M/S AROMA FIBRE GLASS PVT LTD , JSR V. ITO WARD-1(1), JSR

ITA 259/RAN/2017

• Counselvise Citation: [2018] 119 COUNSELVISE.COM (IT) 0372 (ITAT-RANCHI)
• Duration Of Justice: 1 year(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-11-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2006-2007
• Appeal Filed On: 30-10-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: A K MOHANTY
• Section: 271(1)(b); 142(1)

Judgement Text

P A G E 1 | 4 IN THE INCOME TAX APPELLATE TRIBUNAL, RANCHI SMC BENCH, RANCHI BEFORE SHRI N.S SAINI, ACCOUNTANT MEMBER ITA NO. 259 / RAN /2017 ASSESSMENT YEAR : 2006 - 07 M/S. AROMA FIBRE GLASS PVT LTD., NETAJI ROAD, INFRONT OF DURGA PUJA MAIDAN VIDYAPATI NAGAR, BARIDIH, JAMSHEDPUR VS. ITO, WARD 1(1), JAMSHEDPUR PAN/GIR NO. AADCA 3429 P (APPELLANT ) .. ( RESPONDENT ) ASSESSEE BY : SHRI DEVESH PODDAR, ADV REVENUE BY : SHRI A.K.MOHANTY, JCIT DATE OF HEARING : 22 / 11 / 2018 DATE OF PRONOUNCEMENT : 22 / 11 / 2018 O R D E R THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST THE ORDER OF THE CIT(A), JAMSHEDPUR D ATED 14.8.2017 FOR THE ASSESSMENT YEAR 2006 - 07 2. THE SOLE ISSUE INVOLVED IN THIS APPEAL IS THAT THE CIT(A) WAS NOT WAS NOT JUSTIFIED IN CONFIRMING THE PENALTY OF RS.50,000/ - LEVIED U/S.271(1)(B) OF THE ACT. 3. THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESSING OFFICER OBSERVED THAT THE ASSESSE DID NOT AP PEAR ON THE DATES OF HEARING FIXED BY ISSUING NOTICES ON 17.10.2007, 18.1.2008, 13.8.2008 AND ITA NO.259/RAN/2017 ASSESSMENT YEAR : 2006 - 07 P A G E 2 | 4 9.9.2008 AND, THEREFORE, HE LEVIED PENALTY U/S.271(1)(B) OF THE ACT FOR FAILURE TO C OMPLY WITH THE NOTICES U/S.143(2 ) AND 142(1) OF THE ACT @ RS.10,000/ - FOR EACH DEFAULT. 4. ON APPEAL, THE CIT(A) CONFIRMED THE ACTION OF THE ASSESSING OFFICER ON THE GROUND THAT AT SL.NO.12 OF THE APPEAL, THE ASSESSE HAS STATED THAT HE IS ENCLOSING HEREWITH THE XEROX COPY OF NOTICES WITH WRONG ADDRESS ISSUED U/S. 271(1)(B) OF THE I.T.ACT AND AT SL.NO.13 STATED THAT HE IS ENCLOSING XEROX COPY OF RETURN OF INCOME FILED ELECTRONICALLY AND NO SUCH DOCUMENTS WERE FILED. 5. AT THE TIME OF HEARING, LD A.R. OF THE ASSESSE SUBMITTED THAT AGAINST THE ORDER IN QUANTUM APPEAL, THE ASSESSE FILED APPEAL BEFORE THE TRIBUNAL AND THE TRIBUNAL VIDE ITS ORDER DATED 8.3.2016 IN ITA NO.18/RAN/2016 RESTORED THE MATTER BACK TO THE FILE OF THE ASSESSING OFFICER ON THE GROUND THAT THE ASSESSING OFFICER HAS PASSED THE ORDER WITHOUT DISCUSSIN G ANYTHING REGARDING THE NATURE OF ADDITION AND THE CIT(A) ALSO DISMISSED THE APPEAL WITHOUT DISCUSSING UPON THE MERITS OF THE CASE. HENCE, IT WAS HIS SUBMISSION THAT AS THE ASSESSMENT ITSELF WAS SET ASIDE BY THE TRIBUNAL BACK TO THE FILE OF THE ASSESSING OFFICER, THEREFORE, THE LEVY OF PENALTY DOES NOT SURVIVE U/S.271(1)(B) OF THE ACT. ITA NO.259/RAN/2017 ASSESSMENT YEAR : 2006 - 07 P A G E 3 | 4 6. ON THE OTHER HAND, LD D.R. VEHEMENTLY OPPOSED THE ARGUMENTS OF LD A.R. OF THE ASSESSE AND SUBMITTED THAT SINCE THE ASSESSE FAILED TO PUT IN APPEARANCE BEFORE THE ASSESSI NG OFFICER ON THE DATES FIXED FOR HEARING, HE WAS FULLY JUSTIFIED IN LEVYING THE PENALTY U/S.271(1)(B) OF THE ACT. 7. AFTER HEARING THE RIVAL SUBMISSIONS AND PERUSING THE MATERIALS ON RECORD, I FIND THAT AS THE ASSESSE FAILED TO PUT IN APPEARANCE BEFORE TH E ASSESSING OFFICER IN RESPONSE TO NOTICES ISSUED ON FIVE DATES OF HEARING, THEREFORE, HE LEVIED PENALTY U/S.271(1)(B) OF THE ACT @ RS.10,000/ - FOR EACH DEFAULT COMMITTED BY THE ASSESSE. THE ASSESSE SUBMITTED BEFORE THE CIT(A) THAT NOTICES OF HEARING WER E SENT ON WRONG ADDRESS AND, THEREFORE, THE ASSESSE COULD NOT COMPLY WITH THE ASSESSE. NONE OF THE LOWER AUTHORITIES HAS BROUGHT ANY EVIDENCE ON RECORD BEFORE LEVYING THE PENALTY TO SHOW THAT NOTICE OF HEARING SENT TO THE ASSESSE WAS SERVED ON THE ASSESSE OR NOT. SINCE THE SER VICE OF NOTICE ON THE ASSESSE FOR THE DATE OF HEARING FIXED HAS NOT BEEN ESTABLISHED BY REVENUE , IN MY CONSIDERED VIEW, LEVY OF PENALTY CANNOT BE SUSTAINED IN LAW. I, THEREFORE, SET ASIDE THE ORDERS OF LOWER AUTHORITIES AND DELETE P ENALTY OF RS.50,000/ - LEVIED UNDER SECTION 271(1)(B) OF THE ACT AND ALLOW THE GROUNDS OF APPEAL OF THE ASSESSE. ITA NO.259/RAN/2017 ASSESSMENT YEAR : 2006 - 07 P A G E 4 | 4 8 . IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED ORDER PRONOUNCED ON 22 / 11 /2018. SD/ - ( N.S SAINI) A CCOUNTANT MEMBER RANCHI ; DATED 22 / 11 /2018 B.K.PARIDA, SPS COPY OF THE ORDER FORWARDED TO : BY ORDER SR. PVT.S ECRETARY, ITAT, RANCHI ON TOUR 1. THE APPELLANT : M /S. AROMA FIBRE GLASS PVT LTD., NETAJI ROAD, INFRONT OF DURGA PUJA MAIDAN VIDYAPATI NAGAR, BARIDIH, JAMSHEDPUR 2. THE RESPONDENT. ITO, WARD 1(1), JAMSHEDPUR 3. THE CIT(A) - JAMSHEDPUR 4. PR.CIT - JAMSHEDPUR 5. DR, ITAT, RANCHI 6. GUARD FILE. //TRUE COPY//