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2016 (5) TMI 419 - ITAT CHENNAI

2016 (5) TMI 419 - ITAT CHENNAI - TMI - Condonation of delay - Held that:- Delay in filing the appeal was not wanton as per condonation petition filed in appellate proceedings. Further on perusal of record of the events from the assessment proceedings to the Tribunal, the company seems to be passing through serious business irregularities and also Managing Director was detained. The submissions of ld. Authorised Representative on genuine and sufficient reasons for delay can not be ignored. The M .....

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T.A. No.2283/Mds/2015 - Dated:- 30-3-2016 - SHRI CHANDRA POOJARI, ACCOUNTANT MEMBER AND SHRI G. PAVAN KUMAR, JUDICIAL MEMBER For The Appellant : Shri. G. Seetharaman, Advocate For The Respondent : Shri. A.V. Sreekantha, JCIT. ORDER PER G. PAVAN KUMAR, JUDICIAL MEMBER: The appeal filed by the assessee is directed against order of the Commissioner of Income-tax (Appeals)-6, Chennai in ITA No.160/CIT(A)-6/2014-15, Dt 26.11.2015 for the assessment year 2009-2010 passed u/s.143(3) r.w.s.147 and 250 o .....

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within due date. The ld. Assessing Officer on verification found the assessee has sales of ₹ 7,07,94,947/- for the financial year 2008-09 as against ₹ 154,95,57,726/- as on 31.03.2008 for the financial year 2007-08. The Assessing Officer issued notice u/s.148 of the Act and in compliance to notice, the return of income was filed with total income of ₹ 24,25,460/- and was processed u/s.143(1) of the Act on 12.11.2013, the company filed adjournment letter stating details called f .....

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ly accepted in India. As the re-assessment is getting time barred by 31.03.2014 and as the director of the company had not responded to any notices including summon issued, the assessment is completed after discussion with the Authorirsed Representative exparte Based on the observations of the statutory Auditor and available material, the Assessing Officer completed assessment by disallowing expenses as no satisfactory explanations was furnished that expenses are exclusively incurred for the pur .....

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/-. The assessee has incurred certain indirect expenses for making investments and ld. Assessing Officer relied on the Delhi Tribunal decision of Escorts Ltd vs. ACIT 102 TTJ 522 and disallowed indirect expenses and management expenses estimating at 1% of dividend income as in earlier year assessment 2007-08 in assessee s own case. With these above disallowance the Assessing Officer passed assessment order u/s.143(3) r.ws. 147 on 25.03.2014 with assessed income of ₹ 84,70,705/-. Aggrieved .....

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ns of Sec.249 of the Act, the assessee has to file an appeal within a period of 30 days from the date of intimation of order. Whereas the appeal was filed on 25.06.2014 and condonation petition was filed explaining the reasons and circumstances referred at page 2 of CIT order as under:- 1. The assessment order and demand notice for the assessment year 2009-10 were served on someone on 02.04.2014. On that basis, the appeal should have been filed on or before 03.05.2014. 2. It is filed on 25.06.20 .....

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red the findings of the Assessing Officer and without going into merits as the assessee could not explain circumstances and substantiate the delay of 52 days in condonation petition and ignored the fact that the Managing Director of the Company was under detention by Andhra Pradesh Police for alleged violation of money circulation scheme from 16.02.2014 and released on 02.06.2014. The ld. Commissioner of Income Tax (Appeals) observed that the assessee does not have sufficient cause for delay and .....

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obtained and further Managing Director of the Company was under detention by Andhra Pradesh police from 16.02.2014. The Managing Director alone is authorized to sign the appeal papers and there is no other Director was authorized in the absence of Board of Directors and as per the assessment order, The Auditor do not express any opinion on true and fair view of the accounts. The assessee company passed through genuine hardship and have fair chances of succeeding in appeal on merits and produced .....

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delay, we highlight the decision of the Hon'ble Supreme Court in the case of N. Balakrishnan V. M. Krishnamurthy, AIR 1998 SC 3222 observed as under:- "11. Rules of limitation are not meant to destroy the right of parties. They are meant to see that parties do not resort dilatory tactics, but seek their remedy promptly. The object of providing a legal remedy is to repair the damage caused by reason of legal injury. Law of limitation fixes a life span for such legal remedy for the redre .....

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for the general welfare that a period be put to litigation). Rules of limitation are not meant to destroy the right of the parties. They are meant to see that parties do not resort to dilatory tactics but seek their remedy promptly. The idea is that every legal remedy must be kept alive for a legislatively fixed period of time. 12. A court knows that refusal to condone delay would result in foreclosing a suitor from putting forth his cause. There is no presumption that delay in approaching the c .....

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quot;sufficient cause" should receive a liberal construction so as to advance the purpose of justice particularly when there is no motive behind delay. This necessarily implies that parties must act bonafidely, expeditiously and with due care. A casual or a negligent litigant who has acted with utter irresponsible attitude, cannot claim the condonation of delay in law when the right has accrued to the other side. The expression "sufficient cause" will always have relevancy to reas .....

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C) as under:- ( Pages 472 ). " 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 sub serves the ends of justice that being the life-purpose of the existence of t .....

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old and cause of justice being defeated. As against this, when delay is condoned, the highest that can happen is that a cause wouldbe decided on merits after hearing the parties. 1. " Any appeal or any application, other than an application under any of the provisions of Order XXI of the Code of Civil Procedure, 1908, may be admitted after the prescribed period if the appellant or the applicant satisfies the court that he had sufficient cause for not preferring the appeal or making the appl .....

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