2022 (4) TMI 1445

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....e learned CIT(A) is not justified in dismissing the appeal despite the fact that the merits of the matter were covered by the decision of the jurisdictional Tribunal in the Appellant's own case vide Order dated 31/10/2014 in ITA No. 1070 & 1071/Bengaluru/2014 on the facts and circumstances of the case. 4. The learned CIT(A) ought to have held that the Appellant is an executing agency of the Government of India and the Government of Karnataka and hence is not liable to be taxed under the Income Tax Act, 1961 on the facts and circumstances of the case. 5. The learned CIT(A) ought to have held that the interest earned on deposits is inextricably and intrinsically connected with the business of the Appellant Company and further without prejudice the same is earned during the preoperative period and consequently the learned Assessing Officer is not justified in law in denying the claim of the Appellant to treat the interest income of Rs.18,25,27,519/- as exempt from tax on the facts and circumstances of the case 6. The learned CIT(A) ought to have held that the other interest income of Rs.4,86,22,824/- is not taxable on the facts and circumstances of the c....

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....19 Interest - others 4,86,22,824 Miscellaneous receipts 5,70,48,925 Total 28,81,99,268 2.3 The Ld.AR submitted that the assessee approached a professional who advised that, no relief may be expected in the appellate forum, and therefore, the assessee did not file any appeal before the Ld.CIT(A). Subsequently, in assessee's own case for A.Ys. 2007-08 and 2008-09, that was pending before this Tribunal in ITA Nos. 1070 & 1071/Bang/2011, was decided on 31.10.2014, wherein the issue under consideration in respect of income earned on investment made out of surplus funds, whether taxable in the hands of the assessee or not was decided. This Tribunal held in favour of the assessee on the issue and the Ld.Counsel who represented the assessee before this Tribunal advised the assessee to challenge the orders that were not challenged. Accordingly, assessee preferred appeal before the Ld.CIT(A). 3. The Ld.AR submitted that, though several grounds were raised before the Ld.CIT(A) on merits, the Ld.CIT(A) dismissed the appeal for not condoning the delay in filing of appeal of 1037 days before him. The Ld.CIT(A) observed as under: "2.0. At the outset it is seen tha....

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.... 4. Aggrieved by the order of Ld.CIT(A), assessee is in appeal before this Tribunal. 5. The Ld.AR submitted that, it is only after the order passed by this Tribunal dated 31.10.2014 that assessee preferred appeal, with the correct advice of the professional before the Ld.CIT(A). On identical facts during the relevant period for A.Y. 2009-10, there was a delay in filing the appeal before this Tribunal to the extent of 1240 days which was condoned by this Tribunal. The Ld.DR opposed the prayer of the assessee for condoning the delay in filing the appeal. 6. On the contrary, the Ld.CIT.DR submitted that there is no decision on the issue, on the additions by Ld.CIT(A), in the event the delay is condoned. Revenue may be granted an opportunity to pass an order on merits. We have perused the submissions advanced by both sides in the light of records placed before us. 7. We note that Ld.CIT(A) dismissed the appeal in limine due to the delay caused in filing the appeal before him. The affidavit that was filed by the assessee before the Ld.CIT(A) reveals that, assessee was subjected to wrong professional advice on the issues that, no relief could be expected, and therefore, no appea....

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....sed on the technical ground of delay in filing, it would amount to taxes being collected on amounts that do not constitute income under section 4 of the Act, which is not the intention of the legislature. Dismissing this appeal on account of delay, would deprive the justice by not giving the assessee the refund that it deserves and therefore it was pleaded that the Tribunal may take a lenient view and condone the delay. It was further submitted that the assessee is a government company and the decision making body is the board consisting of the representatives of both the Government of India and the Government of Karnataka and due to frequent restructuring of the Board, delays take place in decision making as regards to tax and financial matters. 13. Reliance was placed on the decision of the Hon'ble jurisdictional High Court in the matter of Karnataka Forest Development Corporation Limited v. ACIT in ITA No. 83/2009 where the Hon'ble Court held : No doubt, it is the law that every days delay has to be explained, but, at the same time, where, Government is the appellant, having regard to the way that the Government and its officers function, the Courts have been t....

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....lite Centre in ITA No. 532/2008, and this Tribunal in the case of M/s Raghavendra Constructions supra relied on this decision also, while condoning the delay. 15. The learned DR opposed the prayer of the assessee for condoning the delay in filing the appeal. He pointed out that the order of the Tribunal for Assessment Year 2007- 08 and 2008-09 was passed on 31.10.2014 but the appeal was filed only on 06.10.2015. Even going by the reason that the reason for not filing the appeal within time was advise by professional not to file appeal against the order of the CIT(A) for Assessment Year 2009-10, that advise would not hold good after 31.10.2014. 16. The learned Counsel for assessee pointed out that all Metro Rail Corporations which come under the Ministry of Urban Development made representation to the Ministry of Urban Development to seek exemption of interest income and miscellaneous income generated during project implementation. The Secretary to Govt. of India, Ministry of Urban Development wrote a letter dated 23.01.2013 to the Secretary (Revenue), Ministry of Finance. Based on that the assessee also informed to AO by letter dated 15.04.2013, 13.05.2013 and 04.....