ACIT, Circle-16(1), Hyderabad V. M/s. Naturalle Health Products Pvt.Ltd., Secunderabad

ITA 887/HYD/2012

• Counselvise Citation: [2016] 131 COUNSELVISE.COM (IT) 6038 (ITAT-HYDERABAD)
• Duration Of Justice: 4 year(s) 5 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-11-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 03-11-2016
• Assessment Year: 1997-1998
• Appeal Filed On: 04-06-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: K J RAO
• Assessee Lawyers: A V RAGHURAM
• Keywords: Period of limitation; Reasonable cause; Tax effect; Condonation of delay

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCHES B : HYDERABAD BEFORE SHRI D. MANMOHAN, VICE PRESIDENT AND SHRI S. RIFAUR RAHMAN, ACCOUNTANT MEMBER ITA.NO.887/HYD/2012 ASSESSMENT YEAR 1997-1998 THE INCOME TAX OFFICER, WARD-16(2), HYDERABAD. VS. M/S. NATURALLE HEALTH PRODUCTS P. LTD., SECUNDERABAD. PAN AABCN3198G (APPELLANT) (RESPONDENT) CROSS OBJECTION NO.07/HYD/2015 ARISING OUT OF ITA.NO.887/HYD/2012 ASSESSMENT YEAR 1997-1998 M/S. NATURALLE HEALTH PRODUCTS P. LTD., SECUNDERABAD. PAN AABCN3198G VS. THE INCOME TAX OFFICER, WARD-16(2), HYDERABAD. (CROSS-OBJECTOR) (RESPONDENT) FOR REVENUE : MR. K.J. RAO FOR ASSESSEE : MR. A.V. RAGHURAM DATE OF HEARING : 03.11.2016 DATE OF PRONOUNCEMENT : 04.11.2016 ORDER PER D. MANMOHAN, V.P. THESE MATTERS PERTAIN TO THE A.Y. 1997-1998 AND THEY ARISE OUT OF THE ORDER PASSED BY THE CIT(A)-V, HYDERAB AD. 2. AT THE OUTSET, IT MAY BE NOTICED THAT SHRI A.V. RAGHURAM, ADVOCATE FILED HIS POWER OF ATTORNEY IN BO TH THE APPEALS BUT ON ACCOUNT OF CERTAIN MISUNDERSTANDINGS EITH ER WITH 2 ITA.NO.887/HYD/2012 & CO.NO.07/HYD/2015 M/S. NATURALLE HEALTH PRODUCTS P. LTD., SECUNDERABA D. THE ASSESSEE COMPANY OR WITH THE FEEDER COUNSEL HE WA S HESITANT TO APPEAR FOR THE ASSESSEE AND HE WAS EVEN PREPARED TO WITHDRAW HIS POWER OF ATTORNEY. FURTHER THE FACT REMAINS THAT THE F ACTUM OF POSTING OF THESE APPEALS ARE IN THE KNOWLEDGE OF THE A SSESSEE AND NO ONE APPEARED OTHER THAN SHRI A.V. RAGHURAM, ADVOCA TE. THEREFORE, WE REQUESTED SHRI A.V. RAGHURAM TO ASSIST THE BENCH IN DISPOSAL OF THESE MATTERS PRIMARILY ON ACCOUNT OF TH E FACT THAT THE REVENUE FILED A PETITION SEEKING PERMISSION TO WITH DRAW ITS APPEAL SINCE THE TAX EFFECT IS LESS THAN RS.10 LAKHS. V IDE LETTER DATED 21 ST OCTOBER, 2016 THE ITO, WARD-16(2), HYDERABAD ADDRESSED TO THE ASSISTANT REGISTRAR AS UNDER : 02. AN APPEAL WAS FILED BEFORE THE HONBLE ITAT IN THE CASE OF M/S. NATURALLE HEALTH PRODUCTS PRIVATE LIMITED, FOR THE ASST. YEAR 1997-98 ON 09.03.2012 IN ITA NO.887/H/12. THE TAX EFFECT INVOLVED IN THE PRESENT APPEAL WAS ABOVE THE MONETARY LIMITS I.E., ABOVE RS .4 LAKHS, PRESCRIBED BY THE BOARD FOR FILING APPEAL BE FORE THE HONBLE ITAT AT THE TIME OF FILING OF APPEAL. 03. CONSEQUENT TO THE BOARDS CIRCULAR NO.21/2015, THE MONETARY LIMITS PRESCRIBED FOR FILING THE APPEAL BE FORE HONBLE ITAT WAS ENHANCED TO RS.10 LAKHS. THEREFORE , THE APPEAL FILED BY THE DEPARTMENT IS WITHDRAWN, AS PER THE DIRECTIONS OF THE PR. CIT-IV, HYDERABAD 14.10.2016. 3. THE LD. D.R. ADMITTED THAT THE NO OTHER EXCEPTIONS PROVIDED IN THE CIRCULAR ARE APPLICABLE TO THIS CASE A ND THEREFORE, THE REVENUE SEEKS TO WITHDRAW ITS APPEAL. UNDER THESE CIRCUMSTANCES, WE PERMIT THE REVENUE TO WITHDRAW ITS APPE AL AND ACCORDINGLY, THE APPEAL IS DISMISSED AS WITHDRAWN. 4. IT MAY BE NOTICED THAT THE APPEAL WAS FILED BY THE REVENUE ON 04.06.2012 AND ACCORDING TO THE ASSESSEE THE FACTUM 3 ITA.NO.887/HYD/2012 & CO.NO.07/HYD/2015 M/S. NATURALLE HEALTH PRODUCTS P. LTD., SECUNDERABA D. OF FILING OF APPEAL BY THE REVENUE WAS INFORMED TO THE ASSESSEE ON 13.08.2012 AND HENCE, THE LAST DATE FOR FILING CROS S-OBJECTION EXPIRED ON 12 TH SEPTEMBER, 2012 WHEREAS THE CROSS-OBJECTION WAS FILED ON 21.01.2015 RESULTING IN A DELAY OF 861/862 DAYS. THE ASSESSEE HAD INITIALLY FILED AN AFFIDAVIT ALONG WITH THE CROSS OBJECTIONS BY STATING AS UNDER : I, B K GURBANI, SON OF KISHAN CHAND GURBANI, AGED ABOUT 61 YEARS, RESIDING AT PLOT NO.41, PAIGAH COLONY, S P ROAD, SECUNDERABAD, DO HEREBY SOLEMNLY AFFIRM AND STATE T HAT: 1. I AM THE MANAGING DIRECTOR OF THE COMPANY, M/S NATURALLE HEALTH PRODUCTS PVT. LTD, SITUATED AT # 1 00, KIRAN ARCADE, S.D. ROAD, SECUNDERABAD - 500003 CARRYING THE BUSINESS OF MANUFACTURING OF HEALTH PRODUCTS ON CONTRACT BASIS. 2. THE ASSESSEE COMPANY IS RECEIVED FORM NO.36 ON 13.08.2012. 3. THE CROSS OBJECTIONS IN THE FORM NO.36A WAS TO BE FILED ON OR BEFORE 12.09.2012. 4. THE FORM NO.36A IS BEING FILED ON 21.01.2015, THE SAME HAS RENDERED A DELAY OF 862 DAYS. 5. I SINCERELY SUBMIT THAT THE DELAY WAS NEITHER INTENTIONAL NOR DUE TO NEGLIGENCE BUT ONLY BECAUSE OF THE CIRCUMSTANCES WHICH WERE BEYOND MY CONTROL. THE FACTS STATED ABOVE ARE TRUE TO THE BEST OF MY K NOWLEDGE AND INFORMATION. 4.1. IN SHORT, NEITHER THE AFFIDAVIT NOR THE PETITION FOR CONDONATION OF DELAY REFERS TO THE DETAILED REASONS FOR THE DELAY EXCEPT STATING THAT IT IS DUE TO UNAVOIDABLE CIRCUMSTANCES BEYOND THE CONTROL OF THE ASSESSEE-COMPANY . WHEN THIS MATTER WAS LAST POSTED FOR HEARING THE BENCH NOTICED THAT IN VIEW OF THE SETTLED 4 ITA.NO.887/HYD/2012 & CO.NO.07/HYD/2015 M/S. NATURALLE HEALTH PRODUCTS P. LTD., SECUNDERABA D. LEGAL POSITION ON THIS MATTER, IT IS THE DUTY OF THE ASS ESSEE TO EXPLAIN THE DELAY PROPERLY; WHEREAS THE AFFIDAVIT AS W ELL AS THE PETITION FILED BY THE ASSESSEE DO NOT REFER TO THE REASON S. AT THIS JUNCTURE, THE LEARNED COUNSEL FOR THE ASSESSEE, REQU ESTED FOR SOME TIME AND A FRESH AFFIDAVIT DATED 10 TH AUGUST, 2016 WAS FILED IN WHICH IT WAS STATED THAT THE OPERATIONS OF THE COMPANY HAVE COME TO STAND-STILL AND HENCE, IT COULD NOT TAKE IMMEDIAT E STEPS FOR FILING APPEALS/CROSS-OBJECTIONS. IN PARA-5 OF THE AFFIDAVIT, IT WAS STATED THAT DUE TO PECULIAR CIRCUMSTANCES THE ASSESSEE - COMPANY WENT OUT OF OPERATIONS. IT WAS ALSO STATED THAT THE MANAGING DIRECTOR OF THE ASSESSEE-COMPANY, WHO IS THE MAIN PERSON LOOKING AFTER ALL THE OPERATIONS, HAD UNDERGONE BY-PASS SURGERY IN APRIL, 2015 AND HE WAS ILL FOR A WHILE B EFORE HE WAS OPERATED FOR THE HEART SURGERY AND HENCE, THE ABOVEMEN TIONED CIRCUMSTANCES CONSTITUTE A REASONABLE CAUSE FOR THE DEL AY. SHRI A.V. RAGHURAM, RELIED UPON THE WRITTEN SUBMISSIONS FI LED BEFORE US WHEREFROM IT WAS STATED THAT THE ASSESSEE HAS A GOOD C ASE ON MERITS AND THEREFORE, THE ASSESSEE WOULD NOT STAND TO GA IN BY DELAYING THE PROCESS OF FILING CROSS OBJECTION AND THE EXPLANATION HAS TO BE LOOKED INTO FROM THAT PERSPECTIVE. 5. ON THE OTHER HAND, THE LD. D.R. SUBMITTED THAT THERE WAS A SUBSTANTIAL DELAY OF MORE THAN TWO YEARS IN FIL ING THE CROSS OBJECTION WHICH IS NOT PROPERLY EXPLAINED. NO DOUBT, M INUTE TO MINUTE DELAY NEED NOT BE EXPLAINED BUT THERE SHOULD BE A PROPER/REASONABLE CAUSE FOR THE DELAY IN FILING THE APPEAL AS PER THE DECISION OF THE APEX COURT IN THE CASE OF COLLECTO R, LAND ACQUISITION VS., MST. KATIJI & ORS. (167 ITR 471) (SC ). LD. D.R. ALSO SUBMITTED THAT THE ASSESSEE HAD TIME TO OBTAIN ANNUAL REPORTS FOR THE PERIOD ENDING ON 31.03.2013 AND 31.03 .2014 5 ITA.NO.887/HYD/2012 & CO.NO.07/HYD/2015 M/S. NATURALLE HEALTH PRODUCTS P. LTD., SECUNDERABA D. WHEREAS HE CLAIMS TO HAVE NO TIME TO FILE THE CROSS OBJ ECTIONS; WHEN HE IS ABLE TO ATTEND TO THE ACCOUNTANCY MATTERS AND DA Y-TO- DAY AFFAIRS OF THE COMPANY AN APPEAL, WHICH IS A STAT UTORY RIGHT GIVEN TO THE ASSESSEE AND NOT A CONSTITUTIONAL RIGHT, CO ULD HAVE BEEN AVAILED WITHIN THAT PERIOD OF LIMITATION AND HE OUG HT TO HAVE FILED AN APPEAL AT THE EARLIEST; AT ANY RATE, THE HEART OPERATION IN APRIL, 2015 COULD NOT HAVE BEEN A REASON FOR THE DE LAY IN FILING THE APPEAL IN THE YEAR 2012, 2013 AND 2014. HE THUS STR ONGLY OBJECTED TO THE CONDONATION OF THE DELAY. 6. WE HAVE CAREFULLY CONSIDERED THE RIVAL SUBMISSIO NS AND PERUSED THE RECORD. HAVING REGARD TO THE CIRCUMST ANCES, WE ARE OF THE VIEW THAT THE DELAY IN FILING THE CROSS-OBJE CTION IS NOT SUPPORTED BY A REASONABLE CAUSE. WE, THEREFORE, DISMI SS THE CROSS OBJECTION AS UN-ADMITTED ON THE GROUND THAT IT IS BA RRED BY LIMITATION. 7. IN THE RESULT, APPEAL OF THE REVENUE AS WELL AS C ROSS OBJECTION OF THE ASSESSEE ARE DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 04.11.2016. SD/- SD/-/- (S. RIFAUR RAHMAN) (D. MANMOHAN) ACCOUNTANT MEMBER VICE PRESIDENT HYDERABAD, DATED 04 TH NOVEMBER, 2016 VBP/- COPY TO 1. THE INCOME TAX OFFICER, WARD-16(2), HYDERABAD. 2. M/S. NATURALLE HEALTH PRODUCTS P. LTD., 100, KIRAN ARCADE, S.D. ROAD, SECUNDERABAD. 3. CIT(A)-V, HYDERABAD. 4. CIT-IV, HYDERABAD. 5. D.R. ITAT B BENCH, HYDERABAD. 6. GUARD FILE