Velvet Apple Hotels P.Ltd, Delhi V. Add,CIT, Range-51, , New Delhi

ITA 2291/DEL/2018

AI Insights

The case involves appeals by Velvet Apple Hotels P. Ltd. against the orders of the CIT (Appeals)-41, New Delhi, which confirmed penalties under Section 272A(2)(k) of the Income Tax Act, 1961 for the Assessment Years 2009-10, 2010-11, and 2011-12. The penalties were imposed for non-furnishing or late furnishing of TDS statements. The assessee contended that there was a reasonable cause for the delay and that the penalty exceeded the amount of tax deducted. The Tribunal noted that the AO and CIT (A) had passed ex-parte orders due to the non-appearance of the assessee and decided to remit the matter back to the AO for a fresh hearing.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 113910 (ITAT-DELHI)
• Duration Of Justice: 5 year(s) 6 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-10-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: F
• Next Hearing Date: 04-10-2023
• Assessment Year: 2010-2011
• Appeal Filed On: 02-04-2018
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: P.N. BARNWAL
• Keywords: TDS

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH ‘F’ : NEW DELHI) SHRI SHAMIM YAHYA, ACCOUNTANT MEMBER and SHRI YOGESH KUMAR US, JUDICIAL MEMBER ITA No.2290/Del./2018 (ASSESSMENT YEAR : 2009-10) ITA No.2291/Del./2018 (ASSESSMENT YEAR : 2010-11) ITA No.2292/Del./2018 (ASSESSMENT YEAR : 2011-12) Velvet Apple Hotels P. Ltd., vs. Addl.CIT, Range 51, 8, Under Hill Lane, New Delhi. Civil Lines, New Delhi – 110 054. (PAN : AACCV8897K) (APPELLANT) (RESPONDENT) ASSESSEE BY : Shri Nirbhay Mehta, Advocate REVENUE BY : Shri P.N. Barnwal, CIT DR Shri Vivek Vardhan, Sr. DR Date of Hearing : 05.10.2023 Date of Order : 09.10.2023 ORDER PER SHAMIM YAHYA, ACCOUNTANT MEMBER : These appeals filed by the assessee are directed against the order of ld. CIT (Appeals)-41, New Delhi all dated 21.11.2016 for the Assessment Years 2009-10, 2010-11 & 2011-12. 2. Grounds of appeal taken by the assessee read as under :- ITA Nos.2290 to 2292/Del./2018 2 “1. That the order passed under Section 272A(2)(k) of the Income Tax Act, 1961 dated 21.11.2016 is bad in law and on facts. 2. That the ld. CIT (A) has erred in confirming penalty amounting of Rs.9,84,300/- u/s 272(2)(k) of the Act without considering the fact that there was reasonable cause for non-furnishing or late furnishing of TDS statement for the impugned Assessment Year. 3. That the penalty of Rs.9,84,300/- levied by ld. AO has exceeded the amount of tax deducted of Rs.6,54,500/- as against the first provision of Sec. 272A(2)(k) of the Act.” 3. At the outset, ld. Counsel of the assessee submitted that the AO and ld. CIT (A) has passed an ex-parte order after noting that assessee did not appear despite notices. Ld. Counsel of the assessee prayed that an opportunity may be given to the assessee to canvass the case properly before the AO. He undertook to cooperate at the level of AO. 3. Ld. DR for the Revenue did not have any serious objection to this proposition. 4. Accordingly, in the interest of justice, we remit the issue to the file of AO. AO shall give an opportunity to the assessee of being heard and pass a speaking order on merits of the case. 5. In the result, these appeals of the assessee are allowed for statistical purposes. Order pronounced in the open court on this 9 th day of October, 2023. Sd/- sd/- (YOGESH KUMAR US) (SHAMIM YAHYA) JUDICIAL MEMBER ACCOUNTANT MEMBER Dated the 9 th day of October, 2023/TS ITA Nos.2290 to 2292/Del./2018 3 Copy forwarded to: 1.Appellant 2.Respondent 3.CIT 4.CIT (A)-41, New Delhi. 5.CIT(ITAT), New Delhi. AR, ITAT NEW DELHI.