Chandrikaben Kantilal Patel, Gandhinaga V. The ITO, Ward-4, Mehsana

ITA 2058/AHD/2018

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 7271 (ITAT-AHMEDABAD)
• Duration Of Justice: 9 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-07-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2010-2011
• Appeal Filed On: 03-10-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: PRADIP J SHAH
• Section: 148; 144

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH, AHMEDABAD BEFORE SHRI PRAMOD KUMAR, HONBLE VICE-PRESIDENT AND SHRI RAJPAL YADAV, HONBLE JUDICIAL MEMBER ITA.NO.2058/AHD/2018 / ASSTT.YEAR : 2010-11 CHANDRIKABEN KANTILAL PATEL E-101, SATYAM STATUS B/H. BROSAND PETROL PUMP KALOL, DIST. GANDHINAGAR PAN : BFUPP 0311 K VS ITO, WARD - 4 MEHSANA. / (APPELLANT) / (RESPONDENT) ASSESSEE BY : SHRI PRADIP J. SHAH, AR REVENUE BY : SHRI VINOD TANWANI, SR.DR / DATE OF HEARING : 15/07/2019 / DATE OF PRONOUNCEMENT: 26/07/2019 !'/ O R D E R PER RAJPAL YADAV, JUDICIAL MEMBER ASSESSEE IS IN APPEAL BEFORE THE TRIBUNAL AGAINST O RDER OF THE LD.CIT(A) GANDHINAGAR DATED 26.07.2018 PASSED FOR THE ASSTT.Y EAR 2010-11. 2. SOLE GRIEVANCE OF THE ASSESSEE IS THAT THE LD.CI T(A) HAS ERRED IN CONFIRMING PENALTY OF RS.10,000/- LEVIED UNDER SECT ION 271(1)(B) OF THE ACT. 3. BRIEF FACTS OF THE CASE ARE THAT THE AO GOT INFO RMATION FROM AIR WING EXHIBITING THAT THE ASSESSEE HAS MADE CASH DEPOSIT OF RS.12,36,500/- IN SAVING BANK ACCOUNT WITH AXIS BANK. HE ISSUED NOTICE UNDE R SECTION 148 ON ITA NO.2058/AHD/2018 2 27.3.2017. ACCORDING TO THE AO, THE ASSESSEE DID N OT RESPOND TO THE NOTICE. ULTIMATELY, ASSESSMENT ORDER WAS PASSED UNDER SECTI ON 144 OF THE ACT. SINCE THE ASSESSEE DID NOT RESPOND TO THE NOTICE UNDER SE CTION 142(1), THE AO IMPOSED PENALTY OF RS.10,000/-. APPEAL TO THE CIT( A) DID NOT BRING ANY RELIEF TO THE ASSESSEE. 4. THE LD.COUNSEL FOR THE ASSESSEE CONTENDED THAT N O NOTICE WAS SERVED UPON THE ASSESSEE, AND THAT LED THE AO TO PASS ASSE SSMENT ORDER UNDER SECTION 144 EX PARTE . THEREFORE, THERE SHOULD NOT BE ANY PENALTY OUGHT TO BE IMPOSED UPON THE ASSESSEE FOR HIS FAILURE TO APPEAR BEFORE THE AO. ON THE OTHER HAND, THE LD.DR RELIED UPON THE ORDERS OF THE REVENUE AUT HORITIES. 5. ON DUE CONSIDERATION OF THE ABOVE FACTS, ONCE IT IS PLEADED THAT NO NOTICE WAS SERVED UPON THE ASSESSEE, AND THE ASSESS MENT ORDER WAS PASSED EX PARTE , THEN, UNLESS IT IS PROVED THAT NOTICE WAS ISSUED ON THE CORRECT ADDRESS UPON THE ASSESSEE, PENALTY OUGHT NOT TO BE IMPOSED. IT IS ALSO PERTINENT TO OBSERVE THAT THERE WAS CHANGE OF ADDRESS AND ON THE NEW ADDRESS NOTICES WERE NOT SENT. THEREFORE, THERE ARE PLAUSIBLE REASONS F OR THE ASSESSEE NOT TO APPEAR IN RESPONSE TO THE NOTICE ISSUED UNDER SECTION 142( 1). WE ALLOW THE APPEAL OF THE ASSESSEE, AND DELETE PENALTY IMPOSED UPON HIM. 6. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED . ORDER PRONOUNCED IN THE COURT ON 29 TH JULY, 2019 AT AHMEDABAD. SD/- SD/- ( PRAMOD KUMAR ) VICE-PRESIDENT (RAJPAL YADAV) JUDICIAL MEMBER AHMEDABAD; DATED 29/07/2019