M/s. P.S. Finsec Pvt. Ltd., New Delhi V. ITO, New Delhi

ITA 2392/DEL/2014

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 4861 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 4 month(s) 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-08-2017
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: F
• Next Hearing Date: 06-07-2017
• Assessment Year: 2007-2008
• Appeal Filed On: 21-04-2014
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Assessee Lawyers: AJAY KUMAR MATTA
• Keywords: Period of limitation; Time period of passing order
• Section: 142(1); 144

Judgement Text

1 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH F NEW DELHI BEFORE SHRI G.D. AGRAWAL, HONBLE PRESIDENT AND SHRI SUDHANSHU SRIVASTAVA, JUDICIAL MEMBER ITA NO. 2391/DEL/2014 AY: 20 07-08 ITA NO. 2392/DEL/2014 AY: 20 07-08 P.S. FINSEC PVT. LTD., C/O MATTA & ASOCIATES, 877, AGGARWAL CYBER PLAZA-II, NETAJI SUBHASH PLACE, PITAMPURA, NEW DELHI-110034 (PAN: AAACP7319J) VS INCOME TAX OFFICER, WARD 14(1), NEW DELHI. APPELLANT BY: SHRI AJAY KUMAR MATTA, CA RESPONDENT BY : SHRI ATIQ AHMAD, SR. DR DATE OF HEARING 06.07.2017 DATE OF PRONOUNCEMENT 30.08.2017 ORDER PER SUDHANSHU SRIVASTAVA, JUDICIAL MEMBER THESE APPEALS HAVE BEEN PREFERRED BY THE ASSESSEE A GAINST THE ORDER OF THE LD. CIT(A)-XVII, DELHI DATED 27.01 .2014 AND PERTAIN TO ASSESSMENT YEAR 2007-08. 2. IN ITA 2391/DEL/2014 THE LD. CIT(A) HAS DISMISSE D THE APPEAL IN LIMINE AS HAVING BEEN FILED BEYOND THE PR ESCRIBED TIME LIMIT. ITA NO. 2391 & 2392/DEL/2014 ASSESSMENT YEAR 2007-08 2 2.1 ITA 2392/DEL/2014 IS AGAINST THE ORDER PASSED B Y THE LD. CIT (A) CONFIRMING PENALTY OF RS. 30,13,628/- IMPOS ED U/S 271(1)(C) OF THE INCOME TAX ACT, 1961. THIS APPEAL WAS ALSO DISMISSED IN LIMINE AS HAVING BEEN FILED BEYOND THE LIMITATION PERIOD. 3. AT THE OUTSET, LD. AR DREW OUR ATTENTION TO PAGE 1 OF THE ORDER OF THE LD. CIT(A) AND SUBMITTED THAT THE ASSE SSMENT PROCEEDINGS HAD BEEN COMPLETED U/S 144 OF THE ACT V IDE ORDER DATED 10.12.2009 BUT THE NOTICE FOR HEARING WAS NOT SERVED ON THE ASSESSEE COMPANY. IT WAS SUBMITTED THAT THE LD . CIT(A) WHILE DISMISSING THE ASSESSEES APPEAL ON THE GROUND OF L IMITATION HAS NOTED THIS FACT THAT THE NOTICE REMAINED UNSERVED A ND THE QUESTIONNAIRE ALONG WITH NOTICE U/S 142(1) OF THE I NCOME TAX ACT, 1961 SENT TO THE ASSESSEE WAS ALSO RECEIVED BACK BY THE DEPARTMENT. IT WAS SUBMITTED THAT IN VIEW OF THE F ACTUAL SITUATION WHICH WAS UNDISPUTED, THE ASSESSEE SHOULD BE ALLOWED AN OPPORTUNITY TO PRESENT ITS CASE BEFORE THE ASSES SING AUTHORITY. IT WAS ALSO SUBMITTED THAT THE PENALTY NOTICE HAD A LSO NOT BEEN RECEIVED BY THE ASSESSEE AND THE ORDER OF THE LD. C IT(A) CONFIRMING THE PENALTY MENTIONED THE SAME. ITA NO. 2391 & 2392/DEL/2014 ASSESSMENT YEAR 2007-08 3 4. LEARNED DEPARTMENTAL REPRESENTATIVE VEHEMENTLY O PPOSED THE PLEA OF THE AUTHORISED REPRESENTATIVE AND SUBMI TTED THAT THE ASSESSEE WAS AT FAULT IN NOT COMMUNICATING THE CORR ECT ADDRESS TO THE DEPARTMENT AND, THEREFORE, A SECOND OPPORTUN ITY WOULD AMOUNT TO ASSESSEE BEING GIVEN THE BENEFIT OF ITS O WN FAULT. 5. WE HAVE HEARD THE RIVAL SUBMISSIONS AND CAREFULL Y PERUSED THE RELEVANT MATERIAL PLACED ON RECORD. IT IS UNDIS PUTED THAT THE NOTICES REMAINED UNSERVED, BOTH DURING THE QUANTUM PROCEEDINGS AS WELL AS THE PENALTY PROCEEDINGS, THE REFORE, WE DEEM IT FIT THAT IN THE INTEREST OF JUSTICE, THE AS SESSEE SHOULD BE ALLOWED AN OPPORTUNITY TO PRESENT ITS CASE IN A P ROPER MANNER. ACCORDINGLY, BOTH THE FILES ARE RESTORED TO THE ASS ESSING OFFICER FOR A FRESH EXAMINATION, VERIFICATION AND ADJUDICAT ION AFTER AFFORDING DUE OPPORTUNITY TO THE ASSESSEE. WE ALSO ADD THAT THE ASSESSEE SHOULD FULLY COOPERATIVE WITH THE DEPARTME NT IN AN EARLY DISPOSAL OF THESE FILES. 6. IN THE RESULT, BOTH THE APPEALS OF THE ASSESSEE STAND ALLOWED FOR STATISTICAL PURPOSES. ITA NO. 2391 & 2392/DEL/2014 ASSESSMENT YEAR 2007-08 4 ORDER PRONOUNCED IN THE OPEN COURT ON 30 TH AUGUST, 2017. SD/- SD/- (G.D. AGRAWAL) (SUDHANSHU SRIVASTAVA) PRESIDENT JUDICIAL MEMBER DT. 30 TH AUGUST 2017 GS COPY FORWARDED TO:- 1. APPELLANT 2. RESPONDENT 3. CIT(A) 4. CIT 5. DR BY ORDER ASSTT. REGISTRAR