M/S. THIRUMURUGAN PLASTICS P. LTD.,,THIRUMAZHISAI vs. ACIT, CPC,, GHAZIABAD

आदेश/ O R D E R

PER BENCH:

The assessee filed the above 19 appeals against the consolidated order

passed by the Commissioner of Income Tax (Appeals)-17, Chennai in ITA Nos.

498 to 516/18-19 dated 25.09.2019 for the assessment years 2013-14, 2014-15

& 2015-16, respectively.

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on 18/19.03.2019, belatedly, varying from 807 days delay to 1567 days of

delay in filing the appeals, against the orders passed by the CPC,

Bangalore U/s. 200A for various quarters in the assessment years 2013-14,

2014-15 & 2015-16 on various dates in August, 2016, December, 2014 &

December, 2016. The MD of the assessee filed an affidavit for each of the

appeal pleading, inter-alia, that the impugned orders were received

electronically and the impact of the said order was not communicated from

the accounts department for appropriate action within the limitation period

which resulted in the delay in filing these appeals, the assessee was not

conversant as well as there were problems in the family as well as business

side. When the recovery notice dated 04.03.2019 was received manually,

the issue was brought to his notice by the accounts department and the

mistake of not challenging the impugned orders was addressed immediately

by filing the appeals. Therefore, he pleaded that the delay in filing each of

these appeals be condoned and decide them on the merits and render

justice. However, the ld.CIT(A) dismissed all the appeals, holding that the

assessee did not bring any material in support of its reasons. Aggrieved

against the orders of the ld.CIT(A), the assessee filed these 19 appeals.

appeals without giving proper opportunity to the assessee and without

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assigning proper reasons and justification, on technical ground, which is

wholly unjustified and untenable. Inviting our attention to the reason cited

by the assessee, the ld.AR submitted that the assessee, inter-alia, explained

that how it was unaware of the change from the conventional system of

service to e-system of service of the impugned orders and when the

recovery notice dated 04.03.2019 was manually received, it came to know

the issues and immediately assessee took steps in filing these appeals and

therefore sought condonation of delay in filing these appeals and prayed

the ld.CIT(A) to decide them on merit and render justice. Though the

impugned orders were passed and electronically served from 2014

onwards, the Revenue has not brought anything on record that it took

steps to collect any of the impugned demand before 04.03.2019 and to say

that the assessee was aware of the impugned orders / demands. The ld.AR

relying on the Hon’ble Apex Court decision in the case of Senior Bhosale

Estate (HUF) vs. ACIT in Civil Appeal Nos.6671 – 6676 of 2010 with 6677-

6690 of 2010 dated 07.11.2019, and ITAT decisions in the case of M/s.

Mallur Siddeswara Mills Pvt. Ltd., vs DCIT in ITA Nos. 2889, 2890 &

2891/Chny/2018 dated 03.04.2019 and M/s. Bharathi Rajaa Hospital &

research Centre Pvt. Ltd., vs ACIT in ITA Nos. 2540 to 2576/Chny/2019

dated 05.12.2019, prayed that the delay in filing each of the above appeals

be condoned and they may be directed to be decided on merits and due

justice be rendered to the assessee.

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relied on the decision of the Hon’ble Bombay High Court in the case of M/s.

Alfa Properties & Investments P. Ltd., vs. Deputy Commissioner of Income

Tax 9(1), in ITA (L) No.681 of 2018 dated 13.07.2018. The ld. DR invited

our attention to para 10 of the notification No.3/2013 (F.No.142/39/2012 –

SO[TPL] ) dt. 15.01.2013 issued by CBDT on centralized processing of

statements of TDS, 2013, which is extracted as under:-

Service of notice or communication 10. (1) The service of a notice or order or intimation or any other communication by the Cell may be made by delivering or transmitting a copy thereof to the deductor,- (a) by electronic mail; or (b) by placing such copy in the registered electronic account of the deductor on the portal of the Cell; or (c) by any mode mentioned in sub-section (1) of section 282 of the Act. (2) The date of posting of any communication under sub-paragraph (1) in the electronic mail or electronic account of the deductor in the portal of the Cell shall be deemed to be the date of service of such communication. (3) The intimation, orders and notices shall be computer generated and need not carry physical signature of the person issuing it.

Relying on the above, the ld. DR submitted that the date on which a copy

of the impugned order(s)was/ were transmitted to the deductor (the

assessee) , it shall be deemed to be the date of service of such

communication and accordingly, the ld DR supported the orders of the

ld.CIT(A).

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In these appeals, the MD of the assessee pleaded that the impugned

electronic communications were not brought to the notice of the assessee,

and he himself was not conversant as well as there were problems in the

family as well as in the business side at the said point of time. When the

recovery notice dated 04.03.2019 was received, manually, the issues were

brought to his notice and he immediately took steps to file the above

appeals, which caused the delay in filing each of these appeals, which is

not deliberate but bonafide and beyond his control and therefore, he

sought the condonation of delay in respect of each of these appeals. It was

also pleaded that though the impugned orders were passed from December

2014 to December 2016, till the recovery notice served, manually on

04.03.2019, the Revenue had not sent any other communication in respect

of any of the demand raised in the impugned orders. Therefore, it is

pleaded that the reason canvassed by the assessee towards the delay in

filing these appeals have sufficient and reasonable cause and hence, it was

prayed to condone the delay in filing each of these appeals. We find that

the reason canvassed by the assessee towards the delay in filing the

impugned appeals appears reasonable and sufficient, in the light of the

decisions relied on by the assessee, supra, and hence, we condone the

delay in filing each of these appeals and remit these appeals back to the ld.

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CIT(A) for deciding each of them on merits after affording effective

opportunity to the assessee.

orders electronically, the assessee pleads that they were not brought to its

notice and the Revenue has not sent any further communication till the

date of recovery notice served on 04.03.2019 manually. Therefore, the

assessee was unaware of such orders. When there is a change from one

system, say the manual system to the other system, say the electronic

system , apart from relying the rules and regulations, the Revenue as an

administrator of the Act must also guide the assessees, in enabling them to

comply with the systemic changes in a reasonable manner. Atleast in those

cases, like this case, where the demand made on the assessee is pending

for long time and the assessee has not responded, the Revenue should also

have used other mode of communication, mentioned in sub-section (1) to

section 282 of the Act. In this case, the Revenue has not brought to our

notice any such communication with the assessee. Considering the totality

of the facts and circumstances, the reasons canvassed by the assessee

towards the delay in filing the impugned appeals appears reasonable and

sufficient on this count also and hence, we condone the delay in filing each

of these appeals and remit these appeals back to the ld.CIT(A) for deciding

each of them on merits after affording effective opportunity to the

assessee.

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for statistical purposes.

Order pronounced on Friday, 27th December, 2019 at Chennai.

Sd/- Sd/- (धु�वु आर.एलरे"डी) (एस जयरामन) (DUVVURU RL REDDY) (S. JAYARAMAN) $या�यकसद%य/JUDICIAL MEMBER लेखासद%य/Accountant Member

चे�नई/Chennai, 1दनांक/Dated: 27th December, 2019 JPV आदेशक(+�त3ल4पअ5े4षत/Copy to: 1. अपीलाथ'/Appellant 2. +,यथ'/Respondent 3. आयकरआयु6त ) अपील(/CIT(A) 4. आयकरआयु6त/CIT 5. 4वभागीय+�त�न�ध/DR 6. गाड9फाईल/GF