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ITA 899/JPR/2019

• Counselvise Citation: [2019] 115 COUNSELVISE.COM (IT) 8528 (ITAT-JAIPUR)
• Duration Of Justice: 3 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-10-2019
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: B
• Assessment Year: 2012-2013
• Appeal Filed On: 24-06-2019
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: RUNI PAL J DHK
• Keywords: Principle of natural justice; Period of limitation; Reasonable cause; Corroborative evidences; Condonation of delay; Set aside
• Section: 271(1)(c); 274

Judgement Text

VK;DJ VIHYH; VF/KDJ.K] T;IQJ U;K;IHB] T;IQJ IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCH B , JAIPUR JH FOT; IKY JKO] U;KF;D LNL; ,OA JH FOE FLAG ;KNO] YS[KK LNL; DS LE{K BEFORE : SHRI VIJAY PAL RAO, JM & SHRI VIKRAM SINGH YADAV, AM VK;DJ VIHY LA-@ ITA NO.899/JP/2019 FU/KZKJ.K O'K Z@ ASSESSMENT YEAR : 2012-13 M/S. RATAN PAPERS PVT. LTD. 5054, RAMANUJ COLONY, SANGANER JAIPUR CUKE VS. THE DCIT CIRCLE - 7, JAIPUR LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN/GIR NO .: AAACR 8589 E VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT FU/KZKFJRH DH VKSJ LS @ ASSESSEE BY :SHRI MANISH AGARWAL, CA JKTLO DH VKSJ LS@ REVENUE BY SMT. RUNI PAL, JCIT-DR LQUOKBZ DH RKJH[K@ DATE OF HEARING : 09/10/2019 ?KKS'K .KK DH RKJH[K@ DATE OF PRONOUNCEMENT : 09 /10/2019 VKNS'K@ ORDER PER VIJAY PAL RAO, JM THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER DATED 16-05-2019 OF LD. CIT(A) -3, JAIPUR FOR THE ASSES SMENT YEAR 2012-13. THE ASSESSEE HAS RAISED THE FOLLOWING GROUNDS:- 1. ON THE FACTS AND THE CIRCUMSTANCES OF THE CASE AND IN LAW THE LD. CIT(A) HAS ERRED IN DISMISSING T HE APPEAL (APPEAL NO. 158/JAIPUR/18-19) OF THE APPELLANT BY N OT 2 ITA NO. 899/JP/2019 M/S. RATAN PAPERS PVT. LT D VS DCIT, CIRCLE 7, JAIPUR CONDONING THE SHORT DELAY OF 70 DAYS INCURRED IN FI LING THE APPEAL. THE LD. CIT(A) HAS FURTHER ERRED IN IGNORIN G THE FACT THAT THE DELAYS WERE NOT ON ACCOUNT OF APPELLANTS MISTAKE, THUS IN THE INTEREST OF JUSTICE DELAY MAY PLEASE BE CONDONED AND APPEAL BE ADMITTED FOR HEARING ON MERITS. 1.1 THE LD. CIT(A) FURTHER ERRED IN IGNORING THE CIRCUMSTANCES OF THE CASE AND THE FACT THAT THE QUA NTUM OF THE PENALTY LEVIED, REQUIRES CONSIDERATION ON MERIT S AND THAT THE TECHNICAL DEFECTS COULD HAVE BEEN CONDONED. 1.2 ON THE FACTS AND THE CIRCUMSTANCES OF THE CASE AND IN LAW THE LD. CIT(A) HAS ERRED IN IGNORING THE PRINCIPLE OF NATURAL JUSTICE BY NOT CONDONING THE TECHNICAL D EFECT IN FILING OF APPEAL AND NOT GIVING AN OPPORTUNITY OF T HE APPELLANT TO PRESENT HIS CASE ON MERITS. 2. ON THE FACTS AND THE CIRCUMSTANCES OF THE CASE AND IN LAW, THE INITIATION OF PENALTY AND ITS NON-C ONSIDERATION OF THE LD. CIT(A) IS BAD IN LAW. THE NOTICE ISSUED TO THE APPELLANT U/S 274 R.W.S. 271 DATED 27-03-2015 DID N OT SPECIFY THE LIMB OF SECTION 271(1)(C) UNDER WHICH THE ASSES SING OFFICER INTENDED TO LEVY PENALTY AND HENCE DESERVES TO BE QUASHED. 3. ON THE FACTS AND THE CIRCUMSTANCES OF THE CASE AND IN LAW THE AO HAS ERRED IN LEVYING PENALTY OF RS. 5,98,103/- U/S 271(1) OF THE ACT. 2.1 GROUND NOS. 1 TO 1.2 OF THE ASSESSEE ARE REGARD ING REJECTING THE CONDONATION OF DELAY OF 70 DAYS BY THE LD. CIT(A) W HILE PASSING THE IMPUGNED ORDER. THE LD.AR OF THE ASSESSEE SUBMITTED THAT THERE WAS DELAY 3 ITA NO. 899/JP/2019 M/S. RATAN PAPERS PVT. LT D VS DCIT, CIRCLE 7, JAIPUR OF 70 DAYS IN FILING THE APPEAL BEFORE THE LD. CIT( A) AND THE ASSESSEE FILED AN APPLICATION FOR CONDONATION OF DELAY EXPLAINING THE CAUSE OF DELAY THAT MANAGER ACCOUNTS OF THE ASSESSEE COMPANY WHO WAS LO OKING AFTER THE INCOME TAX MATTERS WAS ON LEAVE DUE TO HIS ILLNESS AND THEREFORE, TILL HE JOINED THE OFFICE, THE ASSESSEE COULD NOT TAKE STEP S TO FILE THE APPEAL BEFORE THE LD. CIT(A. HOWEVER, THE LD. CIT(A) DECLI NED THE CONDONATION OF DELAY AND DISMISSED THE APPEAL OF THE ASSESSEE I N LIMINE. THE LD.AR OF THE ASSESSEE ALSO FILED AN AFFIDAVIT OF THE DIRECTO R OF THE ASSESSEE COMPANY IN SUPPORT OF THE REASONS EXPLAINED FOR DEL AY IN FILING THE APPEAL BEFORE THE LD. CIT(A). THUS THE LD.AR OF THE ASSESS EE PLEADED THAT DELAY OF 70 DAYS IN FILING THE APPEAL BEFORE THE LD. CIT( A) MAY BE CONDONED. 2.2 ON THE OTHER HAND, THE LD. DR OBJECTED TO THE C ONDONATION OF DELAY AND SUBMITTED THAT REASONS EXPLAINED BY THE ASSESSE E FOR DELAY IN FILING THE APPEAL BEFORE THE LD. CIT(A) WERE NOT HAVING AN Y MERIT AND THEREFORE, THE LD. CIT(A) REJECTED THE APPLICATION FOR CONDONA TION OF DELAY. HE FURTHER SUBMITTED THAT SINCE THE ASSESSEE DID NOT F ILE ANY SUPPORTING EVIDENCE, THEREFORE, THE LD. CIT(A) WAS JUSTIFIED I N DISMISSING THE APPEAL OF THE ASSESSEE BEING TIME BARRED BY LIMITATION. 4 ITA NO. 899/JP/2019 M/S. RATAN PAPERS PVT. LT D VS DCIT, CIRCLE 7, JAIPUR 2.3 WE HAVE CONSIDERED THE RIVAL SUBMISSIONS AS WEL L AS RELEVANT MATERIAL ON RECORDS. THE LD. CIT(A) HAS RECORDED TH E BRIEF CONTENTS OF THE CONDONATION APPLICATION FILED BY THE ASSESSEE FOR C ONDONATION OF DELAY AND OBSERVED THAT REASONS ARE BASELESS AND WITHOUT ANY SUPPORTING EVIDENCE. THE RELEVANT PART OF PARAS 2 AND 3 OF LD . CIT(A)S ORDER IS AS UNDER:- 2. SHRI RAJEEV KUMAR, CA/AR OF THE APPELLANT APPEARED AND ARGUED THE APPEAL. THE APPELLANT HAS E-FILED THE INSTANT APPEAL ON 04-07-2018, THERE IS A DELAY OF 70 DAYS. THE APPELL ANT FILED CONDONATION DELAY PETITION AS UNDER:- THE MANAGER ACCOUNTS OF THE ASSESSEE COMPANY WHO WAS LOOKING AFTER THE INCOME TAX MATERS WAS ON LEAVE DUE TO ILLNESS AND THE APPEAL ORDER RECEIVED IN HIS ABSENCE AND WAS LYING UNOPENED TIL L HE JOINED THE OFFICE. DUE TO THIS REASON THE APPEAL COULD NOT BE FILED WITHIN 30 DAYS OF RECEIPT OF ORD ER. THE ASSESSEE REQUEST YOUR GOODSELF TO KINDLY CONSID ER THE APPEAL ON HUMANITY GROUND AND CONDONE THE DELAY IN FILING OF APPEAL. 3. I HAVE CAREFULLY CONSIDERED THE REASON GIVEN FOR CONDONATION DELAY. I FIND THAT THE REASON GIVEN BY THE APPELLANT IS BASELESS AND WITHOUT ANY SUPPORTING EVIDENCE. THEREFORE, I AM THE VIEW THAT THE APPELLA NT IS NOT FILED THE APPEAL WITHIN TIME WITHOUT ANY GEN UINE CAUSE. HENCE, I REJECT THE CONDONATION DELAY OF 70 5 ITA NO. 899/JP/2019 M/S. RATAN PAPERS PVT. LT D VS DCIT, CIRCLE 7, JAIPUR DAYS AND APPEAL IS ALSO DISMISSED AT THE ADMISSION STAGE. THUS THE LD. CIT(A) WAS NOT SATISFIED WITH THE CAUS E OF DELAY EXPLAINED BY THE ASSESSEE. THE ASSESSEE HAS NOW FILED THE AFF IDAVIT OF ONE SHRI GAURAV JAIN, DIRECTOR OF ASSESSEE COMPANY IN SUPPOR T OF CAUSE OF DELAY EXPLAINED IN THE APPLICATION FOR CONDONATION OF DEL AY BEFORE THE LD. CIT(A). 2.4 HAVING CONSIDERED THE AFFIDAVIT FILED BY THE AS SESSEE AS WELL AS THE REASONS EXPLAINED IN THE APPLICATION FOR CONDONATIO N OF DELAY, WE ARE SATISFIED THAT THE ASSESSEE HAD A REASONABLE CAUSE FOR NOT FILING THE APPEAL WITHIN THE PERIOD OF LIMITATION. FURTHER, WHEN THER E IS NOTHING ON RECORD TO SUGGEST THAT THE ASSESSEE WOULD TAKE ANY UNDUE ADVANTAGE BY FILING THE APPEAL BELATEDLY THEN THE REASONS EXPLAINED BY THE ASSESSEE CANNOT BE DOUBTED. ACCORDINGLY, IN THE FACTS AND CIRCUMSTANCE S OF THE CASE, THE DELAY OF 70 DAYS IN FILING THE APPEAL BEFORE THE LD . CIT(A) IS CONDONED. 3.1 THE GROUND NO. 2 AND 3 OF THE ASSESSEE ARE REGA RDING LEVY OF PENALTY. SINCE THE LD. CIT(A) HAS NOT DECIDED THE M ATTER ON MERITS BUT DISMISSED THE APPEAL OF THE ASSESSEE IN LIMINE BEIN G BARRED BY LIMITATION, 6 ITA NO. 899/JP/2019 M/S. RATAN PAPERS PVT. LT D VS DCIT, CIRCLE 7, JAIPUR THEREFORE, THE MATTER IS SET ASIDE TO THE RECORD OF THE LD. CIT(A) FOR DECIDING THE APPEAL ON MERITS. NEEDLESS TO SAY THAT THE ASSESSEE BE GIVEN APPROPRIATE OPPORTUNITY OF HEARING OF APPEAL BEFORE PASSING THE FRESH ORDER. THUS THE APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. 4.0 IN THE RESULT, THE APPEAL OF THE ASSESSEE IS AL LOWED FOR STATISTICAL PURPOSES ORDER PRONOUNCED IN THE OPEN COURT ON 09 /10/2 019. SD/- SD/- FOE FLAG ;KNO FOT; IKY JKO (VIKRAM SINGH YADAV) (VIJAY PAL RAO) YS[KK LNL;@ ACCOUNTANT MEMBER U;KF;D LNL;@ JUDICIAL MEMBER TK;IQJ@ JAIPUR FNUKAD@ DATED:- 09 /10/ 2019 *MISHRA VKNS'K DH IZFRFYFI VXZSFKR@ COPY OF THE ORDER FORWARDED TO: 1. VIHYKFKHZ@ THE APPELLANT- M/S. RATAN PAPERS PVT. LTD. JAIPUR 2. IZR;FKHZ@ THE RESPONDENT- THE DCIT, CIRCLE 7, JAIPUR 3. VK;DJ VK;QDRVIHY ) @ CIT(A), 4. VK;DJ VK;QDR@ CIT, 5. FOHKKXH; IZFRFUF/K] VK;DJ VIHYH; VF/KDJ.K] T;IQJ@ DR, ITAT, JAIPUR 6. XKMZ QKBZY@ GUARD FILE (ITA NO.899/JP/2019) VKNS'KKUQLKJ@ BY ORDER, LGK;D IATHDKJ@ ASSISTANT. REGISTRAR