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TMI Blog2018 (10) TMI 1358X X X X Extracts X X X X X X X X Extracts X X X X ..... see and its Directors were guilty of negligence. No gross negligence on the part of the appellant especially in the light of the reasons assigned for filing the appeal belatedly, which have not been controverted by the Revenue. Therefore, we are of the considered view that the matter should not be shut down on technicalities and a liberal approach should be taken bearing in mind the reasons assigned by the appellant, as the assessee is a joint venture company controlled by the Government of Tamil Nadu and its DCEO, who is invariably in the cadre of IAS Officer, is being nominated by the Government and he has to take a decision to file an appeal. Delay condoned - Decided in favour of assessee. - Tax Case Appeal No.997 of 2008 - - - Dated ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... odules having infrastructure facilities required for the software industry like air conditioner, internet connection, etc., which were let out by the company to its customers. 5. For the assessment year under consideration i.e. 1997-98, the assessee filed its return of income on 20.11.1997 declaring a loss of ₹ 2,22,19,360/-. Subsequently, a revised return was filed on 12.2.1998 declaring a loss of ₹ 2,21,16,850/-. The assessee's case was selected for scrutiny and a notice under Section 143(2) of the Income Tax Act, 1961 (for brevity, the Act) dated 20.11.1998 and another notice under Section 143(1) of the Act dated 09.9.1999 were issued. The scrutiny assessment was completed under Section 143(3) of the Act by an order da ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ly, the IAS Officer, who was the then DCEO, resigned with effect from 20.4.2000, as a result of which, a decision could not be taken. The assessee also filed a copy of the resignation letter before the CIT (A) in the form of annexure. The assessee further stated that the post of DCEO remained vacant till 15.11.2000 and subsequently, a new DCEO was appointed by the Government with effect from 15.11.2000. A copy of Form No.32 filed by the company before the Registrar of Companies along with an affidavit was also annexed. The new DCEO, after considering the issue, took up the matter before the Board of Directors and a decision was taken to file the appeal through the counsel for the appellant. Therefore, the appellant prayed that the delay mig ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... appended to the affidavit and unfortunately, the CIT (A) did not even venture to deal with those annexures. The CIT (A) ought to have considered the fact that the assessee was a joint venture company, which was controlled by the Government of Tamil Nadu and that the DCEO hads to be nominated by the Government of Tamil Nadu. Though the Director, who was functioning at the time when the assessment order was received, took a decision to refer the matter to the Board for filing an appeal, subsequently, he resigned the post, as a result of which, a vacuum was created. Though the Board was in existence, as per the Rules of the company, a decision had to be taken by the DCEO. This submission made by the assessee has not been disputed by the Reven ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f Tamil Nadu and its DCEO, who is invariably in the cadre of IAS Officer, is being nominated by the Government and he has to take a decision to file an appeal. 13. The learned counsel for the appellant has submitted that in the assessee's own case for the assessment years 1995-96, 1996-97 and 2001- 02, a Division Bench of this Court in the decision reported in (2013) 213 Taxman 129, decided the very same issue in favour of the assessee. 14. The learned Standing Counsel for the Revenue, on the other hand, has referred to the decision of another Division Bench of this Court in the case of CIT Vs. Keyaram Hotels Private Limited [TCA.No.89 of 2010 dated 22.6.2018], in which, the decision was rendered in favour of the Revenue. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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