Krishan Lal v. Commissioner Of Income Tax, Aayakar Bhawan, Karnal, Haryana

Income Tax Appeal No.279 of 2016 1 IN THE HIGH COURT OF PUNJAB AND HARYANA ATCHANDIGARH. Income Tax Appeal No.279 of 2016 Date of Decision: 09.02.2017 Krishan Lal ..Appellant versus Commissioner of Income Tax, Aayakar Bhawan, Karnal, Haryana ..Respondent CORAM:HON'BLE MR JUSTICE AJAY KUMAR MITTALHON'BLE MR. JUSTICE RAMENDRA JAIN Present:Mr. S.K.Mukhi, Advocate, for the appellant. Mr. Yogesh Putney, Advocate, for the respondent. RAMENDRA JAIN, J. 1.The instant appeal has been filed by the appellant under Section260-A of the Income Tax Act, 1961 ( hereinafter referred to as “the Act”)for setting aside the order dated 03.5.2016 (Annexure A-3) passed by theIncome Tax Appellate Tribunal, Chandigarh, affirming the order dated10.12.2015 (Annexure A-2) passed by the Commissioner of Income Tax(Appeals)-2, Gurgaon, for not condoning the delay of 127 days in filing theappeal, resulting in dismissal of the appeal as not maintainable being barredby time. 2.Brief facts of the case are that after filing return declaringincome at ` 99,750/- and `` 5,05,000/- from agriculture, the AssessingOfficer, received Annual Information Report (for short “AIR”) with respectto deposit of the amount in the Axis Bank account, of the appellant.However, on account of some personal difficulty, the appellant could not Income Tax Appeal No.279 of 2016 2 appear before the Assessing Officer. Consequently, the Assessing Officer,vide order dated 25.3.2013 (Annexure A-1), received by the appellant, on30.3.2013, made additions under Section 69 of the Act. Being dissatisfied,the appellant instructed his counsel to take necessary action in the matter.However, on account of misplacement of the record, the appellant's counselcould not file the appeal in time. On receipt of a demand notice, imposingpenalty by the Assessing Officer, under section 271(1)(c) of the Act, theappellant after obtaining a certified copy of the impugned assessment order,on 22.8.2013, approached his counsel and got filed the appeal on 4.9.2013.It is because of this reason that delay of 04 months and 05 days occurred infiling the appeal. However, the Commissioner of Income Tax (Appeals),without appreciating the facts of the case, the affidavits, furnished by boththe appellant and his counsel, on the record, explaining reasons for notfiling the appeal in time, the well settled principles of law, held that theappeal filed by the appellant was not maintainable being barred by timeand, accordingly, dismissed the same vide impugned order dated 10.12.2015(Annexure A-2). Being further aggrieved, the appellant filed an appealbefore the Income Tax Appellate Tribunal, Chandigarh Bench, Chandigarh,who too dismissed the appeal of the appellant vide order dated 03.05.2016(Annexure A-3), affirming the order dated 10.12.2015 (Annexure A-2)passed by the Commissioner of Income Tax (Appeals)-2, Gurgaon. 3.Learned counsel for the appellant contended that the appellant has been condemned unheard without taking into consideration the wellsettled principles of law that no one should be condemned unheard. Theauthorities below, keeping in view the principles of interest of justice,should have afforded an opportunity of hearing to the appellant before Income Tax Appeal No.279 of 2016 3 dismissing the appeal by holding that it is not maintainable being barred bytime. 4.After giving our thoughtful considerations to the submissionsraised by learned counsel for the appellant, we find that the authoritiesbelow should have decided the appeal on merits instead of dismissing itstraightway on the ground of delay and laches, inasmuch as the assessee-appellant has been able to show reasonable cause in delayed filing of theappeal. The explanation furnished by the assessee in not approaching theappellate authority, as noticed above, appears to be plausible. Income Tax Appeal No.279 of 2016 3 dismissing the appeal by holding that it is not maintainable being barred bytime. 4.After giving our thoughtful considerations to the submissionsraised by learned counsel for the appellant, we find that the authoritiesbelow should have decided the appeal on merits instead of dismissing itstraightway on the ground of delay and laches, inasmuch as the assessee-appellant has been able to show reasonable cause in delayed filing of theappeal. The explanation furnished by the assessee in not approaching theappellate authority, as noticed above, appears to be plausible. 5.In view of the above discussion, the appeal is allowed. Theimpugned orders dated 10.12.2015 (Annexure A-2) passed by theCommissioner of Income Tax (Appeals) and dated 3.5.2016 (Annexure A-3)passed by the Income Tax Appellate Tribunal, Chandigarh Bench,Chandigarh, are set aside. Consequently, the case is remitted back to theCommissioner of Income Tax (Appeals)-2-Gurgaon, to decide the appeal ofthe appellant on merits, in accordance with law, after affording anopportunity of hearing to the parties. 6.Parties are directed to appear before the Commissioner ofIncome Tax (Appeals) -2, Gurgaon, on 21.03.2017. ( RAMENDRA JAIN ) JUDGE 09.02.2017VK ( AJAY KUMAR MITTAL ) JUDGE Yes/NoYes/No