CRYSTAL METAL INDUSTRIES,ALWAR V. ACIT, ALWAR

ITA 908/JPR/2025

AI Insights

The case involves Crystel Metal Industries, which appealed against various penalty orders issued by the Assessing Officer under different sections of the Income Tax Act for the assessment years 2019-20 to 2021-22. The penalties were contested on the grounds that they were imposed ex parte and before the disposal of related appeals on quantum additions by the CIT(A). The Tribunal noted that the penalties were levied while the appeals against quantum additions were still pending and the time limit for framing the penalty orders had not expired. The Tribunal found that the Assessing Officer had erroneously assumed the assessee's lack of interest in pursuing the appeals, leading to the penalties being imposed prematurely.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 705374 (ITAT-JAIPUR)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-07-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Assessment Year: 2021-2022
• Laws Referred To: Income Tax Act
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: GAUTAM SINGH CHOUDHARY
• Assessee Lawyers: SANDEEP JHANWAR
• Keywords: Opportunity of being heard; Reasonable cause

Judgement Text

" vk;dj vihyh; vf/kdj.k] t;iqj U;k;ihB] t;iqj IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHES,”SMC” JAIPUR Jh euh\"k cksjkM] ys[kk lnL; ds le{k BEFORE: SHRI MANISH BORAD, AM vk;dj vihy la-@ITA. No. 904, 906, 907 & 908/JPR/2025 fu/kZkj.k o\"kZ@Assessment Year : 2019-20 to 2021-22 Crystel Metal Industries G-732, RIICO Industrieal Area Phase-1, Alwar. cuke Vs. The ACIT, Central Circle, Alwar. LFkk;h ys[kk la-@thvkbZvkj la-@PAN/GIR No.: AAKFC8666L vihykFkhZ@Appellant izR;FkhZ@Respondent vk;dj vihy la-@ITA. No. 905/JPR/2025 fu/kZkj.k o\"kZ@Assessment Year : 2019-20 Crystel Metal Industries G-732, RIICO Industrieal Area Phase-1, Alwar. cuke Vs. The JCIT, Central Circle, Alwar. LFkk;h ys[kk la-@thvkbZvkj la-@PAN/GIR No.: AAKFC8666L vihykFkhZ@Appellant izR;FkhZ@Respondent fu/kZkfjrh dh vksj ls@ Assessee by : Shri Sandeep Jhanwar, C.A. jktLo dh vksj ls@ Revenue by : Shri Gautam Singh Choudhary, JCIT lquokbZ dh rkjh[k@ Date of Hearing : 01/07/2025 mn?kks\"k.kk dh rkjh[k@Date of Pronouncement : 03/07/2025 vkns'k@ ORDER PER: MANISH BORAD, AM These 5 appeals at the instance of the assessee are directed against separate orders of ld. CIT(A), Jaipur dated 10.06.2025 arising out of various penalty orders for A.Y 2019-20 to 2021-22. ITA No. 904 to 908/JPR/2025 Crystal Metal Industries, Alwar. 2 2. At the outset, ld. Counsel for the assessee submitted that the impugned 5 appeals comprises ITA No. 904/JPR2025 relating to A.Y. 2019-20 for penalty levied u/s 270A of the Act, ITA No. 905/JPR/2025 relating to A.Y. 2019-20 involving the issue of penalty levied u/s 271DA of the Act, ITA No. 906/JPR/2025 for A.Y. 2019-20 involving the issue of penalty levied u/s 270AAC(1) of the Act, ITA No. 907/JPR/2025 for A.Y. 2020-21 and ITA No. 908/JPR/2025 for A.Y. 2021-22 involving the issue of penalty levied u/s 271DA of the Act. He submitted that all the penalty orders framed under various sections referred above are exparte. 3. Learned counsel for the assessee made multi fold contentions stating as follows:-  The penalty order have been passed prior to the disposal of the appeals by Ld. CIT(A) filed against the quantum additions.  Ld. AO erred in observing that against the assessment orders, the assessee has not preferred any appeal.  Since appeals of quantum additions are still pending before ld. CIT(A), the impugned issues of penalty deserves to be restored to the files of Ld. AO. ITA No. 904 to 908/JPR/2025 Crystal Metal Industries, Alwar. 3 4. On the other hand, the departmental representative vehemently argued supporting the orders of lower authorities. 5. I have heard rival contentions and perused the records placed before me. The appeal before me are arising out of penalty levied u/s 270A for A.Y. 2019-20, 271DA for A.Y. 2019-20, 2020- 21 and 2021-22 and 270AAC(1) for A.Y. 2019-20. I observe that against the penalty orders referred above the assessee filed appeal before Ld. CIT(A) with a delay of 168, 175, 152,173, and 152 days. The common reason for the delay was on account of the health issue of the main managing partner and death of the family member. Ld. CIT(A) did not condoned the delay and dismissed the appeal in limine. 6. Before me Ld. Counsel for the assessee has stated that against quantum addition, the assessee has preferred appeal for A.Y. 2019-20 on 22.01.2025, for A.Y. 2020-21 on 06.02.2024 and AY 2021-22 on 07.02.2024 Ld. Counsel for the assessee as an Officer of Court states all the three quantum appeals are pending before the ld. CIT(A) for necessary adjudications. I further note that ITA No. 904 to 908/JPR/2025 Crystal Metal Industries, Alwar. 4 when the appeal of quantum additions were pending before the Ld. CIT(A) and time of limit for framing the penalty orders u/s 270A, 271AAC(1) and 271 DA was not expiring are how could Ld. AO assumed that the assessee is not interested for perusing the appeal, and on such wrong presumption ld. AO proceeded to framed the penalty orders. 7. The fate of levying penalty is dependent upon the quantum addition and Ld. AO should have waited for the passing of the order by Ld. CIT(A) relating to quantum appeal unless otherwise barred by limitation. I therefore, considering the facts and circumstances of the case remit back all the issue raised in the instant appeal regarding levy of penalty u/s 270A, 271AAC(1), 271DA for A.Y. 2019-20 and levy of penalty u/s 271DA for A.Y. 2020-21 and A.Y. 2021-22 to the file of ld. Jurisdictional Assessing Office for afresh adjudication in terms of my discussion made needs above. Needless to mention that proper opportunity of being heard should be granted to the assessee. The assessee should also refrain from seeking unnecessary adjournment unless otherwise required for reasonable cause. Effective Grounds of appeal raised by the assessee in the instant appeals are allowed ITA No. 904 to 908/JPR/2025 Crystal Metal Industries, Alwar. 5 for statistical purposes. 8. In the result, appeals filed by the assessee in ITA No. 904 to 908/JPR/2025 are allowed for statistical purposes. Order pronounced in the open Court on 03/07/2025. Sd/- ¼ euh\"k cksjkM ½ (Manish Borad) ys[kk lnL;@Accountant Member Tk;iqj@Jaipur fnukad@Dated:- 03/07/2025 *Santosh vkns'k dh izfrfyfi vxzsf’kr@Copy of the order forwarded to: 1. vihykFkhZ@The Appellant- Crystal Metal Industries, Alwar. 2. izR;FkhZ@ The Respondent- ACIT, Central Circle, Alwar. JCIT, Central Circle, Alwar. 3. vk;dj vk;qDr@ CIT 4. vk;dj vk;qDr@ CIT(A) 5. foHkkxh; izfrfuf/k] vk;dj vihyh; vf/kdj.k] t;iqj@DR, ITAT, Jaipur. 6. xkMZ QkbZy@ Guard File { ITA No. 904 to 908/JPR/2025} vkns'kkuqlkj@ By order lgk;d iathdkj@Asst. Registrar "