Loading judgment…
No AI summary yet for this case.
Income Tax Appellate Tribunal, “SMC-A” BENCH, BANGALORE
Before: Shri Chandra Poojari
This appeal filed by the assessee is directed against the order of the CIT(A) dated 23.03.2019. The relevant assessment year is 2015-2016.
The assessee has raised many grounds against the sustainance of various additions made by the Assessing Officer, without giving proper opportunity of hearing to the assessee.
The facts of the case are that the assessee is a co- operative society, running a spinning mill, filed its return of income for the assessment year 2015-2016, declaring total income Nil, claiming current year loss of Rs.1,29,26,335. The case was selected for scrutiny under CASS. The Assessing Officer completed the assessment, assessing the total income at Rs.12,23,630, by disallowing various expenses claimed by
2 ITA No.2611/Bang/2019 M/s.The Farmers Co-op. Spinning Mills Ltd..
the assessee. Aggrieved by the order of the Assessing Officer, the assessee preferred appeal before the CIT(A). During the course of appellate proceedings, the assessee was given opportunities of being heard and making submissions on 21.08.2018, 17.09.2018 and 25.09.2018, but the assessee failed to appear or make submissions, and sought adjournments vide letter dated 16.09.2018 and 25.09.2018. The assessee was given a final chance to make submissions, however, the assessee sought for adjournment. Since none appeared on behalf of the assessee, the CIT(A) confirmed the ex parte order passed by the Assessing Officer.
Against the above orders of the Income-tax authorities, the assessee is in appeal before the Tribunal. There was a delay of 195 days in filing this appeal before the Tribunal. The assessee has filed condonation petition along with an Affidavit of the Managing Director of the assessee, Sri.Yallappa Basappa Karikatti, stating the reasons as follows: -
“1. I am conversant with the facts of the Appellant's appeal and am competent to swear to this affidavit. 2. The above appeal has been filed questioning the order of the Learned CIT (Appeals), Hubli 29-03-2019. The order of the Learned CrT (A) was served on the appellant 13.04.2019 and the appeal ought to have been filed on or before 12-6- 2019, the period stipulated for filing the appeal. 3. I state that after receipt of the order on 13.04.2019, I approached my Authorised representative and sought advice regarding filing of the appeal before this Hon'ble Tribunal. Appellant deposited institution fee of Rs.10,000j- payable on 28-05-2019 under challan No.01883. Appeal papers were signed for filing through our consultant's office. Appellant was informed was informed that institution fee payment is on the wrong head and the same has to be paid under proper head
3 ITA No.2611/Bang/2019 M/s.The Farmers Co-op. Spinning Mills Ltd..
and papers were returned. After depositing the institution fee of Rs.10,000/- on 03.06.2019 challan was sent to my consultants. We were under the bonafide impression appeal has been filed. The appeal papers signed remained with us and which we did not notice. It was noticed on 22nd December, 2019 when we were verifying pending actions that the appeal papers have remained with us and appeal has not been filed though payment of institution fee as suggested was paid under proper head. Immediately we took steps to file appeal and appeal was filed on 24.12.2019 and in these circumstances, a delay of 195 days has occurred and appellant submits the delay is unintentional and for the bonafide reasons stated above. 4. Appellant humbly submits that, Appellant has good case on merits and the delay in filing the appeal is unintentional for the bona fide reasons and for the reasons which were beyond appellant's control. We humbly pray this Hon'ble tribunal be pleased to condone the delay and if the delay is not condoned, the appellant will be put to great hardship and injury on the other hand, no inconvenience will be caused to the learned respondent, if the delay in filing the appeal is condoned and appeal is heard on merits.” 5. I have carefully gone through the condonation petition and affidavit filed by the assessee. I find there is good and sufficient reason for the belated filing of this appeal before the Tribunal. Accordingly, I condone the delay and admit the appeal for adjudication.
At the outset, it is observed from the order of the CIT(A) that the CIT(A) has passed a non-speaking order. I am of the opinion that where the appeal has been disposed of even though on merits without a speaking order, the order of CIT(A) cannot be sustained. The provisions of section 250(6) of the I.T. Act are in the nature of judicial discretion to the Appellate Authority and emphasizing that the order disposing of the appeal shall be a speaking order. The order shall not cryptic but shall be self-explanatory. Hence, I set aside the
4 ITA No.2611/Bang/2019 M/s.The Farmers Co-op. Spinning Mills Ltd..
order of the CIT(A) and restore the matter to his file for adjudication afresh, after affording proper opportunity of hearing to the assessee.
Since, I have set aside the order of the CIT(A) and restored the matter to his file for fresh adjudication, I refrain from adjudicating the other grounds raised by the assessee in this appeal, at this stage.
As a result, the appeal filed by the assessee is partly allowed for statistical purposes.
Order pronounced on this 27th day of April, 2020.
Sd/- (Chandra Poojari) ACCOUNTANT MEMBER
Bangalore ; Dated : 27th April, 2020. Devadas G*
Copy to: 1. The Appellant. 2. The Respondent. 3. The CIT(A)-Mysore. 4. The Pr.CIT-Mysore. 5. The DR, ITAT, Bengaluru. 6. Guard File.
Asst.Registrar/ITAT, Bangalore