Kunwar Manjinder Singh, Amritsar. V. The Income Tax Officer, Amritsar.

ITA 133/ASR/2016

• Counselvise Citation: [2016] 131 COUNSELVISE.COM (IT) 9668 (ITAT-AMRITSAR)
• Duration Of Justice: 5 month(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 01-08-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 27-07-2016
• Assessment Year: 2011-2012
• Appeal Filed On: 26-02-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Reasonable cause
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AMRITSAR BENCH; AMRITSAR. BEFORE SH. A.D. JAIN, JUDICIAL MEMBER AND SH. T.S. KAPOOR, ACCOUNTANT MEMBER ITA NOS.133 & 134(ASR)/2016 ASSESSMENT YEAR:2011-12 PAN: AJHPP7585M SH. KUNWAR MANJINDER SINGH, VS. INCOME TAX OFFICER, THANDE ROAD, VILL. FATEHPUR. WARD 3(2), P.O. JAWALA FLOUR MILLS, AMRITSAR. AMRITSAR. (APPELLANT) (RESPONDENT) APPELLANT BY: SH. ASHWANI KALIA, CA RESPONDENT BY: SH. RAHUL DHAWAN, DR DATE OF HEARING: 27/07/2016 DATE OF PRONOUNCEMENT: 01/08/2016 ORDER PER A.D. JAIN, JM: THESE TWO APPEALS FILED BY THE ASSESSEE AGAINST TW O DIFFERENT ORDERS DATED 13.11.215 & 27.11.2015, PASSED BY THE LD. CIT (A)-1, AMRITSAR FOR THE ASSESSMENT YEAR 2011-12. 2. THE APPEAL IN ITA NO.133(ASR)/2016 IS AGAINST TH E ORDER UNDER SECTION 143(3) OF THE INCOME TAX ACT, 1961, WHEREAS THE APPEAL IN ITA NO.134(ASR)/2016 IS AGAINST THE IMPOSITION OF PENAL TY U/S 271(1)(C) OF THE I.T.ACT, 1961. 3. IT IS SEEN THAT THE LD. CIT(A) HAS PASSED BOTH T HE ORDERS UNDER APPEALS EX-PARTE. ITA NOS. 133 & 134(ASR)/2016 A.Y. 2011-12 2 4. AT THE TIME OF HEARING, THE LD. COUNSEL FOR THE ASSESSEE, SH. ASHWANI KALIA, CA DREW OUR ATTENTION TO THE WRITTEN SUBMISSIONS, FILED BY THE ASSESSEE, MENTIONING THEREIN, THE REASONS F OR NON APPEARANCE BEFORE THE LD. CIT(A). THE WRITTEN SUBMISSIONS FIL ED BY THE ASSESSEE ARE REPRODUCED AS UNDER, WHICH HAVE ALSO BEEN REITERATE D & ARGUED ON THE SAME LINES BY THE ASSESSEES COUNSEL. THE LD. COUNS EL FOR THE ASSESSEE PRAYED THAT THE ORDER OF THE LD. CIT(A) MAY BE SET ASIDE. GROUND NO.1 IS AGAINST THE ORDER OF CIT(A) DISMISSI NG THE APPEAL OF THE APPELLANT FOR WANT OF PRESENTATION RELYING UPON THE DECISION OF ITAT, DELHI BENCH IN CIT VS. MULTIPLAN INDIA LTD. , 38 ITD 320 AND THE JUDGMENT OF MADHYA PRADESH HIGH COURT IN THE CA SE OF ESTATE OF LATE TUKOJI RAO HOLKAR VS. CWT (1997) 223 ITR 480. IT IS HUMBLY REQUESTED THAT THE APPELLANT WAS PREVE NTED BY A REASONABLE CAUSE FOR NOT PRESENTING THE CASE BEFORE CIT(A). THE APPELLANT IS A MANAGING TRUSTEE OF J.S. MEMORIAL ED UCATIONAL TRUST WHICH IS RUNNING IN EDUCATIONAL INSTITUTION. THERE WAS DISPUTE GOING ON IN THE SAID EDUCATIONAL TRUST BETWEEN THE TRUSTEES. ALL THE TRUSTEES ARE CLOSE RELATIVES OF THE APPELLANT I.E. REAL BROTHER KUNWAR KARANJIT SINGH AND MOTHER SMT. DARSHAN KAUR. THE DISPUTE AMONG THE TRUSTEES HAS TAKEN UGLY TURN . BOTH THE PARTIES HAVE LODGED SEVERAL COMPLAINTS WITH POLICE AS WELL AS MANY CRIMINAL & CIVIL SUIT HAVE BEEN FILED AGAINST EACH OTHER SO MUCH SO THERE IS ALWAYS THREAT TO LIVES FROM OTHER PARTY. IN SUCH A SITUATION, THE ASSESSEE COULD NOT GIVE AN Y ATTENTION TO THE INCOME TAX MATTERS AS A RESULT OF WHICH APPEAL BEFO RE CIT(A) COULD NOT BE PROSECUTED. EVEN THE AO HAS ALSO MENTIONED I N THE ASSESSMENT ORDER ABOUT THE DISPUTE BETWEEN THE FAMI LY MEMBERS AS IS EVIDENT FROM PARA 11 OF THE ASSESSMENT ORDER. SUBSEQUENTLY THE WIFE OF THE APPELLANT SERIOUSLY FE LL WHICH ALSO COST THE DELAY IN THE PROSECUTION OF APPEAL. COPY OF SOME OF THE COMPLAINTS LODGED WITH POLICE ARE ENCLOSED FOR READY REFERENCE OF THE HONBLE BENCH. WE ARE ALSO ENCLOSING THE CIVIL SUITS AND LEGAL NOT ICES ISSUED AGAINST EACH OTHER. ITA NOS. 133 & 134(ASR)/2016 A.Y. 2011-12 3 ALSO ENCLOSED THE EVIDENCES IN RESPECT OF CIVIL AND CRIMINAL SUITS AMONGST THE ASSESSEE AND OTHER TRUSTEES. IN VIEW OF ABOVE SUBMISSIONS, IT IS REQUESTED THAT ORDER OF CIT(A) DISMISSING THE APPEAL OF APPELLANT FOR WANT OF PRO SECUTION QUASHED AND THE CASE KINDLY BE REMANDED BACK TO AO OR CIT(A ) AS MAY BE DEEM FIT BY THE APPELLANT. GROUND NOS. 2 TO 5 : THESE GROUNDS OF APPEALS ARE ON MERIT CHALLENGING THE VARIOUS ADDITIONS MADE BY THE AO TO RETURNED INCOME. SINCE THE APPEAL DECIDED EX-PARTE AND DISMI SSED FOR WANT OF PROSECUTION. IT IS HUMBLY REQUESTED THAT CIT(A) MAY KINDLY BE DIRECTED TO GIVE OPPORTUNITY TO APPELLANT TO MAKE S UBMISSIONS ON THESE ADDITIONS. GROUND NOS. 6 & 7 ARE GENERAL. 5. THE LD. DR, ON THE OTHER HAND, RELIED ON THE ORD ERS OF AUTHORITIES BELOW. 6. HAVING HEARD THE RIVAL CONTENTIONS IN THE LIGHT OF THE MATERIAL PLACED ON RECORD, WE CONCUR WITH SUBMISSIONS OF THE ASSESSEE, WHICH PREVENTED HIM FROM APPEARING BEFORE THE LD. CIT(A). THE ASSESSEE HAS NARRATED THAT THERE WAS DISPUTE AMONGST THE TRUSTEE S AND COMPLAINTS WITH THE POLICE WERE ALSO LODGED. EVEN CRIMINAL AND CIVIL SUITS HAVE BEEN FILED AGAINST EACH OTHER. SO MUCH SO, THERE WAS THR EAT TO LIVES FROM THE OTHER PARTY. IN SUCH A SITUATION, IT WAS NOT POSSIB LE FOR THE ASSESSEE TO GIVE ATTENTION TO THE INCOME TAX MATTER AND AS A RE SULT, THE APPEAL BEFORE THE LD. CIT(A) COULD NOT BE PROSECUTED. IN VIEW OF THE ABOVE REASONING, WE DEEM IT APPROPRIATE TO RESTORE THE ENTIRE MATTER TO THE FILE OF THE LD. CIT(A) TO BE DECIDED AFRESH, IN ACCORDANCE WITH LAW , AFTER AFFORDING DUE AND ADEQUATE OPPORTUNITY OF HEARING TO THE ASSESSEE . THE ASSESSEE SHALL, NOT DOUBT, CO-OPERATE IN THE FRESH PROCEEDINGS BEF ORE THE LD. CIT(A). ITA NOS. 133 & 134(ASR)/2016 A.Y. 2011-12 4 7. AS REGARDS THE APPEAL IN ITA NO.134(ASR)/2016 R ELATING TO IMPOSITION OF PENALTY U/S 271(1)(C) OF THE I.T. ACT , THE LD. COUNSEL FOR THE ASSESSEE HAS REITERATED THE SAME CAUSE AND REASONIN G, WHICH PREVENTED THE ASSESSEE FROM APPEARING BEFORE THE LD. CIT(A). ACCORDINGLY, THIS ISSUE IS ALSO RESTORED TO THE FILE OF THE LD. CIT(A) TO B E DECIDED AFRESH, IN ACCORDANCE WITH LAW, AFTER AFFORDING DUE AND ADEQUA TE OPPORTUNITY OF HEARING THE ASSESSEE. THE ASSESSEE SHALL, NO DOUBT, COOPERATE IN THE FRESH PROCEEDINGS BEFORE THE LD. CIT(A). 8. IN THE RESULT, BOTH THE APPEALS ARE ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 01/08/ 2016. SD/- SD/- (T.S. KAPOOR) (A.D. JAIN) ACCOUNTANT MEMBER JUDICIAL MEMBER /SKR/ DATED: 01/08/2016 COPY OF THE ORDER FORWARDED TO: 1. THE ASSESSEE:SH. KUNWAR MANJINDER SINGH, AMRITSAR. 2. THE ITO WARD 3(2), ASR 3. THE CIT(A), ASR 4. THE CIT, ASR. 5. THE SR DR, ITAT, AMRITSAR. TRUE COPY BY ORDER (ASSISTANT REGISTRAR) INCOME TAX APPELLATE TRIBUNAL, AMRITSAR BENCH: AMRITSAR.