M/s Headmasters Saloon Pvt. Ltd., Chandigarh V. DCIT, C-1(1), Chandigarh

ITA 1247/CHANDI/2018

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 9317 (ITAT-CHANDIGARH)
• Duration Of Justice: 9 month(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-07-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 04-07-2019
• Assessment Year: 2012-2013
• Appeal Filed On: 01-10-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Invalid notice; Opportunity of being heard; Assessment record; Set aside
• Section: 271(1)(c); 27

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL, CHANDIGARH BENCH A CHANDIGARH !, ' # , $ % & ' ( , )* # BEFORE: SMT. DIVA SINGH, JM & SMT.ANNAPURNA GUPTA, AM ./ ITA NO. 1247/CHD/2018 / ASSESSMENT YEAR : 2012-13 M/S HEADMASTERS SALOON PVT.LTD., SCO 16-17, SECTOR 8-C, CHANDIGARH. VS THE DCIT, CIRCLE 1(1), CHANDIGARH. ./ PAN /TAN NO: AABCH2736C / APPELLANT / RESPONDENT ! / ASSESSEE BY : SHRI TEJ MOHAN SINGH ' ! / REVENUE BY : SMT. CHANDER KANTA, SR.DR # $ %/ DATE OF HEARING : 04.07.2019 &'() %/ D ATE OF PRONOUNCEMENT : 05.07.2019 )-/ ORDER PER DIVA SINGH THE PRESENT APPEAL HAS BEEN FILED BY THE ASSESSEE WHEREIN THE CORRECTNESS OF THE ORDER DATED 27.08.2018 OF CIT(A) -I CHANDIGARH PERTAINING TO 2012-13 ASSESSMENT YEAR HAS BEEN ASSA ILED. 2. IN THE FACTS OF THE PRESENT CASE THE ASSESSEE HA D ASSAILED THE LEVY OF PENALTY IMPOSED U/S 271(1)(C) OF THE INCOME TAX ACT BEFORE THE CIT(A) ON MERITS. THE ASSESSEE FAILED IN HIS CHALLENGE. PUR SUANT TO THAT THE PRESENT APPEAL HAS BEEN FILED. THIS ORDER IS ASSAILED ON TH E FOLLOWING GROUND : THAT THE LEARNED COMMISSIONER OF INCOME TAX (APPEAL S)- 1 HAS FAILED TO APPRECIATE THE FACTS AND CIRCUMSTANCES OF THE CASE AND HAS THE REBY ERRED IN CONFIRMING PENALTY U/S 271 (L)(C) OF THE INCOME TAX ACT, 1961 FOR FURNISHING INACCURA TE PARTICULARS OF INCOME. THE ACTION OF THE COMMISSIONER OF INCOME TAX (APPEALS)-I IS UNJUSTIFI ED AS THE APPELLANT DID NOT FURNISH ANY INACCURATE PARTICULAR S BUT THERE WAS A MISTAKE ON THE PART OF THE CHARTERED ACCOUNTANT AND NON AVAILABILITY OF PURCHASE BILL OF ASSET. ITA 1247/CHD/2018 A.Y. 2012-13 PAGE 2 OF 3 3. HOWEVER, THE ASSESSEE THEREAFTER FILED AN APPLIC ATION RAISING AN ADDITIONAL GROUND. A PERUSAL OF THE RECORD SHOWS TH AT ON 05.03.2019 THE ASSESSEE HAS RAISED THE FOLLOWING ADDITIONAL GROUND : 'THAT THE LD. ASSESSING OFFICER HAS ERRED IN LAW IN FAILING TO MENTION WHETHER NOTICE UNDER SECTION 27 1(1)(C) ISSUED WAS FOR CONCEALMENT OF INCOME OR FOR FURNISHING INACCURATE PARTICULARS OF INCOME AND AS SUCH PENALT Y IMPOSED AND UPHELD BY THE COMMISSIONER OF INCOME TAX (APPEALS) IN PURSUANCE O F AN INVALID NOTICE IS ILLEGAL, ARBITRARY & UNJUSTIFIED'. 4. IT IS SEEN THAT THE CO-ORDINATE BENCH ADJOURNED THE APPEAL ON THE SAID DATE REQUIRING THAT THE POSITION BE VERIFIED F ROM THE ASSESSMENT RECORDS. ON 01.05.2019 AS PER ORDER-SHEET, THE CO-O RDINATE BENCH DIRECTED THE DEPARTMENT TO PRODUCE THE ASSESSMENT RECORD. I N THE SAID BACKGROUND, THE LD. SR.DR MS. CHANDER KANTA SUBMITT ED THAT IN THE FACTS OF THE PRESENT CASE SINCE THE SAID LEGAL GROUND WAS NOT RAISED BEFORE THE CIT(A), CONSEQUENTLY THERE IS NO DISCUSSION ON THE ISSUE BY THE CIT(A). ACCORDINGLY, IT WAS HER PRAYER THAT IN ORDER TO ADD RESS THE LEGAL ISSUE ADDRESSED BY WAY OF ADDITIONAL GROUND, THE ISSUE MA Y BE REMANDED BACK TO THE CIT(A). 5. THE LD. AR MR. TEJ MOHAN SINGH APPEARING ON BEHA LF OF THE ASSESSEE ON QUERY SUBMITTED THAT THE ADDITION HAD BEEN ACCEP TED BY THE ASSESSEE AT THE ASSESSMENT STAGE ITSELF AND NO FURTHER APPEAL H AS BEEN FILED. IT WAS SUBMITTED THAT ON MERITS ALSO THE ASSESSEE HAS A CA SE. HE AGREED THAT THE LEGAL CHALLENGE WAS NOT POSED BEFORE THE CIT(A). IN THE CIRCUMSTANCES, IN VIEW OF ABSENCE OF RELEVANT DISCUSSION HE AGREED TH AT THE MATTER MAY BE REMANDED BACK. 6. WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE MATERIAL AVAILABLE ON RECORD. IN THE LIGHT OF THE SUBMISSIO NS OF THE PARTIES BEFORE THE BENCH WHICH ARE BORNE OUT FROM THE RECORD ALSO, ADMITTEDLY ON THE LEGALITY OF THE CHALLENGE POSED TO THE PENALTY ORDE R, THERE IS NO DISCUSSION IN THE IMPUGNED ORDER AS THE ISSUE WAS NOT AGITATED BEFORE THE CIT(A). IN VIEW THEREOF, ACCEPTING THE PRAYER FOR REMAND, THE IMPUGNED ORDER IS SET ASIDE BACK TO THE FILE OF THE CIT(A) WITH THE DIREC TION TO PASS A SPEAKING ITA 1247/CHD/2018 A.Y. 2012-13 PAGE 3 OF 3 ORDER IN ACCORDANCE WITH LAW AFTER GIVING THE ASSES SEE A REASONABLE OPPORTUNITY OF BEING HEARD. IN THE EVENTUALITY THE ASSESSEE DOES NOT SUCCEED ON THE LEGAL GROUND, THE CIT(A) SHALL PROCE ED TO DECIDE THE ISSUE ON MERITS AFTER HEARING THE ASSESSEE BY WAY OF A SP EAKING ORDER. SAID ORDER WAS PRONOUNCED IN THE OPEN COURT AT THE TIME OF HEA RING ITSELF. 7. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALL OWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 05 TH JULY,2019. SD/- SD/- ( $ % & ' ( ) ( ! ) (ANNAPURNA GUPTA) (DIVA SINGH) )* #/ ACCOUNTANT MEMBER ' #/ JUDICIAL MEMBER % $ *'+ ,- .- / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT - 2. / THE RESPONDENT - 3. * * # / / CIT 4. * * # / ( )/ THE CIT(A) 5. -01 2 , * % *2 , 34516 / DR, ITAT, CHANDIGARH 6. 15 7$ / GUARD FILE *'+ # / BY ORDER, 8 ' / ASSISTANT REGISTRAR