Balaji Industrial & Agricultural Castings, Hyderabad, Secunderabad V. ACIT, Circle-11(1), Hyderabad, Hyderabad

ITA 227/HYD/2017

• Counselvise Citation: [2020] 110 COUNSELVISE.COM (IT) 5698 (ITAT-HYDERABAD)
• Duration Of Justice: 3 year(s) 7 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-09-2020
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: DB-B
• Assessment Year: 2012-2013
• Appeal Filed On: 13-02-2017
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: RAJAT MITRA
• Assessee Lawyers: PAVAN CHAKRAPANY
• Keywords: Opportunity of being heard; Reasonable cause
• Section: 273B; 271B; 13

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH B, HYDERABAD BEFORE SMT. P. MADHAVI DEVI, JUDICIAL MEMBER AND SHRI A. MOHAN ALANKAMONY, ACCOUNTANT MEMBER ITA NO.227/H/2017 ASSESSMENT YEAR:2012 - 13 M/S. BALAJI INDUSTRIAL AND AGRICULTURAL CASTINGS, HYDERABAD. PAN: AABFB 7879 D VS. THE ASST. COMMISSIONER OF INCOME TAX, CIRCLE - 11(1), HYDERABAD. (APPELLANT) (RESPONDENT) ASSESSEE BY: SHRI PAVAN CHAKRAPANY REVENUE BY: SHRI RAJAT MITRA, DR DATE OF HEARING: 16/09/2020 DATE OF PRONOUNCEMENT: 29 /09/2020 ORDER PER A. MOHAN ALANKAMONY, AM.: THIS APPEAL IS FILED BY THE ASSESSEE AGAINST THE ORDER OF THE LD. CIT (A) - 5, HYDERABAD IN APPEAL NO. 0247/2015 - 16/CIT(A) - 5, DATED 28/12/2016 PASSED U/S. 271B R.W.S 250(6) OF THE ACT FOR THE AY 2012 - 13. 2. THE ASSESSEE HAS RAISED EIGHT GROUNDS IN ITS APPEAL WHICH ARE EXTRACTED HEREIN BELOW FOR REFERENCE: - (1) THE ORDER OF THE AUTHORITIES BELOW IN SO FAR AS IT IS AGAINST THE APPELLANT IS OPPOSED TO LAW, EQUITY, WEIGHT OF EVIDENCE, PROBABILITIES AND THE FACTS AND CIRCUMSTANCES IN THE APPELLANTS CASE. 2 (2) THE APPELLANT DENIES HIMSELF LIABLE TO LEVY PENALTY U/S. 271B OF THE ACT BEING RS. 1,50,000/ - UNDER THE FACTS AND CIRCUMSTANCES OF THE CASE. (3) THE LD. AUTHORITIES BELOW ARE NOT JUSTIFIED IN LAW IN LEVYING PENALTY U/S. 271B OF THE ACT AMOUNTING TO RS. 1,50,000/ - UNDER THE FACT AND CIRCUMSTANCES OF THE CASE. (4) THE LD. AUTHORITIES BELOW FAILED TO APPRECIATE THE FACT THAT THERE WAS DIFFERENCE AMOUNT THE PARTNERS AND CHANGE IN MANAGEMENT FROM THE IMPUGNED ASSESSMENT YEAR 2012 - 13, HENCE, LEVYING OF PENALTY U/S. 271B OF THE ACT AMOUNTING TO RS. 1,50,000/ - IS NOT JUSTIFIED UNDER THE FACTS AND CIRCUMSTANCES OF THE CASE. (5) WITHOUT PREJUDICE THE LD. AUTHORITIES BELOW FAILED TO APPRECIATE THE FACT THAT THERE WAS REASONABLE CAUSE FOR F AILURE ON THE PART OF THE APPELLANT, UNDER THE FACTS AND CIRCUMSTANCES OF THE CASE. (6) WITHOUT PREJUDICE TO THE ABOVE, THE LD. AUTHORITIES BELOW OUGHT TO HAVE APPLIED THE PROVISIONS OF SECTION 273B OF THE ACT AND DROP THE PENALTY IMPOSED AS THERE WAS REASON ABLE CAUSE FOR THE FAILURE ON THE PART OF THE APPELLANT, UNDER THE FACTS AND CIRCUMSTANCES OF THE CASE. (7) THE APPELLANT CRAVES LEAVE TO ADD, ALTER, DELETE OR SUBSTITUTE ANY OF THE GROUNDS URGED ABOVE. (8) IN VIEW OF THE ABOVE AND OTHER GROUNDS THAT MAY BE URGE D AT THE TIME OF THE HEARING OF THE APPEAL, THE APPELLANT PRAYS THAT THE APPEAL MAY BE ALLOWED IN THE INTEREST OF JUSTICE AND EQUITY.' 3. AT THE OUTSET, THE LD. AR SUBMITTED BEFORE US THAT THE LD. CIT (A) DID NOT PROVIDE THE ASSESSEE PROPER OPPORTUNITY OF BEING HEARD. HE THEREFORE PLEADED THAT THE APPEAL OF THE ASSESSEE MAY BE REMITTED BACK TO THE FILE OF THE LD. CIT (A) FOR FRESH CONSIDERATION. THE LD. DR DID NOT RAISE ANY SERIOUS O BJECTION FOR REMITTING THE MATTER BACK TO THE FILE OF THE LD. CIT (A). 4. AFTER HEARING BOTH THE PARTIES, WE ARE OF THE CONSIDERED VIEW THAT ONE MORE OPPORTUNITY SHOULD BE PROVIDED TO THE ASSESSEE TO ARGUE ITS 3 CASE BEFORE THE LD. CIT (A) SINCE THE ASSESSEE S COUNSEL COULD NOT EFFECTIVELY ARGUE BEFORE THE LD. CIT (A) DUE TO LACK OF OPPORTUNITY. THEREFORE, IN THE INTEREST OF JUSTICE, WE HEREBY REMIT THE MATTER BACK TO THE FILE OF LD. CIT (A) FOR DE NOVO CONSIDERATION. 5. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. PRONOUNCED IN THE OPEN COURT ON 29 TH SEPTEMBER, 2020. SD/ - SD/ - (P. MADHAVI DEVI) ( A. MOHAN ALANKAMONY ) JUDICIAL MEMBER ACCOUNTANT MEMBER HYDERABAD, DATED: 29 TH SEPTEMBER, 2020. OKK COPY TO: - 1. M/S. BALAJI INDUSTRIAL AND AGRICULTURAL CASTINGS C/O. PAWAN KUMAR CHAKRAPANI, M/S. V.M. CHAKRAPANI & CO., CHARTERED ACCOUNTANTS, 5 - 5 - 8/9 & 10, 2 ND FLOOR, SRINIVASA BUILDING, RANIGUNJ, SECUNDERABAD 500 003. 2. ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE - 11(1 ), HYDERABAD. 3. THE CIT (A) - 5, HYDERABAD. 4. THE PRINCIPAL COMMISSIONER OF INCOME TAX - 5, HYDERABAD. 5. THE DEPARTMENTAL REPRESENTATIVE, ITAT, HYDERABAD. 6. GUARD FILE.