The ITO, Ward-7(2)(1), Ahmedabad V. Shri Shivajirao R.Chavan, Ahmedabad

MA 55/AHD/2022

AI Insights

The case involves six Miscellaneous Applications filed by the Revenue against Shri Shivajirao R Chavan concerning various assessment years from 1997-98 to 2001-02. The applications were filed to re-adjudicate issues previously dismissed due to low tax effect under a combined order. The Revenue argued that the applications were necessary to correct an oversight in not filing separate applications for each assessment year earlier. The main contention was the delay in filing these applications, which the Revenue sought to condone citing changes in office incumbents and disruptions caused by the COVID-19 pandemic. However, the Tribunal found the explanations for the delay insufficient, leading to the dismissal of all applications.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 129889 (ITAT-AHMEDABAD)
• Duration Of Justice: 9 month(s) 27 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 01-06-2023
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 25-05-2023
• Assessment Year: 1999-2000
• Appeal Filed On: 04-08-2022
• Other Referred Cases: Karuturi Global Ltd. vs. DCIT (2020) 116 taxmann.com 924 (Kar. HC)
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Tax effect; Condonation of delay
• Section: 254(2)

Judgement Text

M.A. Nos.52, 53, 54, 55, 56 & 57/Ahd/2022 Asst. Years: 1997-98, 1998-99, 1999-2000, 1999-2000, 2000-01, 2001-02 respectively Page 1 of 4 IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD “A” BENCH, AHMEDABAD BEFORE SMT. ANNAPURNA GUPTA, ACCOUNTANT MEMBER AND Ms. SUCHITRA KAMBLE, JUDICIAL MEMBER M.A. Nos.52, 53, 54, 55, 56 & 57/Ahd/2022 (In ITA Nos.1112/Ahd/2005, 2484/Ahd/2005, 1091/Ahd/2006, 1376/Ahd/2008, 1377/Ahd/2008 & 1513/Ahd/2006 respectively) Asst. Years: 1997-98,1998-99,1999-2000,1999-2000, 2000-01, 2001-02 respectively The Income Tax Officer, vs. Shri Shivajirao R Chavan, Ward – 7(2)(1), Ahmedabad. M-327, Sector-IV, K.K. Nagar, Ghatlodiya, Ahmedabad. [PAN – ADKPC 4171 H] (Appellant) (Respondent) Assessee by : Shri Sakar Sharma, AR Revenue by : Shri Sanjaykumar, Sr. DR Date of hearing : 26.05.2023 Date of pronouncement : 02.06.2023 O R D E R PER SUCHITRA KAMBLE, JUDICIAL MEMBER : These six Miscellaneous Applications are filed by the Revenue in respect of common order dated 14.08.2019 passed by the Tribunal. 2. The Ld. DR submitted that the Tribunal vide combined order dated 14.08.2019 in ITA No.1398/Ahd/2004 had dismissed the appeals of the Revenue as “withdrawn” due to low tax effect including assessee’s cases being ITA No.332/Ahd/2005 for A.Y. 1996-97, ITA No.1112/Ahd/2005 for A.Y. 1997-98, ITA No.2484/Ahd/2005 for A.Y. 1998-99, ITA No.1376/Ahd/2008 for A.Y. 1999-2000, ITA No.1091/Ahd/2006 for A.Y. 1999-2000, ITA No.1377/Ahd/2008 for A.Y. 2000-01 and ITA No.1513/Ahd/2006 for A.Y. 2001-02. The Ld. DR submitted that on verification, it was noticed that the said appeals mentioned hereinabove para falls under the exception laid down in para 10(e) of the Circular dated 11.07.2018. Accordingly, the then Income Tax Officer of the respective Ward of Income Tax Office vide communication No.ITO/Wd.7(2)(1)/SRC/ MA/2019-20 dated 11.02.2020 filed combined Misc. Application (being M.A. No. 48/Ahd/2020 in ITA No.332/Ahd/2005 for A.Y. 1996-97) before the Tribunal on M.A. Nos.52, 53, 54, 55, 56 & 57/Ahd/2022 Asst. Years: 1997-98, 1998-99, 1999-2000, 1999-2000, 2000-01, 2001-02 respectively Page 2 of 4 13.02.2020 for all AYs. 1996-97 to 2001-02, but inadvertently on first page of petition A.Y. 1997-98 was mentioned. The Ld. DR further submitted that the said MA was allowed vide order dated 05.10.2020/2021. The said order was received on 16.12.2021 and it was noticed that the MA is allowed for only one A.Y. 1997-98 and not for the remaining assessment years. The Ld. DR further submitted that at that time the then Ld. DR appraised that Misc. Application was required to be filed separately for each assessment year. Hence, the present Misc. Applications are filed. Thus, the Ld. DR submitted that the issue may be re-adjudicated by admitting M.A for remaining years and the additions made for AY 1997-98 may be confirmed. 3. The Ld. DR further submitted that there is a delay in filing the Misc. Applications to that of 887 days for which the Ld. DR submitted that the condonation of delay and its reasons are envisaged in paras 8, 9 and 10 of the Misc. Applications. The same is as follows: “8. Condonation of delay: The delay in filing of this Misc. application for AY 1997-98 has occasioned due to following reasons: • 16.12.2021 – Received copy of order from the Hon’ble ITAT office allowing MA for AY 1997-98 in this case i.e. very much time after it had filed and date of pronouncement i.e. 05.10.2020. • 17.12.2021 to till date – On account of change of incumbent in the office and it was in assumption that in other assessment years also, the MA is admitted as per this office communication dated 13.02.2020 but not communicated the same from the Hon’ble ITAT office. Further, delay has also occurred due to impact of the spread of the new variant of the Covid-19 and the drastic surge in the number of Covid cases across the country in that period of time (in second wave) and as such, the mater of filing of MA in this case had got overlooked. 9. It is humbly submitted that in view of the above chain of events, the delay has occurred due to bonafide reasons in filing of Miscellaneous Application by the then Income Tax Officer concerned which caused for filing of fresh Misc. Application for the remaining years. Therefore, the delay in filing of this Misc. M.A. Nos.52, 53, 54, 55, 56 & 57/Ahd/2022 Asst. Years: 1997-98, 1998-99, 1999-2000, 1999-2000, 2000-01, 2001-02 respectively Page 3 of 4 Application for AY 1997-98 may kindly be condoned. The applicant submits that in the present case, despite the best efforts on the part of the applicant, delay has been caused due to the circumstances beyond his control. 10. In view of the above, the Applicant humbly prays that Your Lordships be pleased to allow this Misc. application and be further pleased to condone the delay of 887 days caused in filing the Misc. Application also considering the Hon’ble Supreme Court’s decision in MA No. 29 of 2022 extending the period of limitation upto 28.02.2022, excluding the period from 15.03.2020 till 28.02.2022 for the purpose of limitation in filing of appeals, etc. in various courts.” 4. The Ld. AR submitted that the delay is exorbitant and the Tribunal does not have power to condone the delay in filing of Misc. Application as per Section 254(2) of the Income Tax Act, 1961. The Ld. AR further submitted that the correct date of order of the Tribunal in M.A. No.48/Ahd/2020 in ITA No.332/Ahd/2005 is 05.10.2021 and not 05.10.2020. The Ld. AR submitted that reasons stated for condonation in Para 8 of the MAs are not sufficient and does not justify the condonation of delay. In fact, despite drawing attention by the Tribunal about M.As for remaining years while hearing M.A. No.48/Ahd/2020 for A.Y. 1996-97, no steps were taken to prefer MA with condonation request. Even after adjudication of MA for AY 1996-97, no MAs were preferred for remaining years. MAs are preferred only after part hearing of appeals for two assessment years by the Tribunal, from the bunch of appeals were placed for hearing and not before that. The Ld. AR submitted that the MA has been preferred with prior approval of Pr. CIT-3, Ahmedabad dated 04.08.2022 and the date of hearing after filing of MA for AY 1996-97 upto the date of fling are : 27.01.2021, 15.02.2021, 04.05.2021, 15.02.2022, 29.03.2022, 09.06.2022, 13.07.2022, 19.07.2022, 05.08.2022. The Ld. AR further submitted that the MAs are preferred against the dead person despite substitution of legal heir by the family members of assessee and approved by the AO. PCIT has also accorded approval in mechanical manner in as much as there is no reference of any approval granted earlier within the limitation period. The Ld. AR submitted that there is no such power available to the Tribunal to condone the delay in filing of MA in terms of provisions of Section 253(5) of the Income Tax Act, 1961. The Ld. AR relied upon the decision of various Benches of the Tribunal as well as the Hon’ble Karnataka High Court’s decision in case of Karuturi Global Ltd. vs. DCIT (2020) 116 taxmann.com 924 (Kar. HC). M.A. Nos.52, 53, 54, 55, 56 & 57/Ahd/2022 Asst. Years: 1997-98, 1998-99, 1999-2000, 1999-2000, 2000-01, 2001-02 respectively Page 4 of 4 5. We have heard both the parties and perused all the relevant material available on record. It is pertinent to note that though the Hon’ble Supreme Court has extended the period of limitation till 28.02.2022, the Ld. DR could not explain the delay from 14.09.2019 till 15.03.2020 (date from which Covid-19 restrictions were imposed) and from 28.02.2022 till the filing of present Misc. Applications which is 05.08.2022. Despite the extension granted by the Hon’ble Supreme Court, the Revenue has filed the Misc. Application after five months from the period of extension granted and also six months after the original order dated 14.09.2019 was passed. Therefore, the delay in present Misc. Applications cannot be condoned. Thus, all the six Misc. Applications being M.A.No. 52/Ahd/2022 in ITA No.1112/Ahd/2005 for A.Y. 1997-98, M.A. No. 53/Ahd/2022 in ITA No.2484/Ahd/2005 for A.Y. 1998-99, M.A. No.54/Ahd/2022 in ITA No.1091/Ahd/2006 for A.Y. 1999-2000, M.A.No.55/Ahd/2022 in ITA No. 1376/Ahd/2008 for A.Y. 1999-2000, M.A. No. 56/Ahd/2022 in ITA No.1377/Ahd/2008 for A.Y. 2000-01 and M.A. No.57/Ahd/2022 in ITA No.1513/Ahd/2006 for A.Y. 2001-02 are dismissed. 6. In result, all the six Misc. Applications filed by the Revenue are dismissed. Order pronounced in the open Court on this 2 nd June, 2023. Sd/- Sd/- (ANNAPURNA GUPTA) (SUCHITRA KAMBLE) Accountant Member Judicial Member Ahmedabad, the 2 nd day of June, 2023 PBN/* Copies to: (1) The appellant (2) The respondent (3) CIT (4) CIT(A) (5) Departmental Representative (6) Guard File By order UE COPY Assistant Registrar Income Tax Appellate Tribunal Ahmedabad benches, Ahmedabad