Mekaster Engineering Ltd., New Delhi V. DCIT, CIRCLE- 16(2), New Delhi

ITA 2784/DEL/2018

• Counselvise Citation: [2022] 103 COUNSELVISE.COM (IT) 9266 (ITAT-DELHI)
• Duration Of Justice: 4 year(s) 6 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-10-2022
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: E
• Next Hearing Date: 31-10-2022
• Assessment Year: 2013-2014
• Appeal Filed On: 19-04-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Opportunity of being heard; TDS; Liquidation
• Section: 271(1)(c); 80IC; 80IC

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, DELHI ‘E’ BENCH, NEW DELHI BEFORE SHRI N.K. BILLAIYA, ACCOUNTANT MEMBER, AND SHRI KUL BHARAT, JUDICIAL MEMBER ITA No. 2784/DEL/2018 [A.Y 2013-14] M/s Mekaster Engineering Ltd Vs. The Dy. C.I.T 908, Ansal Bhawan Circle – 16(2) K.G. Marg, New Delhi New Delhi PAN: AAACS 8785 P (Applicant) (Respondent) Assessee By : None Department By : Shri Jeetender Chand, Sr. DR Date of Hearing : 01.11.2022 Date of Pronouncement : 01.11.2022 ORDER PER N.K. BILLAIYA, ACCOUNTANT MEMBER:- This appeal by the assessee is preferred against the order of the ld. CIT(A) - 15, New Delhi dated 29.01.2018 pertaining to A.Y. 2013-14. 2 2. The solitary grievance of the assessee is that the ld. CIT(A) erred in confirming the penalty of Rs. 1,42,67,839/- levied by the Assessing Officer u/s 271(1)(c) of the Income-tax Act, 1961 [hereinafter referred to as 'The Act']. 3. None appeared on behalf of the assessee in spite of notice. Therefore we decided to proceed exparte. 4. We have heard the ld. DR at length. Case records carefully perused. 5. Briefly stated, the facts of the case are that original return of income was filed by the assessee on 31.10.2013 declaring total income of Rs. 75,35,167/-. Return was selected for scrutiny assessment through CASS and, accordingly, statutory notices were issued and served upon the assessee. 6. During the course of scrutiny assessment proceedings, the Assessing Officer noticed that the assessee has made payments to NBFC, payment to contractors, legal and professional expenses on 3 which no TDS was deducted at source and, therefore, disallowance of Rs. 4,35,45,789/- was made u/s 40(a)(i) of the Act. 7. The Assessing Officer further found that the assessee has claimed deduction u/s 80IC in respect of Halol and Parwanoo unit on which the assessee has not made any allocation of head office expenses. The Assessing Officer, accordingly, worked out Head Office expenses in terms of total turnover ratio and made disallowance of Rs. 4,29,676/-. Penalty proceedings u/s 271(1)(c) of the Act were separately initiated. 8. Drawing support from various judicial decisions, the Assessing Officer levied penalty of Rs. 1,42,67,839/-. 9. The assessee carried the matter before the ld. CIT(A) but without any success. 10. We find that since the assessee company was under liquidation, relevant documentary evidences could not be produced before the ld. CIT(A). In fact, we are not in a position to know the fate of liquidation proceedings. As the proceedings before the first appellate authority 4 were not attended by any authorized representative of the assessee, even the ld. DR is not in a position to tell the facts of the case. 11. Therefore, in the interest of justice and fair play, we deem it fit to restore the appeal to the file of the ld. CIT(A). The assessee is directed to furnish necessary evidences and also the status of liquidation process and the ld. CIT(A) is directed to examine the same and decide the issue of levy of penalty u/s 271(1)(c) of the Act afresh after affording reasonable and adequate opportunity of being heard to the assessee. 12. In the result, the appeal of the assessee in ITA No. 2784/DEL/2018 is allowed for statistical purposes. The order is pronounced in the open court on 01.11.2022 in the presence of the ld. DR. Sd/- Sd/- [KUL BHARAT] [N.K. BILLAIYA] JUDICIAL MEMBER ACCOUNTANT MEMBER Dated: 01 st November, 2022. VL/ 5 Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(A) 5. DR Asst. Registrar, ITAT, New Delhi Date of dictation Date on which the typed draft is placed before the dictating Member Date on which the typed draft is placed before the Other Member Date on which the approved draft comes to the Sr.PS/PS Date on which the fair order is placed before the Dictating Member for pronouncement Date on which the fair order comes back to the Sr.PS/PS Date on which the final order is uploaded on the website of ITAT Date on which the file goes to the Bench Clerk Date on which the file goes to the Head Clerk The date on which the file goes to the Assistant Registrar for signature on the order Date of dispatch of the Order