Sakalabaktula Vaikunta Rao, , Srikakulam v. The Income Tax Officer, Ward-2, , Srikakulam

ITA 60/VIZ/2019 | 2013-2014
Pronouncement Date: 08-11-2019 | Result: Allowed

Appeal Details

RSA Number 6025314 RSA 2019
Assessee PAN AADHS7593D
Bench Visakhapatnam
Appeal Number ITA 60/VIZ/2019
Duration Of Justice 8 month(s) 24 day(s)
Appellant Sakalabaktula Vaikunta Rao, , Srikakulam
Respondent The Income Tax Officer, Ward-2, , Srikakulam
Appeal Type Income Tax Appeal
Pronouncement Date 08-11-2019
Appeal Filed By Assessee
Order Result Allowed
Bench Allotted SMC
Tribunal Order Date 08-11-2019
Last Hearing Date 15-04-2019
First Hearing Date 15-04-2019
Assessment Year 2013-2014
Appeal Filed On 14-02-2019
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM BENCH VISAKHAPATNAM BEFORE SHRI V. DURGA RAO HONBLE JUDICIAL MEMBER & SHRI D.S. SUNDER SINGH HONBLE ACCOUNTANT MEMBER ITA NO S . 60 / VIZ /201 9 (ASST. YEAR : 20 13 - 14 ) SAKALABAKTULA VAIKUNTA RAO PROP. SRI TIRUMALA MODERN RICE MILL K.T. ROAD PALASA SRIKAKULAM. V S . IT O WARD - 2 SRIKAKULAM . PAN NO. AADHS 7593 D (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI G.V.N. HARI ADV OCATE . DEPARTMENT BY : SHRI D. MANOJ KUMAR SR. DR DATE OF HEARING : 05 / 1 1 /201 9 . DATE OF PRONOUNCEMENT : 08 / 1 1 /201 9 . O R D E R PER V. DURGA RAO JUDICIAL MEMBER THI S APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF COMMISSIONER OF INCOME TAX (APPEALS) - 9 HYDERABAD DATED 27 / 11 /201 8 FOR THE ASSESSMENT YEAR 20 13 - 14 . 2. IN TH IS CASE THERE IS A DELAY IN FILING THE APPEAL BEFORE THE LD. CIT(A) . ACCORDING TO THE ASSESSEE THE DELAY IS ONLY 242 AND ACCORDING TO THE LD. CIT(A) THE DELAY IS 463 DAYS . THE ASSESSEE 2 ITA NO S . 60 /VIZ/2019 ( SAKALABAKTULA VAIKUNTA RAO ) HAS FILED A PETITION FOR CONDONATION OF DELAY WHEREIN HE EXPLAINED THE DELAY AS UNDER: - 1. THE APPELLANT IS INVOLVED IN THE BUSINESS OF MILLING THE PADDY AND SALE OF RICE. THE POLICE AUTHORITIES SEIZED A CASH AMOUNT OF RS. 28 00 000 ON 07/05/2012 THAT WAS CARRIED BY HIM FOR THE PURPOSE OF PURCHASING CASHEW NUTS FROM FARMERS OF PENDURTHI. THE APPELLANT EXPLAINED THAT THIS AMOUNT WAS DRAWN FROM HIS BOOKS OF ACCOUNT. IN ORDER TO ASCERTAIN THIS THE INCOME TAX AUTHORITIES CONDUCTED A SURVEY ON 08/05/2012 IN THE BUSINESS PREMISES OF THE APPELLANT. 2. ON NOTICING CERTAIN DISCREPANCIES THE SURVEY WAS CONVERTED INTO SEARCH ACTION ON 09/05/2012 AND THE AMOUNT THAT WAS INTER CEPTED BY THE POLICE AUTHORITIES WAS SEIZED BY THE INCOME TAX AUTHORITIES. DURING THE ASSESSMENT PROCEEDINGS THE APPELLANT AGREED TO ADMIT RS.7 20 000 / - TOWARDS ADDITIONAL INCOME. HE FILED THE RETURN ADMITTING THE SAME. THEREAFTER HE FILED A LETTER DT. 24/03/2013 REQUESTING THE ASSESSING OFFICER TO ADJUST THE TAX ON THE ABOVE AMOUNT OF RS. 7 20 000 / - AND TO RELEASE THE BALANCE FROM THE SEIZED AMOUNT OF RS. 28 LAKHS. 3. THE ASSESSMENT U/SEC. 143(3) WAS COMPLETED ON 31/03/2015 BY MAKING ADDITION OF RS. 2 5 0 000/ - TOWARDS EXCESS STOCK OF PADDY AND RS. 28 00 000/ - TOWARDS UNEXPLAINED CASH. HOWEVER THE APPELLANT WAS NOT SERVED WITH THE ASSESSMENT ORDER. 4. THEREAFTER PENALTY PROCEEDINGS WERE INITIATED BY ISSUE OF NOTICE U/SEC. 271(1)(C) DATED 31/03/2015 THAT WAS SERVED ON THE APPELLANT ON 15/04/2015. THERE WAS NO MENTION OF THE ASSESSMENT THAT WAS COMPLETED U/SEC. 143(3) IN THE NOTICE. THE APPELLANT REPLIED THAT HE ADMITTED RS 7 20 000/ - AND PAID TAXES AND HENCE REQUESTED THE ASSESSING OFFICER TO DROP THE PENALTY PROCEEDINGS. THE APPELLANT ALL THE TIME WAS UNDER THE IMPRESSION THAT THE SEIZED AMOUNT OF RS. 28 LAKHS WAS EXPLAINED. 5. THE PENALTY PROCEEDINGS WERE CONCLUDED ON 30/09/2014 5 LEVYING A PENALTY OF RS. 11 64 900/ - . HOWEVER THE PENALT Y ORDER WAS ALSO NOT SERVED ON HIM. 6. THE APPELLANT IS AN AGED PERSON OF 72 YEARS. HE SENT HIS SON SRI S. RAVI KUMAR ON 31/03/2016 TO THE INCOME TAX DEPARTMENT AT VISAKHAPATNAM TO ENQUIRE ABOUT THE RELEASE OF THE CASH SEIZED. AT THAT TIME ONLY IT WAS KNOW THAT THE ASSESSMENT AND THE PENALTY ORDERS WERE PASSED IN HIS CASE. THE INCOME TAX OFFICER MADE SRI S. RAVI KUMAR SIGN THE 3 ITA NO S . 60 /VIZ/2019 ( SAKALABAKTULA VAIKUNTA RAO ) ACKNOWLEDGEMENT WITH DATE AS RECEIV ED ON 30/09/2015 AND HANDED OVER HIM THE COPIES OF THE ASSESSMENT AND PENALTY ORDERS. 7. DURING THE FIRST WEEK OF APRIL THE APPELLANT FELL ILL. HE CONSULTED A DOCTOR DURING WHICH HE WAS FOUND TO BE SUFFERING WITH VIRAL HEPATITIS. THE DOCTOR ADVISED HIM TO HAVE COMPLETE BED REST FOR 3 MONTHS. OWING TO HIS OLD AGE THE APPELLANT TOOK CONSIDERABLE TIME TO RECO V ER FULLY. 8. DURING THE LAST WEEK OF JULY WHILE HE WAS GOING THROUGH THE PENDING WORKS HE NOTICED THAT APPEALS WERE NOT FILED AGAINST THE ASSESSMENT ORDER U/SEC. 143(3) AND THE PENALTY ORDER U/SEC. 271(1)(C) OF THE ACT. WITHOUT FURTHER DELAY HE TOOK NECESSA RY STEPS TO FILE TH E APPEALS. AS SUCH THE APPEALS COULD BE FILED ON 05/08/2016. CONSEQUENTLY THERE WAS A DELAY OF 242 DAYS IN FILING THE APPEAL AGAINST THE ASSESSMENT ORDER U/SEC. 143(3) OF THE ACT. 9. THUS THE DELAY OF 242 DAYS IN FILING THE APPEAL WAS NEITHER INTENTI ON AL NOR DELIBERATE AND WAS ON ACCOUNT OF REASONS BEYOND THE CONTROL OF THE APPELLANT. THEREFORE IT IS PRAYED THAT THE SAID DELAY OF 242 DAYS MAY KINDLY BE CONDONED AND APPROPRIATE ORDERS MAY BE PASSED IN THE INTERESTS OF SUBSTANTIAL JUSTICE. 3 . THE LD.DR STRONGLY OPPOSED FOR CONDONATION OF DELAY . 4 . WE HAVE GONE THROUGH THE CONDONATION APPLICATION FILED BY THE ASSESSEE AND FIND THAT THERE IS A SUFFICIENT CAUSE TO CONDONE THE DELAY . THEREFORE DELAY IS CONDONED AND THE ORDER PASSED BY THE LD. CIT (A) IS SET ASIDE AND DIRECT HIM TO PASS THE ORDERS ON MERITS OF THE CASE IN ACCORDANCE WITH LAW AFTER GIVING PROPER OPPORTUNITY OF HEARING TO THE ASSESSEE. THUS THI S APPEAL FILED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSE . 4 ITA NO S . 60 /VIZ/2019 ( SAKALABAKTULA VAIKUNTA RAO ) 5. IN THE RESULT APPEAL FILED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSE. ORDER PRONOUNCED IN OPEN COURT ON TH IS 0 8 T H DAY OF NOV . 201 9 . S D / - S D / - (D.S. SUNDER SINGH) (V. DURGA RAO) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED : 0 8 T H NOVEMBER 201 9 . VR/ - COPY TO: 1. THE ASSESSEE SAKALABAKTULA VAIKUNTA RAO PROP. SRI TIRUMALA MODERN RICE MILL K.T. ROAD PALASA SRIKAKULAM. 2. THE REVENUE ITO WARD - 2 SRIKAKULAM. 3. THE PR. CIT - 2 VISAKHAPATNAM. 4. THE CIT(A - 9 HYDERABAD. 5. THE D.R . VISAKHAPATNAM. 6. GUARD FILE. BY ORDER (VUKKEM RAMBABU) SR. PRIVATE SECRETARY ITAT VISAKHAPATNAM.