9911796707
TMI Blog2025 (2) TMI 774X X X X Extracts X X X X X X X X Extracts X X X X ..... ng condonation of delay in filing form 10 CCB for the A. Y. 2017-2018 under Section 119 of the Income Tax Act (for short "I.T. Act"). The Petitioner inter alia pointed out that over the previous years the Petitioner was regularly filing Income Tax Returns, along with all statutory reports, including form No. 10 CCB within the specified due dates. 4. For the A. Y. 2017-18, the Petitioner filed the original Income Tax Return on 7th November 2017, and the revised Income Tax Return on 18th March 2019, alongwith statutory forms/report in Form 10 CCB, Form No. 29B and Form 3 CA-3 CD. The Petitioner also prayed for condonation of delay from 7th November 2017 to 18 March 2019, for revised Income Tax Return to be accepted, as a return filed under Section 139 (5) of the Act alongwith Form No. 10 CCB. The relevant extract of the Petitioner's Application reads thus:-. " To begin with it is humbly submitted that over the years, the financial operations of the Company were looked after by the CFO of the Company, Mr. Sunil Soni. During FY 2016-17 (AY 2017-18), Mr. Sunil Soni, CFO was not regular in coming to office which was hampering the Company's financial operations. The management of the C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... year as well. Further, as soon as the Management commenced drafting replies in response to the Notice u/s 142(1) of the Act, it was shocked, surprised, amazed and flabbergasted to learn that all the figures mentioned in the original return of income did not correlate / reconcile with the actual audited accounts of the Company. It immediately then filed the revised return of income along with Form 10CCB and Form 3CA-3CD on 18.03.2019 to keep the records straight. It is humbly submitted that, ever since incorporation, the Company has been regular in complying as per the applicable provisions of the Income-tax Act, 1961 or any other law as applicable to Company from time to time. The Company has neither defaulted nor has delayed in paying taxes as per law and has never ever caused loss to the Revenue Department. It is also pertinent to note that the current assessment year i.e. AY 2017-18 is the only isolated year whereby the Company faced such an abnormal situation despite an undisputed fact that the question of causing any loss to the Revenue Department just does not arise. In fact, even the thought of filing inaccurate particulars of income in the return of income or any other rel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essee has stated that "CFO of the company Mr. Sunil Soni was not regular in coming to office which was hampering the company's financial aperations and so on". As stated by assessee, assessee has attributed the reason for non-filing of form due to non-attendance of CFO. This is not convincing and acceptable due to fact that for such companies, there is an entire accounting team and tax related department with specific people tasked to meet all the statutory deadlines. There are internal auditors and accounts taxation team who handle filing of tax return and forms. Therefore, it cannot be presumed that management was not communicated about the time barring matter. 4.3. Further, it was found that Form No. 3CA is dated 7th Nov, 2017 and is to be prepared at the time of original return filing. However, Form 10CCB which also needs to be filed at the time of filing of original return was not filed. Moreover, assessee has filed belated return on 08.11.2017. All the case laws as has been relied by assessee assumes that original return filing is within time, which is not true in assessee's case. In the instant case, assessee has filed original return belatedly and the figures as mentione ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rms on time as contended by the applicant. Further, the forms-filed at later stage, i.e, during assessment proceedings had gross difference in ;figures as was reported in ITR filed originally on 08.11.2017 belatedly. Further, no reasonable cause has been shown or established by the applicant to justify its claim of genuine hardship under section 119(2)(b) of the Act. 7. As discussed above, in view of report of PCIT, applicant has failed to explain reasonable cause for delay in filing revised return of income alongwith Tax Audit Report in Form 3CA-CD & Form 10CCB for A.Y. 2017-18. Therefore, the application of the applicant for condonation of delay u/s 119(2)(b) of the Income-tax Act, 1961 for AY 2017-18 is hereby rejected." 9. It is the submission of the Petitioner that subsequent to demerger of business and change of name of the Petitioner from Samarth Life Sciences Pvt. Ltd to Penang Enterprises Pvt. Ltd, the finance team of the Petitioner did not have access to the email address [email protected] and [email protected] due to certain internal restructuring. Therefore, communications addressed by Respondent No. 1 could not have been accessed by the finance team, which ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... able conduct came to light when his wife barged into the Registered Office of the company along with her children. The Petitioner further stated that, it was only after the receipt of notice under Section 142 (1) of the Act dated 21st February 2019, calling for information and details pursuant to notice issued under Section 143 (2) of the Act, that the company realised that the original tax filings on 7th November 2017, were based on incorrect figures. Further, the Petitioner has also submitted that, in the midst of all this, the director of the company, Mr. Rajiv Shah, was also irregular in attending the office due to his mother's deteriorating ill health during the period from June 2017 to March 2018. The Petitioner has submitted that, during this period, his mother was operated for 3 major spine problems at Hinduja Hospital. His mother was completely bedridden after the surgeries and, hence, the director could not attend the office on a regular basis. Further, the Petitioner also submitted that since the business of the company had expanded, and there was need for an ERP system for the company to manage its operations, the company, during F.Y. 2016-17, implemented a new ERP acco ..... X X X X Extracts X X X X X X X X Extracts X X X X
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