Shri Rajubhai V.Mehta, Bhavnagar V. The Income tax Officer,Ward-2(1), Bhavnagar

ITA 1106/AHD/2011

• Counselvise Citation: [2014] 140 COUNSELVISE.COM (IT) 80399 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 year(s) 5 month(s) 16 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 01-10-2014
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 04-09-2014
• Assessment Year: 1989-1990
• Appeal Filed On: 15-04-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: V K SINGH
• Keywords: Non compliance
• Section: 15

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH, AHMEDABAD BEFORE SHRI MUKUL KR. SHRAWAT, JUDICIAL MEMBER AND SHRI N.S. SAINI , ACCOUNTANT MEMBER ITA NO . 1106 /AHD/20 1 1 A. Y. 1989 - 90 SHRI RAJUBHAI V. MEHTA, THROUGH POWER OF ATTORNEY, DANAPITH BHAVNAGAR. V S THE ITO, WARD 2(1), BHAVNAGAR. (APPELLANT) (RESPONDENT) REVENUE BY : SHRI V.K. SINGH , SR. D.R. , ASSESSEE(S) BY : SHRI MOHIT R. BALANI CA FOR TUSHAR HEMANI , AR / DATE OF HEARING : 04 / 0 9 /201 4 / DATE OF PRONOUNCEMENT: 1 / 10 /201 4 / O R D E R PER SHRI MUKUL KUMAR SHRAWAT, JUDICIAL MEMBER THIS IS AN A PPEAL FILED BY THE ASSESSEE ARISING FROM THE ORDER OF T HE LD. CIT (APPEALS) - XX , AHMEDABAD AND THE ONLY GROUND IS IN RESPECT OF LEVY OF PENALTY OF RS.10,000/ - U/S.271(1)(B) OF IT ACT. 2. AN ASSESSMENT WAS MADE U/S.143(3) R.W.S. 254 OF IT ACT DATED 15.12.2006 ON AN INCOME OF RS.1,92,65,290/ - A PENALTY ORDER U/S. 271(1)(B) DATED 23.3.2010 WAS PASSED . A CCORDING TO WHICH IT WAS NOTED THAT THERE WAS NO COMPLIANCE OF A NOTICE U/S.142(1) DATED 14.11.2006. DUE TO SAID NON COMPLIANCE, THE IMPUGNED PENALTY OF RS.10,000/ - WAS IMPOSED. WHEN THE MATTER WAS CARRIED BEFORE THE FIRST APPELLATE AUTHORITY, THE LEVY OF PENALTY WAS CONFIRMED. ITA NO.1106/AHD/2011 SHRI RAJUBHAI V. MEHTA VS. THE ITO, WARD 2(1), BHAVNAGAR FOR A.Y. 1989 - 90 - 2 - 3. PARTIES HEARD. CASE RECORD PERUSED. WE HAVE NOTED THAT ALTHOUGH THE IMPUGNED NOTICE WAS ISSUED IN THE MONTH OF NOVEMBER BUT FINALLY THE ASSESSMENT WAS COMPLETED U/S.143(3) ON 15 TH DECEMBER, 2006, HENCE, IT IS EVIDENT THAT THE ASSESSMENT ORDER IN QUESTION WAS NOT AN EX - PARTE ORDER PASSED U/S.144 OF IT ACT. FURTHER, WE HAVE ALSO NOTED THAT ON 27.11.2006 LEARNED AR OF THE ASSESSEE HAS SUBMITTED A LETTER ALONG WITH HIS VAKALATNAMA. THEREUPON A QU ESTIONNAIRE WAS RAISED WHICH WAS SERVED UPON THE ASSESSEE ON 01.12.2006. IN CONSEQUENCE THEREUPON, A REPLY WAS FILED BY THE LEARNED AR OF THE ASSESSEE ON 06.12.2006. WE, THEREFORE, HOLD THAT THIS IS NOT A CASE WHERE THE ASSESSEE HAS DELIBERATELY ALTOGETHER AVOIDED THE PROCEEDINGS BEFORE THE AO. IT COULD BE POSSIBLE THAT ON THAT PARTICULAR DATE OF HEARING NO ONE HAD ATTENDED BUT IT IS EVIDENT THAT LATER ON THE ASSESSEE HAS FURNISHED REPLY HENCE THE ASSESSMENT WAS COMPLETED U/S.143(3) IN THE MONTH OF DECEMBER , 2006. IN VIEW OF THESE CIRCUMSTANCES, WE HEREBY REVERSE THE FINDINGS OF THE AUTHORITIES BELOW AND DIRECT TO DELETE THE PENALTY. 4. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALLOWED. SD/ - SD/ - ( N.S. SAINI ) ( MUKUL KR. SHRAWAT ) ACCOUNTANT MEMBER JUDICIAL MEMBER AHMEDABAD; DATED 1 / 10 / 20 1 4 PRABHAT KR. KESARWANI , SR. P . S . / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. / CONCERNED CIT 4. ( ) / THE CIT(A) - III, AHMEDABAD ITA NO.1106/AHD/2011 SHRI RAJUBHAI V. MEHTA VS. THE ITO, WARD 2(1), BHAVNAGAR FOR A.Y. 1989 - 90 - 3 - 5. , , / DR, ITAT, AHMEDABAD 6. / GUARD FILE . / BY ORDER, / ( DY./ASSTT.REGISTRAR) , / ITAT, AHMEDABAD