Sh. Ram Kumar Sharma, Ropar V. ITO, W-1(1), Nangal

ITA 1196/CHANDI/2018

• Counselvise Citation: [2019] 118 COUNSELVISE.COM (IT) 6623 (ITAT-CHANDIGARH)
• Duration Of Justice: 4 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-01-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2012-2013
• Appeal Filed On: 07-09-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MANJIT SINGH
• Keywords: Opportunity of being heard

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DIVISION BENCHB, CHANDIGARH BEFORE SHRI N.K. SAINI, VICE PRESIDENT AND SHRI SANJAY GARG, JUDICIAL MEMBER ITA NOS. 1191 TO 1196/CHD/2018 (ASSESSMENT YEARS : 2007-08 TO 2012-13) SHRI RAM KUMAR SHARMA VS. THE ITO, W-1(1) PROP. M/S RAM KUMAR MANGAT RAM, W-1(1), CHANDIGAR H C/O SH. TEJ MOHAN SINGH (ADVOCATE) #527, SECTOR-10-D , CHANDIGARH PAN NO. AZEPS9867L (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI. TEJ MOHAN SINGH, ADVOCATE DEPARTMENT BY : SHRI. MANJIT SINGH, SR. DR DATE OF HEARING : 22/01/2019 DATE OF PRONOUNCEMENT : 22/01/2019 O R D E R PER BENCH : ALL THE ABOVE APPEALS HAVE BEEN FILED BY THE ASSESS EE AGAINST THE SEPARATE ORDERS EACH DATED 29/06/2018 OF LD. CIT(A) -1 2. SINCE THE ISSUE INVOLVED IS COMMON IN ALL THESE APPEALS WHICH WERE HEARD TOGETHER SO THESE ARE BEING DISPOSED OFF BY THIS CO MMON ORDER FOR THE SAKE OF CONVENIENCE AND BREVITY. 3. THE ONLY GRIEVANCE OF THE ASSESSEE IN THESE APPE ALS RELATE TO THE CONFIRMATION OF PENALTY LEVIED BY THE ASSESSING OFF ICER UNDER SECTION 271B OF THE INCOME TAX ACT, 1961 (HEREINAFTER REFERRED TO AS A CT). 4. DURING THE COURSE OF HEARING THE LD. COUNSEL FOR THE ASSESSEE AT THE VERY OUTSET STATED THAT PENALTY UNDER SECTION 271B OF TH E ACT WAS LEVIED BY THE ASSESSING OFFICER FOR THE REASONS THAT THE ASSESSEE DID NOT GET ITS ACCOUNT AUDITED. IT WAS FURTHER SUBMITTED THAT THIS ISSUE A S TO WHETHER THE ASSESSEE MAINTAINED THE BOOKS OF ACCOUNT OR NOT IS PENDING B EFORE THE LD. CIT(A) IN QUANTUM APPEALS, THEREFORE THE PRESENT CASES MAY AL SO BE SENT BACK TO THE FILE OF THE LD. CIT(A). IT WAS FURTHER SUBMITTED THAT TH E ASSESSING OFFICER HIMSELF ADMITTED IN THE LAST PARA AT PAGE NO. 2 OF THE PENA LTY ORDER DT. 17/11/2014 FOR 2 THE A.Y. 2007-08 THAT THE ASSESSEE DID NOT MAINTAIN THE BOOKS OF ACCOUNT, THEREFORE, THERE WAS NO JUSTIFICATION FOR LEVYING T HE PENALTY UNDER SECTION 271B OF THE ACT, FOR THE REASONS THAT IF THE ASSESSEE DID N OT MAINTAIN THE BOOKS OF ACCOUNT THERE WAS NO QUESTION OF GETTING THOSE AUDI TED. 5. IN HIS RIVAL SUBMISSIONS, THE LD. SR. DR STRONGL Y SUPPORTED THE ORDERS OF THE AUTHORITIES BELOW AND FURTHER SUBMITTED THAT THE AS SESSEE NEITHER MAINTAINED BOOKS OF ACCOUNT NOR GOT THOSE AUDITED EVEN WHEN TH E TURNOVER WAS MORE THAN RS. 40.00LACS, THEREFORE THE PENALTY UNDER SECTION 271B OF THE ACT WAS RIGHTLY LEVIED BY THE ASSESSING OFFICER AND THE LD. CIT(A) WAS FULLY JUSTIFIED IN CONFIRM THE SAME. 6. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS OF BOTH THE PARTIES AND CAREFULLY GONE THROUGH THE MATERIAL AVAILABLE ON RECORD, IN T HE PRESENT CASE THE CONTENTION OF THE LD. COUNSEL OF THE ASSESSEE THAT THE ISSUE RELATING TO MAINTENANCE OF BOOKS OF ACCOUNT IS PENDING BEFORE T HE LD. CIT(A) IN QUANTUM APPEALS FOR THE YEAR UNDER CONSIDERATION WAS NOT CO NTROVERTED BY THE LD. SR. DR. IT IS ALSO NOTICED THAT THE ASSESSING OFFICER IN PA RA 2 AT PAGE NO. 2 OF THE PENALTY ORDER UNDER SECTION 271B OF THE ACT, DATED 17/11/20 14 HAS MENTIONED THAT THE ASSESSEE DID NOT MAINTAIN THE BOOKS OF ACCOUNTS, T HIS FACT REQUIRES VERIFICATION AND MOREOVER THE LD. COUNSEL FOR THE ASSESSEE STATE D AT BAR THAT THE ISSUE RELATING TO THE MAINTENANCE OF BOOKS OF ACCOUNT IS PENDING BEFORE THE LD. CIT(A), WE THEREFORE, BY CONSIDERING THE TOTALITY O F THE FACTS DEEM IT APPROPRIATE TO REMAND THESE CASES TO THE FILE OF LD. CIT(A) TO BE ADJUDICATED AFRESH IN ACCORDANCE WITH LAW AFTER CONSIDERING THE OUTCOME O F THE ISSUE RELATING TO MAINTENANCE OF BOOKS OF ACCOUNT BY THE ASSESSEE PEN DING BEFORE HIM IN QUANTUM APPEALS, BY PROVIDING A DUE AND REASONABLE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. 7. IN THE RESULT ALL THE ABOVE APPEALS OF THE ASSES SEE ARE ALLOWED FOR STATISTICAL PURPOSES. (ORDER PRONOUNCED IN THE OPEN COURT ON 22/01/2019) SD/- SD/- (SANJAY GARG) (N.K. SAINI) JUDICIAL MEMBER VICE PRESIDENT DATED : 22/01/2019 AG COPY TO: 1.THE APPELLANT, 2. THE RESPONDENT, 3. THE CIT(A), 4. THE CIT, 5. THE DR