SIDDARTHINI NANDA, Nayasarak, Cuttack V. Asst. CIT(Central Circle), Bhubaneswar

ITA 189/CTK/2022

AI Insights

The case involves two separate appeals by Siddarthini Nanda and Indu Devi Tibarewal against the penalties imposed for non-compliance with notices during the assessment years 2010-2011 and 2011-2012. Both assessees argued that a search conducted on their premises and subsequent legal proceedings led them to believe that they had a complete stay on the assessment proceedings, resulting in their non-cooperation. The revenue contended that the penalties were justified due to non-compliance with the notices issued under section 142(1) of the Income Tax Act. The tribunal, after reviewing the submissions and the vague nature of the notices, decided in favor of the assessees, cancelling the penalties.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 127051 (ITAT-CUTTACK)
• Duration Of Justice: 2 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-02-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 07-02-2023
• Assessment Year: 2011-2012
• Appeal Filed On: 05-12-2022
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL

Judgement Text

आयकर अऩीऱीय अधधकरण, कटक न्यायऩीठ,कटक IN THE INCOME TAX APPELLATE TRIBUNAL CUTTACK BENCH CUTTACK श्री जाजज माथन, न्याययक सदस्य एवं श्री अरुण खोड़पऩया ऱेखा सदस्य के समक्ष । BEFORE SHRI GEORGE MATHAN, JUDICIAL MEMBER AND SHRI ARUN KHODPIA, ACCOUNTANT MEMBER आयकर अऩीऱ सं/ITA No.188 & 189/ CT K/2 022 (ननधाारण वषा / Asses s m ent Year :2010-2 011 & 2011-2012) Siddarthini Nanda, Nayasarak, Cuttack-753002 Vs ACIT, Central Circle-1, Bhubaneswar PAN No. :ABAPN 0104 F (अऩीऱाथी /Appellant) .. (प्रत्यथी / Respondent) AND आयकर अऩीऱ सं/ITA Nos.190 & 191/ CT K/ 2022 (ननधाारण वषा / Asses s m ent Year :2010-2 011 & 2011-2012) Indu Devi Tibarewal, At/PO: Nayasarak, Cuttack-753002 Vs ACIT, Central Circle-1, Bhubaneswar PAN No. :ACXPT 4424 E (अऩीऱाथी /Appellant) .. (प्रत्यथी / Respondent) ननधााररती की ओर से /Assessee by : Shri S.K.Sarangi, CA राजस्व की ओर से /Revenue by : Shri S.C.Mohanty, Sr. DR स ु नवाई की तारीख / Date of Hearing : 08/02/2023 घोषणा की तारीख/Date of Pronouncement : 08/02/2023 आदेश / O R D E R Per Bench : These are the appeals filed by the two different assessees against the separate orders of the ld. CIT(A)-2, Bhubaneswar, all dated 28.10.2022 for the assessment years 2010-2011 & 2011-2012, thereby confirming the penalty levied u/s.271(1)(b) of the Act. 2. Shri S.K.Sarangi, CA assisted by Intern Ms. Sugyanee Kuanr appeared for both the assessees. Shri S.C.Mohanty, Sr. DR assisted by Intern Mr. Dharmashoka Panda, appeared for the revenue. ITA Nos.188-191/CTK/2022 2 3. It was submitted by the ld. AR that there was a search on the premises of the assessee on 09.12.2015. The assessee had filed writ petitions before the Hon’ble Jurisdictional High Court and the Hon’ble High Court was pleased to direct that the proceedings to be continued in respect of assessment but the final order should not be passed till the disposal of the Writ Petition before the Hon’ble High Court. It was the submission that the assessee was under the impression that the assessee had obtained a complete stay and, therefore, the assessee had not cooperated the assessment proceedings. It was further submission that the show cause notice issued by the AO and in the satisfaction recorded by the AO in the assessment order for the purpose of initiating the penalty u/s.271(1)(b) of the Act, the AO has not mentioned on the basis of failure of compliance for which notice, the penalty has been initiated. It was, thus, the prayer that as the notice has not been specifically identified the show cause notice as also the satisfaction recorded by the AO is general in nature, the penalty as levied by the AO and as confirmed by the ld. CIT(A) is liable to be deleted. 4. In reply, ld.Sr. DR submitted that the penalty has been levied for the violation to comply with the notice issued on 31.01.2019 as has been mentioned in the penalty order. It was the submission that it is not necessary for the AO to specify each and every violation. It was submitted that the assessee having not complied with the notices issued u/s.142(1) of the Act, the AO was well within his power to levy the penalty. It was also submitted by the ld. Sr. DR that the Hon’ble Jurisdictional High Court ITA Nos.188-191/CTK/2022 3 has not granted complete stay and the interim order did not preclude the AO from completing the assessment. It only precludes the AO from passing the assessment order till disposal of Writ Petition. It was the submission that the assessment orders in the instant cases of both the assessees have been passed only after the writ petition have been disposed off. It was, thus, submitted that the penalty as levied by the AO and as confirmed by the ld. CIT(A) is liable to be upheld. 5. We have considered the rival submissions. A perusal of the show cause notice as also the satisfaction recorded by the AO in the assessment order, clearly does not mention the specific notice issued u/s.142(1) of the Act in respect of which non-compliance the penalty has been initiated. A perusal of the assessment order in all the cases shows multiple notices have been issued u/s.142(1) of the Act. This being so, we are of the view that the show cause notice and the satisfaction recorded by the AO in all the cases under consideration is vague. Thus, the order passed by the AO levying penalty u/s.271(1)(b) of the Act and confirming the same by the ld. CIT(A) is not sustainable in the case of both the assessees and the same stand cancelled. 6. In the result, appeals of both the assessees are allowed. Order dictated and pronounced in the open court on 08/02/2023. Sd/- (अरुण खोड़पऩया) (ARUN KHODPIA) Sd/- (जाजज माथन) (GEORGE MATHAN) ऱेखा सदस्य/ ACCOUNTANT MEMBER न्यानयक सदस्य / JUDICIAL MEMBER कटक Cuttack; ददनाांक Dated 08/02/2023 Prakash Kumar Mishra, Sr.P.S. ITA Nos.188-191/CTK/2022 4 आदेश की प्रनतलऱपऩ अग्रेपषत/Copy of the Order forwarded to : आदेशान ु सार/ BY ORDER, (Assistant Registrar) आयकर अऩीऱीय अधधकरण, कटक/ITAT, Cuttack 1. अऩीऱाथी / The Appellant- 2. प्रत्यथी / The Respondent- 3. आयकर आय ु क्त(अऩीऱ) / The CIT(A), 4. आयकर आय ु क्त / CIT 5. पवभागीय प्रयतयनधध, आयकर अऩीऱीय अधधकरण, कटक / DR, ITAT, Cuttack 6. गार्ज पाईऱ / Guard file. सत्यापऩत प्रयत //True Copy//