Ravi Kathpalia, New Delhi V. ITO, New Delhi

ITA 1837/DEL/2013

• Counselvise Citation: 183720114 RSA 2013
• Duration Of Justice: 6 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-10-2013
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: F
• Next Hearing Date: 08-10-2013
• Assessment Year: 2005-2006
• Appeal Filed On: 01-04-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SHAMEER SHARMA
• Keywords: Non compliance
• Section: 142(1); 144

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH : F : NEW DELHI BEFORE SHRI S.V. MEHROTRA, ACCOUNTANT MEMBER AND SHRI A.D. JAIN, JUDICIAL MEMBER ITA NO.1837/DEL/2013 ASSESSMENT YEAR : 2005-06 RAVI KATHPALIA, PROP. M/S TRAVEL ARC., 8/12, HOSPITAL ROAD, JANGPURA EXTENSION, NEW DELHI. PAN : AAZPK4833A VS. ITO, WARD 32 (1), NEW DELHI. (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI GURJEET SINGH, CA REVENUE BY : SHRI SHAMEER SHARMA, DR ORDER PER A.D. JAIN, JUDICIAL MEMBER THIS IS AN APPEAL FILED BY THE ASSESSEE FOR ASSESSMENT YEAR 2005-06 AGAINST THE ACTION OF THE LD. CIT (A) IN CON FIRMING THE PENALTY OF ` 20,000/- LEVIED U/S 271 (1)(B) OF THE IT ACT. 2. THE FACTS ARE THAT ASSESSMENT ORDER U/S 144 OF THE IT ACT WAS PASSED ON 28.11.2008. THE ASSESSEE WAS ASKED TO SHOW CAUSE AS TO WHY PENALTY BE NOT LEVIED ON HIM U/S 271 (1)(B) OF T HE ACT FOR NON- COMPLIANCE OF STATUTORY NOTICES UNDER SECTIONS 143(2) AND 142 (1) OF THE IT ACT. THERE WAS NO COMPLIANCE. PENALTY OF ` 50 ,000/- WAS LEVIED FOR DEFAULTS COMMITTED ON FIVE OCCASIONS, I.E., ` 10,0 00/- FOR EACH DEFAULT. ITA NO.1837/DEL/2013 2 3. BY VIRTUE OF THE IMPUGNED ORDER, THE LD. CIT (A) HELD AS FOLLOWS:- 5. ..HOWEVER, SINCE THE APPELLANT HAS NOT GIVEN ANY SATISFACTORY EXPLANATION FOR THE NON COMPLIANCE OF THE F IRST TWO NOTICES DATED 16.1.2007 AND 23.5.2007 U/S 142 (1) AN D 143 (2), I CONFIRM THE PENALTY OF RS.20,000/- U/S 271 (1)(B) FOR THE DEFAULTS COMMITTED FOR NON COMPLIANCE OF THESE TWO NOTICES. 4. BEFORE US, THE LD. COUNSEL FOR THE ASSESSEE HAS SOUGHT T O EXPLAIN THE NON-COMPLIANCE OF THE NOTICES DATED 16.01.2007 A ND 23.05.2007, ISSUED U/S 142(1) AND 143(2) OF THE ACT, BY CONTENDING THAT THE ASSESSEE HAD NEVER RECEIVED ANY NOTICE DATED 16.01.2007 AND THAT SO FAR AS REGARDS THE NOTICE DATED 23.05.2007, HE HAD GI VEN THE NOTICE TO HIS ADVOCATE, WHO LATER EXPIRED, AND WHO HAD NOT COM PLIED WITH THE NOTICE, NOR GIVEN ANY INFORMATION IN THIS REGARD TO THE ASSESSEE. AN AFFIDAVIT OF THE ASSESSEE IN THIS REGARD HAS BEEN FILED. 5. THE LD. DR, ON THE OTHER HAND, HAS PLACED STRONG R ELIANCE ON THE IMPUGNED ORDER, CONTENDING THAT THE ASSESSEE HAS FAILED TO EXPLAIN THE NON-COMPLIANCE OF NOTICES DATED 16.01.2007 AND 23.05 .2007; AND THAT THEREFORE, THE LD. CIT (A) HAS CORRECTLY UPHELD THE LEVY OF PENALTY QUA THESE TWO NOTICES. 6. CONSIDERING THE EXPLANATION OFFERED BY THE ASSESSEE B Y WAY OF THE AFFIDAVIT FILED, WE FIND THAT THERE IS NOTHING O N RECORD TO SHOW SERVICE OF THE NOTICE DATED 16.01.2007 ON THE ASSESSEE. THAT BEING SO, OBVIOUSLY, SINCE THE ASSESSEE WAS NEVER INFORMED ABOUT THE HEARING BEFORE THE ASSESSING OFFICER, THE NON-COMPLIANCE IN THI S REGARD CANNOT BE ATTRIBUTED TO ANY MAL-INTENTION ON THE PART OF T HE ASSESSEE. 7. THE AFFIDAVIT ALSO STATES THAT IT WAS THE ASSESSEES DECE ASED COUNSEL WHO DID NOT APPEAR ON THE ASSESSEES BEHALF BEFOR E THE ASSESSING OFFICER NOR GAVE ANY INFORMATION IN THIS REGAR D TO THE ITA NO.1837/DEL/2013 3 ASSESSEE, THOUGH THE ASSESSEE HAD HANDED OVER THE NOTICE TO HIM. THE SAID COUNSEL IS STATED TO HAVE EXPIRED. 8. IN THE ABOVE FACTS AND CIRCUMSTANCES, FINDING THE EXPLANATION OF THE ASSESSEE TO BE TENABLE, QUA BOTH THE NOTICES IN QUEST ION, WE HEREBY ACCEPT THE SAME. ACCORDINGLY, THE PENALTY L EVIED ON ACCOUNT OF NON-COMPLIANCE OF THESE NOTICES IS HEREBY DELETED. 9. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALL OWED. THE ORDER PRONOUNCED IN THE OPEN COURT ON 11.10.20 13. SD/- SD/- [S.V. MEHROTRA] [A.D. JAIN] ACCOUNTANT MEMBER JUDICIAL MEMBER DATED, 11.10.2013. DK COPY FORWARDED TO: - 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR, ITAT TRUE COPY BY ORDER, DEPUTY REGISTRAR, ITAT, DELHI BENCHES