ITO, New Delhi V. M/s Vini Financial & Management Pvt. Ltd., New Delhi

ITA 2730/DEL/2011

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 97473 (ITAT-DELHI)
• Duration Of Justice: 4 year(s) 4 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-10-2015
• Appeal Filed By: Department
• Order Result: Partly Allowed
• Bench Allotted: H
• Next Hearing Date: 07-09-2015
• Assessment Year: 2004-2005
• Appeal Filed On: 26-05-2011
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: J P CHANDREKAR
• Keywords: Reasonable cause; Non compliance
• Section: 148; 144; 142(1)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL DELHI DELHI DELHI DELHI BENCH BENCH BENCH BENCH H HH H : NEW DELHI : NEW DELHI : NEW DELHI : NEW DELHI BEFORE SHRI G.C. GUPTA BEFORE SHRI G.C. GUPTA BEFORE SHRI G.C. GUPTA BEFORE SHRI G.C. GUPTA, VICE , VICE , VICE , VICE PRESIDENT AND PRESIDENT AND PRESIDENT AND PRESIDENT AND SHRI SHRI SHRI SHRI PRASHANT MAHARISHI PRASHANT MAHARISHI PRASHANT MAHARISHI PRASHANT MAHARISHI, , , , ACCOUNTANT ACCOUNTANT ACCOUNTANT ACCOUNTANT MEMBER MEMBER MEMBER MEMBER ITA NO ITA NO ITA NO ITA NO . .. . 2730/DEL/2011 2730/DEL/2011 2730/DEL/2011 2730/DEL/2011 ASSESSMENT YEAR ASSESSMENT YEAR ASSESSMENT YEAR ASSESSMENT YEAR : : : : 2004 2004 2004 2004 - -- - 05 0505 05 INCOME TAX OFFICER, INCOME TAX OFFICER, INCOME TAX OFFICER, INCOME TAX OFFICER, WARD WARD WARD WARD- -- -17(3), 17(3), 17(3), 17(3), NEW DELHI. NEW DELHI. NEW DELHI. NEW DELHI. VS. VS. VS. VS. M/S M/S M/S M/S VINI FINANCIAL & MANAGEMENT VINI FINANCIAL & MANAGEMENT VINI FINANCIAL & MANAGEMENT VINI FINANCIAL & MANAGEMENT PVT.LTD., PVT.LTD., PVT.LTD., PVT.LTD., R.O. 302, KIRTI DEEP, R.O. 302, KIRTI DEEP, R.O. 302, KIRTI DEEP, R.O. 302, KIRTI DEEP, NANGAL RAYA, NANGAL RAYA, NANGAL RAYA, NANGAL RAYA, NEW DELHI. NEW DELHI. NEW DELHI. NEW DELHI. PAN : AABCV8357P. PAN : AABCV8357P. PAN : AABCV8357P. PAN : AABCV8357P. (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI J.P. CHANDREKAR, SR.DR. RESPONDENT BY : NONE. DATE OF HEARING : 07.0 07.0 07.0 07.09.2015 9.2015 9.2015 9.2015 DATE OF PRONOUNCEMENT : 05.10.2015 05.10.2015 05.10.2015 05.10.2015 ORDER ORDER ORDER ORDER PER G.C. GUPTA PER G.C. GUPTA PER G.C. GUPTA PER G.C. GUPTA, VP , VP , VP , VP : :: : THIS APPEAL BY THE REVENUE FOR THE ASSESSMENT YEAR 200 4-05 IS DIRECTED AGAINST THE ORDER OF LEARNED CIT(A)-XIX, N EW DELHI DATED 7 TH MARCH, 2011. 2. AT THE TIME OF HEARING OF THE APPEAL, NONE APPEA RED ON BEHALF OF THE ASSESSEE-RESPONDENT AND, THEREFORE, THE APPEAL OF TH E REVENUE IS BEING DECIDED EX PARTE QUA THE ASSESSEE-RESPONDENT ON MERITS AFTER HEARING THE LEARNED DR. 3. THE GROUNDS OF APPEAL OF THE REVENUE ARE AS UNDER: - ITA-2730/DEL/2011 2 1. ON THE FACTS AND CIRCUMSTANCES AND IN LAW THE LD.CIT(A) ERRED IN ALLOWING APPEAL OF THE ASSESSEE, WHO , EVEN DID NOT FILE THE RETURN OF INCOME IN COMPLIANC E TO THE NOTICE U/S 148, WITHOUT PLACING ANY REASONABLE CAUSE BEFORE THE ASSESSING OFFICER FOR NON COMPLIANCE OF THE SAID NOTICE. 2. ON THE FACTS AND CIRCUMSTANCES AND IN LAW THE LD.CIT(A) ERRED IN ALLOWING APPEAL OF THE ASSESSEE, WHO DID NOT COMPLY WITH THE NOTICES ISSUED UNDER SECTION 142(1) OF THE IT ACT, WITHOUT PLACING ANY REASONABLE CAUSE BEFO RE THE ASSESSING OFFICER FOR NON COMPLIANCE OF THE SAID NOTICE, DESPITE ADEQUATE OPPORTUNITIES ALLOWED. 3. ON THE FACTS AND CIRCUMSTANCES AND IN LAW THE LD.CIT(A) ERRED IN ALLOWING APPEAL OF THE ASSESSEE, WIT HOUT CONFRONTING THE SUBMISSIONS OF THE ASSESSEE AND ITS OBJECTIONS TO REASONS RECORDED TO THE ASSESSING OFFICER. 4. ON THE FACTS AND CIRCUMSTANCES AND IN LAW THE LD.CIT(A) ERRED IN ALLOWING APPEAL OF THE ASSESSEE, WIT HOUT APPRECIATING THAT THE ASSESSEE HAD COMMITTED OFFENCE IN NON PRODUCTION OF BOOKS OF ACCOUNTS AND OTHER DOCUMEN TS, WITHOUT A REASONABLE CAUSE, WHICH IS AN OFFENCE PUNISHA BLE BY RIGOROUS IMPRISONMENT UNDER SECTION 276D OF THE IT ACT. 5. ON THE FACTS AND CIRCUMSTANCES AND IN LAW THE LD.CIT(A) ERRED IN ALLOWING APPEAL OF THE ASSESSEE, WIT HOUT APPRECIATING THAT THE ASSESSEE HAD COMMITTED OFFENCE IN NON FURNISHING OF RETURN OF INCOME, WITHOUT A REASON ABLE CAUSE, WHICH IS AN OFFENCE PUNISHABLE BY RIGOROUS IMPRISONMENT UNDER SECTION 276CC OF THE IT ACT. 6. ON THE FACTS AND CIRCUMSTANCES AND IN LAW THE LD.CIT(A) ERRED IN ALLOWING APPEAL OF THE ASSESSEE, WIT HOUT APPRECIATING THAT THE ASSESSEE HAD WILLFULLY EVADED TO COMPLY WITH THE TERMS OF NOTICE DATED 22/4/2008 ISSUED UNDER SECTION 148, AND THE NOTICES ISSUED UNDER SECTION 142(1) OF THE IT ACT, DESPITE THAT ONE SH. PARTAP GU PTA, CA APPEARED DURING THE ASSESSMENT PROCEEDINGS AND SIGNED THE NOTE SHEET ENTRY DATED 24.8.2009 AS HAVING NOTED THE REQUIREMENT OF FILING THE RETURN OF INCOME AND THE DETAILS AS PER QUESTIONNAIRE DATED 7/7/2009. ITA-2730/DEL/2011 3 4. LEARNED DR SUBMITTED THAT EVEN AFTER THE ISSUE OF N OTICE U/S 148 OF THE INCOME-TAX ACT, 1961, THE ASSESSEE HAS NOT EVEN F ILED THE RETURN OF INCOME AND, THEREFORE, EX PARTE ASSESSMENT U/S 144 OF THE ACT WAS MADE BY THE ASSESSING OFFICER. 5. WE HAVE HEARD THE SUBMISSIONS OF THE LEARNED DR AND HAVE PERUSED THE ORDER OF THE ASSESSING OFFICER AND THE LEARN ED CIT(A). WE FIND THAT EVEN AFTER THE ISSUE OF NOTICE U/S 148, NO R ETURN OF INCOME WAS FILED BY THE ASSESSEE. LEARNED CIT(A) HAS DECIDED THE ISSUE IN FAVOUR OF THE ASSESSEE IGNORING THE FACT THAT THE ASSESSEE HAS NOT PLACED EVIDENCE BEFORE THE ASSESSING OFFICER AT THE STA GE OF THE ASSESSMENT PROCEEDINGS. THE ASSESSEE SEEMS TO BE NON-COOPERA TIVE AND HAS NOT APPEARED BEFORE THE TRIBUNAL ON THE DAT E OF HEARING ON PAST MANY OCCASIONS ALSO. IN THESE FACTS OF THE CASE, WE ARE OF THE VIEW THAT IT SHALL BE APPROPRIATE TO SET ASIDE THE OR DERS OF AUTHORITIES BELOW TO THE FILE OF THE ASSESSING OFFICER WITH DIRECTI ON TO FRAME A DE NOVO ASSESSMENT IN ACCORDANCE WITH LAW AFTER ALLOWING DUE OP PORTUNITY OF HEARING TO THE ASSESSEE. THE ASSESSEE IS DIRECTED TO C OOPERATE WITH THE ASSESSING OFFICER IN THE MATTER OF FINALIZATION OF THE ASSESSMENT AND SHALL BE AT LIBERTY TO PRODUCE EVIDENCE IN SUPPOR T OF ITS CASE BEFORE THE ASSESSING OFFICER. WE DIRECT ACCORDINGLY. 6. IN THE RESULT, THE APPEAL OF THE REVENUE IS ALLOWE D FOR STATISTICAL PURPOSES. DECISION PRONOUNCED IN THE OPEN COURT ON 5 TH OCTOBER, 2015. SD/- SD/- ( (( ( PRASHANT MAHARISHI PRASHANT MAHARISHI PRASHANT MAHARISHI PRASHANT MAHARISHI ) )) ) (G. (G. (G. (G. C. GUPTA C. GUPTA C. GUPTA C. GUPTA ) )) ) ACCOUNTANT ACCOUNTANT ACCOUNTANT ACCOUNTANT MEMBER MEMBER MEMBER MEMBER VICE PRESID VICE PRESID VICE PRESID VICE PRESID ENT ENT ENT ENT VK. ITA-2730/DEL/2011 4 COPY FORWARDED TO: - 1. APPELLANT : INCOME TAX OFFICER, WARD INCOME TAX OFFICER, WARD INCOME TAX OFFICER, WARD INCOME TAX OFFICER, WARD- -- -17(3), NEW DELHI. 17(3), NEW DELHI. 17(3), NEW DELHI. 17(3), NEW DELHI. 2. RESPONDENT : M/S VINI FINANCIAL & MANAGEMENT PVT.L TD., M/S VINI FINANCIAL & MANAGEMENT PVT.LTD., M/S VINI FINANCIAL & MANAGEMENT PVT.LTD., M/S VINI FINANCIAL & MANAGEMENT PVT.LTD., R.O. 302, KIRTI DEEP, NANGAL RAYA, NEW DELHI. R.O. 302, KIRTI DEEP, NANGAL RAYA, NEW DELHI. R.O. 302, KIRTI DEEP, NANGAL RAYA, NEW DELHI. R.O. 302, KIRTI DEEP, NANGAL RAYA, NEW DELHI. 3. CIT 4. CIT(A) 5. DR, ITAT ASSISTANT REGISTRAR