MSM SATELLITE (SINGAPORE) PTE. LTD, MUMBAI v. JDIT (IT) RG 4, MUMBAI

ITA 1929/MUM/2014 | 2009-2010
Pronouncement Date: 19-10-2016

Appeal Details

RSA Number 192919914 RSA 2014
Assessee PAN AABCS9229H
Bench Mumbai
Appeal Number ITA 1929/MUM/2014
Duration Of Justice 2 year(s) 6 month(s) 28 day(s)
Appellant MSM SATELLITE (SINGAPORE) PTE. LTD, MUMBAI
Respondent JDIT (IT) RG 4, MUMBAI
Appeal Type Income Tax Appeal
Pronouncement Date 19-10-2016
Appeal Filed By Assessee
Bench Allotted L
Tribunal Order Date 19-10-2016
Date Of Final Hearing 28-09-2016
Next Hearing Date 28-09-2016
Assessment Year 2009-2010
Appeal Filed On 21-03-2014
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL L BENCH MUMBAI BEFORE SHRI D. KARUNAKARA RAO ACCOUNTANT MEMBER AND SHRI RAVISH SOOD JUDICIAL MEMBER I.T.A. NO.1929/M/2014 (ASSESSMENT YEAR: 2009 - 2010 ) MSM SATELLITE (SINGAPORE) PTE. LTD. (FORMERLY KNOWN AS SET SATELLITE (SINGAPORE) PTE LTD) C/O. SRBC & ASSOCIATES LLP 14 TH FLOOR THE RUBY 29 SENAPATI BAPAT MARG DADAR (W) MUMBAI 400 028. / VS. JDIT (IT) RANGE - 4 133 SCINDIA HOUSE BALLARD PIER MUMBAI 400 038. ./ PAN : AABCS9229H ( / APPELLANT) .. ( / RESPONDENT ) / APPELLANT BY : SHRI P.J. PARDIWALLA / RESPONDENT BY : SHRI JABIR CHGOUHAN CIT - DR / DATE OF HEARING : 28.09.2016 / DATE OF PRONOUNCEMENT : 19 .10.2016 / O R D E R PER D. KARUNAKARA RAO AM: THIS APPEAL FILED BY THE ASSESSEE ON 21.3.2014 IS AGAINST THE ORDER OF THE AO / DRP FOR THE ASSESSMENT YEAR 2009 - 2010. 2. IN THIS APPEAL ASSESSEE RAISED TWENTY GROUNDS IN TOTO. BRINGING OUR ATTENTION TO THE GROUNDS OF APPEAL LD COUNSEL FOR THE ASSESSEE SUBMITTED THAT GROUNDS NO.1 TO 4 RELATE TO THE PRELIMINARY ISSUE RELATES TO THE DECISION OF THE DRP IN DISMISSING ASSESSEE S APPLICATION IN FORM NO.35A IN LIMINE. REFERRING TO GROUNDS NO.5 TO 20 LD COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE DRP DID NOT ADJUDICATE THE SAID GROUNDS AND THEREFORE TO START WITH THE BENCH MAY ADJUDICATE THE SAID PRELIMINARY ISSUE RAISED IN GROUNDS NO.1 TO 4 AND REMAND THE OTHER GROUNDS TO THE FILE OF THE DRP / AO FOR DECISION. THEREFORE TO START WITH WE PROCEED TO ADJUDICATE THE FIRST FOUR GROUNDS WHICH ARE REPRODUCED AS UNDER: - 2 1. ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW T HE HONBEL DRP ERRED IN DISMISSING THE APPLICATION FILED BY THE APPELLANT IN FORM 35A IN LIMINE BY HOLDING THAT THE APPLICATION IS INVALID AND NON - EST. 2. ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW THE HONBLE DRP ERRED IN NOT ADJUDICATING THE APPELLANTS CASE ON MERITS. 3. ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW THE HONBLE DRP FAILED TO APPRECIATE THAT THE DEFECT POINTED OUT WAS A CURABLE DEFECT AND SHOULD HAVE SO HELD WHEN THE APPELLANT HAD FILED CORRECTED FORM 35A. 4. WITHOUT PREJUDICE TO THE ABOVE THE HONBLE DRP FAILED TO APPRECIATE THAT TREATING THE APPELLANTS APPLICATION AS NON - EST RENDERED THE ASSESSMENT AS TIME BARRED. 3. IN CONNECTION WITH THE ABOVE FOUR GROUNDS THE RELEVANT FACTS ARE THAT THE ASSESSEE FILED THE RET URN OF INCOME DECLARING THE TOTAL INCOME OF RS. 19.08 CRS (ROUNDED OFF). THERE WAS A REVISED RETURN OF INCOME WITH THE ADDITIONAL CLAIMS. THE OTHER FACTS INCLUDE THAT THE ASSESSEE WAS HAVING TRANSACTIONS WITH ASSOCIATED ENTERPRISES (AES) AND THEREFORE T HE SAME WERE REFERRED TO TPO FOR DETERMINING THE ARMS LENGTH PRICE (ALP). TPO DID NOT MAKE ANY ADJUSTMENTS. HOWEVER THERE WERE OTHER ISSUES RAISED BY THE AO IN THE ASSESSMENT RELATING TO THE ADVERTISEMENT BUSINESS CONNECTIONS EXISTENCE OF PE TAXABILI TY OF INTEREST INCOME ETC AND THE DRAFT ASSESSMENT WAS MADE VIDE THE DRAFT ASSESSMENT ORDER DATED 25.3.2012 U/S 143(3) READ WITH SECTION 144C(13) OF THE ACT. EVENTUALLY AO DETERMINED THE TOTAL INCOME OF THE ASSESSEE AT RS. 282.48 CRS (ROUNDED OFF). OTHE RWISE ASSESSEE IS ENGAGED IN MEDIA BUSINESS. 4. ASSESSEE FILED ITS OBJECTIONS TO THE DRP IN FORM NO.35A ON 23.4.2013. HOWEVER THE FORM NO. 35A FILED BY THE ASSESSEE IS ONLY A SCANNED COPY CONTAINING THE SIGNATURE OF THE CONCERNED PERSON. BEFORE THE DRP THE MAINTAINABILITY OF THE SCANNED COPY OF THE FORM NO.35 (SAID APPLICATION) CAME UP FOR DISCUSSION IN THE VERY FIRST HEARING ON 13.11.2013. FOR THE FIRST TIME THE DRP GAVE A SHOW CAUSE NOTICE TO THE ASSESSEE PROPOSING TO TREAT THE SAID SCANNED COP Y OF THE APPLICATION IN FORM NO.35A AS NON - EST AND PROPOSED TO DISMISS THE SAME IN LIMINE . ASSESSEE WAS GIVEN TIME TILL 2.12.2013 TO RESPOND TO THE SAID SHOW CAUSE NOTICE. IN RESPONSE VIDE LETTER DATED 28.11.2013 THE ASSESSEES REPRESENTATIVE SUBMITT ED THAT ORIGINAL FORM NO.35A COULD NOT BE FURNISHED TO REPLACE THE SCANNED COPY WHICH IS ALREADY WITH DRP WITHIN THE PRESCRIBED TIME OF 30 DAYS FOR THE REASONS VIZ (I) THE ASSESSEE GEOGRAPHICALLY LOCATED IN SINGAPORE; (II) THE SIGNED ORIGINAL APPLICATION COULD NOT BE RECEIVED IN INDIA IN TIME; (III) TO MEET THE DEAD LINES ASSESSEE FILED THE APPLICATION WITH COLOUR SCANNED COPY OF FORM NO.35 WITH THE INTENTION TO REPLACE THE SAME WITH 3 THE ORIGINAL ONE AT THE TIME OF HEARING BEFORE THE DRP; (IV) THERE WAS A CHANGE IN THE TAX CONSULTANT / AR OF THE ASSESSEE AND THE RESPONSIBILITY OF REPLACING THE SCANNED COPY WITH THE ORIGINAL APPLICATION HAS MISSED INADVERTENTLY. ASSESSEE ALSO ARGUED STRONGLY ON THE CURABILITY OF THE SAID LAPSE / IRREGULARITY / DEFECT. IN THIS REGARD ASSESSEE RELIED ON VARIOUS DECISIONS AND ARGUED THAT THE SAID DEFECT IS RECTIFIABLE U/S 292B OF THE ACT. ASSESSEE WAS READY TO FURNISH THE APPLICATION IN ORIGINAL FORM NO.35A WHICH WAS NOT ACCEPTED BY THE DRP. ON HEARING THE ABOVE DRP DECI DED THE PRILIMINARY ISSUE ABOUT THE MAINTAINABILITY OF SUCH APPLICATION BEING A SCANNED COPY OF THE ORIGINAL FORM NO.35A. THE DRP DISCUSSED THE ASSESSEE FAILURE TO REPLACE THE SCANNED COPIES WITH THE ORIGINAL SIGNED DOCUMENTS AND DEBATED ON THE NEGLIGENCE OF THE ASSESSEE. THEY ALSO DISCUSSED THE RESPONSIBILITY OF THE CITIZEN TO ABIDE BY THE RULES AND PROCEDURES PRESCRIBED IN THE LAW. THE DRP EQUATED THIS DEFECT / MISTAKE TO THE FACT OF THE RETURN OF INCOME FILED WITHOUT SIGNATURE. HE ALSO MENTIONED THAT THE PROCEEDINGS BEFORE THE DRP CONSTITUTE A PRE - ASSESSSMENT PROCEEDINGS. FURTHER STATING THAT WHEN THE ASSESSEE FAILED TO REMOVE THE DEFECT IN THE RETURN OF INCOME THE SAID RETURN OF INCOME WILL BE TREATED AS NON - EST AND THE SIMILAR FACT IS ATTRIBU TED TO THE FAILING TO FILE FORM NO.35A IN ORIGINAL. FURTHER RESPONDING TO THE ASSESSEES CORRECTED APPLICATION IN FORM NO.35A THE DRP IS OF THE OPINION THAT THE SAME IS NOT PROPER AS THE PROCEEDINGS BEFORE THE DRP ARE DIFFERENT FROM THUS BEFORE THE APPE LLATE AUTHORITY UNDER THE STATUTE AND THEY ARE ONLY PRE - ASSESSMENT PROCEEDINGS. THEREFORE THE DECISIONS CITED BY THE ASSESSEE WHICH PRIMARILY RELATES TO THE PROCEEDINGS BEFORE THE CIT (A) ARE DISTINGUISHABLE ON FACTS. FURTHER RESPONDING TO THE ARS A RGUMENT TO TREAT THE ASSESSMENT PROCEEDINGS AS TIME BARRED AS COPY OF FORM NO.35A FILED BEFORE THE AO WAS ALSO A SCANNED COPY AND THE AO SHOULD HAVE CONSIDERED THE SAME AS NON - EST AND THEREFORE COMPLETED THE ASSESSMENT BY HOLDING THAT THE ASSESSEE HAD NOT OPTED FOR FILING THE OBJECTIONS BEFORE THE DRP. IN REPLY THE DRP TOOK NOTICE OF THE ASSESSEES INTIMATION TO THE AO ABOUT ITS INTENTION TO FILE THE OBJECTIONS BEFORE THE DRP AND CONCLUDED THAT THE ASSESSMENT ORDER IS NOT TIME BARRED. EVENTUALLY DR P HELD THAT THE SCANNED COPY APPLICATION OF FORM NO.35A IS INVALID AND NON - EST . ACCORDINGLY DRP DISMISSED THE APPLICATION IN LIMINE . RELEVANT LINES FROM THE DRPS DIRECTION DATED 4.12.2013 (AT PAGE 10 AND 11) ARE EXTRACTED AS UNDER: - 4 ...............IT IS TRITE LAW THAT AN APPLICATION MADE BEFORE ANY AUTHORITY UNDER PRESCRIPTION OF LAW HAS TO BE DEALT WITH BY THAT AUTHORITY ITSELF. IN THE INSTANT MATTER IT MEANS THAT THE APPLICATION FILED BEFORE THE DRP IN NUMBER 35A IN ALL RESPECTS AND ASPECTS OF THE APPLICATION WAS TO BE DEALT WITH BY THE DRP ITSELF. THE ASSESSING OFFICER THEREFORE COULD NOT HAVE TAKEN A VIEW ON THE MAINTAINABILITY OF THE APPLICATION OR ON THE MERITS OF EACH OF THE OBJECTIONS RAISED BEFORE THE DRP. THIS WAS WITHIN THE SOLE PURVIE W OF THIS DRP. THIS DECISION IS NOW BEING TAKEN AND THE AO WILL COMPLETE THE ASSESSMENT IN COMPLIANCE OF THESE DIRECTIONS BEING ISSUED. BASED ON THE DISCUSSION IN PARAS SUPRA AND IN THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW WE HOLD THE ASSESSE ES APPLICATION IN FORM NUMBER 35A AS INVALID AND NON - EST. IT IS ACCORDINGLY DISMISSED IN LIMINE. 5. HOWEVER DRP DID NOT ADJUDICATE THE OTHER GROUNDS RAISED BY THE ASSESSEE ON MERITS. SUBSEQUENTLY ASSESSMENT ORDER DATED 10.1.2014 U/S 143 (3) READ WITH SECTION 144C(13) OF THE ACT WAS PASSED ASSESSING THE TOTAL INCOME OF THE ASSESSEE AT RS. 282 48 09 813/ - AFTER MAKING VARIOUS ADDITIONS ON ACCOUNTS OF ROYALTY INCOME INTEREST INCOME ADVERTISEMENT INCOME TREATING THE DISTRIBUTION INCOME AS ROYALTY INCOME ETC. AGGRIEVED WITH THE ABOVE ORDER OF THE AO AND THE DRP ASSESSEE IS IN APPEAL BEFORE THE TRIBUNAL. 6. DURING THE PROCEEDINGS BEFORE US SHRI P.J. PARDIWALLA LD COUNSEL FOR THE ASSESSEE NARRATED THE ABOVE CITED FACTS SUBMISSIONS AND LEGAL PROPO SITIONS ETC. LD COUNSEL FOR THE ASSESSEES ARGUMENTS REVOLVE AROUND THE FOLLOWING: (I) FILING APPLICATION BEFORE THE DRP BY WAY OF SCANNED COPY OF FROM NO.35A IS A CURABLE DEFECT / IRREGULARITY. THE PROVISIONS OF SECTION 292B OF THE ACT SUPPORT THE SAME; (II) ASSESSEE COULD NOT FURNISH THE APPLICATION IN ORIGINAL DUE TO THE LIMITATION OF 30 DAYS AND IT TOOK TIME FOR SENDING THE ORIGINAL APPLICATION FROM SINGAPORE TO INDIA. AFTER RECEIPT IN INDIA THE SAME COULD NOT BE FILED BEFORE THE DRP DUE TO THE FACT OF CHANGE OF THE AUTHORIZED REPRESENTATIVE IN INDIA TO REPRESENT BEFORE THE DRP; (III) NO DEFECT NOTICE / SHOW CAUSE NOTICE WAS RECEIVED BY THE ASSESSEE WITH INTIMATION TO REMOVE THE DEFECTS IF ANY TILL THE FIRST HEARING OF THE APPLICATION BY THE DRP. OTHERWISE LD COUNSEL FOR THE ASSESSEE BROUGHT OUR ATTENTION TO VARIOUS DECISIONS AND SUGGESTED INSTITUTION OF DRP WAS INCORPORATED IN THE STATUTE TO DO AWAY WITH THE WELL EXISTED PROCEEDINGS BEFORE THE FIRST APPELLATE AUTHORITY IE CIT (A). THE DRP PROCEE DINGS CONSTITUTE APPELLATE PROCEEDINGS IN SUBSTANCE AND THEREFORE THE EVENTS RELATABLE TO THE REMOVABLE OF DEFECTS ARE EQUALLY APPLICABLE TO THE DRP. REFERRING TO THE ASSESSEES EFFORTS IN SENDING SCANNED COPIES OF THE APPLICATION TO THE DRP LD COUNSE L FOR THE ASSESSEE SUBMITTED THAT ASSESSEES INTENTION IS UNDISPUTEDLY CLEAR 5 AND THEY WANT TO EXPLOIT THE RIGHT OF FILING APPLICATION BEFORE THE DRP SEEKING DIRECTIONS TO THE AO. TAKING CLUE FROM THE DRPS ORDER LD COUNSEL FOR THE ASSESSEE ARGUED BY STAT ING THAT THE ASSESSMENT ORDER MADE BY THE AO ON 10.1.2014 SHOULD BE TREATED TIME BARRED IF THE IMPUGNED APPLICATION TO THE DRP IS TREATED AS NON - EST . ELABORATING THE SAME LD COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE DRP CANNOT DISMISS THE APPLICATION AS NON - EST AND TREATED THE ASSESSMENT ORDER AS VALID ONE. HE ALSO MENTIONED THAT THIS ISSUE HAS COME UP FOR JUDICIAL SCRUTINY FOR THE FIRST TIME AND THEY ARE NOT BINDING / PERSUASIVE PRECEDENTS ON THIS ISSUE. FINALLY HE SUBMITTED THAT THE APPLICATION F ILED ON 13.4.2013 IS OTHERWISE COMPLETE IN ALL RESPECTS AS IT IS VALIDLY SIGNED BY THE AUTHORIZED SIGNATORY AND FILED IN TIME IE BEFORE THE EXPIRY OF 30 DAYS LIMITED PRESCRIBED IN THE ACT. HE ALSO SUMMED UP BY SAYING THAT IT IS A CURABLE DEFECT AND ASSESS EES ATTEMPT TO FILE ORIGINAL FORM NO.35A WAS NOT ACCEPTED BY THE DRP FOR THE REASONS NOT KNOWS TO THE ASSESSEE. 7. PER CONTRA LD DR FOR THE REVENUE RELIED HEAVILY ON THE ORDER OF THE AO DRP AND THE CONCLUSIONS DRAWN BY THESE AUTHORITIES IN THEIR RESPECT IVE ORDERS. LD DR SUBMITTED THAT THE DRP FOLLOWED THE SAME ANALOGY AND THE LIKELY EFFECT OF THE VALIDLY FILED RETURN OF INCOME. HE PRAYED FOR CONFIRMING THE ORDER OF THE AO AND THE DIRECTIONS OF THE DRP. 8. WE HAVE HEARD THE PARTIES AND ALSO PERUSED THE ORDERS OF THE REVENUE RELEVANT PAGES OF THE ASSESSEE'S PAPER BOOK JUDGMENTS CITED BEFORE US. THE MAIN ISSUE FOR ADJUDICATION BEFORE US REVOLVES AROUND THE CORRECTNESS OF THE DECISION OF THE DRP IN DISMISSING THE APPLICATION OF THE ASSESSEE IN LIMINE BY TREATING THE SCANNED COPY OF THE APPLICATION IN FORM NO.35A AS NON - EST . T HE CORE REASON FOR SUCH DISMISS AL RELATES TO THE FURNISHING OF THE SCANNED COPY OF THE FORM NO.35A AS NON - EST BEFORE THE DRP AND NOT IN ORIGINAL . OTHERWISE THERE IS NO DISPUTE ON FACTS RELATING TO THIS ISSUE. ASSESSEE FILED THE SCANNED COPY OF THE DULY SIGNED A PPLICATION IN FORM NO 35A BEFORE THE EXPIRY OF 30 DAYS TIME GIVEN IN THE STATUTE BEFORE THE DRP AND SAME WAS ACCEPTED BY THE DRP. NO D EFECT NOTICE WAS ISSUED BY THE R EVENUE FOR PERIOD OF AT LEAST 6 MONTHS (23.4.2013 TO 13.11.2013). FOR THE FIRST TIME A SHOW CAUSE NOTICE WAS ISSUED ONLY DURING THE HEARING PROCEEDINGS IE AFTER HEARING NOTICE WAS ISS UED IN RESPONSE TO THE SAID FORM NO. 35A A SCANNED COPY. ASSESSEE REPLIED TO THE SAME AND HE WANTED TO FILE THE A PPLICATION IN ORIGINAL AND 6 REPLACE THE EXISTING SCANNED COPY OF THE SAME . BUT THE SAME WAS REJECTED BY THE DRP. WITH ABOVE SAID FACTUAL MATRIX NOW WE NEED TO DECIDE IF THE DR P IS JUSTIFIED IN TREATING THE SAID SCANNED COPY OF APPLICATION AS NON - EST AND ALSO DISMISSING THE APPLICATION IN LIMINE . 9. ON HEARING THE PARTIES WE FIND THE FOL LOWING ARE SOME OF THE LIST OF INADEQUACIES FROM ASSESSEE'S SIDE : THEY ARE: 1 . FAILURE TO FILE THE F ORM 35A ( A KIND OF APPEAL MEMO) IN ORIGINAL INSTEAD OF THE SCANNED COPY BEFORE THE DRP 2 . FAILURE TO REPLACE THE SCANNED COPY BY FILING THE SAME IN ORIGINAL IMMEDIATELY THEREAFTER; 3. NOTWITHSTANDING A SSESSEE FAILS TO PRAY FOR THE CONDONATION OF DELAY IF ANY IN FILING THE SAID FORM NO 35A AND 4 . FAILURE OF M AINTAINING THE CONTINUED FLOW OF INFORMATION TO THE NEWLY APPO INTED AR OF THE A SSESSEE. ASSESSEE CHANGED THE AR FOR DEALING WITH THE DRP RELATED MATTERS AFTER THE SCANNED COPY WAS FILED . 10. FURTHER SOME OF THE L IST OF INADEQUACIES FROM REVENUE SIDE INCLUDE: 1. FAILURE TO REJECT THE F ORM NO . 35A IN SCANNED COPY AT THE THRESHOLD STAGE ITSELF AND WHY THE OFFICERS HAVE NOT TAKEN ANY ACTION ON THE SAID DEFECT FORM N O . 35A AND ALSO AGAINST THE ERRING OFFICIALS / OFFICERS; 2 . FAILURE TO ISSUE AN APPROPRIATE DEFECT NOTICE AT APPROPRIATE TIME CALLING FOR REMOVAL OF THE DEFECT IF ANY WITHOUT WAITING FOR MORE THAN 7 LONG MONTHS IE TILL THE DATE OF HEARING OF THE APPLICATIO N BEFORE THE DRP. DRP ISSUED A SHOW CAUSE NOTICE FOR THE FIRST TIME ONLY DURING THE HEARING PROCEEDINGS 3 . FAILURE IN APPRECIATING THE SAME WHEN THE SCANNED COPY OF F ORM N O. 3 5A IS OTHER WISE IN ORDER IN ALL RESPECTS BEARING CORRECT SIGNATURE OF THE PERSON WHO IS DULY AUTHORISED IN THIS REGARD ETC . 11. IN THE LIGHT OF THE ABOVE STATED FACTUAL POSITION WE PROCEED TO ANALYSE THE PROVISIONS OF SECTION 292 B OF THE ACT INTENT IN OF THE A SSESSEE ETC BEFORE DECIDING THE FIRST FOUR GROUNDS OF APPEAL. A. LEGAL PROVISIONS: 11. SECTION 292B OF THE INCOME TAX ACT RELATES TO ' RETURN OF INCOME ETC. NOT TO BE INVALID ON CERTAIN GROUNDS.' AND THE SAME READ AS UNDER - SEC. 292B . NO RETURN OF INCOME ASSESSMENT NOTICE SUMMONS OR OTHER PROCEEDING FURNISHED OR MADE OR ISSUED OR TAKEN OR PURPORTED TO HAVE BEEN FURNISHED OR MADE OR ISSUED OR TAKEN IN PURSUANCE OF ANY OF THE PROVISIONS OF THIS ACT SHALL BE INVALID OR SHALL BE DEEMED TO BE INVALID MERELY BY REASON OF ANY MISTAKE DEFECT OR OMISSION IN SUCH RETURN OF INCOME ASSESSMENT NOTICE SUMMONS OR OTHER PROCEEDING IF SUCH RETURN OF INCOME ASSESSMENT NOTICE SUMMONS OR OTHER 7 PROCEEDING IS IN SUBSTANCE AND EFFECT IN CONFORMITY WITH OR ACCORDING TO THE INTENT AND PURPOSE OF THIS ACT. 12. WE HAVE EXAMINED THE ABOVE PR OVISIONS AND THE HIGHLIGHTED IN BOLD THE RELEVANT EXPRESSIONS THAT MAY BE OF SOME USE TO THE ISSUE UNDER C ONSIDERATION. THE EXPRESSIONS 'OTHER PROCEEDINGS' THAT APPEAR AT THREE TIMES IN THE SECTION DISTINCTL Y IMPLY PROCEEDINGS OTHER THAN RETURN ASSESSMENT NOTICE SUMMONS ETC. H OW ABOUT THE FURNISHING OF THE A PPLICATION TO THE DRP? WE HAVE EXAMINED IF THIS PROCEEDING FALLS WITHIN THE SCOPE /MEANING OF THIS EXPRESSION. AS SUCH THERE IS NO PRECEDENT IN THIS REGARD FOR OR AGAINST IT. CONSIDERING TH E SAME WE ARE OF THE CONSIDERED OPINION THAT THE EXPRESSION IE ' OTHER PROCEEDINGS' IS RESIDUAL AND GENERIC IN NATURE AND IT IS WIDE ENOUGH TO INCLUDE THE PRESENT ISSUE UNDER CONSIDERATION VIZ T HE PROCEEDING OF FURNISHING OF A PPLICATION. HAVING H ELD IT SO AND IN FAVOUR OF THE A SSESSEE WE NEED TO DECIDE IF THE FURNISHING OF SUCH SCANNED COPY OF THE DULY SIGNED APPLICATION IN FORM NO 35A CONSTITUTES A INVALID ONE AND NOT CURABLE UNDER THIS SECTION. IN THIS REGARD WE HAVE EXAMINED IF THE SUCH SCANNED COPY IS IN SYNC IN SUBSTANCE WITH THE INTENT AND PURPOSE OF THE ACT. WE FIND THERE IS NO DISPUTE ON THAT PART OF THE ANALYSIS AND ARGUMENT. REVENUE'S ONLY OBJECTION IS REGARDING FURNISHING OF THE A PPLICATION IN SCANNED COPY. OTHERWISE THE SAID SCANNED COPY I S MEANT FOR THE A SSESSEE AND FOR THE PURPOSES OF THE ACT IN ALL RESPECTS. FURTHER WE FIND I T IS UNDISPUTED FACT THAT IN RESPONSE TO THE SHOW CAUSE NOTICE THE A SSESSEE ATTEMPTS TO FILE THE FORM NO 35A IN ORIGINAL AND HOWEVER THE SAME WAS NOT SUCCESSFULL Y ALLOWED BY THE DRP. RATHER THE DRP PREFERRED TO ACT ON THE SAID SCANNED COPY OF FORM NO 35A UNFAIRLY AND CONSIDERED THE SAID THE SCANNED APPLICATION AS NON - EST . FURTHER IT IS RELEVANT TO MENTION THAT THE DRP FAILED TO PROVIDE THE WRITTEN REASONS FOR REJECTING THE ORIGINAL APPLICATIO N ATTEMPTED TO BE FILED BY THE A SSESSEE IN RESPONSE TO THE SHOW CAUSE NOTICE. 13. THUS IN OUR OPINION THE EXPRESSION 'OTHER PROCEEDINGS' IS WIDER ENOUGH TO COVER THE PRESENT DEFECT OR OMISSION OF REPLACING THE SCANNED CO PY WITH THE ORIGINAL IN TIME. WE ORDER AO ACCORDINGLY. B. INTENSION OF THE ASSESSEE: 14. WE HAVE ANALYS ED THE CONDUCT AND MIND OF THE A SSESSEE AND FIND THE ACTIV ITIES SUGGEST INESCAPABLY THAT A SSESSEE WANTS TO MAKE USE OF THE BENEFITS OF THE 8 OFFICE OF DRP . T HEY ARE : PREPAREDNESS OF THE RELEVANT PAPERS IN FORM NO 35A SIGNED THE SAME IN TIME SCANNED THEM SENT THE OFFICE IN INDIA FOR FILING BEFORE THE DRP AND ENSURED FILING THEM BEFORE THE EXPIRY OF THE DUE DATE IE WITHIN 30 DAYS FROM THE DATE OF THE DRAFT ORDER OF THE AO. IN THAT CASE WHY TH E SAME WAS NOT REPLACED BY THE A S SESSEE BY FILING ORIGINAL FORM N O 35A. AS DISCUSSED ABOVE WE FIND THE SAME IS NOT WITH OUT REASON AND TH E SAME BEING THE CHANGE IN THE R EPRESENTATIVE. AS SUCH THE FURNISHING OF THE SC ANNED PAPERS AND REPLACING THEM WITH HARD COPIES OR SOFT COPIES IF ANY IS NOW NOT NEW TO THE D EPARTMENT. FURTHER NOW THE REVENUE STARTED ACCEPTING THE E - FILING OF APPLICATION / APPEALS THESE DAYS. WHY NOT THIS ALSO SHOULD NOT BE DEEMED AS SUCH BUT FOR THE PROCEDURAL DEFECTS IF ANY. CONSIDERING THE SAME WE ARE OF THE VIEW THAT THE BOTH DECISIONS OF THE FIRST APPELLATE AUTHORITY IN TREATING THE APPLICATION NON - EST AND DISMISSING THE SAME AS IN LIMINE ARE UNSUSTAINABLE IN LAW. WE ORDER ACCORDINGLY. THUS GROUNDS NO.1 TO 4 RAISED BY THE ASSESSEE ARE ALLOWED . CONSIDERING OUR DECISION ON THE PRELIMINARY ISSUES RAISED IN GROUNDS NO. 1 TO 4 WE ARE OF THE VIEW THAT THE REST OF THE GROUNDS RAISED IN THE APPEAL ARE REQUIRED TO BE REMANDED TO THE FILE OF TH E DRP / AO FOR WANT OF SPEAKING ORDER ON EACH OF THE ISSUES RAISED IN GROUNDS NO. 5 TO 20 OF THE GROUNDS OF APPEAL. REVENUE SHALL GRANT A REASONABLE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE AS PER THE SET PRINCIPLES OF NATURAL JUSTICE. ACCORDINGLY GRO UNDS NO. 5 TO 20 RAISED BY THE ASSESSEE ARE ALLOWED FOR STATISTICAL PURPOSES . IN THE RESULT APPEAL FILED BY THE ASSESSEE IS ALLOWED. ORDER PRONOU NCED IN THE OPEN COURT ON 1 9 T H OCTOBER 2016. S D / - S D / - ( RAVISH SOOD ) (D. KARUNAKARA RAO) JUDICIAL MEMBER ACCOUNTANT MEMBER MUMBAI ; 1 9 .10.2016 . . ./ OKK SR. PS / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. ( ) / THE CIT(A) - 9 4. / CIT 5. / DR ITAT MUMBAI 6. / GUARD FILE . //TRUE COPY// / BY ORDER / (DY./ASSTT. REGISTRAR) / ITAT MUMBAI