CANDID INDUSTRIES LIMITED, Hyderabad V. DCIT., Circle-1(1), Hyderabad

ITA 83/Hyd/2024

• Counselvise Citation: [2024] 101 COUNSELVISE.COM (IT) 7623 (ITAT-HYDERABAD)
• Duration Of Justice: 2 month(s) 30 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-04-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB-B
• Next Hearing Date: 14-04-2024
• Assessment Year: 2014-2015
• Appeal Filed On: 29-01-2024
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 147; 148; 142(1)

Judgement Text

ITA No 83 of 2024 Candid Industries Ltd Page 1 of 8 आयकर अपीलीय अधिकरण, हैदराबाद पीठ IN THE INCOME TAX APPELLATE TRIBUNAL Hyderabad ‘B‘ Bench, Hyderabad Before Shri Laliet Kumar, Judicial Member (Through virtual mode) AND Shri Madhusudan Sawdia, Accountant Member आ.अपी.सं /ITA Nos.83/Hyd/2024 (निर्धारण वर्ा / Assessment Years: 2014-15) Candid Industries Limited Plot no.1, Survey no.308, Venkateswara Co- operative, Industrial Estate, Jeedimetla, Hyderabad PAN:AAACE4493Q Vs. Dy. C. I. T. Circle 1(1) Hyderabad (Appellant) (Respondent) निर्धाररती द्वधरध/Assessee by: Shri MV Joshi, CA appeared for Shri P. Murali Mohan Rao, CA रधजस् व द्वधरध/Revenue by: : Ms. Sheetal Sarin, DR सुिवधई की तधरीख/Date of hearing: 15/04/2024 घोर्णध की तधरीख/Pronouncement: 29/04/2024 आदेश/ORDER PER MADHUSUDAN SAWDIA, A.M This appeal is filed by Candid Industries Limited (“the assessee”), feeling aggrieved by the order passed by the learned Commissioner of Income Tax (Appeals)- National Faceless Appeal Centre (NFAC), Delhi (“Ld. CIT(A)”), dated 15/09/2023 for the A.Y. 2014-15. ITA No 83 of 2024 Candid Industries Ltd Page 2 of 8 2. At the outset it is seen that, there is a delay of 77 days in filing of this appeal for which the assessee has filed a condonation petition along with affidavit explaining the reasons for such delay. After considering the contents of the condonation petition and after hearing the learned DR, the delay of 77 days in filing of this appeal is condoned and the appeal is admitted for adjudication. 3. The grounds raised by the assessee reads as under : ITA No 83 of 2024 Candid Industries Ltd Page 3 of 8 ITA No 83 of 2024 Candid Industries Ltd Page 4 of 8 4. Brief facts of the case are that the assessee is a company, engaged in the business of Manufacture of wearing apparel, never filed any return of income for A.Y. 2014-15. The case of the assessee was re-opened u/s 147 of the Income Tax ITA No 83 of 2024 Candid Industries Ltd Page 5 of 8 Act,1961(“the Act”). Subsequently notice u/s 148 and u/s 142(1) of the act were issued to the assessee, but the assessee failed to respond to the said notices. The assessment was completed by the learned Assessing Officer, National Faceless Assessment Centre, Delhi (“learned assessing officer”) u/s 147 r.w.s.144 of the Act on 28/03/2022 making an addition of Rs.1,51,51,000/-. 5. Feeling aggrieved by the order passed by the learned assessing officer, assessee filed appeal before the Ld. CIT(A) with a delay of 163 days. The learned CIT(A) did not condone the delay and dismissed the appeal of assessee in limini. 6. Feeling aggrieved with the order of learned CIT(A), the assessee is now in appeal before us. 7. The learned Counsel for the assessee referring to the petition for condonation of delay before the ld. CIT(A) submitted that the assessment order was passed u/s 147 r.w.s. 144 of the I.T. Act on 28.3.2022. The appeal was supposed to be filed with the ld. CIT(A) within 30 days of the receipt of the order i.e. on or before 26.4.2022. He submitted that the appeals could not be filed before the ld. CIT(A) in time due to covid and post covid effect and ill health of the Director as well as the Accountant who were looking after the income tax matters. He submitted that the appeal was filed immediately after the Accountant recovered with a delay of 163 days. He submitted that an affidavit was also filed before the ld. CIT(A) to this effect but unfortunately, the ld. CIT(A) without considering the contents of the affidavit dismissed the appeal as defective on account of delay in filing of the appeal and ITA No 83 of 2024 Candid Industries Ltd Page 6 of 8 thereby sustaining the various additions. He submitted that in the interest of justice, the assessee should be given an opportunity to substantiate its case. He submitted that since the assessment order has also been passed u/s 144 of the Act which is during the covid period and the ld. CIT(A) has dismissed the appeal in limini, therefore, the matter should be restored to the file of the learned Assessing Officer for fresh adjudication. 8. The learned DR, on the other hand, heavily opposed the arguments advanced by the learned Counsel for the assessee. She submitted that neither the assessee filed any return u/s 139(1) of the Act nor filed any return in response to notice u/s 148 of the Act. The assessee also filed an appeal before the ld. CIT(A) with a delay of 163 days without any reasonable cause. Under these circumstances when the assessee has no regard for the statutory notices, the order passed by the ld. CIT(A) dismissing the appeal in limini is justified. 9. We have considered the rival arguments made by both sides, perused the orders of the learned Assessing Officer and the learned CIT(A) and the paper book filed on behalf of the assessee. We find that the assessment was reopened u/s 147 of the Act and notice u/s 148 of the Act was issued to the assessee on 30.3.2021, during the prevailing Covid period. We find in response to notice u/s 148 and u/s 142(1) of the Act, the assessee neither filed any return nor replied to the statutory notices for which the Assessing Officer was constrained to pass the order u/s 144 of the Act determining the total income of the ITA No 83 of 2024 Candid Industries Ltd Page 7 of 8 assessee at Rs.1,51,91,760/-. Since the assessee filed the appeal before the learned CIT(A) with a delay of 163 days, the learned CIT(A) dismissed the appeal in limini without condoning the delay. It is the submission of the learned Counsel for the assessee that the notice u/s 148 the Act was issued during the Covid period which was at its peak and during that period the assessee could not file the return in response to notice u/s 148 of the Act. It is also his submission that the delay in filing the appeal before the learned CIT(A) is not deliberate but due to the ill health of the Director as well as the Accountant due to covid for which an affidavit was also filed before the learned CIT(A). It is the submission of the learned Counsel for the assessee that given an opportunity, the assessee is in a position to substantiate with evidence to the satisfaction of the learned Assessing Officer regarding the various issues that have been raised by him. 10. Similar issues were raised by the assessee before this Tribunal in assessee’s own case vide ITA nos. 553/HYD/2023, 555/HYD/2023 and 556/HYD/2023 and the Tribunal restored the issues back to the file of the Assessing Officer for adjudicating the issues afresh after affording reasonable opportunity of being heard to the assessee. Following similar reasonings given by the ITAT in the above said cases and considering the totality of the facts of the case and in the interest of justice, we deem it proper to restore the issue to the file of the learned Assessing Officer with a direction to grant an opportunity to the assessee to substantiate its case by filing the requisite details and decide the issue as per facts and law. The assessee is also hereby directed to appear before the Assessing Officer ITA No 83 of 2024 Candid Industries Ltd Page 8 of 8 without seeking any adjournment under any pretext failing which the Assessing Officer is at liberty to pass appropriate order as per law. The assessee is also directed for payment of costs of Rs.3,000/- (Rupees Three Thousands only) in favour of Prime Minister National Relief Fund which shall be payable within one month from the date of receipt of this order. Grounds of appeal are answered accordingly. 11. In the result, the appeal of the assessee is allowed for statistical purpose. Order pronounced in the Open Court on 29 th April, 2024 Sd/- Sd/- (LALIET KUMAR) JUDICIAL MEMBER (MADHUSUDAN SAWDIA) ACCOUNTANT MEMBER Hyderabad, dated 29 th April, 2024 Vinodan/SPS Copy to: S.No Addresses 1 Candid Industries Ltd C/o P Murali & Co. CAs, 6-3-655/2/3, Somajiguda, Hyderabad 500082 2 Dy. CIT, Circle 1(1) Hyderabad 3 Pr. CIT - Hyderabad 4 DR, ITAT Hyderabad Benches 5 Guard File By Order