Vaagai Business Services and Education Private Limited, CHENNAI V. ITO Corporate Ward 3(4), CHENNAI

ITA 798/CHNY/2019

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 9217 (ITAT-CHENNAI)
• Duration Of Justice: 3 month(s) 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-07-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2013-2014
• Appeal Filed On: 25-03-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SANATH KUMAR RAHA
• Assessee Lawyers: R K V SUNDAR
• Keywords: Reasonable cause

Judgement Text

, / , IN THE INCOME TAX APPELLATE TRIBUNAL B SMC BENCH, CHENNAI ... , BEFORE SHRI N.R.S. GANESAN, JUDICIAL MEMBER !./ ITA NO.798/CHNY/2019 # $%# / ASSESSMENT YEAR : 2013-14 M/S VAAGAI BUSINESS SERVICES AND EDUCATION PVT. LTD., C/O SHRI T.N. SEETHARAMAN, ADVOCATE, #384 (OLD NO.196), LLOYDS ROAD, CHENNAI - 600 086. PAN : AABCV 8523 B V. THE INCOME TAX OFFICER, CORPORATE WARD 3(4), CHENNAI - 600 034. ('(/ APPELLANT) ()*'(/ RESPONDENT) '( + , / APPELLANT BY : SHRI R.K.V. SUNDAR, ADVOCATE )*'( + , / RESPONDENT BY : SHRI SANATH KUMAR RAHA, JCIT - $ + ./ / DATE OF HEARING : 01.07.2019 01% + ./ / DATE OF PRONOUNCEMENT : 03.07.2019 / O R D E R THIS APPEAL OF THE ASSESSEE IS DIRECTED AGAINST T HE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS) -11, CHENN AI, DATED 05.02.2019 AND PERTAINS TO ASSESSMENT YEAR 2013-14. 2. SHRI R.K.V. SUNDAR, THE LD.COUNSEL FOR THE ASSES SEE SUBMITTED THAT THERE WAS A DELAY OF 29 MONTHS IN FI LING THE APPEAL 2 I.T.A. NO.798/CHNY/19 BEFORE THE CIT(APPEALS). ACCORDING TO THE LD. COUN SEL, THE ASSESSEE WAS IN THE BUSINESS OF SKILL DEVELOPMENT A ND TRAINING IN COMPUTERIZED ACCOUNTING. ALL THE ACTIVITIES OF THE ASSESSEE WERE CLOSED AND THE COMPANY BECAME DORMANT. ACCORDING T O THE LD. COUNSEL, THE ASSESSEE-COMPANY HAD TO DISPOSE OF THE COMPUTERS AND FURNITURE IN ORDER TO SETTLE THE RENTAL ARREARS FOR THE PREMISES OCCUPIED BY IT. THERE WAS NO STAFF IN THE COMPANY, HENCE, THE APPEAL COULD NOT FILED WITHIN THE PRESCRIBED TIME. THEREFORE, THE LD.COUNSEL SUBMITTED THAT THE DELAY OF 29 MONTHS IN FILING THE APPEAL MAY BE CONDONED AND THE MATTER MAY BE REMITTED BACK TO THE FILE OF THE CIT(APPEALS). 3. ON THE CONTRARY, SHRI SANATH KUMAR RAHA, THE LD. DEPARTMENTAL REPRESENTATIVE, SUBMITTED THAT THERE I S NO REASON FOR NOT FILING THE APPEAL WITHIN THE PRESCRIBED TIME. THERE WAS INORDINATE DELAY OF 29 MONTHS IN FILING THE APPEAL. THE ASSESSEE COULD NOT JUSTIFIABLY EXPLAIN THE DELAY IN FILING T HE APPEAL. THEREFORE, ACCORDING TO THE LD. D.R., THE CIT(APPEALS) HAS RIG HTLY REFUSED TO CONDONE THE DELAY. 4. HAVING HEARD THE LD.COUNSEL FOR THE ASSESSEE AND THE LD. D.R., THIS TRIBUNAL FINDS THAT THE ASSESSEE-COMPANY CLOSED ITS 3 I.T.A. NO.798/CHNY/19 BUSINESS AND BECAME DORMANT. THIS FACT IS NOT IN D ISPUTE. THE COMPANY HAD TO SELL ITS COMPUTERS AND FURNITURE FOR PAYMENT OF RENTAL ARREARS FOR THE PREMISES OCCUPIED BY IT. I N THOSE CIRCUMSTANCES, THERE WAS A FINANCIAL CRISIS IN THE ASSESSEE- COMPANY FOR PERFORMING THE DAY-TO-DAY ACTIVITIES. THE FINANCIAL CRISIS HAS PREVENTED THE ASSESSEE FROM FILING THE A PPEAL BEFORE THE CIT(APPEALS) WITHIN THE PRESCRIBED TIME. THEREFORE , THIS TRIBUNAL IS OF THE CONSIDERED OPINION THAT THERE WAS REASONABLE CAUSE FOR NOT FILING THE APPEAL BEFORE THE CIT(APPEALS). ACCORDI NGLY, THE DELAY OF 29 MONTHS IN FILING THE APPEAL BEFORE THE CIT(APPEA LS) IS CONDONED. NOW THE APPEAL OF THE ASSESSEE IS RESTORED ON THE F ILE OF THE CIT(APPEALS). THE CIT(APPEALS) IS DIRECTED TO DISP OSE THE APPEAL ON MERIT AFTER GIVING A REASONABLE OPPORTUNITY TO T HE ASSESSEE. 5. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED. ORDER PRONOUNCED IN THE COURT ON 3 RD JULY, 2019 AT CHENNAI. SD/- ( ... ) (N.R.S. GANESAN) /JUDICIAL MEMBER /CHENNAI, 3! /DATED, THE 3 RD JULY, 2019 4 I.T.A. NO.798/CHNY/19 KRI. + ).45 65%. /COPY TO: 1. '( /APPELLANT 2. )*'( /RESPONDENT 3. - 7. () /CIT(A)-11, CHENNAI 4. PRINCIPAL CIT-3, CHENNAI 5. 5$8 ). /DR 6. 9# : /GF.