Usha Goyal, New Delhi V. ACIT Central Circle 43(1), New Delhi

ITA 2013/DEL/2023

AI Insights

The case involves appeals by Usha Goyal against the penalty orders issued by the Assessing Officer for the assessment years 2013-14 and 2015-16. The penalties were imposed for alleged non-compliance with a notice under section 142(1) of the Income Tax Act, 1961. The tribunal examined the circumstances under which the notice was issued and the subsequent actions taken by the assessee to request an adjournment. The tribunal concluded that the short notice period provided was insufficient for compliance, especially considering the assessee's representative was out of Delhi, and thus, the penalties were unjustly imposed.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 122098 (ITAT-DELHI)
• Duration Of Justice: 1 month(s) 12 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-08-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 23-08-2023
• Assessment Year: 2015-2016
• Appeal Filed On: 11-07-2023
• Laws Referred To: Income Tax Act 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Non compliance
• Section: 142(1)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH: SMC: NEW DELHI BEFORE SHRI CHANDRA MOHAN GARG, JUDICIAL MEMBER ITA Nos.2012 & 2013/Del/2023 Assessment Years: 2013-14 & 2015-16 Usha Goyal, 134/135, Vaishali, Pitampura, Delhi 110034 PAN AECPG 5220 J vs. The ACIT/DCIT/ITO/NFAC, Circle 43(1), Delhi (Appellant) (Respondent) For Assessee : Shri Paritosh Jain, Adv. For Revenue : Shri Om Prakash, Sr. DR Date of Final Hearing : 24.08.2023 Date of Pronouncement : 24.08.2023 ORDER PER CHANDRA MOHAN GARG, J.M. These appeals have been filed against the order of Ld. NFAC, New Delhi dated 26.06.2023 for AYs 2013-14 & 2015-16. 2. The counsel submitted that in both the appeals the Assessing Officer imposed penalty u/s. 271(1)(b) of the I.T Act 1961 for non compliance of notice u/s. 142(1) vide dated 06.11.2019 fixing the date of hearing after a day only i.e. 08.11.2019 without providing due opportunity of hearing and ignoring the adjournment application of assessee filed though e-portal on 08.11.2019 wherein it was submitted that the authorized representative of assessee is out of Delhi therefor unable to furnish explanation as required by the Assessing Officer. Therefore no penalty can be levied on the assessee for non compliance of such notice. 3. Replying to the above, the ld. Senior DR supported the penalty orders. 4. On careful consideration of above, first of all, I note that the Assessing Officer issued notice on 06.11.2019 fixing the date on 08.11.2019 providing only a day time of preparation. In response to said notice the assessee sought adjournment by submitting that the AR is out of Delhi. The Assessing Officer thereafter concluded the assessment proceedings by passing reassessment order u/s. 143(3)/147 of the Act. In such a condition and situation it cannot be alleged that the assessee did not comply with the ITA Nos.2012 & 2013/Del/2023 2 notice u/s. 142(1) of the Act dated 06.11.2019 hence the penalty is deleted. Accordingly, grounds of assessee in both the appeals are allowed. 5. In the result, these appeals of the assessee are allowed. Order pronounced in the open court on 24.08.2023. Sd/- Sd/- (CHANDRA MOHAN GARG) JUDICIAL MEMBER Dated: 24 th August, 2023. NV/- Copy forwarded to : 1. Appellant 2. Respondent 3. CIT 4. CIT(A) 5. DR // By Order // Asstt. Registrar, ITAT, New Delhi