Shankar Twine Products Pvt. Ltd., Delhi V. DCIT, New Delhi

ITA 1605/DEL/2017

• Counselvise Citation: [2021] 108 COUNSELVISE.COM (IT) 8461 (ITAT-DELHI)
• Duration Of Justice: 4 year(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-03-2021
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: G
• Assessment Year: 2012-2013
• Appeal Filed On: 17-03-2017
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: PRASKASH DUBEY
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH, G: NEW DELHI (THROUGH VIDEO CONFERENCING) BEFORE SHRI R.K. PANDA, ACCOUNTANT MEMBER AND SHRI SUDHANSHU SRIVASTAVA, JUDICIAL MEMBER ITA NO.1605/DEL/2017 ASSESSMENT YE AR : 2012-13 M/S SHANKAR TWINE PRODUCTS P. LTD. 500, LAL KATRA, KHAORI BAOLI, DELHI-110006 PAN-AAJCS2948D VS. DCIT, CIRCLE-23(1), DELHI (APPELLANT) (RESPONDENT) APPELLANT BY : NONE RESPON DENT BY : SH. PRASKASH DUBEY, SR. DR DATE OF HEARING : 24.03.2021 DATE OF PRONOUNCEMENT : 24.03.2021 ORDER PER R.K. PANDA, AM : THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAINST THE O RDER DATED 15.12.2016 OF THE LEARNED CIT(A)-8, NEW DELHI, RELATING TO AS SESSMENT YEAR 2012-13. 2. THE GROUNDS RAISED BY THE ASSESSEE ARE AS UNDER:- I. THAT THE LD. CIT (APPEALS) WAS NOT JUSTIFIED IN DIS MISSING THE APPEAL OF THE APPELLANT. II. THAT THE LD. CIT(APPEALS) ACTED ARBITRARILY IN UPHO LDING THE LEVY OF PENALTY OF RS.7,26,984/- WHICH IS UNJUSTIFI ED AND UNCALLED FOR. III. THAT THE LD. CIT(APPEALS) WAS NOT JUSTIFIED IN NOT GIVING DUE CREDENCE TO THE EXPLANATION TENDERED BY THE APPELLA NT. ITA NO.1605/DEL/2017 2 IV. THAT THE LD. CIT(APPEALS) FAILED TO APPRECIATE THAT THERE WAS SUFFICIENT CAUSE FOR NOT APPEARING ON THE DATE OF H EARING. V. THAT THE LD. CIT(APPEALS) IS BAD IN LAW, ON FACTS & UNDER THE CIRCUMSTANCES OF THE CASE. 3. FACTS OF THE CASE, IN BRIEF, ARE THAT THE ASSESSEE IS A COMPANY AND FILED ITS RETURN OF INCOME ON 29.09.2012 DECLARING TOTAL INCO ME OF RS.(-) 4,90,04,199/-. THE ASSESSING OFFICER COMPLETED THE ASSESSM ENT UNDER SECTION 143(3) OF THE INCOME TAX ACT, 1961 (IN SHORT THE ACT) ON 16.0 3.2015 DETERMINING THE TOTAL LOSS OF RS.(-)4,66,51,500/-, WHEREIN, HE D ISALLOWED THE CLAIM OF LOSS ON SALE OF MACHINERY OF RS.23,52,700/-. THE ASSE SSING OFFICER THEREAFTER, INITIATED PENALTY PROCEEDINGS UNDER SECTION 271 (1)(C) OF THE ACT HOLDING THAT THE ASSESSEE HAS FURNISHED INACCURATE PARTIC ULARS OF INCOME AND LEVIED PENALTY OF RS.7,26,984/-. SINCE, THE ASSESSEE DID NOT APPEAR BEFORE THE CIT(A) DESPITE A NUMBER OF OPPORTUNITIES GRANTE D, LEARNED CIT(A), IN THE EX-PARTE ORDER PASSED BY HIM, SUSTAINED THE PEN ALTY SO LEVIED BY THE ASSESSING OFFICER. 4. AGGRIEVED WITH SUCH ORDER OF THE LEARNED CIT(A), THE A SSESSEE IS IN APPEAL BEFORE THE TRIBUNAL. 5. NONE APPEARED ON BEHALF OF THE ASSESSEE DESPITE ISSUE OF NOTICE ON A NUMBER OF OCCASIONS. THEREFORE, WE DEEM IT PROPER TO DECID E THE APPEAL ON THE BASIS OF MATERIAL AVAILABLE ON RECORD AND AFTER HEARING THE LEARNED DR. 6. AS MENTIONED EARLIER, THE ASSESSEE DID NOT APPEAR BEFO RE THE CIT(A) DESPITE THREE OPPORTUNITIES GRANTED BY HIM FOR WHICH HE W AS CONSTRAINED TO DECIDE THE APPEAL EX-PARTE. HOWEVER, IT ALSO TO BE NOTED THAT THE LEARNED CIT(A) HAS DECIDED THE APPEAL ON MERIT. SINCE, THE ASSESSE E DID NOT APPEAR ITA NO.1605/DEL/2017 3 BEFORE US TODAY DESPITE NOTICE THROUGH RPAD, THEREFORE, C ONSIDERING THE TOTALITY OF FACTS OF THE CASE AND IN INTEREST OF JUSTICE, WE DEEM IT PROPER TO RESTORE THE APPEAL TO THE FILE OF CIT(A) WITH A DIRECTION TO GRANT FINAL OPPORTUNITY TO THE ASSESSEE TO SUBSTANTIATE ITS CASE A ND DECIDE THE ISSUE AS PER FACT AND LAW SUBJECT TO PAYMENT OF RS.500/- COST BY THE ASSESSEE. THE GROUNDS RAISED BY THE ASSESSEE ARE ACCORDINGLY ALLOWED FOR STATISTICAL PURPOSE. 7. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWE D FOR STATISTICAL PURPOSE. ODER PRONOUNCED IN THE OPEN COURT AT THE TIME OF HEARIN G ITSELF I.E. ON 24.03.2021. SD/- SD/- (SUDHANSHU SRIVASTAVA) (R.K. PANDA) JUDICIAL MEMBER ACCOUNTANT MEMBER DELHI/DATED- 24.03.2021 F{X~{T COPY FORWARDED TO: - 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR, ITAT BY ORDER ASSISTANT REGISTRAR, ITAT, DELHI