M/s Konark Rajhans Pvt. Ltd., Panchkula V. DCIT, Circle, Panchkula

ITA 88/CHANDI/2019

• Counselvise Citation: [2019] 112 COUNSELVISE.COM (IT) 1094 (ITAT-CHANDIGARH)
• Duration Of Justice: 9 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-11-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 25-11-2019
• Assessment Year: 2012-2013
• Appeal Filed On: 30-01-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ARVIND SUDERSHAN
• Keywords: Period of limitation; Time period of passing order; Condonation of delay
• Section: 40A(3)

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL DIVISION BENCH, A CHANDIGARH , !' # $ % &' , '( BEFORE SHRI SANJAY GARG, JUDICIAL MEMBER AND MS. ANNAPURNA GUPTA, ACCOUNTANT MEMBER ./ ITA NO. 88/CHD/2019 / ASSESSMENT YEAR : 2012-13 M/S KONARK RAJHANS PVT . LTD., NH-73, VILLAGE KOT, PANCHKULA EXTENTION 2, SECTOR 14, PANCHKULA DCIT, PANCHKULA ./PAN NO: AAECK2405Q / APPELLANT /RESPONDENT ! /ASSESSEE BY : SHRI ASHWANI KUMAR, CA ' ! / REVENUE BY : SHRI ARVIND SUDERSHAN, SR. DR # $ % /DATE OF HEARING : 25.11.2019 &'() % / DATE OF PRONOUNCEMENT : 25.11.2019 ')/ ORDER PER SANJAY GARG, JUDICIAL MEMBER: THE PRESENT APPEAL HAS BEEN PREFERRED BY THE ASSESS EE AGAINST THE ORDER DATED 14.08.2018 OF THE COMMISSIONER OF INCOM E TAX (APPEALS), PANCHKULA [HEREINAFTER REFERRED TO AS CIT(A)] 2. THE APPEAL IS BARRED BY THE LIMITATION PERIOD OF 75 DAYS. A SEPARATE APPLICATION FOR CONDONATION OF DELAY HAS B EEN MOVED. IT HAS BEEN PLEADED IN THE APPLICATION THAT THE APPEAL WAS FILED LATE BY 75 DAYS DUE TO INADVERTENT MISTAKE ON THE PART OF THE CHART ERED ACCOUNTANT OF ITA NO. 88-CHD/2019- M/S KONARK RAJHANS PVT LTD, PANCHKULA 2 THE ASSESSEE. THE AFFIDAVIT OF THE C.A. OF THE ASSE SSEE NAMELY SHRI AMITAOZ SINGH KAMBOJ IS ALSO FILED, WHEREIN, HE HA S OWNED THE LIABILITY AND HAS AFFIRMED THAT INADVERTENTLY HE COULD NOT KEEP THE RECORD OF THE MAIL SENT BY THE ASSESSEE REQUESTING HIM TO FILE TH E PRESENT APPEAL. IT HAS ALSO BEEN AFFIRMED THAT THE DELAY WAS NOT INTEN TIONAL BUT DUE TO INADVERTENCE ON HIS PART AND THAT THE ASSESSEE WAS NOT RESPONSIBLE FOR THE SAME. CONSIDERING THE ABOVE SUBMISSIONS WHICH H AVE BEEN SUPPORTED BY THE AFFIDAVIT OF THE CONCERNED C.A., THE DELAY I N FILING THE PRESENT APPEAL IS HEREBY CONDONED. 3. ON MERITS, THE SOLE ISSUE RAISED IN THIS APPEAL IS REGARDING THE DISALLOWANCE MADE BY THE ASSESSING OFFICER AND FURT HER CONFIRMED BY THE CIT(A) OF RS. 1,70,02,575/- IN RESPECT OF CASH PAYMENTS MADE BY THE ASSESSEE IN VIOLATION OF PROVISIONS OF SECTION 40A( 3) OF THE INCOME TAX ACT, 1961 (IN SHORT 'THE ACT') BEYOND THE STIPULATE D AMOUNT IN RESPECT OF PURCHASE OF LAND. THE LD. COUNSEL FOR THE ASSESSEE, AT THE OUTSET, HA S SUBMITTED THAT IN FACT, THE ASSESSEE DID NOT CLAIM THE AFORESAID A MOUNT AS EXPENDITURE IN THE RETURN OF INCOME FOR THE YEAR UNDER CONSIDER ATION. THAT SINCE THE AFORESAID AMOUNT WAS NOT CLAIMED AS EXPENDITURE, TH ERE WAS NO QUESTION OF DISALLOWANCE U/S 40A(3) OF THE ACT FOR THE YEAR UNDER CONSIDERATION. 4. THE LD. DR, ON THE OTHER HAND, HAS SUBMITTED THA T THE ASSESSEE HAS NOT TAKEN THIS PLEA BEFORE THE LOWER AUTHORITIES. ITA NO. 88-CHD/2019- M/S KONARK RAJHANS PVT LTD, PANCHKULA 3 5. CONSIDERING THE SUBMISSIONS OF BOTH THE LD. REPR ESENTATIVES OF THE PARTIES, WE ARE OF THE VIEW, THAT THE ISSUE REQUIRE S FACTUAL EXAMINATION AT THE HANDS OF THE ASSESSING OFFICER. WE, ACCORDINGL Y RESTORE THIS ISSUE TO THE FILE OF THE ASSESSING OFFICER TO VERIFY AS T O WHETHER THE CONTENTION OF THE ASSESSEE THAT THE AMOUNT IN QUEST ION HAS NOT BEEN CLAIMED AS EXPENDITURE FOR THE YEAR UNDER CONSIDERA TION AND IF FOUND TO BE CORRECT, THEN NO DISALLOWANCE U/S 40A(3) OF THE ACT BE MADE. THE ASSESSING OFFICER IS DIRECTED TO VERIFY THE ABOVE P LEA OF THE ASSESSEE AND ACCORDINGLY DECIDE THE ISSUE IN THE TERMS AS IN DICATED ABOVE. THE APPEAL OF THE ASSESSEE IS TREATED AS ALLOWED FO R STATISTICAL PURPOSES. ORDER DICTATED AND PRONOUNCED IN THE OPEN COURT IMM EDIATELY ON COMPLETION OF HEARING. SD/- SD/- ( # $ % &' / ANNAPURNA GUPTA) '( / ACCOUNTANT MEMBER ( / SANJAY GARG) / JUDICIAL MEMBER DATED : 25.11.2019 .. '+ ,-.- / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT 3. # / / CIT 4. # / ( )/ THE CIT(A) 5. -01 2 , %2 , 34516 / DR, ITAT, CHANDIGARH 6. 157$ / GUARD FILE '+ # / BY ORDER, 8' / ASSISTANT REGISTRAR ITA NO. 88-CHD/2019- M/S KONARK RAJHANS PVT LTD, PANCHKULA 4