The Jammu & Kashmir Bank Ltd., Kanpur V. Joint Director of Income Tax (Intelligence), Kanpur

ITA 199/LKW/2015

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 4650 (ITAT-LUCKNOW)
• Duration Of Justice: 11 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-03-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 15-03-2016
• Assessment Year: 2011-2012
• Appeal Filed On: 09-04-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: R R JAIN
• Keywords: Opportunity of being heard; Principle of natural justice; Bonafide belief; Reasonable cause
• Section: 273B; 133(6)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL LUCKNOW BENCH A , LUCKNOW BEFORE SHRI S UNIL KUMAR YADAV , JUDICIAL MEMBER AND SHRI. A. K. GARODIA , ACCOUNTANT MEMBER ITA NO. 199 & 200/LKW/2015 ASSESSMENT YEAR: 2011 - 12 & 2012 - 13 THE JAMMU & KASHMIR BANK LTD. 40 /116, HOSPITAL ROAD PARADE KANPUR V. JOINT DIT (INTELLIGENT) KANPUR T AN /PAN : AAACT6167G (APP ELL ANT) (RESPONDENT) APP ELL ANT BY: SHRI. R.R. JAIN, FCA RESPONDENT BY: SHRI. AMIT NIGAM, D.R. DATE OF HEARING: 15 03 201 6 DATE OF PRONOUNCEMENT: 17 03 201 6 O R D E R PER SUNIL KUMAR YADAV: THESE APPEALS ARE PREFERRED BY THE ASSESSEE AGAINST THE RESPECTIVE ORDERS OF THE LD. CIT(A) ON COMMON GROUNDS. FOR THE SAKE OF REFERENCE, WE REPRODUCE THE GROUNDS RAISED IN I.T.A. NO. 199/LKW/2015 AS UNDER: - ORDER I N APPEAL AS PASSED BY LEARNED COMMISSIONER OF INCOME TAX (APPEALS) II KANPUR, WHEREBY PENALTY AS LEVIED BY LEARNED JOINT DIRECTOR OF INCOME TAX (JDI) KANPUR U/S 272A(2)(C) HAS BEEN SUSTAINED, IS ERRONEOUS, UNJUSTIFIED, UNWARRANTED AND AS THUS LIABLE TO BE QUASHED BECAUSE: - (1) NO NOTICES DATED 23 - 12 - 2014 AND 6 - 1 - 2015 AS ALLEGED TO HAVE BEEN ISSUED FIXING THE : - 2 - : DATE OF HEARING OF APPEAL WAS EVER SERVED UPON THE APPELLANT. IN ANY CASE AND WITHOUT PREJUDICE (2) LEARNED C.I.T.(A) HAS FAILED TO APPRECIATE THAT THE MATERIAL ON RECORD OF LEARNED JDI AND AS PUT BEFORE APPELLATE AUTHORITY VIDE STATEMENT OF FACTS, WAS SUFFICIENT TO ESTABLISH THAT PENALTY AS SUSTAINED WAS NOT LEVIABLE UNDER LAW IN THE FACTS AND CIRCUMSTANCES OF THE CASE. (3) LEARNED C.I.T.(A) HAS ALTOGET HER IGNORED TO TAKE INTO CONSIDERATION, THE MATERIAL ON RECORD WHICH PROVED THAT APPELLANT WAS UNDER BONAFIDE BELIEF THAT THE GENERALIZED INFORMATION CALLED FOR VIDE NOTICE U/S 133(6) WAS NOT TO BE FURNISHED AND AS SUCH IT CONSTITUTED REASONABLE CAUSE WITH IN THE MEANING OF SECTION 273B OF THE I.T. ACT,1961. (4) ORDER PASSED IS ARBITRARY AND CONTRARY TO THE PRINCIPLES OF NATURAL JUSTICE. 2 . DURING THE COURSE OF HEARING, THE LD. COUNSEL FOR THE ASSESSEE HAS INVITED OUR ATTENTION TO THE ORDER OF THE LD. CIT(A) W ITH THE SUBMISSION THAT THE LD. CIT(A) HAS DISPOSED OF THE APPEAL S EX - PARTE WITHOUT DEALING WITH THE ISSUES ON MERIT WHEREAS AS PER LAW , THE LD. CIT(A) OUGHT TO HAVE ADJUDICATED THE APPEAL S ON MERIT EVEN IF THE ASSESSEE DOES NOT APPEAR. THEREFORE, IN THE INTEREST OF JUSTICE, THE ORDER S OF THE LD. CIT(A) MAY BE SET ASIDE AND THE MATTER MAY BE RESTORED TO HIS FILE FOR ADJUDICATION OF THE APPEAL S ON MERIT. 3 . THE LD. D.R. HAS ALSO AGREED TO THIS SUBMISSIONS OF THE LD. COUNSEL FOR THE ASSESSEE, AS THE LD. CIT(A) HAS NOT DISPOSED OF THE APPEAL ON MERIT. 4 . HAVING CAREFULLY EXAMINED THE ORDERS OF THE LOWER AUTHORITIES IN THE LIGHT OF THE RIVAL SUBMISSIONS, WE FIND THAT THE LD. CIT(A) HAS : - 3 - : DISPOSED OF THE APPEAL S WITHOUT DEALING WITH THE ISSUES ON MERIT. FROM A CAREFUL PERUSAL OF THE ORDERS OF THE LD. CIT(A), WE FIND THAT THE LD. CIT(A) HAS ISSUED NOTICES UNDER SECTION 250 OF THE ACT ON TWO DATES I.E. 23.12.2014 AND 6.1.2015 FOR COMPLIANCE ON 29.12.2014 AND 12.1.2015 RESPECTIVELY. SINCE THE ASSESSEE DID NOT APPEAR, THE LD. CIT(A) DECIDED THE APPEALS AGAINST THE ASSESSEE AND CONFIRMED THE PENALTY LEVIED BY THE JOINT DIRECTOR OF INCOME TAX (JDI), KANPUR UNDER SECTION 272A(2)(C) OF THE ACT FOR THE DELAY IN SUBMISSION OF THE INFORMATION REQUIRED UNDER SECTION 133(6) OF THE ACT. W E ARE OF THE VIEW THAT SINCE THE LD. CIT(A) HAS NOT DISPOSED OF THE APPEAL S ON MERIT, HIS ORDER S DESERVE TO BE SET ASIDE AND WE ACCORDINGLY SET ASIDE THE ORDER S OF THE LD. CIT(A) AND RESTORE THE MATTER TO HIS FILE WITH A DIRECTION TO RE - ADJUDICATE THE APPEAL S AFRESH AFTER AFFORDING AN OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. 5 . IN THE RESULT, BOTH THE APPEAL S OF THE ASSESSEE ARE ALLOWED FOR STATISTICAL PURPOSES. ORDER WAS PRONOUNCED IN THE OPEN COURT ON THE DATE MENT I ONED ON THE CAPTION ED PAGE. S D/ - SD/ - [ A. K. GARODIA ] [ S UNIL KUMAR Y ADAV ] ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 17 TH 1 . APPELLANT MARCH , 2016 JJ: 1503 COPY FORWARDED TO: 2 . RESPONDENT 3 . CIT(A) 4 . CIT 5 . DR ASSISTANT REGISTRAR