Income Tax Appellate Tribunal - Chandigarh
Sh. Harminder Singh, Jagraon vs Ito, Ward -2, Jagraon on 22 May, 2023
आयकर अपील य अ धकरण,च डीगढ़ यायपीठ , च डीगढ़
IN THE INCOME TAX APPELLATE TRIBUNAL, CHANDIGARH
BENCH 'A' CHANDIGARH
BEFORE: SHRI A.D.JAIN, VICE PRESIDENT AND
SHRI VIKRAM SINGH YADAV, ACCOUNTANT MEMBER
आयकर अपील सं./ ITA No. 42/CHD/2023
नधा रण वष / Assessment Year : 2011-12
Shri Harminder Singh, बनाम The ITO,
S/o Shri Kartar Singh, Ward-2,
VS
100, VPO-Chachrari,Jagraon. Jagraon.
थायी लेखा सं./PAN /TAN No: AAACY0580C
अपीलाथ /Appellant यथ /Respondent
नधा रती क ओर से/Assessee by : Shri Y.K. Saxena &
Shri Amandeep Saxena, CA
राज व क ओर से/ Revenue by : Smt. Amandeep Kaur, Sr.DR
तार"ख/Date of Hearing : 18.05.2023
उदघोषणा क तार"ख/Date of Pronouncement : 22.05.2023
आदे श/ORDER
PER VIKRAM SINGH YADAV,A.M. This is an appeal filed by the assessee against the ex-parte order passed by the ld. CIT(A)-3, Ludhia na dated 10.07.2019 pertaining to Assessment year 2011-21 wherein the action of the Assessing officer in treating the source of cash deposit amounting to Rs.49,40,750/- by treating the same as unexplained has been confirmed.
2. At the outset, it is noted that there is a delay in filing the present appeal. During the course of hearing, the ld. AR taken us through the application filed by the assessee seeking ITA 42/CHD/2023 A.Y.2011-12 Page 2 of 12 condonation of delay in filing the present appeal by 1241 days. It was submitted that the ld. CI T(A) has passed the impugned order on 10.07.2019 and the a ppeal has been filed with the Registry on 03.02.2023 with the delay of 1241 days. It was submitted that the parents of the assessee and his elder brother are residents of USA from June, 2017 to December, 2022. The assessee had to go to USA frequently to attend to the family affairs as well as illness of his father Sardar Kartar Singh which is evident from the copy of the his passport and the Visa stamps of departure and arrival. It was further submitted that after return from USA on 30.12.2022, the assessee had gone to his banker i.e. Bank of India, Jagraon in the first week of January, 2023 to carry out certain banking transactions and therein, he was informed that his bank account has been attached by the Income Tax Officer, Jagraon in terms of the order passed u/s 226(3). It was submitted that subsequently, the assessee sought the assistance of his Counsel and thereafter, on perusal of the I T Portal, it ca me to his notice that his appeal filed against the order passed by the AO dated 14.12.2018 has been dismissed ex- parte by the ld. CI T(A), Ludhiana vide his order dated 10.07.2019. It was submitted that subsequently, the assessee with the assistance of his Counsel has filed the present appeal on 03.02.2023.
ITA 42/CHD/2023 A.Y.2011-12 Page 3 of 12
3. It was further submitted that during his brief stay in India from 23.02.2020 to 22.06.2020, from 11.01.2021 to 25.02.2021 and from 30.12.2021 to 08.03.2022, the assessee remained confined to his village home in Chachrari in Tehsil Jagraon due to fear of Covid. It was further submitted that the Hon'ble Supre me Court in view of the Covid Pandemic has also extended the period of limitation for filing the appeals from time to time from 15.03.2020 to 28.02.2022.
4. It was, accordingly, submitted that the delay which has happened in filing the present appeal is on account of bonafide and sufficient reasons as the assessee had no knowledge about the passing of the order by the ld. CI T(A) and the fact that he was not physically present in India and the copy of the order was also not served on him. It was, accordingly, submitted that these are genuine and valid reasons which has resulted in the delay in filing of the present appeal and in the interests of substantial justice, especially considering the fact that the order of the ld. CI T(A) has also been passed ex-parte qua the assessee, the delay in filing the present appeal may be condoned and the appeal be admitted for adjudica tion.
5. Per contra, the ld. DR submitted that there is a substantial delay in filing the present appeal and mere non presence in the Country could not be a reason for non filing of the present ITA 42/CHD/2023 A.Y.2011-12 Page 4 of 12 appeal. It was further submitted that even before the ld. CI T(A), the assessee has not appeared which clearly shows that the assessee was not diligent in pursuing its appeal even before the ld. CIT(A) and thereafter, there is also a delay in filing the present appeal before the Tribunal.
6. In the rejoinder, the ld. Counsel for the assessee submitted that as far as non appearance before the ld. CI T(A) is concerned, the notices were sent by Speed Post by the office of the ld. CI T(A) which were never served upon the assessee for the reason that during the period from 24.06.2018 to 23.02.2020, the assessee was staying in USA as is evident from the copy of the Passport and the arrival and departure stamps contained therein.
7. We have heard the rival submissions and purused the material available on record. The re i s n o d i sp u te tha t th e re h as b ee n a de l a y in fili n g t he p re se nt a p p e a l a n d t he pe r i od of de la y a s a d mitt e d b y the a sse s see co me s to 1 2 4 1 d a ys w he re in t he or d e r of the l d C I T( A) is d a te d 1 0 /09 /2 0 19 a n d th e a p pe a l h as b ee n f ile d be fore the Tr ib un a l on 03 /0 2 /20 2 3 . Th e e xp la n a ti on of th e a sse ssee th e re f ore be come s r e le va n t to d e te r mi ne w he the r the sa me re fle c ts su ff ic ie nt ca u se on his p a r t i n not p r e se nt in g the p re se n t a p pe a l w ith i n th e p re s cr i bed t ime .
ITA 42/CHD/2023 A.Y.2011-12 Page 5 of 12
8. I n the i nst a nt case , t he a sse ssee h a s con te n de d th a t f ro m Jul y 2 0 17 to D ece mbe r 2 0 2 2, the a s se sse e ha s be e n re g ul a r ly tr a ve l li ng to U S A to a t te n d to hi s f a mil y a ff a i rs an d to ta ke ca re of h is f a th e r w h o i s not k ee pi n g we ll a n d i s suf fe r ing fr om so me i ll n e ss a n d f or the pe r i od he ha s s p e n t i n I nd i a , he i s most ly co nf in e d to hi s vi l la ge h ome d ue to s pre a d of C ovi d p a nd e mic a n d thu s un a bl e to a tt e n d to h i s ta x a ff a i r s i nc lu d in g t he p r e se nt a p pe a l . I t h a s bee n f ur th e r co nte nde d tha t d ur i ng thi s p e r i od , hi s b a n k a c coun t w a s a lso a tta c he d b y th e Re ve n ue a u thor i ti e s a n d a s soon a s h e wa s s e i ze d of th i s ma tte r a fte r e n q ui r i ng f r om hi s b a nk e r a n d la te r on, con su lti n g w it h h is C ou ns e l , he c a me t o k n ow th a t th e o rde r h a s be e n p asse d b y th e ld CI T( A) d i s p osi n g o ff h is a p p e a l w he re the orde r p a sse d by th e A O ha s been con f ir me d a nd th e ta x de ma nd h a s be e n su sta i n e d . I t w as su b mit te d th a t a s he w a s tr a vel li n g to U S A, h e cou ld n 't a tte nd to th e p r ocee d in gs b e f ore th e l d C I T(A ) a n d e ve n , he d id n 't re ce i ve the or de r so p a sse d b y t he l d CI T( A) a n d i t i s on l y on r e ce ip t of i n for ma ti on fr om hi s b a n ke r th a t hi s b a nk a cc oun t h as b ee n a tta c he d, he t ook ste ps to ob ta i n co py of th e or d e r p a ss e d b y th e l d CI T( A ) a n d th e r e a fte r , h a s f i le d th e pre se n t a p pe a l .
9. W e f i nd th a t t he pe r i od of de la y co mpr i se s of p e r i od of C ov id 1 9 p a nd e m i c w h e re a ll a ct iv it ie s i n t he e conomy ca me to ITA 42/CHD/2023 A.Y.2011-12 Page 6 of 12 a s ta n ds ti ll d u e to na t ion a l l ock d o w n a nd a p p r e c ia ti n g t he sa i d si tu a ti on, the H on 'b le S up re me C our t ha s ta k e n c ogni z a nc e of th e ma tte r a nd h a s di r e c te d t o e xcl ude the pe riod d u r in g t he C ov id l ock d ow n w hi le comp u tin g t he li mi ta ti on a n d r e f e re nce ca n b e dr a w n to i ts d e ci si on i n c a se of B a b a sa h e b Ra os a he b Kob a r n e & AN R. Vs P yr ote k In d ia P r iv a te Limi te d & O RS ( Spe c i al L e ave P e ti ti on ( C) No . 2 5 2 2/2 0 2 2 d a ted 09 /0 5 /20 2 2 ) w he re i n it w a s he l d a s un de r :
"H av in g h e ard th e l earn ed co un se l a p pe ar in g o n b eh alf of th e re spec ti ve p ar ti e s an d h av in g c on side red ord er da ted
10 . 0 1. 2 0 22 p a ssed by th i s Cou r t in M i sc e l lan eo u s Ap pl ic a ti on No. 2 1 /2 0 2 2 b y wh i c h the f ol lo wi n g o rde r wa s pa s sed an d o rde r d a te d 0 4. 0 1 .2 0 2 2 p a ssed b y th i s C ou r t in SL P ( C) No .1 7 2 98 /2 0 2 1 in th e c a se of Ce n taur Ph ar mac eu ti c al s Pv t. L td . & An r. V s. S tandf o rd L abo r ator ie s Pv t. L td ., th e i mpu g n ed o rde r p a sse d b y the High C ou r t i s u nsu sta i n abl e. T h e oper a tiv e por ti o n of the ord er pa s sed b y th i s Cou r t in M i sce l l an eou s A p pl ic a ti on No. 21 /2 0 2 2 re ad s a s un d er - "
I. T h e or der dated 23 . 0 3. 2 0 20 i s re sto red and in c on tin u ati on of the su b se qu en t ord er s da ted 0 8 .0 3 . 20 2 1 , 2 7 .0 4 . 20 2 1 an d 2 3 . 0 9 . 2 0 21 . It i s d ire c ted th a t th e per iod f rom 1 5 . 0 3. 2 0 20 til l 28 . 0 2. 2 0 2 2 sh al l sta nd exc l u de d f o r th e pur po se s of l im ita ti on a s ma y ITA 42/CHD/2023 A.Y.2011-12 Page 7 of 12 be pre scr i bed u n de r an y ge ne r al or s pec i al l a ws in res pec t of all ju d i c ial or qu as i- ju d i c ial proc eed ing s. I I. Co n sequ en tl y , th e b al an c e per iod of l imi ta ti on rem ain in g a s on 0 3 .1 0 . 2 02 1 , if an y, sh al l bec ome av a il a bl e wi th ef f ec t f ro m 0 1. 0 3 .2 0 2 2.
I II. In c a se s wh e re th e l im i ta ti on wo u l d h ave e xp ir ed d u rin g th e per iod be t we e n 1 5. 0 3 .2 0 2 0 til l 2 8 . 02 . 2 0 2 2 , n o twi th stan d ing th e ac tu al b al an c e per iod of l i mi ta ti on re ma i n in g, al l per so n s sh al l h ave a l i mi ta ti on per iod of 9 0 d ay s f rom 0 1 . 03 . 2 02 2 . In the ev en t th e ac tu al b al an c e pe riod of l imi ta t ion rem ain in g, wi th eff ec t f rom 0 1 . 03 .2 02 2 is gre ater th an 9 0 d a y s, th at l o n ge r pe r iod sh al l a p pl y.
IV . It is f u rth e r c lar if ie d th a t th e per iod f rom 1 5 .0 3 . 20 2 0 til l 2 8 .0 2 . 20 2 2 sh al l al so s ta n d e xcl u d ed in c o mpu ti n g th e pe r iod s pre scr i be d u n d er S ec ti o n s 2 3 ( 4 ) an d 2 9A of th e Arb i tr ati on a nd Co nc il ia tio n A c t, 1 9 96 , Se c tio n 1 2 A of th e Co m merc i al Cou r ts Ac t, 2 0 1 5 an d pro v i so s (b) an d ( c) of Sec tio n 138 of the Ne go ti a bl e In stru me n ts A c t, 1 88 1 an d an y o th er l aws, wh i c h pr e sc r i be per iod ( s) of l im it a ti on f o r in sti tut ing proc ee d in g s, ou ter l i mi ts ( wi th in wh ich th e c ou r t or tr ibu n al c an c o n do ne d el a y) and te r min ati on of proc ee d in g s. "
ITA 42/CHD/2023 A.Y.2011-12 Page 8 of 12 In th a t v ie w of th e m at te r, the p e riod f rom 1 5 .0 3 . 2 02 0 til l 28 . 0 2. 2 0 22 sh all hav e to be e xcl u d ed f or th e pu r po se s of li mi ta ti on as ma y be pr e sc r i be d u n d er an y G e ne ral or SPE C IA L L AW S i n r espec t of al l ju d ic i al or qu a si - ju d ic i al proce ed in g s. T h e Co mme rc i al Co u r ts Ac t, 2 01 5 be in g a Spec i al L a w, the sa id ord er sh al l al so be a p pl ic a bl e wi th respec t to th e l i mi ta ti on pre scr i b ed u n d er th e Co mme rc i al Cou r ts A c t, 2 0 15 al so.
In v ie w of th e a b ove an d f or the r ea so n s sta ted ab o ve an d more p ar ti cu l arl y whe n th e 1 2 0 d a y s per iod ex p ire d in the pre sen t c a se on 0 9 .0 5 . 20 2 0 wh i ch wa s d ur in g the af oresaid per iod as pre scr i bed by th i s Co ur t in th e af oresaid or der , th e H igh Cou r t o u gh t to h ave exc l u d ed the af oresaid per io d f or th e pur po se of f ilin g th e wr i tten sta te men t an d o u gh t to h ave pe r mi tted to ta k e th e wr i tten sta te men t on r e co rd. T h e impu g n ed ju dg men t a n d ord er pa s sed b y th e H igh Cou r t ref u si n g to c on do ne th e d el a y an d ta k e on re cord th e wr i t ten sta t emen t i s h ereb y q u a sh ed an d se t a s id e. It is d irec te d th a t th e wr i t ten st ate me n t, al re ad y f il ed , be ta ken on r eco rd an d th e sa me be con sid ere d in ac c or dan c e wi th l a w. "
10. I n v ie w of t he a bov e , the pe r iod f r om 1 5 .0 3 .2 0 2 0 t il l 2 8 .0 2 .2 0 2 2 s ha l l sta n d e xcl u de d for th e p ur p ose s of li mi ta ti on ITA 42/CHD/2023 A.Y.2011-12 Page 9 of 12 f or th e f i li ng th e a p pe a l a nd e ffe ct ive l y, the s a id pe r iod n ee d n ot b e cou nte d a n d ha s t o be exc lu de d f or w orki n g out t he d e l a y in f i li n g t he p re se nt a p pe a l .
11. As far as pe r iod p r i or to 1 5 /0 3 /2 0 2 0 and p ost 2 8 /02 /2 0 2 2 ti ll fi l in g of p r e se nt a p p e a l i s co nc e rne d, it i s no d oub t tr ue t ha t the a ss e ssee wa s ou tsi d e th e c oun tr y a n d tr a ve ll i ng to U SA to a tte nd to h is f a mil y a f f a ir s fo r su ff ic ie nt l ong p e r i od e xcep t f or s ome i n ter mi tte n t pe r iod , h ow e ve r, the f a ct th a t he w a s t ra v e l li n g do e sn't ta k e a w a y h is ob l i ga ti on to a tte nd to the tax pr oc ee di n gs an d th a t too, h i s ow n a p pe a l w hi c h h a s b ee n fi le d be fo re the l d C I T( A) . I t is n ot a ca s e w he re th e a sse ssee h as p e r ma n e nt ly s hi ft e d to US A a n d has no co nn e ct in the C oun tr y. He con ti nu e s to h old th e I nd i an P a ss po rt a nd i s thu s ob l i ga te d to a b id e by the l a ws of th e l and i nc lu d in g t he ta x l a w s. W h e re he ca n tr a v e l to USA a nd a t te n d to the fa mi l y a f f a i r s, w e a re su re h e i s comp e te nt e n oug h t o a tte nd t o the ta x p r oc ee d i ng s i n In d ia . Me re l y fi lin g t he a p pe a l i s n ot e n ough t o se e k s he lte r f r om th e t a x ob l ig ati ons or t he co ns e q ue nt ta x l ia b il i ty. O n ce the a p pe a l i s fi le d , h e is e q u a l ly r e q u ire d t o a tten d to th e p r oce e d i ngs b e fo re th e l d C I T(A ) a n d/o r a p p oi nt t he C oun se l w h o ca n s ee k h is in stru cti on s a n d a tte nd to th e p r oce e d i ngs and fi le n e ce ssa r y d ocu me n ta ti on /s ub mi ssi on i n su p p or t of t he gr ou nd s of a p pe a l .
ITA 42/CHD/2023 A.Y.2011-12 Page 10 of 12 I n the in st a nt ca s e , the a p pe a l w a s f il e d o n 1 8 /0 1 /20 1 9 a n d d is p ose d off b y th e ld C I T( A) on 1 0 /0 7 /2 0 1 9 a n d in b e twee n , th r ee no ti ce s w er e se n t t hr ou gh sp ee d p os t w h ic h r e ma i ne d un a tte nde d. O nc e the a ppe a l has b e e n d i smi sse d e x -pa r te by th e l d CI T( A ) d u e to no n-p r ose cut io n a n d h is b a nk a c cou nt ha s b ee n a tta c he d b y the R e ve nue a uth or i ti e s, t he a s se s se e h as w ok e n up a g a in a n d fi l e d the pr e se n t a p pe a l tha t t oo w i th a su b sta n ti a l d e l a y.
12. We the re f ore f in d th a t th er e a re cl e a rl y l a tc he s a nd n e gl i ge n ce on pa r t of the a s se sse e in not f il i ng th e p r e se nt a p p e a l w i th in p re sc ri be d ti me fra me . At t he s ame ti me , w e b e l ie ve tha t w he re the a sse s see ha s come in a p p ea l be fore thi s Tr ib u na l , h e de se r ve s a n op p or tun i ty to be he a r d on me r i ts of h is ca se b e fo re th e ma tte r i s c on si gne d to r e co rds . I n W r it P e ti ti on N o. 7 8 3 of 2 0 1 2 i n the ca s e of Sa n ch i t S oft w a re a n d S olu ti ons P vt . Lt d Vs. C om mi ss io ne r of I n come Ta x an d O the r s, H on' bl e B omb a y H ig h C our t h e l d th a t in a n y ci vi li z e d s yste m, th e a s se s se e i s b ou nd to p a y th e ta x w hi ch he l ia b l e u nde r t he l a w to the G ove rn me n t. Th e G over n me nt on t he ot he r ha n d i s ob l ig e d to col lect onl y tha t a m ou nt to ta x w hi ch i s le ga lly p a ya b l e b y a n a s se s se e . The e n tir e ob je ct of t he ad min i str a ti on of ta x i s to se c ur e the Re ve n ue f or th e d e ve lo pme nt of t he co un tr y a n d no t to ch a rg e a s se sse e mor e ta x tha n w h ic h is d ue ITA 42/CHD/2023 A.Y.2011-12 Page 11 of 12 a n d p a ya bl e b y t he a s se sse e . As h e l d b y th e H on'b l e S up re me C ou r t, wh e re subs ta n tia l j u sti ce a nd t e ch ni ca l cons i de r a tio ns a r e p it te d a ga i nst e a ch othe r , the ca u se of s ub st anti a l ju sti ce d e se r ve d to be p re fe r re d . The r e fo re , i n e xe r c ise of po we r s u nde r se cti on 2 53 ( 5 ) of th e A ct a n d in inte re st of s ub st anti a l ju st ic e, we he re b y con done t he de l a y in fi l in g th e pre se n t ap pe a l su b je ct to c ost of Rs 5 , 00 0 /- w h ic h sh a ll be d ep os it e d i n P M N a ti on a l Re l ie f Fun d a n d e v ide nce t he re of sh ou ld b e b r oug ht on r e c or d. I n l ig ht of a f or e sa i d d i scu ss ion s, t he de l ay i s con d one d a n d th e a ppe a l i s he re by a d mi tte d fo r a d j ud ic a ti on on me ri ts .
13. Further, it is noted that the AO has passed the order u/s 144 read with Section 147 dated 14.12.2018 wherein an addition of Rs.49,40,750/- has been made for failure on the part of the assessee to provide necessary explanation in respect of the source of cash deposits in his bank account maintained with Axis Bank Ltd. Further, even before the ld. CIT(A), though notices have been issued which were not responded to and which has resulted in ex-parte order so passed by the ld. CI T(A). We, therefore, find that both before the AO as well as before the ld. CI T(A), the additions have been made and confirmed without considering the explanation which the assessee may like to submit in support of the source of the cash deposit in his bank account maintained with Axis Bank. Therefore, in the interest of ITA 42/CHD/2023 A.Y.2011-12 Page 12 of 12 substantial justice and fair play, we believe that the assessee deserves one more opportunity and the matter is, accordingly, set aside to the file of the AO to decide the same afresh after providing reasonable opportunity to the assessee. Needless to say, the assessee shall file the necessary information and documentation in support of his claim explaining the source of the cash deposit and attend to the proceedings before the AO and ensure timely completion of the proceedings without seeking unnecessary a djournments in the matter.
14. In the result the appeal of the assessee is allowed for statistical purposes.
Order pronounced in the Open Court on 22 n d May,2023.
Sd/- Sd/-
(A.D.JAIN ) (VIKRAM SINGH YADAV)
VICE PRESIDENT ACCOUNTANTMEMBER
"Poonam"
आदेश क ितिलिप अ ेिषत/ Copy of the order forwarded to :
1. अपीलाथ / The Appellant 2. यथ / The Respondent 3.आयकर आयु / CIT 4.िवभागीय ितिनिध, आयकर अपीलीय आिधकरण, च डीगढ़/ DR, ITAT, CHANDIGARH 5.गाड फाईल/ Guard File आदेशानुसार/ By order, सहायक पंजीकार/ Assistant Registrar