M/s Shivek Labs Limited, Chandigarh V. ACIT, C-2(1), Chandigarh

ITA 1102/CHANDI/2017

• Counselvise Citation: [2018] 126 COUNSELVISE.COM (IT) 5190 (ITAT-CHANDIGARH)
• Duration Of Justice: 8 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-03-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2013-2014
• Appeal Filed On: 30-06-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: CHANDRA KANTA
• Keywords: Reasonable cause
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DIVISION BENCHB, CHANDIGARH BEFORE SMT. DIVA SINGH, JUDICIAL MEMBER AND DR. B.R.R. KUMAR, ACCOUNTANT MEMBER ITA NOS.1102/CHD/2017 (ASSESSMENT YEAR : 2013-14) SHIVEK LABS LTD. VS. THE ACIT 104, INDUSTRIAL AREA, CIRCL 2(1) PHASE-1, CHANDIGARH CHANDIGARH PAN: AAICS3945H ITA NOS.1103/CHD/2017 (ASSESSMENT YEAR : 2013-14) SUPER MULTICOLOR PRINTERS. VS. THE ACIT PRIVATE LTD.104, INDUSTRIAL AREA, CIRCL 2(1) PHASE-1, CHANDIGARH CHANDIGARH PAN: AAKCS4541J (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI TEJ MOHAN SINGH DEPARTMENT BY : SMT. CHANDRAKANTA DATE OF HEARING : 05.03.2018 DATE OF PRONOUNCEMENT : 05/03/2018 O R D E R PER BENCH : BOTH THE ABOVE APPEALS HAVE BEEN FILED BY THE DIFF ERENT ASSESSEES AGAINST THE SIMILAR ORDER OF LD. CIT(A)-1 , CHANDIGARH DT. 24/04/2017. SINCE THE ISSUES RAISED IN BOTH THE ABOVE APPEALS A RE COMMON THEREFORE THEY ARE BEING DECIDED TOGETHER FOR THE SAKE OF CON VENIENCE. WE SHALL TAKE ITA NO. 1102/CHD/2017 AS A LEAD CASE. 2 2. THE ASSESSEE HAS RAISED FOLLOWING GROUNDS IN ITA NO. 1102/CHD/2017: 1. THAT THE ORDER OF THE LD. CIT(A)-1 IS NOT A SPEA KING ORDER, IS ERRONEOUS, ARBITRARY, OPPOSED TO LAW AND FACTS OF THE CASE. 2. THAT THE LD. CIT(A)-1 HAS ERRED IN LAW AS WELL A S ON FACTS IN LEVYING A PENALTY OF RS. 10,000/- UNDER SECTION 271(1)(B) WITHOUT CORREC TLY APPRECIATING THE FACT THAT THE NON ATTENDANCE OF ASSESSMENT OF ASSESSMENT PROC EEDINGS WAS DUE TO SOME REASONABLE CIRCUMSTANCES. 3. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSMENT IN THIS CASE WAS FRAMED U/S 143(3) OF THE ACT. PENALTY PROCEEDINGS U/S 271(L)(B ) WERE INITIATED FOR NON- COMPLIANCE OF NOTICES U/S 143(2)/142(1) OF THE ACT. 4. THE LD. CIT(A) FIXED THE HEARING ON 20.04.2017, BUT NOBODY ATTENDED ON THAT DATE. THE NOTICE OF HEARING DATED 10.04.2017 FOR 20.04.2017 WAS DULY SERVED ON THE ASSESSEE ON 18.04.2017 AS PER CONFIRM ATION OF THE NOTICE SERVER. NO ADJOURNMENT WAS SOUGHT FOR AND NO WRITTEN SUBMIS SION WAS FILED BEFORE THE LD. CIT(A). HENCE, IT WAS PRESUMED THAT THE ASSESSE E DOES NOT WANT TO SAY ANYTHING AND THE APPEAL WAS DECIDED ON THE BASIS OF MATERIAL AVAILABLE ON RECORD. 5. SINCE THE ASSESSEE REMAINED NON- COOPERATIVE THE PENALTY OF RS. 10,000/- IMPOSED WAS CONFIRMED. 6. BEFORE US THE ASSESSEE SUBMITTED THAT THE NOTICE WAS RECEIVED BY THE WATCHMAN WHO HAS DEFAULTED IN HANDING OVER THE NOTI CE TO THE ASSESSEE. IT WAS PLEADED THAT GIVEN AN OPPORTUNITY RELEVANT SUBMISSI ONS WOULD BE MADE BEFORE THE LD. CIT(A). 7. WE FIND THAT THE PENALTY HAS BEEN CONFIRMED AS T HE ASSESSEE COULD NOT ATTEND THE PROCEEDINGS AND THE ABSTINENCE FROM THE PROCEEDING IS DUE TO A REASONABLE CAUSE, HENCE WE REMAND THE MATTER BACK T O THE FILE OF THE CIT(A) TO ACCORD ONE OPPORTUNITY AND TO CONSIDER THE SUBMISSI ON OF THE ASSESSEE. 3 AND WE BELIEVE THAT THE ASSESSEE WILL NOT BELAY THE CONFIDENCE REPOSED UPON AND WILL NOT ABUSE THE OPPORTUNITY GIVEN WHILE SUBM ITTING COMPLIANCE BEFORE THE LD. CIT(A). 8. IN THE RESULT, BOTH THE ABOVE APPEALS ARE ALLOWED F OR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT. SD/- SD/- (DIVA SINGH) (DR. B.R.R. KUMAR) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED : 05/03/2018 AG COPY TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT(A) 4. THE CIT 5. THE DR