Dasna Steels Pvt Ltd, New Delhi V. ITO WARD 7(2), New Delhi

ITA 2609/DEL/2019

• Counselvise Citation: [2020] 110 COUNSELVISE.COM (IT) 2825 (ITAT-DELHI)
• Duration Of Justice: 1 year(s) 7 month(s) 30 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-11-2020
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: B
• Assessment Year: 2009-2010
• Appeal Filed On: 26-03-2019
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: UMESH TAKYASH
• Keywords: Principle of natural justice
• Section: 271B; 44AB

Judgement Text

1 ITA NO. 2609/DEL/2019 IN THE INCOME TAX APPELLAT E TRIBUNAL DELHI BENCH: G NEW DELHI BEFORE SHRI R. K. PANDA, ACCOUNTANT MEMBE R AND MS SUCHITRA KAMBLE, JUDIC IAL MEMBER ITA NO. 2609/DEL/2019 ( A .Y 2009-10) (THROUGH VIDEO CONFEREN CING) DASNA STEELS PVT. LTD. 108-019, BAHADUR SHAH ZAFAR MARG, NEW DELHI AACCD0398R (APPELLANT) VS ITO WARD 7(2) ROOM NO. 406, C. R. BUILDING, I. P. ESTATE, NEW DELHI (RESPONDENT) APPELLANT BY NONE RESPONDENT BY SH. UMESH TAKYASH, SR. DR ORDER PER SUCHITRA KAMBLE, JM THIS APPEAL IS FILED BY THE ASSESSEE AGAINST THE O RDER DATED 04/09/2018 PASSED BY CIT(A)-3, NEW DELHI FOR ASSESSMENT YEAR 2009-10. 2. THE GROUNDS OF APPEAL ARE AS UNDER:- 1. THAT THE NOTICE ISSUED U/S 27IB AND ORDER IMPOSING PENALTY OF RS.91,257.00 UNDER SAID SECTION ARE ILLEGAL, BAD IN LAW, AND WITHOUT JURISDICTION. 2. THAT, THE CIT (A) HAS ERRED IN NOT CONSIDERING T HE WRITTEN SUBMISSION FILED THROUGH EMAIL, [e-mail]. IN AND PASSED THE DATE OF HEARING 17.11.2020 DATE OF PRONOUNCEMENT 25.11.2020 2 ITA NO. 2609/DEL/2019 ORDER IN EX-PARTY MANNER, WHICH IS HIGHLY ARBITRARY , UNJUSTIFIED AND AGAINST THE PRINCIPLE OF NATURAL JUSTICE. 3. THAT, THE CIT (A) HAS FAILED TO APPRECIATE, THE PROVISION OF SECTION 27IB ARE NOT APPLICABLE ON THE ASSESSEE APPELLANT, BECAUSE ASSESSEE HAS MAINTAINED PROPER BOOKS OF ACCOUNT AND ACCOUNTS ARE ALSO AUDITED BY CHARTERED ACCOUNTANT. 4. THAT, THE CIT (A) HAS ERRED IN NOT APPRECIATING THE FACTS AND CIRCUMSTANCES, THAT, THE ASSESSEE COMPANY HAS MAINT AINED BOOKS OF ACCOUNT U/S 44AA AND BALANCE SHEET AND PROFIT & LOS S ACCOUNT ARE AUDITED U/S 44AB ON DATED 20.08.2009 THROUGH CHARTE RED ACCOUNTANT SHRI LALIT KUMAR, F.C.A. THROUGH ITS PARTNERSHIP FI RM M/S SANJAY LALIT & CO., PHOTO COPIES OF SAME HAVE BEEN FILED BEFORE TH E ASSESSING OFFICER ON 02.05.2017. 5. THAT IN VIEW OF THE FACTS AND CIRCUMSTANCE OF TH E CASE THE ASSESSING OFFICER HAS ERRED IN LAW AND ON FACTS IN NOT PROVID ING THE PROPER OPPORTUNITY OF HEARING, WHICH IS BAD IN LAW AND AGA INST THE PRINCIPLE OF NATURAL JUSTICE. 6. THAT IN ANY CASE THE PENALTY IMPOSED IS UNJUST, ARBITRARY AND HIGHLY EXCESSIVE. 3. THE ASSESSEE IS ENGAGED IN MANUFACTURING OF STEE L. THE RETURN OF INCOME WAS E-FILED ON 03.10.2009 DECLARING AN INCOME OF RS . 3,62,051 U/S 115JB. THE ASSESSING OFFICER PASSED ASSESSMENT ORDER DATED 16. 12.2016 THEREBY ASSESSING THE INCOME OF THE ASSESSEE AT 14,41,64,257/-. THERE AFTER, THE ASSESSING OFFICER PASSED THE PENALTY ORDER DATED 12.05.2017 UNDER SEC TION 271B OF THE INCOME TAX ACT, 1961. 4. BEING AGGRIEVED BY THE PENALTY ORDER, THE ASSESS EE FILED APPEAL BEFORE THE CIT(A). THE CIT(A) DISMISSED THE APPEAL OF THE ASS ESSEE. 5. NONE APPEARED AT THE TIME OF HEARING HENCE WE AR E PROCEEDINGS ON THE 3 ITA NO. 2609/DEL/2019 BASIS OF THE RECORDS AVAILABLE BEFORE US. 6. THE LD. DR RELIED UPON THE ASSESSMENT ORDER AND THE ORDER OF THE CIT(A). 7. WE HAVE HEARD LD. DR AND PERUSED THE MATERIAL AV AILABLE ON RECORD. IT IS PERTINENT TO NOTE THAT THE CIT(A) HAS NOT GIVEN ANY CATEGORICAL FINDING ON MERIT OF THE CASE AND DISMISSED THE APPEAL ON THE GROUND OF NON-PROSECUTION OF APPEAL. IT IS ALSO OBSERVED THAT THE CIT(A) DID NOT GIVE SUFFICIENT OPPORTUNITY OF HEARING TO THE ASSESSEE. THEREFORE, THE CIT(A) WAS NOT RIGHT IN DISMISSING THE APPEAL OF THE ASSESSEE WITHOUT GIVING PROPER OPPORT UNITY OF HEARING. HENCE, WE ARE REMANDING BACK THE ENTIRE ISSUE TO THE FILE OF THE CIT(A) TO BE DECIDED ON MERIT. NEEDLESS TO SAY, THE ASSESSEE BE GIVEN OPPO RTUNITY OF HEARING BY FOLLOWING PRINCIPLES OF NATURAL JUSTICE. THE APPEAL OF THE ASSESSEE IS PARTLY ALLOWED FOR STATISTICAL PURPOSE. 8. IN RESULT, THE APPEAL FILED BY THE ASSESSEE IS PARTLY ALLOWED FOR STATISTICAL PURPOSE. ORDER PRONOUNCED IN THE OPEN COURT ON THIS 25 TH DAY OF NOVEMBER, 2020 . SD/- SD/- (R. K. PANDA) (SUCHITRA KAMBLE) ACCOUNTANT MEMBER JUDICIAL M EMBER DATED: 25/11/2020 R. NAHEED 4 ITA NO. 2609/DEL/2019 COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT ASSISTANT REGISTRAR ITAT NEW DELHI