KHAJA MOHIADDIN G. SYED,MUMBAI vs. ITO WD 24(1)(1)/30(1)(1), MUMBAI

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ITA 4533/MUM/2015Status: DisposedITAT Mumbai24 April 2017AY 2011-127 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal condoned the delay in filing the appeal, citing a liberal approach for substantial justice. The appeal was remanded to the CIT(A) for fresh adjudication, directing the assessee to appear with necessary evidence.

What were the facts?

The assessee is aggrieved by an order of the First Appellate Authority, alleging lack of opportunity for hearing and violation of Section 282 of the Income Tax Act. The assessee also filed an application for condonation of delay in filing the appeal.

What were the issues?

Whether a proper opportunity of hearing was provided to the assessee and if the delay in filing the appeal should be condoned.

Which sections of the Income-tax Act were involved?

Section 282

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Income Tax Appellate Tribunal, MUMBAI BENCHES “A”, MUMBAI

Before: Shri Joginder Singh & Shri Rajendra

For Appellant: Shri Karan H. Halai &, Shri Harshil A. Shah, Shri Rajesh Kumar Yadav-
Hearing: 20/04/2017

आदेश / O R D E R Per Joginder Singh (Judicial Member) The assessee is aggrieved by the impugned order dated 16/03/2015 of the Ld. First Appellate Authority, Mumbai, on the ground that proper opportunity of hearing was not provided to the assessee and further ignoring the provisions of section 282 of the Income Tax Act, 1961 (hereinafter the Act).

2.

The ld. Counsel for the assessee has filed application for condonation of delay of 39 days along with an affidavit, stating the reasons of delay. The ld. Counsel for the assessee advanced arguments, which is identical to the facts mentioned in the application. The Ld. DR contended that the assessee was expected to be vigilant, therefore, delay may not be condoned and if condoned, delay of each day has to be explained.

1.

2.1. We have considered the rival submissions and perused the material available on record. In view of the assertions made by the ld. respective counsel, so far as, condonation of delay is concerned no doubt filing of an appeal is a right granted under the statute to the assessee and is not an automatic privilege, therefore, the assessee is expected to be vigilant in adhering to the manner and mode in which the appeals are to be filed in terms of the relevant provisions of the Act. Nevertheless, a liberal approach has to be adopted by the appellate authorities, where delay has occurred for bona-fide reasons on the part of the assessee or the Revenue in filing the appeals. In matters concerning the filing of appeals, in exercise of the statutory right, a refusal to condoned the delay can result in a meritorious matter being thrown out at the threshold, which may lead to miscarriage of justice. The judiciary is respected not on account of its power to legalize in justice on technical grounds but because it is capable of removing injustice and is expected to do so.

2.2. The Hon’ble Apex Court in a celebrated decision in Collector, Land Acquisition vs Mst. Katiji & Ors. 167 ITR 471 opined that when technical consideration and substantial justice are pitted against each other, the courts are expected to further the cause of substantial justice. This is for the reason that an opposing party, in a dispute, cannot have a vested right in injustice being done because of a non- deliberate delay. Therefore, it follows that while considering matters relating to the condonation of delay, judicious and liberal approach is to be adopted. If sufficient cause is found to exist, which is bona-fide one, and not due to negligence of the assessee, the delay needs to condoned in such cases. The expression ‘sufficient cause’ is adequately elastic to enable the courts to apply law in a meaningful manner, which sub-serves the end of justice- that being the life purpose of the existence of the institution of the courts. When substantial justice and technical consideration are pitted against each other, the cause of substantial justice deserves to be preferred. The Hon’ble Apex Court in Vedabhai vs Santaram 253 ITR 798 observed that inordinate delay calls of cautious approach. This means that there should be no malafide or dilatory tactics. Sufficient cause should receive liberal construction to advance substantial justice. The Hon’ble Apex Court in 167 ITR 471 observed as under:-

“3. The legislature has conferred the power to condone delay by enacting section 51 of the Limitation Act of 1963 in order to enable the courts to do substantial justice to parties by disposing of matters on de merits. The expression “sufficient cause” employed by the legislature is adequately elastic to enable the courts to apply the law in a meaningful manner which subserves the ends of justice that being the life-purpose of the existence of the institution of courts. It is common knowledge that this court has been making a justifiably liberal approach in matters instituted in this court. But the message does not appear to have percolated down to all the others courts in the hierarchy.”

2.3. Furthermore, the Hon'ble Supreme Court in the case of Vedabai Alia Vaijayanatabai Baburao Patil vs. Shantaram Baburao Patil 253 ITR 798 held that the court has to exercise the discretion on the facts of each case keeping in mind that in construing the expression ‘sufficient cause’, the principle of advancing substantial justice is of prime importance. The court held that the expression “sufficient cause” should receive liberal construction.

2.4. The decision of the Tribunal in People Infocom Private Ltd. v/s CIT (ITA No.210/Mum/2013) order dated 19/05/2016, M/s Neutron Services Centre Pvt. Ltd vs ITO (ITA No.1180/Mum/2012) order dated 18/02/2016, Shri v/s ITO (ITA Saidatta Coop-. Credit Society Ltd. No.2379/Mum/2015) order dated 15/01/2016 and Mr. Nikunj Barot (Prop. Enigma) vs ITO (ITA No.4887/Mum/2015) order dated 06/01/2016, wherein, substantial delay was condoned, supports the case of the present assessee. Having made the aforesaid observation and various decisions discussed hereinabove, including from Hon’ble Apex Court, the circumstances narrated by the assessee, wherein, he has stated/explained the reasons which caused the delay, therefore, the delay is condoned.

3.

During hearing, Shri Karan H. Halai & Harshil A. Shah, ld. Counsel for the assessee, contended that the necessary details from the banks could not be collected at the relevant time, therefore, could not be furnished. It was contended that the assessee is in position to file the details and the addition was made for wants of such details. It was pleaded that in the interest of justice, one more opportunity may be provided to the assessee. Shri Rajesh Kr. Yadav, ld. DR, though defended the addition by contending that necessary details were not filed by the assessee but had no objection, if one more opportunity is provided to the assessee. It was also contended that the assessee knowingly did not appear before the Ld. Commissioner of Income Tax (Appeals).

2.1. We have considered the rival submissions and perused the material available on record. The ground raised before this Tribunal are that reasonable opportunity of being heard was not provided to the assessee. We find that the assessee could not appear before the Ld. Commissioner of Income Tax (Appeals) in spite of opportunity so provided. However, before us, the assessee contended that the necessary details, which were to be filed before the Ld. Commissioner of Income Tax (Appeals), could not be collected from the banks, due to certain unavoidable circumstances. The mandate of Article-265 of Constitution of India is to levy and collect due taxes, therefore, taking a lenient view and considering the circumstances narrated before us, we remand this appeal to the file of the Ld. Commissioner of Income Tax (Appeals) for fresh adjudication in accordance with law. However, considering the arguments of the ld. DR and the factual matrix, we direct the assessee to approach the office of the Ld. Commissioner of Income Tax (Appeals) along with necessary evidence, if any, on 14/06/2017. The Ld. First Appellate Authority may hear the assessee either on 14/06/2017 or any mutually convenient date. Thus, the appeal of the assessee is allowed for statistical purposes.

Finally, the appeal of the assessee is allowed for statistical purposes.

This order was pronounced in the open in the presence of ld. representatives from both sides at the conclusion of the hearing on 20/04/2017.

Sd/- Sd/- (Rajendra) (Joginder Singh) लेखा सद�य / ACCOUNTANT MEMBER �या�यक सद�य / JUDICIAL MEMBER मुंबई Mumbai; �दनांक Dated : 24/04/2017 f{x~{tÜ? P.S/.�न.स. आदेश क� ��त�ल�प अ�े�षत/Copy of the Order forwarded to : 1. अपीलाथ� / The Appellant (Respective assessee) 2. ��यथ� / The Respondent. 3. आयकर आयु�त(अपील) / The CIT, Mumbai. 4. आयकर आयु�त / CIT(A)- , Mumbai, 5. �वभागीय ��त�न�ध, आयकर अपील�य अ�धकरण, मुंबई / DR, ITAT, Mumbai 6. गाड� फाईल / Guard file. आदेशानुसार/ BY ORDER, स�या�पत ��त //True Copy//

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