BRIYA ENTERPRISE LIMITED,AHMEDABAD vs. THE ITO, WARD-1(1)(3), AHMEDABAD

In all these appeals, the assessment was reopened and carried out u/s.147 r.w.s.148 of the Income Tax Act, 1961 (hereinafter referred to as “the Act”), on account of some incriminating material found during the course of search action u/s 132 of the Act at the residential premises of Shri Sanjay Shah and Jignesh Shah from which it was noticed that the assessee was a beneficiary of some accommodation entries.

The impugned orders of the Ld.CIT(A) in all the appeals are time-barred by 220 days, except which is time-barred by 36 days. Separate applications for condonation of delay along with affidavits of the Director of the assessee-company have been filed, wherein it has been stated that earlier the name of the assessee-company was Arihant Enterprise Limited. The name was changed with effect from 10/07/2015. The previous registered e-mail of the assessee with the Income Tax Authorities was arihantnerpriseahd@gmail.com. Apart from that, the e-mail of the Authorized Representative of the assessee was also given which was bhattandco@gmail.com. The Ld. Counsel for the assessee has submitted that after the change of the name of the assessee from Arihant Enterprise Limited to Briya Enterprise Limited, the assessee-company has adopted a new e-mail, i.e. briyaenterprise@gmail.com. The Ld. Counsel has submitted that the Ld.CIT(A), however, sent most of the notices to the old e-mail-IDs of the assessee. That the assessee has also changed his Authorized Representative (AR)/Chartered Accountant since 2019. That the e-mails sent at the e-mail ID of the earlier AR were not conveyed by him to the assessee. The Ld. Counsel further submitted that though some of the emails were sent by the Ld.CIT(A) at the correct address of the assessee, however, those have escaped ITA Nos.2062 to 2067/Ahd/2024 Briya Enterprise Ltd. vs. ITO Asst. Years : 2013-14 to 2018-19 the attention of the assessee resulting into non-participation in the appellate proceedings before the Ld.CIT(A). The Ld. Counsel has submitted that due to the aforesaid fact, the impugned orders of the Ld.CIT(A) did not come to the knowledge of the assessee resulting into delay in filing the present appeals before the Tribunal. That the fact of passing of the orders of the Ld. CIT(A) came to the knowledge of the assessee only on receipt of penalty notices from the AO. The Ld. Counsel has submitted that the assessee has a fair case on merits and that the assessee may be given an opportunity to present its case before the Ld.CIT(A). The Ld. Counsel has further submitted that there was a delay of 30 days in filing the appeal before the ld.CIT(A) for the similar reasons in respect of appeal of the assessee for AY 2018-19 in ITA No.2067/Ahd/2024. He, therefore, submitted that in the interests of justice, the short delay in filing the appeal before the ld.CIT(A) for AY 2018-19 may also be condoned.

The Ld.DR, however relied upon the findings of the ld.CIT(A).

Considering the rival submissions and in view of the aforesaid facts and circumstances, in our view, the interests of justice will be better served if the assessee is given an opportunity to present its appeals before the Ld.CIT(A). Accordingly, the delay in filing the appeals before the Tribunal is hereby condoned. The delay in filing the appeal before the Ld.CIT(A) in relation to AY 2018-19 is also hereby condoned. Therefore, all the matters are restored to the file of the Ld. CIT(A) with a direction to decide the same on merits in accordance with law, after giving due opportunity of hearing to the assessee. Needless to say that the assessee will promptly participate before to 2067/Ahd/2024 Briya Enterprise Ltd. vs. ITO Asst. Years : 2013-14 to 2018-19 the Ld.CIT(A) and will not contribute for any delay in disposal of these appeals by the Ld.CIT(A).