M/s. HVR Alloys & Steels Pvt. Ltd., Meerut V. ACIT, New Delhi

ITA 2517/DEL/2015

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 2060 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 4 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-09-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: G
• Assessment Year: 2006-2007
• Appeal Filed On: 30-04-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S S RANA
• Keywords: Business income

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH G , NEW DELHI BEFORE S H. R.K. PANDA , ACCOUNTANT MEMBER AND MS. SUCHITRA KAMBLE , JUDICIAL MEMBER ITA NO. 2517 /DEL/201 5 ASSESSMENT YEAR: 20 06 - 07 M/S HVR ALLOYS & STEELS PVT. L T D. , C/O M/S MALIK & CO. (ADVOCATES), 305, THAPA NAGAR, MEERUT (PAN AAACH 0 606C) VS ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE - 12 (1), NEW DELHI (APPELLANT) (RESPONDENT) APPELLANT BY SH. SANJAY MALIK, ADVOCATE RESPONDENT BY SH. S. S. R ANA, CIT DR DATE OF HEARING: 05/09/2018 DATE OF PRONOUNCEMENT: 05 / 0 9 /2018 ORDER PER R.K. PANDA, AM: THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER DATED 10.02.2015 OF THE CIT (A) - 15 , NEW DELHI RELATING TO A. Y. 200 6 - 07 . 2. ALTHOUGH A NUMBER OF GROUNDS HAVE BEEN RAISED BY THE ASSESSEE, THESE ALL RELATE TO THE ORDER OF THE CIT(A) IN CONFIRMING THE PENALTY OF RS.15,00,000/ - LEVIED BY THE ASSESSING OFFICER U/S. 271 (1)(C) OF THE IT ACT. 3 . FACTS OF THE CASE IN BRIEF ARE THAT T HE ASSESSEE IS A COMPANY AND FILED ITS RETURN OF INCOME ON 27.11.2006 DECLARING NIL BUSINESS INCOME AFTER ITA NO. 2517 /DE L/20 1 5 2 ADJUSTMENT OF BROUGHT FORWARD BUSINESS LOSS ES OF RS.26,68,777/ - . THE ASSESSING OFFICER COMPLETED THE ASSESSMENT U/S 143 (3) DETERMINING THE TOTAL INCO ME OF THE ASSESSEE AT RS.40, 40, 495/ - . THE ASSESSING OFFICER SUBSEQUENTLY INITIATED PENALTY PROCEEDINGS U/S. 271(1) (C) OF THE IT ACT . R EJECTING THE VARIOUS EXPL A NATION S GIVEN BY THE ASSESSEE , T HE ASSESSING OFFICER LEVIED PENALTY OF RS. 1 5,00,000/ - U/S 271 ( 1) ( C) OF THE IT ACT. 4. SINCE NONE APPEARED BEFORE THE CIT(A) DESPITE NUMBER OF OPPORTUNITIES GRANTED, THE LD. CIT (A) , IN HIS EX - PARTE ORDER DATED 10.02.2015 , UPHELD THE PENALTY LEVIED BY THE ASSESSING OFFICER. 5. AGGRIEVED WITH SUCH ORDER OF THE C IT(A), THE ASSESSEE IS IN APPEAL BEFORE THE TRIBUNAL. 6. THE LD. COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE ORDER PASSED BY THE CIT(A) IS AN EX - PARTE ORDER. HE SUBMITTED THAT IN THE INTEREST OF JUSTICE ASSESSEE SHOULD BE GIVEN ONE FINAL OPPORTUNITY . H E ALSO UNDERTOOK THAT GIVEN AN OPPORTUNITY THE ASSESSEE WILL APPEAR BEFORE THE CIT (A) TO SUBSTANTIATE HIS CASE. 7. THE LD. DR ON THE OTHER HAND STRONGLY OPPOSED THE ARGUMENTS ADVANCED BY THE LD. COUNSEL FOR THE ASSESSEE AND SUBMITTED THAT DESPITE EIGHT OPPORTUNITIES GRANTED BY THE CIT(A) THE ASSESSEE TOOK ADJOURNMENT S TWICE AND ON SIX OCCASIONS HE NEVER BOTHER ED TO APPEAR. THE CONDUCT OF THE ASSESSEE SHOWS THAT IT IS NOT SERIOUS ABOUT THE APPEAL. HE SUBMITTED THAT THE LD. CIT (A) HAS DECIDED THE ISSUE ON MERIT . T HEREFORE, THE SAME SHOULD BE UPHELD AND THE GROUND S RAISED BY THE ASSESSEE SHOULD BE DISMISSED. 8. WE HAVE CONSIDERED THE RIVAL ARGUMENTS MADE BY THE BOTH THE SIDES AND PERUSED THE MATERIAL AVAILABLE ON RECORD. IT IS AN ADMITTED FACT THAT DES PITE REPEATED OPPORTUNITIES GRANTED BY THE CIT(A), THE ASSESSEE SOUGHT ITA NO. 2517 /DE L/20 1 5 3 ADJOURNMENT TWICE AND NEVER BOTHER ED TO APPEAR BEFORE THE CIT(A) ON SIX OCCASIONS FOR WHICH THE LD. CIT(A) WAS CONSTRAINED TO PASS THE EX - PARTE ORDER. HOWEVER, CONSIDERING THE UNDER TA KING GIVEN BY LD. COUNSEL FOR THE ASSESSEE THAT GIVEN AN OPPORTUNITY THE ASSESSEE SHALL APPEAR BEFORE THE CIT(A) AND CONSIDERING THE TOTALITY OF THE FA C TS OF THE CASE, WE , IN THE INTEREST OF JUSTICE , DEEM IT PROPER TO RESTORE THE ISSUE TO THE FILE OF THE C IT (A) WITH A DIRECTION TO GRANT ONE FINAL OPPORTUNITY TO THE ASSESSEE TO SUBSTANTIATE ITS CASE. THE ASSESSEE IS ALSO HEREBY DIRECTED TO APPEAR BEFORE THE CIT(A) WITHOUT SEEKING AN Y ADJOURNMENT UNDER ANY PRETEXT FAILING WHICH THE LD. CIT (A) SHALL DECIDE T HE ISSUE AS PER FACT AND LAW. WE HOLD AND DIRECT ACCORDINGLY. THE GROUNDS RAISED BY THE ASSESSEE ARE ACCORDINGLY ALLOWED FOR STATISTICAL PURPOSES. 9. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCE D IN THE OPEN COURT AT THE TIME OF HEARING ITSELF I.E. ON 05.09.2018. SD/ - SD/ - ( SUCHITRA KAMBLE ) ( R.K. PANDA ) JUDICIAL MEMBER ACCOUNTANT MEMBER *NEHA* DATE: - 05 .0 9 .2018 COPY FORWARDED TO: 1 . APPE LLANT 2 . RESPONDENT 3 . CIT 4 . CIT(APPEALS) 5 . DR: ITAT ASSISTANT REGISTRAR ITAT NEW DELHI ITA NO. 2517 /DE L/20 1 5 4 DATE OF DICTATI ON 05.09.2018 DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER 05.09.2018 DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR.PS/PS 05.09.2018 DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE DICTATING MEMBER FOR PRONOUNCEMENT 05.09.2018 DATE ON WHICH TH E FAIR ORDER COMES BACK TO THE SR. PS/ PS 05.09.2018 DATE ON WHICH THE FINAL ORDER IS UPLOADED ON THE WEBSITE OF ITAT 05.09.2018 DATE ON WHICH THE FILE GOES TO THE BENCH CLERK 05.09.2018 DATE ON WHICH FILE GOES TO THE HEAD CLERK. THE DATE ON WHICH FILE GOES TO THE ASSISTANT REGIS TRAR FOR SIGNATURE ON THE ORDER DATE OF DISPATCH OF THE ORDER