M/s. CFL SECURITIES LTD., MUMBAI v. DCIT(OSD-II) C.R. - 7, MUMBAI

ITA 2263/MUM/2009 | 2004-2005
Pronouncement Date: 20-01-2010 | Result: Allowed

Appeal Details

RSA Number 226319914 RSA 2009
Assessee PAN AAACC6722E
Bench Mumbai
Appeal Number ITA 2263/MUM/2009
Duration Of Justice 9 month(s) 11 day(s)
Appellant M/s. CFL SECURITIES LTD., MUMBAI
Respondent DCIT(OSD-II) C.R. - 7, MUMBAI
Appeal Type Income Tax Appeal
Pronouncement Date 20-01-2010
Appeal Filed By Assessee
Order Result Allowed
Bench Allotted C
Tribunal Order Date 20-01-2010
Assessment Year 2004-2005
Appeal Filed On 09-04-2009
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL 'C' BENCH MUMBAI BEFORE SHRI R.K. GUPTA JUDICIAL MEMBER AND SHRI B. RAMAKOTAIAH ACCOUNTANT MEMBER ITA NO. 2263/MUM/2009 (ASSESSMENT YEAR: 2004-05) M/S. CFL SECURITIES LTD. DCIT (OSD II) CENTRAL CIR CLE 7 BHUPEN CHAMBERS GR. FLOOR 4TH FLOOR AAYAKAR BHAVA N DALAL STREET MUMBAI 400021 VS. M.K. ROAD MUMBAI 400020 PAN - AAACC 6722 E APPELLANT RESPONDENT APPELLANT BY: SHRI SAMEER DALAL RESPONDENT BY: SHRI HARIGOVIND SINGH O R D E R PER B. RAMAKOTAIAH A.M. THIS APPEAL BY THE BY THE ASSESSEE IS AGAINST THE O RDER OF THE CIT(A)- CENTRAL V MUMBAI DATED 28.11.2008. 2. THE ASSESSEE IS AGGRIEVED THAT THE CIT(A) HAS DISMI SSED THE APPEAL INVOKING THE PROVISIONS OF SECTION 249(4) OF I.T. A CT THAT THE TAX AS PER THE RETURNED INCOME HAS NOT BEEN PAID. BEFORE US THE C OMPANY FILED THE APPEAL BELATEDLY BY 62 DAYS AND THE REASONS FOR DELAY IN F ILING THE APPEAL WAS SET OUT IN THE AFFIDAVIT. THE MAIN REASON FOR FILING TH E APPEAL BELATEDLY WAS THAT THE COMPANY IS NOT DOING ANY BUSINESS DUE TO HEAVY LOSSES AND FINANCIAL CRISIS. THE COMPANY DISCONTINUED ITS BUSINESS FOR T HE PAST SIX YEARS AND NO ONE TO LOOK AFTER THE DAY-TO-DAY AFFAIRS OF THE COM PANY AND FURTHER EXPLAINED THAT THE ORDER WAS RECEIVED BY THE DESPATCH CLERK O F THE SISTER CONCERN AND WAS MISPLACED AND ACCORDINGLY THE DELAY IN FILING T HE APPEAL BE CONDONED. ON MERITS IT WAS SUBMITTED THAT THE ASSESSEE HAD P AID THE TAXES BY THE DATE 27.02.2008 WHEREAS THE APPEAL WAS FILED BEFORE THE CIT(A) ON 03.01.2007. THE COMPANY HAS REQUESTED THE CIT(A) VIDE LETTER DA TED 27.02.2008 WHY TAXES COULD NOT BE PAID AND VIDE PARA 6 OF THE LETT ER REQUESTED THE CIT(A) TO CONSIDER THE APPEAL FILED ON 03.01.2007 AS FILED ON 27.02.2008 AND CONDONE THE DELAY IF ANY OF ONE YEAR AND 54 DAYS I.E. FR OM THE DATE OF APPEAL ITA NO. 2263/MUM/2009 M/S. CFL SECURITIES LTD. 2 ORIGINALLY FILED TO THE DATE OF PAYMENT OF TAX. THE ORDER OF THE CIT(A) WAS DATED 28.11.2008 AND CIT(A) HAS NOT SATISFIED WITH THE REASONS SUBMITTED AND NOT CONDONED THE DELAY. ACCORDINGLY HE DISMISSE D THE APPEAL. 3. THE LEARNED COUNSEL RELIED ON THE DECISION OF THE ITAT` IN THE CASE OF J.K. CHATURVEDI VS. ACIT 3 SOT 456 (AHD) IN SUPPORT OF THE ASSESSEES CONTENTION. CONSIDERING THE PRAYER OF THE ASSESSEE BEFORE THE CIT(A) AND THE FACT THAT THE ASSESSEE IS NOT DOING ANY BUSINESS AN D ITS MEMBERSHIP CARD WITH THE NATIONAL STOCK EXCHANGE STOOD SUSPENDED AN D THE COMPANY ALSO SURRENDERED THE TRADING MEMBERSHIP AND FURTHER ITS BANK ACCOUNTS WERE ATTACHED BY THE DEPARTMENT FOR RECOVERY OF THE VARI OUS DISPUTED DEMANDS OF EARLIER YEARS WE ARE OF THE VIEW THAT THE ASSESSEE HAS A REASONABLE CAUSE IN NOT PAYING THE DEMANDED TAX AT THE TIME OF FILING T HE RETURN OR AT THE TIME OF FILING THE APPEAL BEFORE THE CIT(A). FOLLOWING THE PRINCIPLES LAID DOWN BY THE HON'BLE SUPREME COURT IN THE CASE OF CIT VS FILMIST AN LTD 42 ITR 163 (SC) THE APPEAL CAN BE CONSIDERED AS HAVING BEEN FILED O N 27.02.2008 ON THE DAY THE TAXES HAVE BEEN PAID AND THE INTERVENING PERIOD CAN BE CONDONED. SIMILAR PRINCIPLE WERE ALSO ESTABLISHED IN THE COOR DINATE BENCH DECISION OF J K CHATURVEDI (SUPRA) AND ACCORDINGLY IN THE INTER EST OF JUSTICE WE DIRECT THE CIT(A) TO CONSIDER THE CONDONATION OF DELAY AND CONSIDER THE APPEAL ON MERITS. FOR THIS PURPOSE THE ORDER OF THE CIT(A) I S SET ASIDE AND THE APPEAL IS RESTORED BACK TO THE FILE OF THE CIT(A) TO CONSI DER IT AFRESH AS STATED ABOVE. 4. IN THE RESULT APPEAL IS ALLOWED FOR STATISTICAL PU RPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 20 TH JANUARY 2010. SD/- SD/- (R.K. GUPTA) (B. RAMAKOTAIAH) JUDICIAL MEMBER ACCOUNTANT MEMBER MUMBAI DATED: 20 TH JANUARY 2010 ITA NO. 2263/MUM/2009 M/S. CFL SECURITIES LTD. 3 COPY TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT(A) CENTRAL-V MUMBAI 4. THE CIT CENTRAL-II MUMBAI CITY 5. THE DR C BENCH ITAT MUMBAI BY ORDER //TRUE COPY// ASSISTANT REGISTRAR ITAT MUMBAI BENCHES MUMBAI N.P. ITA NO. 2263/MUM/2009 M/S. CFL SECURITIES LTD. 4 S.NO. DETAILS DATE INITIALS DESIGNATION 1 DRAFT DICTATED ON 08.01.10 SR. PS/PS 2 DRAFT PLACED BEFORE AUTHOR 12.01.10 SR. PS/PS 3 DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER JM/AM 4 DRAFT DISCUSSED/APPROVED BY SECOND MEMBER AM/AM 5 APPROVED DRAFT COMES TO THE SR. PS/PS SR. PS/PS 6 KEPT FOR PRONOUNCEMENT ON SR. PS/PS 7 FILE SENT TO THE BENCH CLERK SR. PS/PS 8 DATE ON WHICH THE FILE GOES TO THE HEAD CLERK 9 DATE OF DISPATCH OF ORDER