SHRI SANDEEP VERMA, GHAZIABAD V. INCOME TAX OFFICER, WARD-2-3, ALWAR

ITA 1167/JPR/2019

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 9113 (ITAT-JAIPUR)
• Duration Of Justice: 3 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-01-2020
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: SMC
• Assessment Year: 2010-2011
• Appeal Filed On: 30-09-2019
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: RUNI PAL JCIT DHK
• Keywords: Reasonable cause; Reassessment proceedings
• Section: 142(1); 274; 139(1); 147; 148; 144; 2

Judgement Text

VK;DJ VIHYH; VF/KDJ.K] T;IQJ U;K;IHB] T;IQJ IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCH B, JAIPUR JH FOT; IKY JKWO] U;KF;D LNL; ,O A JH FOE FLAG ;KNO] YS[KK LNL; DS LE{K BEFORE: SHRI VIJAY PAL RAO, JM & SHRI VIKRAM SINGH YADAV, AM VK;DJ VIHY LA- @ ITA NO. 1167/JP/2019 FU/KZKJ.K O'K Z @ ASSESSMENT YEARS : 2010-11. SHRI SANDEEP VERMA 1/219, MOHALLA AHATA BASTI RAM, GARHMUKTESHWAR, GHAZIABAD. CUKE VS. THE INCOME TAX OFFICER, WARD 2(3), ALWAR. LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN/GIR NO. AGFPV 0596 B VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT FU/KZKFJRH DH VKSJ LS@ ASSESSEE BY : WRITTEN SUBMISSION. JKTLO DH VKSJ LS@ REVENUE BY : SMT. RUNI PAL (JCIT) LQUOKBZ DH RKJH[K@ DATE OF HEARING : 07.01.2020 ?KKS'K .KK DH RKJH[K @ DATE OF PRONOUNCEMENT : 09/01/2020. VKNS'K@ ORDER PER VIJAY PAL RAO, J.M. THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST TH E ORDER 25.06.2019 OF LD. CIT (A) ARISING FROM PENALTY LEVIED UNDER SECTION 2 71(1)(B) OF THE I.T. ACT FOR THE ASSESSMENT YEAR 2010-11. NONE HAS APPEARED ON BEHA LF OF THE ASSESSEE WHEN THIS APPEAL WAS CALLED FOR HEARING DESPITE THE NOTICE IS SUED THROUGH RPAD. HOWEVER, THE ASSESSEE HAS FILED A LETTER DATED 1 ST JANUARY, 2020 ALONG WITH THE WRITTEN SUBMISSIONS AND PLEADED THAT THE APPEAL OF THE ASSE SSEE MAY BE DISPOSED OFF BY CONSIDERING THE WRITTEN SUBMISSIONS OF THE ASSESSEE . ACCORDINGLY THE APPEAL OF THE ASSESSEE IS TAKEN UP FOR HEARING. THE ASSESSEE HAS RAISED THE FOLLOWING GROUNDS OF APPEAL :- 2 ITA NO. 1167/JP/2019 SHRI SANDEEP VERMA, GHAZIABAD. 1. THAT THE NOTICE ISSUED U/S 274 R.W.S. 271(1)(B ) AND ORDER IMPOSING PENALTY OF RS. 40,000.00 BY THE ASSESSING OFFICER UNDER SAID SECTION ARE HIGHLY ARBITRARY, ILLEGAL AND BAD IN LAW. 2. THAT IN VIEW OF THE FACTS AND CIRCUMSTANCES OF T HE CASE THE CIT (A) HAS ERRED IN LAW AND ON FACTS IN CONFIRMING THE ACTION OF THE AO AND UPHELD THE PENALTY OF RS. 40,000.00 U/S 271( 1)(B) OF THE ACT. 3. THAT CIT (A) HAS ERRED IN NOT APPRECIATING THAT THE ASSESSEE HAS A REASONABLE CAUSE OF NOT APPEARING DURING THE ASSE SSMENT PROCEEDINGS AS THE ASSESSEE IS A BANK EMPLOYEE AND ON THE TRANSFERABLE JOB AND HE WAS TRANSFERRED FROM ALWAR TO AMROHA (U.P) IN THE YEAR 2017. 4. THAT THE CIT (A) HAS FAILED TO APPRECIATE THAT T HE NO NOTICE WAS RECEIVED OR SERVED ON THE ASSESSEE BEFORE INITIATIO N AND COMPLETION OF REASSESSMENT PROCEEDINGS U/S 147 OF T HE ACT, AS THE ASSESSEE WAS TRANSFERRED FROM ALWAR TO AMROHA ( UP), THEREFORE, THE ASSESSMENT HAS BEEN COMPLETED IN EX- PARTY. 5. THAT THE CIT (A) HAS ERRED IN LAW AND ON FACTS I N NON-QUASHING OF PENALTY PROCEEDINGS U/S 271(1)(B) WHICH IS WRONG LY INITIATED BY THE AO. 6. THAT IN ANY CASE THE PENALTY IMPOSED IS UNJUST, ARBITRARY AND HIGHLY EXCESSIVE. 7. THAT THE APPELLANT RESERVES ITS RIGHT TO ADD, AM END/MODIFY THE GROUNDS OF APPEAL. 2. THE ASSESSEE IS AN INDIVIDUAL AND NOT FILED ANY RETURN OF INCOME UNDER SECTION 139(1) OF THE IT ACT. THE AO ISSUED NOTICE UNDER S ECTION 148 OF THE ACT ON 29 TH MARCH, 2017. IN RESPONSE TO THE NOTICE UNDER SECTI ON 148, THE ASSESSEE HAS NOT FILED ANY RETURN OF INCOME. THE AO ISSUED NOTICE UN DER SECTION 142(1) REPEATEDLY FOR 4 TIMES, BUT THERE WAS NO RESPONSE OR COMPLIANCE BY THE ASSESSEE. FINALLY, THE AO HAS FRAMED THE ASSESSMENT EX PARTE UNDER SECTION 14 4 READ WITH SECTION 147 OF THE IT ACT WHEREBY THE TOTAL INCOME OF THE ASSESSEE WAS ASSESSED AT RS. 1,67,875/-. 3 ITA NO. 1167/JP/2019 SHRI SANDEEP VERMA, GHAZIABAD. SINCE THERE WAS A DEFAULT ON THE PART OF THE ASSESS EE FOR NOT COMPLYING WITH THE NOTICES ISSUED BY THE AO UNDER SECTION 142(1), THER EFORE, THE AO INITIATED THE PROCEEDINGS UNDER SECTION 271(1)(B) OF THE ACT AND LEVIED THE PENALTY OF RS. 40,000/- @ RS. 10,000/- FOR EACH DEFAULT VIDE ORDER DATED 16.04.2018. THE ASSESSEE CHALLENGED THE ACTION OF THE AO BEFORE THE LD. CIT (A) BUT COULD NOT SUCCEED. 3. THE ASSESSEE HAS FILED THE WRITTEN SUBMISSIONS. THE ASSESSEE HAS EXPLAINED THE CAUSE OF NON-COMPLIANCE OF THE NOTICES UNDER SE CTION 142(1) DUE TO THE REASON THAT THE ASSESSEE IS AN EMPLOYEE OF INDIAN OVERSEAS BANK AND WAS TRANSFERRED FROM ALWAR BRANCH TO AMROHA (UP) WITH EFFECT FROM 03.08. 2017. THUS THE ASSESSEE HAS PLEADED THAT THE NOTICES ISSUED BY THE AO WERE NOT RECEIVED BY THE ASSESSEE DUE TO HIS TRANSFER FROM ALWAR TO AMROHA (UP). 4. ON THE OTHER HAND, THE LD. D/R HAS SUBMITTED THA T THE NOTICES ISSUED BY THE AO WERE PRIOR TO THE TRANSFER OF THE ASSESSEE AND, THEREFORE, EXCEPT THE LAST NOTICE, EARLIER THREE NOTICES WERE ISSUED ALLEGEDLY BEFORE TRANSFER OF THE ASSESSEE. SHE HAS RELIED UPON THE ORDERS OF THE AUTHORITIES BELOW. 5. WE HAVE CONSIDERED THE WRITTEN SUBMISSIONS OF TH E ASSESSEE AS WELL AS THE ARGUMENTS OF THE LD. D/R AND CAREFULLY PERUSED THE IMPUGNED ORDERS OF THE AUTHORITIES BELOW. THERE IS NO DISPUTE THAT THE ASS ESSEE HAS NEITHER FILED ANY RETURN OF INCOME NOR APPEARED BEFORE THE AO IN RESPONSE TO THE NOTICE UNDER SECTION 148 AS WELL AS NOTICES ISSUED UNDER SECTION 142(1) OF T HE ACT. THE AO HAS INITIATED THE PROCEEDINGS UNDER SECTION 271(1)(B) FOR NON COMPLIA NCE OF NOTICES ISSUED UNDER SECTION 142(1) OF THE ACT. THE DETAILS OF THE NOTI CES ISSUED UNDER SECTION 142(1) AS REPRODUCED BY THE AO IN PARA 1 OF THE PENALTY ORDER ARE AS UNDER :- 4 ITA NO. 1167/JP/2019 SHRI SANDEEP VERMA, GHAZIABAD. NOTICE U/S DATE OF ISSUE DATE OF HEARING REMARKS 142(1) 29.06.2017 11.07.2017 NON-COMPLIED 142(1) 12.07.2017 19.07.2017 NON-COMPLIED 142(1) 25.07.2017 10.08.2017 NON-COMPLIED 142(1) 11.08.2017 22.08.2017 NON-COMPLIED IN THE ASSESSMENT ORDER, THE AO HAS STATED THAT A N OTICE UNDER SECTION 142(1) ALONG WITH THE QUERY LETTER WAS ISSUED ON 29.06.2017. SI NCE THERE WAS NO COMPLIANCE BY THE ASSESSEE TO THE SAID NOTICE, THEREFORE, AGAIN A NOTICE UNDER SECTION 142(1) WAS ISSUED ON 12 TH JULY, 2017. SIMILARLY, THE AO AGAIN ISSUED TWO MOR E NOTICES UNDER SECTION 142(1) ON 25.07.2017 AND 11.08.2017. ALL T HESE NOTICES UNDER SECTION 142(1) WERE ISSUED BY THE AO SEEKING THE SAME INFOR MATION FROM THE ASSESSEE, THEREFORE, ONCE THE ASSESSEE HAS COMMITTED A DEFAUL T OF NON-COMPLIANCE OF THE INFORMATION SOUGHT BY THE AO THEN ISSUING REPEATED NOTICES BY THE AO SEEKING SAME INFORMATION WOULD NOT MULTIPLY THE DEFAULT. THEREFO RE, EVEN IF THE AO ISSUED 4 NOTICES UNDER SECTION 142(1) BUT THE INFORMATION SO UGHT IN ALL THESE NOTICES WAS THE SAME, THEN IT WOULD CONSTITUTE ONLY ONE DEFAULT. A S REGARDS THE EXPLANATION OF THE ASSESSEE FOR EXPLAINING THE CAUSE OF NON-COMPLIANCE , WE FIND THAT EXCEPT THE LAST NOTICE DATED 11.08.2017, THE EARLIER 3 NOTICES ISSU ED BY THE AO UNDER SECTION 142(1) WERE ISSUED PRIOR TO THE DATE OF ALLEGED TRANSFER O N 03.08.2017. THEREFORE, THE SAID EXPLANATION OF THE ASSESSEE IS WITHOUT ANY SUBSTANC E OR MERITS. HENCE, IN THE FACTS AND CIRCUMSTANCES OF THE CASE, WE RESTRICT THE PENA LTY LEVIED UNDER SECTION 271(1)(B) OF THE ACT TO ONE DEFAULT AS AGAINST 4 DEFAULTS TRE ATED BY THE AO. ACCORDINGLY, THE 5 ITA NO. 1167/JP/2019 SHRI SANDEEP VERMA, GHAZIABAD. PENALTY UNDER SECTION 271(1)(B) OF THE I.T. ACT IS CONFIRMED TO THE EXTENT OF RS. 10,000/-. 6. IN THE RESULT, APPEAL OF THE ASSESSEE IS PARTLY ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 09/01/202 0. SD/- SD/- FOE FLAG ;KNO FOT; IKY JKWO (VIKRAM SINGH YADAV) (VIJAY PAL RAO) YS[KK LNL;@ ACCOUNTANT MEMBER U;KF;D LNL;@ JUDICIAL MEMBER TK;IQJ@ JAIPUR FNUKAD@ DATED:- 09/01/2020. DAS/ VKNS'K DH IZFRFYFI VXZSFKR@ COPY OF THE ORDER FORWARDED TO: 1. VIHYKFKHZ@ THE APPELLANT- SHRI SANDEEP VERMA, GHAZIABAD. 2. IZR;FKHZ@ THE RESPONDENT-THE ITO WARD 2(3), 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.1167/JP/2019} VKNS'KKUQLKJ@ BY ORDER, LGK;D IATHDKJ@ ASST. REGISTRAR