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2019 (8) TMI 1407 - AT - Income TaxCondonation of delay in filling appeal before the CIT(A) - delay of 27 months - specific objection against the reopening of the assessment - As per the stand of the assessee its factory premises was put under attachment by the Excise department on 28.8.2012 and no business has been carried out by the company thereafter. Thus, notice sent on that address was not received by anyone because the factory premises was closed down - HELD THAT:- Though equity in taxation matters is not a sound principle for adjudicating the controversy, but it is always to be kept in mind that where it is possible to draw two inferences from facts and where there is no evidence of intentional dishonesty or improper motive on the part of the assessee, then it would be just and equitable to draw such inference in such a manner that would lead to equity and justice. Neither the AO has acted in a fair manner nor the assessee has prosecuted its income tax proceedings before the ld.Revenue authorities diligently; nothing will happen to the authorities, but the punishment in the shape of tax liability on an addition of ₹ 27 crores amplified with the penalty of ₹ 9 crores, is in our understanding a quite disproportionate to the negligence of the assessee. If we weigh scale keeping in mind both these facts, then to our mind scale would tilt in favour of the assessee because by condoning the delay nothing is being taken away on merit from the department. It will be a just an opportunity to the assessee to explain its case. If something has been done illegally against it, then that illegality should not be regularized on account of technicalities. The other side could be compensated with some cost for lingering the litigation. Therefore, evaluating all these aspects, we are of the view that delay in filing the appeals before the CIT (A) deserves to be condoned subject to payment of cost of ₹ 50,000/- (Rupees fifteen thousand only). We accordingly condone the delay in filing the appeals before the CIT(A) and set aside the impugned orders. CIT(A) is a first appellate authority, it has not applied its mind on facts on the merit of the issues, therefore, we remit both the issues to the file of the CIT(A) for fresh adjudication on merit. It is needless to say that observation made hereinabove will not impair or injure the cast of the AO and will not cause any prejudice to the defence/explanation of the assessee on merit. The assessee will be liberty to raise any plea on merit for both the appeals, and the ld.CIT(A) shall decide appeals after providing due opportunity of hearing to the assessee. In the result, subject to payment of ₹ 50,000/- (Rupees fifty thousand only) by the assessee, appeals are allowed for statistical purpose
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