Itat/211/2023 Intent Infraprojects Private Limited v. Principal Commissioner Of Income Tax-1, Kolkata And Anr

IN THE HIGH COURT AT CALCUTTASPECIAL JURISDICTION (INCOME TAX)ORIGINAL SIDE ITAT/211/2023INTENT INFRAPROJECTS PRIVATE LIMITEDVSPRINCIPAL COMMISSIONER OF INCOME TAX-1, KOLKATA AND ANR. BEFORE :THE HON’BLE THE CHIEF JUSTICE T.S. SIVAGNANAMAndTHE HON’BLE JUSTICE HIRANMAY BHATTACHARYYADate : 22[nd] January, 2024 Appearance : Mr. J.P. Khaitan, Sr., Adv.Mr. Pratyush Jhunjhunwala, Adv.Ms. Sretapa Singh, Adv.…for appellantMr. Prithu Dudhoria, Adv.…for respondent The Court :- Heard Learned Counsel appearing on either side. This appeal filed by the assessee filed under Section 260A of the IncomeTax Act, 1961 (the Act) is directed against the order dated 24.01.2023 passed bythe Income Tax Appellate Tribunal “B” Bench Kolkata (The Tribunal) inITAT/38/Kol/2022 for the assessment year 2012013. The assessee has raisedthe following substantial questions of law for consideration: i)Whether there was sufficient cause that prevented the appellantfrom preferring the appeal before the Tribunal within the period oflimitation and the findings and observations of the Tribunal in thisregard are erroneous, contrary to law and perverse ? ii)Whether the delay in filing of the appeal before the Tribunal havingoccurred because of the death of the consultant initially appointedand subsequent reconstitution of the appeal papers during the pandemic and engaging a new practitioner for filing of the appealwere circumstances beyond the control of the petitioner whichwould constitute “sufficient cause” for condoning the delay ? iii)Whether the Tribunal ought to have dealt with the issue on meritsand examined whether the share subscription received by theappellant was in accordance with law and fulfilled the requirementsof identity and creditworthiness of the share subscribers and thegenuineness of the transactions ? The learned Tribunal by the impugned order dismissed the appeal filed bythe assessee as being time barred as there was a delay of 927 days. We haveelaborately heard learned Advocate for the appellant and learned standingCounsel for the respondent and also perused the order passed by the learnedTribunal which has extracted an affidavit filed on behalf of theappellant/assessee by its director wherein an explanation has been offered bycontending that the Chartered Accountant was engaged in the matter hadpassed away and subsequently the Advocate who was engaged had not takendiligent steps resulting in the delay in filing the appeal before the Tribunal.Considering the fact that the assessment is high pitched assessment and thatthe appellant/assessee should be granted an opportunity to put forth theirsubmission on merits, we are inclined to exercise discretion in the mattersubject to certain conditions. For the above reasons, the appeal is allowed and the order passed by theTribunal is set aside and the delay in filing the appeal before the learnedTribunal is condoned subject to the condition that the appellant pays a sum ofRs.5 lakhs to the West Bengal Legal Services Authority. Upon such payment, thereceipt shall be filed before the learned Tribunal and the learned Tribunal onbeing satisfied that the condition imposed by this Court has been complied with shall take up the appeal namely ITA No. 38/Kol/2022 for the assessment year2012-13 hear the appeal and pass order on merits and in accordance with law.The appellant shall not seek for any adjournment and shall appear before thelearned Tribunal on the date so fixed by the Tribunal. The amount directed to be paid shall not be paid later than 16[th] February2024. Consequently, the substantial questions of law are left open. (T.S. SIVAGNANAM) CHIEF JUSTICE (HIRANMAY BHATTACHARYYA, J.) Pkd/GH.