Sh. Man Mohan Goyal, New Delhi V. ITO, New Delhi

ITA 198/DEL/2013

• Counselvise Citation: [2013] 120 COUNSELVISE.COM (IT) 1371 (ITAT-DELHI)
• Duration Of Justice: 2 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-03-2013
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: E
• Assessment Year: 2008-2009
• Appeal Filed On: 11-01-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: TARUN SEEM
• Assessee Lawyers: VK SABHARWAL
• Keywords: Reasonable cause
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL DELHI DELHI DELHI DELHI BENCH BENCH BENCH BENCH E EE E : NEW DELHI : NEW DELHI : NEW DELHI : NEW DELHI BEFORE SHRI G. BEFORE SHRI G. BEFORE SHRI G. BEFORE SHRI G.D.AGRAWAL, D.AGRAWAL, D.AGRAWAL, D.AGRAWAL, VICE PRESIDENT AND VICE PRESIDENT AND VICE PRESIDENT AND VICE PRESIDENT AND SHRI SHRI SHRI SHRI RAJPAL YADAV RAJPAL YADAV RAJPAL YADAV RAJPAL YADAV, JUDICIAL MEMBER , JUDICIAL MEMBER , JUDICIAL MEMBER , JUDICIAL MEMBER ITA NO. ITA NO. ITA NO. ITA NO.198/DEL/2013 198/DEL/2013 198/DEL/2013 198/DEL/2013 ASSESSMENT YEAR ASSESSMENT YEAR ASSESSMENT YEAR ASSESSMENT YEAR : : : : 2008 2008 2008 2008- -- -09 0909 09 SHRI MAN MOHAN GOYAL, SHRI MAN MOHAN GOYAL, SHRI MAN MOHAN GOYAL, SHRI MAN MOHAN GOYAL, 2069, NARELA MANDI, 2069, NARELA MANDI, 2069, NARELA MANDI, 2069, NARELA MANDI, NARELA, NARELA, NARELA, NARELA, NEW DELHI NEW DELHI NEW DELHI NEW DELHI. .. . PAN : AAIPG7324D. PAN : AAIPG7324D. PAN : AAIPG7324D. PAN : AAIPG7324D. VS. VS. VS. VS. INCOME TAX OFFICER, INCOME TAX OFFICER, INCOME TAX OFFICER, INCOME TAX OFFICER, WARD WARD WARD WARD- -- -21(3), 21(3), 21(3), 21(3), NEW DELHI. NEW DELHI. NEW DELHI. NEW DELHI. (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI V.K.SABHARWAL, ADVOCATE. RESPONDENT BY : SHRI TARUN SEEM, SR.DR. ORDER ORDER ORDER ORDER PER G. PER G. PER G. PER G.D.AGRAWAL, D.AGRAWAL, D.AGRAWAL, D.AGRAWAL, VP VPVP VP : : : : THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST TH E ORDER OF LEARNED CIT(A)-XXII, NEW DELHI DATED 31 ST OCTOBER, 2012 FOR THE AY 2008-09. 2. THE ONLY GROUND RAISED BY THE ASSESSEE IS AGAINS T THE LEVY OF PENALTY OF ` 10,000/- UNDER SECTION 271(1)(B) OF THE INCOME-TAX ACT, 1961. 3. AT THE TIME OF HEARING BEFORE US, IT IS STATED B Y THE LEARNED COUNSEL THAT THE ASSESSING OFFICER HAS LEVIED THE P ENALTY UNDER SECTION 271(1)(B) ON ACCOUNT OF FAILURE OF THE ASSESSEE TO APPEAR ON 19 TH OCTOBER, 2010. IT IS STATED BY THE LEARNED COUNSEL THAT THE ASSESSEE HAS AUTHORIZED SHRI RAMAN GARG, CHARTERED ACCOUNTAN T TO APPEAR FOR AND ON HIS BEHALF. HE COULD NOT APPEAR ON 19 TH OCTOBER, 2010 BECAUSE HE WAS NOT WELL. HOWEVER, HE ATTENDED ALL SUBSEQUE NT PROCEEDINGS AND MADE COMPLIANCE WITH ALL THE DETAILS ASKED FOR. THE BOOKS OF ACCOUNT WERE ALSO PRODUCED. THESE FACTS ARE RECORD ED BY THE ITA-198/DEL/2013 2 ASSESSING OFFICER IN THE ASSESSMENT ORDER DATED 24 TH DECEMBER, 2010 PASSED UNDER SECTION 143(3). HE, THEREFORE, SUBMIT TED THAT MERELY BECAUSE THE ASSESSEES COUNSEL COULD NOT APPEAR ON ONE DATE OF HEARING DUE TO HIS ILLNESS, THE SAME SHOULD NOT BE A GROUND FOR PENALIZING THE ASSESSEE UNDER SECTION 271(1)(B). 4. LEARNED DR, ON THE OTHER HAND, RELIED UPON THE O RDERS OF AUTHORITIES BELOW AND STATED THAT PENALTY UNDER SEC TION 271(1)(B) WAS RIGHTLY LEVIED BY THE ASSESSING OFFICER AND LEARNED CIT(A), AFTER CONSIDERING THE FACTS IN DETAIL, RIGHTLY SUSTAINED THE PENALTY, THEREFORE, THE ORDER OF LEARNED CIT(A) SHOULD BE SUSTAINED. 5. WE HAVE CAREFULLY CONSIDERED THE ARGUMENTS OF BO TH THE SIDES AND PERUSED THE MATERIAL PLACED BEFORE US. PARAGRA PH 1 OF THE ASSESSMENT ORDER PASSED UNDER SECTION 143(3) DATED 24 TH OCTOBER, 2010 READS AS UNDER:- RETURN OF INCOME DECLARING TOTAL INCOME AT RS.1,35 ,098/- WAS FILED ON 23/09/2008 WHICH WAS PROCESSED U/S 143 (1) OF THE IT ACT, 1961. THE RETURN WAS SELECTED FOR SCRU TINY ASSESSMENT THROUGH CASS AND NOTICES U/S 143(2) OF I T ACT, 1961 WAS ISSUED ON 04/08/2009 WHICH WAS DULY SERVED UPON THE ASSESSEE, FIXING THE CASE FOR 25/08/2009. THEREAFTER, NOTICES WERE ISSUED TO ASSESSEE AND THE CASE WAS FIXED FOR HEARING TIME TO TIME AS PER DATES ON RECORD. ON BEHALF OF THE ASSESSEE, AUTHORIZED REPRESENTATIV E SH. RAMAN GARG, CA, ATTENDED THE PROCEEDINGS, FILED THE NECESSARY DETAILS AND DOCUMENTS AS CALLED FOR. THE SAME ARE PLACED ON RECORD. THE BOOKS OF ACCOUNT WERE PR ODUCED AND THE SAME WERE TEST CHECKED. THE CASE WAS DISCU SSED WITH HIM. 6. FROM THE ABOVE, IT IS EVIDENT THAT ON BEHALF OF THE ASSESSEE, HIS AUTHORIZED REPRESENTATIVE SHRI RAMAN GARG APPEARED BEFORE THE ASSESSING OFFICER FROM TIME TO TIME. HE ALSO FILED THE NECESSARY DETAILS AND DOCUMENTS AS CALLED FOR. THE BOOKS OF ACCOUNT WERE ALSO PRODUCED. IN FACT, IN THE ASSESSMENT ORDER, THERE IS NO MENTION OF ANY ITA-198/DEL/2013 3 FAILURE ON THE PART OF THE ASSESSEE TO APPEAR BEFOR E HIM. HOWEVER, FROM THE PENALTY ORDER, IT IS SEEN THAT THE ASSESSI NG OFFICER HAS RECORDED THE FINDING THAT ON 19 TH OCTOBER, 2010, THE ASSESSEE DID NOT APPEAR. HOWEVER, IN THE SAME ORDER, THE REPLY OF T HE AR OF THE ASSESSEE IS MENTIONED IN WHICH IT IS STATED THAT TH E AUTHORIZED REPRESENTATIVE OF THE ASSESSEE COULD NOT ATTEND THE HEARING AS HE WAS NOT WELL. CONSIDERING THE TOTALITY OF ABOVE FACTS, WE DO NOT CONSIDER IT A FIT CASE FOR LEVY OF PENALTY UNDER SECTION 271(1) (B). THE ASSESSEES COUNSEL APPEARED ON ALL THE DATES EXCEPT ONE. THER E WAS REASONABLE CAUSE I.E. HIS ILLNESS FOR FAILURE TO APPEAR ON ONE DATE OF HEARING. IN VIEW OF THE ABOVE, WE CANCEL THE PENALTY LEVIED UND ER SECTION 271(1)(B) OF THE ACT. 7. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALL OWED. DECISION PRONOUNCED IN THE OPEN COURT ON 15 TH MARCH, 2013. SD/- SD/- ( (( (RAJPAL YADAV RAJPAL YADAV RAJPAL YADAV RAJPAL YADAV) )) ) (G.D.AGRAWAL) (G.D.AGRAWAL) (G.D.AGRAWAL) (G.D.AGRAWAL) JUDICIAL JUDICIAL JUDICIAL JUDICIAL MEMBER MEMBER MEMBER MEMBER VICE PRESIDENT VICE PRESIDENT VICE PRESIDENT VICE PRESIDENT DATED : 15.03.2013 VK. COPY FORWARDED TO: - 1. APPELLANT : SHRI MAN MOHAN GOYAL, SHRI MAN MOHAN GOYAL, SHRI MAN MOHAN GOYAL, SHRI MAN MOHAN GOYAL, 20 2020 2069, NARELA MANDI, NARELA, NEW DELHI. 69, NARELA MANDI, NARELA, NEW DELHI. 69, NARELA MANDI, NARELA, NEW DELHI. 69, NARELA MANDI, NARELA, NEW DELHI. 2. RESPONDENT : INCOME TAX OFFICER, WARD INCOME TAX OFFICER, WARD INCOME TAX OFFICER, WARD INCOME TAX OFFICER, WARD- -- -21(3), NEW DELHI. 21(3), NEW DELHI. 21(3), NEW DELHI. 21(3), NEW DELHI. 3. CIT 4. CIT(A) 5. DR, ITAT ASSISTANT REGISTRAR