M/s Girnar Hosiery Works (Regd.), Ludhiana V. ACIT, Circle-1, Ludhiana

ITA 242/CHANDI/2023

• Counselvise Citation: [2023] 101 COUNSELVISE.COM (IT) 9378 (ITAT-CHANDIGARH)
• Duration Of Justice: 7 month(s) 26 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-12-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 18-12-2023
• Assessment Year: 2014-2015
• Appeal Filed On: 25-04-2023
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: MUSKAN
• Section: 142(1)

Judgement Text

आयकर अपीलȣय अͬधकरण,चÖडीगढ़ Ûयायपीठ, चÖडीगढ़ IN THE INCOME TAX APPELLATE TRIBUNAL DIVISION BENCH, “A” CHANDIGARH BEFORE SHRI SANJAY GARG, JUDICIAL MEMBER AND SHRI VIKRAM SINGH YADAV, ACCOUNTANT MEMBER आयकर अपील सं./ ITA No.242/CHANDI/2023 Ǔनधा[रण वष[ / Assessment Year : 2014-15 M/s Girnar Hosiery Works (Regd.) Street No.6, Guru Nanak Dev Nagar Basti Jodhewal, Ludhiana, Punjab- 141001. बनाम ACIT, Circle-(1), Ludhiana èथायी लेखा सं./PAN NO: AABFG1961H अपीलाथȸ/Appellant Ĥ×यथȸ/Respondent Ǔनधा[ǐरती कȧ ओर से/Assessee by : Shri Ashwani Kumar & Ms. Muskan Garg, CAs राजèव कȧ ओर से/ Revenue by : Smt. Amanpreet Kaur, Sr. DR स ु नवाई कȧ तारȣख/Date of Hearing : 19.12.2023 उदघोषणा कȧ तारȣख/Date of Pronouncement : 22.12.2023 आदेश/ORDER Per Sanjay Garg, Judicial Member: The present is an appeal filed by the assessee agitating against the confirmation of penalty by the National Faceless Appeal Centre [hereinafter referred to as the ‘CIT(A)’] which has been levied by the A.O. u/s 271(1)(b) of the Income Tax Act (hereinafter referred to as the ‘Act’). 2. The A.O. levied the impugned penalty on account of failure of the assessee to comply with the notices issued by the A.O. u/s 142(1) of the Act. The assessee submitted a ITA No.242/CHANDI/2023 Assessment Year : 2014-15 M/s Girnar Hosiery Works (Regd.) Page 2 of 4 reply before the A.O. that the partner and two of the employees of the assessee-firm were not well and therefore, the compliance of the notice u/s 142(1) could not be made. However, the A.O. observed that the assessee had written that partner was not well for 15 days from 10.02.2021 and its two employees were not well for 15 days from 13.04.2021 and 09.05.2021. However, the notice u/s 142(1) was issued on 30.06.2021 which was a later date, therefore, the A.O. rejected the contention of the assessee and levied the impugned penalty. 3. The ld. CIT(A) confirmed the penalty so levied by the A.O. 4. Before us, the ld. counsel for the assessee has submitted that non-compliance of notice issued u/s 142(1) of the Act by the assessee was not intentional, rather, it was due to incapacity of the assessee as its partner and employees were not well. The ld. counsel has further submitted that the said period was marred by Covid Pandemic. That even the Hon'ble Supreme Court had extended the limitation period for filing various type of appeals etc., the limitation for which was expiring during the said period. He, therefore, has submitted that under the circumstances, the assessee should not be burdened with penal action. 5. The ld. DR, on the other hand, has relied upon the findings of the lower authorities. ITA No.242/CHANDI/2023 Assessment Year : 2014-15 M/s Girnar Hosiery Works (Regd.) Page 3 of 4 6. We have considered the rival submissions. The assessee in this appeal has pleaded that its partner and employees were not well. Though the dates of their illness were mentioned for the period prior to the issue of notice by the A.O. u/s 142(1) of the Act, however, the fact that cannot be lost sight of is that the period, in question, was marred by Covid pandemic and even the Hon'ble Supreme Court has also extended the deadline for filing litigation, appeals, reply etc. for the said period. Under the circumstances, we are of the view that the assessee should not be burdened with penal consequences for failure to reply the notice during the said period as the assessee has pleaded that its partner and employees were not well during the said period. In view of this, the impugned penalty levied by the A.O. is ordered to be deleted. 7. In the result, the appeal of the assessee stands allowed. Order pronounced in the Open Court on 22 nd December, 2023. Sd/- Sd/- ( VIKRAM SINGH YADAV) लेखा सदèय/ Accountant Member ( SANJAY GARG) ÛयाǓयक सदèय/ Judicial Member Dated: 22.12.2023. RS ITA No.242/CHANDI/2023 Assessment Year : 2014-15 M/s Girnar Hosiery Works (Regd.) Page 4 of 4 आदेशकȧĤǓतͧलͪपअĒेͪषत/ Copy of the order forwarded to : 1. अपीलाथȸ/ The Appellant 2. Ĥ×यथȸ/ The Respondent 3. आयकरआय ु Èत/ CIT 4. ͪवभागीय ĤǓतǓनͬध, आयकर अपीलȣय आͬधकरण, चÖडीगढ़/ DR, ITAT, CHANDIGARH 5. गाड[फाईल/ Guard File आदेशान ु सार/ By order, सहायकपंजीकार/ Assistant Registrar