D.S. Hotels & Inns Private Limited vs ACIT-CPC, Ghaziabad: Delay in Filing TDS Statements for AY 2014-15 (Part 2)

D.S. Hotels & Inns Private Limited vs ACIT-CPC, Ghaziabad: Delay in Filing TDS Statements for AY 2014-15 (Part 2)

Case Number: ITA 5692/DEL/2019

Appellant: D.S. Hotels & Inns Private Limited, New Delhi

Respondent: ACIT-CPC, Ghaziabad

Assessment Year: 2014-15 (Q-26) (Q-2)

Case Filed On: 2019-06-28

Order Type: Final Tribunal Order

Date of Order: 2020-08-31

Pronounced On: 2020-08-31

Background

The case involves D.S. Hotels & Inns Private Limited, New Delhi, as the appellant, and the ACIT-CPC, Ghaziabad, as the respondent. The issue revolves around the delay in filing quarterly TDS statements for the assessment year 2014-15. The appellant was penalized under Section 234E of the Income Tax Act, 1961, for the delay.

Reason for Filing the Case

The appellant challenged the levy of fees for the delay in filing TDS statements. The appeals were filed with significant delays, attributed to the change of counsel and the outgoing counsel’s failure to return relevant documents promptly.

Tribunal Proceedings

On 27th August 2020, the tribunal, comprising SHRI R.K. PANDA, Accountant Member, and SHRI SUDHANSHU SRIVASTAVA, Judicial Member, heard the case through video conferencing.

The Ld. Authorized Representative (AR) for the appellant submitted that the delays in filing the appeals were due to circumstances beyond their control. The outgoing counsel’s delayed return of documents was cited as the primary reason for the late filings.

The AR provided a chart detailing the delays in filing each appeal, which ranged from 709 to 1128 days. Despite the explanations, the Ld. Commissioner of Income Tax (Appeals) [CIT(A)] dismissed the appeals, refusing to condone the delays.

Arguments Presented

The Ld. AR argued that the delays were not deliberate and requested the tribunal to condone the delays and adjudicate the appeals on their merits. The AR referenced the case of Collector Land Acquisition, Anantnag & Anr., emphasizing that a liberal approach should be taken in condoning delays to ensure substantial justice.

The Ld. Senior Departmental Representative (DR) countered, reiterating the CIT(A)’s findings and opposing the condonation of the delays due to their substantial length.

Tribunal’s Decision

After considering both parties’ arguments, the tribunal concluded that the CIT(A) had dismissed the appeals without examining their merits. The tribunal agreed with the AR’s contention that the delays were not deliberate and should be condoned in the interest of justice.

The tribunal restored all the appeals to the CIT(A) with directions to condone the delays and adjudicate the appeals on their merits. This decision was made in alignment with the principles established by the Hon’ble Apex Court, which advocates for a liberal approach in condoning delays to ensure substantial justice.

Conclusion

The tribunal’s decision highlights the importance of considering the reasons for delays and ensuring that substantial justice prevails over procedural technicalities. By restoring the appeals to the CIT(A), the tribunal provided the appellant an opportunity to have their case heard and decided on its merits.

The final result was a significant step towards ensuring that justice is served fairly, emphasizing that procedural delays should not override the merits of a case.

Order pronounced on: 31/08/2020

Signatories:

SHRI R.K. PANDA, Accountant Member

SHRI SUDHANSHU SRIVASTAVA, Judicial Member

Dated: 31/08/2020

Copy forwarded to:

• Appellant
• Respondent
• CIT
• CIT(Appeals)
• DR: ITAT

ASSISTANT REGISTRAR

ITAT NEW DELHI

D.S. Hotels & Inns Private Limited vs ACIT-CPC, Ghaziabad: Delay in Filing TDS Statements for AY 2014-15 (Part 2)