OF 152 DAYS IN FILING THE APPEAL. 3 THE LEARNED COMMISSIONER OF INCOME-TAX ( APPEALS) ERRED IN NOT CONSIDERING THE VALID APPLICATION FOR CONDONATI ON OF DELAY SUPPORTED BY NOTARISED AFFIDAVIT BY THE APPELLANT. 4 THE LEARNED COMMISSIONER OF INCOME-TAX ( APPEALS) OUGHT TO HAVE DISPOSED OFF THE APPEAL ON MERITS, AS SUCH IN LIMINE DISPOSAL OF THE APPEAL RESULTED IN INJUSTICE TO THE APPELLANT. 5. THE LEARNED COMMISSIONER OF INCOME-TAX (APPEALS) OUGHT TO HAVE CONSIDERED THAT THE APPELLANT HAD SUFFICIENT C AUSE IN FILING THE APPEAL BELATEDLY AND OUGHT TO HAVE CONDONED THE DELAY AS OUTWEIGHING MERITS LEAD TO THE DECISION IN FAVOUR O F THE APPELLANT. 6 ANY OTHER GROUND OF APPEAL THAT MAY BE PLEADED WI TH THE PRIOR APPROVAL BY THE HON'BLE TRIBUNAL DURING THE COURSE OF APPELLATE PROCEEDINGS. 5. CONSIDERED THE RIVAL SUBMISSIONS AND PERUSED THE MATERIAL FACTS ON RECORD. ASSESSEE FILED THE CONDONATION PETITION, WHICH WAS FILED BEFORE THE CIT(A) AND THE SAME IS PLACED ON RECORD AT PAGES 50 & 51 OF THE PAPER BOOK FILED BEFORE US. ON PERUSAL OF TH E ABOVE PETITION, WE ARE OF THE VIEW THAT THE ASSESSEE WAS PREVENTED BY A REASONABLE CAUSE FOR FILING THE APPEAL BELATEDLY BEFORE THE CI T(A) AND ACCORDINGLY WE DIRECT THE CIT(A) TO CONDONE THE DEL AY. THUS, WE REMIT THE APPEAL BACK TO THE FILE OF THE CIT(A) TO ADJUDI CATE THE ISSUES ON 3 ITA NO. 772/H/17 MANNEM SUBBA REDDY EDUCATIONAL SOCIETY, TIRUPATI MERIT AND IN ACCORDANCE WITH LAW AFTER GIVING PROP ER OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. ACCORDINGLY, GROUNDS R AISED ARE ALLOWED. 6. IN THE RESULT, APPEAL OF THE ASSESSEE IS TREATED AS ALLOWED FOR STATISTICAL PURPOSES. PRONOUNCED IN THE OPEN COURT ON 22 ND SEPTEMBER, 2017. SD/- SD/- (P. MADHAVI DEVI) (S. RIFAUR RA HMAN) JUDICIAL MEMBER A CCOUNTANT MEMBER HYDERABAD, DATED: 22 ND SEPTEMBER, 2017. KV COPY TO:- 1). MANNEM SUBBA REDDY EDUCATIONAL SOCIETY, 6-1-295, RAMACHANDRA COLONY, VARADARAJA NAGAR, KT ROAD, TIRUPATI 517 501. 2) ITO, WARD 1(1), TIRUPATI 3) CIT(A), TIRUPATI 4 PR. CIT, TIRUPATI 5) THE DEPARTMENTAL REPRESENTATIVE, I.T.A.T., HYDE RABAD. 6) GUARD FILE