Shri Hasmukh Shankarbhai Patel, Ahmedabad V. The Asstt. Commissioner of Income Tax, Central Circle-2(4), Ahmedabad

ITA 2562/AHD/2016

• Counselvise Citation: [2017] 128 COUNSELVISE.COM (IT) 5716 (ITAT-AHMEDABAD)
• Duration Of Justice: 9 month(s) 20 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-07-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2013-2014
• Appeal Filed On: 06-10-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: ANKIT TALSANIA
• Section: 142(1); 153A; 2

Judgement Text

, IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH, AHMEDABAD BEFORE SHRI RAJPAL YADAV, JUDICIAL MEMBER AND SHRI N.K. BILLAIYA, ACCOUNTANT MEMBER , .., SN ITA NO. AY APPELLANT RESPONDENT 1-7 2556 TO 2562 /AHD/2016 2007-08 TO 2013-14 SHRI HASMUKH SHANKARBHAI PATEL 250, NAVDHARI VAS, MUKHI VAS, PIPAN TAL-SANAND, AHMEDABAD-382110 PAN : BMNPP 3951 P ACIT, CENTRAL CIRCLE-2(4), AHMEDABAD 8-14 2563 TO 2569 /AHD/2016 2007-08 TO 2013-14 SHRI HASMUKH SHANKARBHAI PATEL PAN : BMNPP 3951 P ACIT, CENTRAL CIRCLE-2(4), AHMEDABAD ASSESSEE BY : SHRI ANKIT TALSANIA, AR REVENUE BY : SHRI MUDIT NAGPAL, SR. DR / DATE OF HEARING : 13/07/2017 # % / DATE OF PRONOUNCEMENT: 26/07/2017 / O R D E R PER BENCH : THE PRESENT FOURTEEN APPEALS ARE DIRECTED AT THE IN STANCE OF THE ASSESSEE AGAINST TWO ORDERS OF THE LD. CIT(A)-13, AHMEDABAD DATED 22.07.2016 PASSED FOR ASSESSMENT YEARS 2007-08 TO 2013-14. THE SOLIT ARY ISSUE INVOLVED IN ALL THESE APPEALS IS WHETHER THE ASSESSEE DESERVES TO B E VISITED WITH PENALTY UNDER SECTION 271(1)(B) OF THE INCOME-TAX ACT, 1961 (HERE INAFTER REFERRED TO AS THE ACT) FOR NON-COMPLIANCE OF NOTICE ISSUED UNDER SEC TION 142(1) OF THE ACT DATED 14.10.2014 AND 08.01.2015. 2. IT IS PERTINENT TO OBSERVE THAT A SEARCH UNDER S ECTION 132(4) OF THE ACT WAS CARRIED OUT IN THE GROUP CASES OF INDIA GREEN REALI TY PVT. LTD. ON 15.03.2013. THE ASSESSEE WAS ALSO COVERED UNDER THE SEARCH OPER ATION AND A NOTICE UNDER ITA NOS. 2556 TO 2569/AHD/2016 SHRI HASMUKH SHANKARBHAI PATEL VS. ACIT AYS: 2007-08 TO 2013-14 - 2 SECTION 153C R.W.S. 153A OF THE ACT WAS ALSO SERVED UPON THE ASSESSEE IN ALL THESE ASSESSMENT YEARS. THE LD. ASSESSING OFFICER THEREAFTER ISSUED NOTICE UNDER SECTION 142(1) OF THE ACT ON 14.10.2014. THIS NOTI CE WAS NOT REPLIED BY THE ASSESSEE. SIMILARLY, HE ISSUED NOTICE UNDER SECTIO N 142(1) OF THE ACT ON 08.01.2015 AND THIS NOTICE ALSO REMAINED UNCOMPLIED WITH. THEREFORE, HE INITIATED PENALTY PROCEEDINGS UNDER SECTION 271(1)( B) OF THE ACT AND PASSED TWO ORDERS, I.E., DATED 17.04.2015 VIDE WHICH HE IMPOSE D PENALTY OF RS.10,000/- FOR VIOLATION OF NOTICE DATED 14.10.2014 IN EACH ASSESS MENT YEAR (AYS 2007-08 TO 2013-14) AND IN THE SECOND ORDER DATED 28.08.2015 H E IMPOSED PENALTY OF RS.10,000/- IN EACH ASSESSMENT YEAR FOR VIOLATION O F NOTICE DATED 08.01.2015. APPEAL TO THE LD. CIT(A) DID NOT BRING ANY RELIEF T O THE ASSESSEE. 3. BEFORE US, LD. COUNSEL FOR THE ASSESSEE CONTENDE D THAT OUT OF TOTAL SEVEN YEARS NO ADDITION WAS MADE IN FIVE YEARS, I.E., AYS 2007-08 TO 2010-11 & 2013- 14. THE LD. COUNSEL FURTHER CONTENDED THAT THE FAT HER OF ASSESSEE SHRI SHANKARBHAI PATEL WAS HANDLING THESE MATTERS. HE W AS NOT KEEPING GOOD HEALTH AND EXPIRED ON 03.11.2014. IT WAS NOT POSSI BLE FOR THE ASSESSEE TO COLLECT ALL THE DETAILS AND RESPOND TO THE NOTICES. 4. WITH THE ASSISTANCE OF LEARNED REPRESENTATIVES, WE HAVE GONE THROUGH THE RECORD CAREFULLY. WE FIND THAT OUT OF TOTAL SEVEN YEARS NO ADDITION WAS MADE IN FIVE YEARS; MEANING THEREBY THE PRESENCE OF ASSESSE E WAS NOT REQUIRED IN THESE FIVE YEARS BECAUSE THERE WAS NOTHING INCRIMINATING WITH THE ASSESSING OFFICER. THIS BEING THE FACT, THE ASSESSEE WAS NOT REQUIRED TO BE REMAINED PRESENT AND HE CANNOT BE VISITED WITH PENALTY. APART FROM THIS, W E FIND THAT THE EXPLANATION GIVEN BY THE ASSESSEE WAS THAT HIS FATHER, SHRI SHA NKARBHAI PATEL WAS HANDLING THE ENTIRE GROUP AND HE WAS NOT KEEPING GOOD HEALTH . HE PASSED AWAY ON 03.11.2014. THE ASSESSEE WAS NOT POSSESSING ANY DE TAILS AND IT WAS NOT POSSIBLE FOR HIM TO LOCATE THE DETAILS IN SUCH A SHORT TIME. CONSIDERING THESE TWO ASPECTS, VIZ., NO ADDITION WAS MADE IN FIVE ASSESSM ENT YEARS, I.E., 2007-08 TO ITA NOS. 2556 TO 2569/AHD/2016 SHRI HASMUKH SHANKARBHAI PATEL VS. ACIT AYS: 2007-08 TO 2013-14 - 3 2010-11 & 2013-14; ILLNESS AND ULTIMATE DEATH OF HI S FATHER WHO WAS CONDUCTING THE PROCEEDINGS AT THAT TIME, WE ARE SATISFIED THAT THE ASSESSEE WAS PREVENTED BY SUFFICIENT REASONS FOR NOT COMPLYING WITH THE NOTIC ES AND HE DOES NOT DESERVE TO BE VISITED WITH PENALTY. THEREFORE, WE ALLOW ALL T HE APPEALS FILED BY THE ASSESSEE AND DELETE THE PENALTY. 5. IN THE RESULT, ALL THE APPEALS FILED BY THE ASSE SSEE ARE ALLOWED. ORDER PRONOUNCED IN THE COURT ON 26 TH JULY, 2017 AT AHMEDABAD. SD/- SD/- (N.K. BILLAIYA) ACCOUNTANT MEMBER (RAJPAL YA DAV) JUDICIAL MEMBER AHMEDABAD; DATED, 26/07/2017 **BT / COPY OF THE ORDER FORWARDED TO : 1. ' / THE APPELLANT 2. #' / THE RESPONDENT. 3. % ' / CONCERNED CIT 4. ' ) ( / THE CIT(A)- 5. % , % , /DR,ITAT, AHMEDABAD, 6. 1 / GUARD FILE. / BY ORDER, TRUE COPY (ASSTT. REGISTRAR) % ITAT, AHMEDABAD