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Income Tax Appellate Tribunal, HYDERABAD BENCH ‘A, HYDERABAD
Before: SMT. P. MADHAVI DEVI & SHRI S. RIFAUR RAHMAN
IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH ‘A', HYDERABAD BEFORE SMT. P. MADHAVI DEVI, JUDICIAL MEMBER AND SHRI S. RIFAUR RAHMAN, ACCOUNTANT MEMBER ITA No. 565/Hyd/2018 Assessment Year: 2013-14 RR Dura Fabs Pvt. Ltd., vs. Income-tax Officer, Hyderabad. Ward – 3(2), Hyderabad. PAN – AAECR2713A Appellant Respondent Assessee by: Shri D.V. Anjaneyulu Revenue by: Shri M.H. Naik Date of hearing: 22/07/2019 Date of pronouncement: 31/07/2019 O R D E R PER S. RIFAUR RAHMAN, AM:
This appeal filed by the assessee is directed against the order of CIT(A) – 3, Hyderabad, dated, 21/02/2018 for AY 2013-14.
Briefly the facts of the case are that assessee company, engaged in the business of contract works, filed its return of income for the AY 2013-14 on 22/09/2013 admitting total income of Rs. 69,97,180/-. The AO completed the assessment u/s 143(3) assessing the total income of the assessee at Rs. 1,68,11,320/- by making various additions.
Aggrieved with the order of AO, the assessee preferred an appeal before the CIT(A) and the appeal was filed on 10/05/2016 in paper format and not e-filed.
2 I.T.A. No. 565/Hyd/18 RR Dura Fabs Pvt. Ltd., Hyd. 5. The CIT(A) dismissed the appeal of the assessee in- limine on the ground that the assessee has not filed the appeal electronically, which is mandatory. Assessee has not e-filed the appeal with within extended period as per Circular No. 20/2016. Further, assessee has to file petition for condonation for not filing e-appeal beyond the extended period. On both counts, the assessee failed to comply. Therefore, ld. CIT(A) dismissed the appeal in limine.
Aggrieved by the order of CIT(A), the assessee is in appeal before us raising the following grounds of appeal:
“1. The order of Ld. CIT(A) dismissing the appeal in limine solely on the fact that appeal is filed in physical mode instead of electronic mode is erroneous in law, contrary to facts, probabilities of the case and against the principles of equity and natural justice. 2. The Ld. CIT (A) failed to appreciate the bona fide mistake of appellant in not e-filing the appeal which was a recent amendment in rule 45 of the IT rules, 1962 with effect from 01.03.2016 read with CBDT circular No. 20/2016 dated 26/05/2016 and has not accorded any opportunity to cure the procedural defect. 3. Subject to the above, even on merits the income disclosed by appellant as per audited books of accounts is higher than the income declared and assessed in the subsequent years and hence the additions made by AO rejecting the books of accounts are bad in law. 4. For these and other reasons that may be urged at the time of hearing, the appellant prays the Honorable Tribunal to adjudicate the grounds raised and dispose the case in accordance with law.” 7. Considered the rival submissions and perused the material on record. We find that the CIT(A) dismissed the appeal of the assessee on technical grounds i.e. the assessee has not filed the appeal electronically and decided without going into the merits of the case.
3 I.T.A. No. 565/Hyd/18 RR Dura Fabs Pvt. Ltd., Hyd.
7.1 On perusal of the Circular No. 20/2016, all the assessees are advised to file the e-appeal and whoever filed manual appeal, they can file e-appeal before 15/06/2016 in order to treat the same as filed within time. We observe that this is compliance advise and the assessees who are filing the e-appeal subsequent to 15/06/2016, they will be treated as appeal filed belatedly. Therefore, CIT(A) should not have dismissed the appeal in-limine, rather, he should have asked the assessee to comply with the directions as per Circular No. 20/2016 and he could have given one more opportunity to assessee to e-file the appeal. We are not satisfied with the explanation offered by the assessee not to e-file the appeal. As per the CBDT Circular No. 20/2016, all the appeals have to be e-filed. Therefore, we direct the Assessee to file the appeal through e-filing and direct the CIT(A) to accept the e-appeal afresh and adjudicate the matter on merit. Accordingly, grounds raised by the assessee are allowed for statistical purposes.
In the result, appeal of the assessee is treated as allowed for statistical purposes. Pronounced in the open court on 31st July, 2019.
Sd/- Sd/- (P. MADHAVI DEVI) (S. RIFAUR RAHMAN) JUDICIAL MEMBER ACCOUNTANT MEMBER Hyderabad, dated 31st July, 2019. kv
4 I.T.A. No. 565/Hyd/18 RR Dura Fabs Pvt. Ltd., Hyd. Copy forwarded to: 1. R.R. Dura Fabs Pvt. Ltd., M/s Anjaneyulu & Co., CAs., 30, Bhagyalakshmi Nagar, Gandhi Nagar, Hyd. – 500 080 2. ITO, Ward – 3(2), Hyderabad. 3. CIT(A) - 3, Hyderabad 4. Pr. CIT – 3, Hyderabad 5. The DR, ITAT, Hyderabad 6. Guard File