M/s Sri Balaji Biomass Power Pvt. Ltd., Hyderabad v. DCIT, Hyderabad

ITA 478/HYD/2010 | 2006-2007
Pronouncement Date: 13-01-2011 | Result: Partly Allowed

Appeal Details

RSA Number 47822514 RSA 2010
Assessee PAN AAFCS7123L
Bench Hyderabad
Appeal Number ITA 478/HYD/2010
Duration Of Justice 9 month(s) 15 day(s)
Appellant M/s Sri Balaji Biomass Power Pvt. Ltd., Hyderabad
Respondent DCIT, Hyderabad
Appeal Type Income Tax Appeal
Pronouncement Date 13-01-2011
Appeal Filed By Assessee
Order Result Partly Allowed
Bench Allotted B
Tribunal Order Date 13-01-2011
Date Of Final Hearing 23-12-2010
Next Hearing Date 23-12-2010
Assessment Year 2006-2007
Appeal Filed On 29-03-2010
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH B' HYDERABAD BEFORE SHRI G.C.GUPTA VICE PRESIDENT AND SHRI AKBER BASHA ACCOUNTANT MEMBER ITA NO.478/HYD/10 : ASSESSMENT YEAR 2006- 07 M/S. SRI BALAJI BIO MASS POWER PVT. LTD. HYDERABAD. ( PAN AAFCS 7123 L ) V/S. DY. COMMISSIONER OF INCOME-TAX CIRCLE 3(2) HYDERABAD (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI C.SUBRAHMANYAM RESPONDENT BY : SMT. VASUNDHARA SINHA O R D E R PER G.C.GUPTA VICE PRESIDENT: THIS APPEAL BY THE ASSESSEE FOR THE ASSESSMENT YEAR 2006- 07 IS DIRECTED AGAINST THE ORDER OF THE COMMISSIONER O F INCOME- TAX(APPEALS). 2. GROUNDS OF APPEAL OF THE ASSESSEE ARE AS UNDER- '1.0. THE LEARNED COMMISSIONER OF INCOME-TAX(A) IS NOT CORRECT IN DISPOSING OFF THE APPEAL ON MERITS INST EAD ERRED IN GIVING A FINDING THE APPEAL IS NOT MAINTAINABLE SINCE IT WAS FILED BELATEDLY. 1.1 THE LEARNED COMMISSIONER OF INCOME-TAX(A) GROSSLY ERRED IN NOT CONSIDERING THE DELAY OF 165 DAYS IN FILING THE APPEAL INSTEAD MERELY BRUSHED ASIDE TH E SUBMISSIONS OF THE APPELLANT COMPANY. 1.2 THE REASONING AND FINDING OF THE LEARNED COMMISSIONER OF INCOME-TAX(A) WHILE REFUSING TO ITA NO478/HYD/10 M/S. SRI BALAJI BIO MASS POWER PVT. LTD. HYD . 2 CONDONE THE DELAY ARE MERELY PRETEXT WITH A PREDETERMINED MIND NOT TO ADMIT THE APPEAL FOR ITS DISPOSAL ON MERITS. 1.3 THE LEARNED COMMISSIONER OF INCOME-TAX(A) OUGHT TO HAVE APPRECIATED THE EXPLANATION OF THE ASSESSEE IN THE RIGHT PERSPECTIVE THUS COULD HAVE CONDONED THE DELAY AND DISPOSE OFF THE APPEAL ON MERITS THU S VIOLATED THE PRINCIPLES OF NATURAL JUSTICE.': 3. THE LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED THAT TH ERE WAS A DELAY OF 165 DAYS IN THE FILING OF APPEAL BY TH E ASSESSEE BEFORE THE CIT(A). HE SUBMITTED THAT THE ASSESSEE HAS FILED AFFIDAVI TS OF SHRI K. LAKSHMINARAYANA SESHA SAI SARMA ASST. GENERAL MANAGER (ACCOUNTS) AND SHRI C.PURUSHOTHAM DIRECTOR (FINANCE) OF THE ASSESSEE- COMPANY EXPLAINING THE REASONS FOR THE DELAY IN THE FILING OF THE APPEAL BEFORE THE CIT(A). IT WAS EXPLAINED BEFORE THE CIT(A) THAT THE ACCOUNTANT OF THE ASSESSEE COMPANY WAS UNDER A BONA FIDE IMPRESSION THAT NO F URTHER APPEAL WAS NECESSARY AGAINST THE ASSESSMENT ORDER FOR THE RELEVANT ASSESSMENT YEAR SINCE IDENTICAL ISSUE HAS BEEN DECIDED IN FAV OUR OF THE ASSESSEE BY THE CIT(A) IN THE APPEAL OF THE ASSESSEE FOR T HE IMMEDIATELY PRECEDING ASSESSMENT YEAR 2005-06. THEREAFTER ASSESSEE RECEI VED PENALTY ORDER PASSED UNDER S.271(1)(C) OF THE ACT FOR THE ASSESSMENT YEAR 2006-07 ON 7.7.2009 AND WHEN IT WAS BROUGHT TO THE NOTICE OF THE COMPANY'S TAX CONSULTANT AS PER HIS ADVICE ASSESSEE COMPANY TOOK STEPS TO FILE THE APPEAL BEFORE THE CIT(A) FOR THE ASSE SSMENT YEAR 2006- 07 IMMEDIATELY. 4. THE LEARNED DEPARTMENTAL REPRESENTATIVE HAS REL IED ON THE ORDERS OF THE CIT(A) AND SUBMITTED THAT NO JUSTIFIABL E REASON HAS BEEN GIVEN BY THE ASSESSEE FOR CONDONATION OF DELAY IN FILING THE APPEAL BEFORE THE CIT(A). ITA NO478/HYD/10 M/S. SRI BALAJI BIO MASS POWER PVT. LTD. HYD . 3 5. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS AND HAVE PE RUSED THE COPIES OF THE AFFIDAVITS OF SHRI K. LAKSHMINARAYANA SESHA SAI SARMA ASST. GENERAL MANAGER (ACCOUNTS) AND SHRI C.PURUSHOTHAM D IRECTOR (FINANCE) OF THE ASSESSEE-COMPANY FILED BY THE ASSESSEE BEFOR E THE CIT(A) COPIES OF WHICH HAVE BEEN FURNISHED BY THE ASSESSEE IN THE COMPILATION FILED BEFORE US. IN VIEW OF THE CIRCUMSTANCE S EXPLAINED BY THE LEARNED COUNSEL FOR THE ASSESSEE SUPPORTED BY THE A VERMENTS IN THE AFFIDAVITS FILED BY THE ASSESSEE BEFORE THE CIT(A) WE A RE OF THE CONSIDERED VIEW THAT THERE WAS SUFFICIENT CAUSE FOR THE DE LAY IN THE FILING OF THE APPEAL BY THE ASSESSEE BEFORE THE CIT(A) AND TH E CIT(A) WAS NOT JUSTIFIED IN DECLINING TO CONDONE THE DELAY. WE ACCORDIN GLY SET ASIDE THE ORDER OF THE CIT(A) AND RESTORE THE MATTER TO THE FI LE OF THE CIT(A) WITH A DIRECTION TO ADJUDICATE THE ISSUES INVOLVED IN THE GRO UNDS OF APPEAL OF THE ASSESSEE BEFORE HIM ON MERITS IN ACCORDANCE WITH LAW AND AFTER GIVING REASONABLE OPPORTUNITY OF HEARING TO THE PARTIES AFT ER CONDONING THE DELAY IN THE FILING OF THE APPEAL BY THE ASSESSEE BEFOR E HIM. 6. IN THE RESULT APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE COURT ON 13.1.2011 SD/- SD/- (AKBER BASHA) (G.C.GUPTA) ACCOUNTANT MEMBER VICE PRESIDENT DT/- 13 TH JANUARY 2011 COPY FORWARDED TO: 1. M/S. SRI BALAJI BIO MASS POWER PVT. LTD. PLOT NO .1071 ROAD NO.44 JUBILEE HILLS HYDERABAD 500 033. ITA NO478/HYD/10 M/S. SRI BALAJI BIO MASS POWER PVT. LTD. HYD . 4 2. DY. COMMISSIONER OF INCOME-TAX CIRCLE 3(2) HYDERA BAD 3. COMMISSIONER OF INCOME-TAX(APPEALS) III HYDERABAD . 4. COMMISSIONER OF INCOME-TAX II HYDERABAD 5. THE DEPARTMENTAL REPRESENTATIVE ITAT HYDERABAD. B.V.S .