Pahwa Chains Pvt. Ltd., Chandigarh vs Assessee

Pahwa Chains Pvt. Ltd., Vs. The Income Tax Officer, Plot No.72, Industrial Area I, Ward 2(1), Chandigarh. Chandigarh. PAN: AAACP9911A (Appellant) (Respondent)

Appellant by : Shri Anil Batra Respondent by : Shri Manjit Singh, DR

Date of hearing : 18.05.2015 Date of Pronouncement : 19.05.2015

PER BHAVNESH SAINI, J.M. :

This appeal filed by the assessee is directed

against the order of learned Commissioner of Income

Tax(Appeals)-I, Chandigarh dated 15.12.2014 for

assessment year 2008-09.

2. Briefly, the facts of the case are that earlier the

appeal of the assessee was dismissed by the learned CIT

(Appeals) vide order dated 30.8.2013 in limine holding it to

be time barred because no application for condonation of

delay has been filed. The assessee challenged the order of 2

the learned CIT (Appeals) before the I.T.A.T., Chandigarh

Bench and the Tribunal vide order dated 23.12.2013 in ITA

No.1013/2013 restored the matter to the file of the learned

CIT (Appeals) to consider the condonation application for

late filing of appeal and to decide the issue on merits.

Accordingly, the appeal of the assessee was allowed for

statistical purposes. The appeal thereafter fixed before the

learned CIT (Appeals) and the assessee filed application for

condonation of delay. It was explained that the appeal is

late by 52 days and it was explained that the Director of the

company was under mistaken assumption that no appeal

lies against the assessment order and it was only after due

consultation with the learned counsel for assessee the

appeal was filed. The same facts have also been submitted

by the Director in an affidavit filed before the I.T.A.T. The

learned CIT (Appeals), however, did not accept the

explanation of the assessee and dismissed the appeal of the

assessee again in limine.

3. After considering the rival submissions, we do not

find any justification to sustain the order of the learned CIT

(Appeals). The assessee earlier explained before the

Tribunal that appearance had been put up before the

learned CIT (Appeals) on various dates and the matter was

discussed on merits before the learned CIT (Appeals).

However, on the last date of hearing, it was pointed out by

the learned CIT (Appeals) that the appeal was late by 52

days. The learned CIT (Appeals) failed to allow any 3

opportunity to the assessee to file the application for

condonation of delay. The same facts are contained in the

affidavit of the Director of the company, copy of which is

placed on record. It was, therefore, clear that the appeal of

the assessee was heard by the learned CIT (Appeals) on

earlier occasion on merits. The Tribunal in the background

of these facts vide order dated 23.12.2013 restored the

matter back to the file of the learned CIT (Appeals) with

direction to consider the condonation application for filing

the appeal late before the learned CIT (Appeals) and

thereafter to determine the issue raised by the assessee on

merits of the case. Thus, it was clear from the order of the

Tribunal dated 23.12.2013 that the assessee may have a

cause for condonation of delay and, therefore, only in that

event the Tribunal directed the learned CIT (Appeals) to

decide the appeal of the assessee on merits. Considering

the background of the case and that the assessee has been

able to satisfy that there was reasonable cause for failure to

file the appeal within the period of limitation, we are of the

view that the learned CIT (Appeals) again should not have

dismissed the appeal of the assessee in limine holding it to

be time barred.

4. In view of the above discussion, we set aside the

impugned order and condone the delay in filing the appeal

before the learned CIT (Appeals). The learned CIT (Appeals)

is accordingly directed to decide the appeal of the assessee 4

on merits by giving reasonable sufficient opportunity of

being heard to the assessee.

5. In the result, the appeal of the assessee is allowed

for statistical purposes.

Order pronounced in the open court on this 19th

day of May, 2015.

Sd/- Sd/- (T.R.SOOD) (BHAVNESH SAINI) ACCOUNTANT MEMBER JUDICIAL MEMBER

Dated : 19 t h May, 2015

*Rati*

Copy to: The Appellant/The Respondent/The CIT(A)/The CIT/The DR.

Assistant Registrar, ITAT, Chandigarh