Hibiscus Hospitality Services Vs ITO (ITAT Bangalore)
Bangalore ITAT Condones 78-Month Delay to Prevent Double Taxation; Restores Matter to AO
The Bangalore ITAT condoned an extraordinary delay of 78 months in filing the appeal against an intimation u/s 143(1), holding that the assessee had furnished a detailed and satisfactory explanation for the delay. The Tribunal noted that the assessee had been continuously pursuing rectification before the AO & CPC, filed multiple rectification applications and grievances, faced difficulties during the COVID-19 period, & eventually approached appellate proceedings after obtaining a second legal opinion. The CIT(A) erred in rejecting the condonation application merely on the ground that documentary evidence was lacking, despite the assessee having explained virtually each stage of the delay.
On merits, the assessee contended that the CPC had wrongly treated receipts as income from house property merely because TDS had been deducted under section 194-I, whereas the receipts represented business income already offered to tax under the presumptive taxation scheme. Consequently, the adjustment u/s 143(1) resulted in double taxation of the same income. Since the CIT(A) had dismissed the appeal on limitation without examining this contention, the Tribunal held that the issue deserved adjudication on merits.
Accordingly, the ITAT condoned the 78-month delay, set aside the order of the CIT(A) & restored the matter to the AO for fresh consideration, directing that the assessee be given an opportunity to establish that the impugned addition amounted to double taxation. The appeal was partly allowed for statistical purposes.
Cases Discussed
- Anatek Services Pvt Ltd Vs. Asst. Commissioner of Income-tax-10W (High Court of Bombay), ITA No.102 of 2018 dated 11.02.2022
- M/s. Midas Polymer Compounds Pvt Ltd Vs. ACIT (Cochin Tribunal), ITA No.288/Coch/2017 dated 25.06.2018
- Commissioner of Income-tax Vs. West Bengal Infrastructure Development Finance Corporation limited (SC), (2011) 334 ITR 269 (SC)
- CIT & Another Vs. ISRO Satellite Centre, ITA No. 532 of 2008 and other batch of appeal order dated 28/30/2033
- Collector, Land Acquisition Vs. MST.Katiji and Others, (1987) 167 ITR 471
- Commissioner of Income-tax Vs. K.S.P.Shanmugavel Nadar (High Court of Madras), (1987) 30 Taxman 133 (Madras)
- Concord of India Insurance Co. Ltd., Vs Smt. Nirmala Devi and Others, 118 ITR 507
- Shakuntala Hegde, Legal Heir of Mr. Ramakrishna Hegde Vs. ACIT (Bangalore Tribunal), ITA No. 2785/Bang/2004 order dated 25/04/2006
- Radha Krishna Rai Vs. Allahabad Bank & Others, (2000) 9 Supreme Court Cases 733
FULL TEXT OF THE ORDER OF ITAT BANGALORE
