HOTEL CHANKAYA PVT. LTD.,PATNA V. DCIT, CIRCLE-2, PATNA

ITA 609/PAT/2024

AI Insights

The case involves Hotel Chankya Pvt. Ltd., which filed stay applications against penalty orders under section 271D of the Income-tax Act, 1961, for the assessment years 2011-12 and 2012-13. The penalties were imposed for contraventions of section 269SS of the Act. The assessee challenged these penalties before the National Faceless Appeal Centre, Delhi, but the appeals were decided ex-parte. The Income Tax Appellate Tribunal found that the assessee was denied a reasonable opportunity to present its case and thus remanded the matter back to the CIT (A) for a de novo hearing.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 39529 (ITAT-PATNA)
• Duration Of Justice: 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-11-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2011-2012
• Appeal Filed On: 09-10-2024
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: AJAY KR. SHUKLA
• Assessee Lawyers: A.K. RASTOGI; RAKESH KUMAR; ARS
• Keywords: Set aside; Application of stay
• Section: 271D

Judgement Text

" आयकर अपीलीय अधिकरण न्यायपीठ, पटना । IN THE INCOME TAX APPELLATE TRIBUNAL PATNA BENCH, PATNA (Through virtual hearing at Kolkata) BEFORE SHRI RAJESH KUMAR, ACCOUNTANT MEMBER & SHRI ANIKESH BANERJEE, JUDICIAL MEMBER SA No. 12/PAT/2024 (Arising in ITA No.609/PAT/2024 for A.Y. 2011-12) SA No. 13/PAT/2024 (Arising in ITA No.610/PAT/2024 for A.Y. 2012-13) Hotel Chankya Pvt. Ltd. Hotel Samrat International, Fraser Road, Patna-800 001 Bihar [PAN : AAACH9654G] Vs DCIT, Circle-2, Patna DCIT, Central Circle-2, Lok Nayak, Jaiprakash Bhawan, Dak Bunglow, Chauraha, Patna-800 001 आवेदक/ (Applicant) प्रत् यर्थी/ (Respondent) I.T.A. Nos. 609 & 610/PAT/2024 Assessment Years: 2011-12 & 2012-13 Hotel Chankya Pvt. Ltd. Hotel Samrat International, Fraser Road, Patna-800 001 Bihar Vs DCIT, Circle-2, Patna DCIT, Central Circle-2, Lok Nayak, Jaiprakash Bhawan, Dak Bunglow, Chauraha, Patna-800 001 अपीलार्थी/ (Appellant) प्रत् यर्थी/ (Respondent) Assessee by: Shri A.K. Rastogi & Shri Rakesh Kumar, ARs Revenue by: Shri Ajay Kr. Shukla, DR सुनवाई की तारीख/Date of Hearing : 06.11.2024 घोषणा की तारीख /Date of Pronouncement : 07.11.2024 Page | 2 SA No. 12 & 13/PAT2024 & ITA No.609 & 610/PAT/2024 Hotel Chankya Pvt. Ltd; A.Y. 2012-13 & 2013-14 आदेश/O R D E R PER ANIKESH BANERJEE, JUDICIAL MEMBER: In the instant stay application was filed by the assessee against the penalty order passed u/s 271D of the Income-tax Act, 1961 (the Act) by the Addl. Commissioner of Income-tax, Range-2, Patna, vide order dated 19.7.2019 and 24.01.2022 for A.Y. 2011-12 and 2012-13, respectively. The impugned penalty order was challenged by the assessee before the ld. National Faceless Appeal Centre, Delhi [in brevity ‘the learned CIT (A)’], order passed under Section 250 of the Income-tax Act, 1961 (in brevity, ‘the Act’) for A.Ys. 2011-12 and 2012-13, date of orders for both the appeals 19.09.2024. 2. The ld. Authorised Representative (in short the AR) proceeded to argue the application for stay before the Bench. The ld. AR first argued the merit of the case and placed that the penalty was initiated u/s 271D of the Act for contravention of Section 269SS of the Act. The penalty was levied amounting to ₹20,00,500/- and 13,00,000/- for A.Y. 2011-12 and 2012-13, respectively. The ld. AR further stated that the appeal order was passed ex-parte and assessee was unable to comply before the ld. CIT (A) during the appeal hearing. He further stated that the assessee is prayed to restore the matter back to the file of the ld. CIT (A) for further adjudication, de novo. 3. The ld. DR vehemently argued and had not made any objection against the prayer of the ld. AR. Page | 3 SA No. 12 & 13/PAT2024 & ITA No.609 & 610/PAT/2024 Hotel Chankya Pvt. Ltd; A.Y. 2012-13 & 2013-14 4. We have heard the rival contentions and considered the documents available on record. We find that the appeal order was passed ex-parte against the impugned penalty order and both parties agreed to adjudicate the matter on merit. We find that the ld. CIT(A) allowed several opportunities for hearing, but the assessee was failed to comply. The impugned order was passed without considering the submission of the assessee. We find that the reasonable opportunity was denied for the assessee. Accordingly, we direct that the matter is remanded to the file of the ld. CIT (A) for further adjudication de novo. We are not expressing our view on merit of the case, which will impair the set aside appeal proceedings. Needless to say the assessee should get reasonable opportunity of hearing in set aside proceedings. On the other hand, assessee should be diligent and co-operative before the ld. CIT (A) in appeal proceeding for quick disposal of the appeal. 5. In the result, the appeals of the assessee bearing ITA Nos.609 & 610/PAT/2024 are allowed for statistical purpose. 6. On the other hand, both the stay petition bearing SA Nos. 12 &13/Pat/2024, are dismissed as infructuous. Order pronounced in the Court on 7th November, 2024 at Kolkata. Sd/- Sd/- (RAJESH KUMAR) (ANIKESH BANERJEE) ACCOUNTANT MEMBER JUDICIAL MEMBER Kolkata, Dated 07.11.2024 *SS, Sr.Ps Page | 4 SA No. 12 & 13/PAT2024 & ITA No.609 & 610/PAT/2024 Hotel Chankya Pvt. Ltd; A.Y. 2012-13 & 2013-14 आदेश की प्रतततिति अग्रेतषत/Copy of the Order forwarded to : 1. अिीिार्थी / The Appellant 2. प्रत्यर्थी / The Respondent 3. संबंतित आयकर आयुक्त / Concerned Pr. CIT 4. आयकर आयुक्त ( अिीि ) / The CIT(A)- 5. तवभागीय प्रतततनति , अतिकरण अिीिीय आयकर , पटना /DR,ITAT, PATNA, 6. गार्ड फाईि / Guard file. आदेशानुसार/ BY ORDER, TRUE COPY Sr. PS/ Assistant Registrar आयकर अिीिीय अतिकरण ITAT, PATNA "