The ACIT, Circle-5, Ahmedabad V. Nitin Construction Pvt.Ltd., Ahmedabad

ITA 2831/AHD/2006

• Counselvise Citation: [2009] 115 COUNSELVISE.COM (IT) 0170 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 year(s) 10 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-10-2009
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 07-09-2009
• Assessment Year: 2001-2002
• Appeal Filed On: 15-12-2006
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: NEETA SHAH
• Assessee Lawyers: M G PATEL; A N SHAH
• Keywords: Opportunity of being heard; Set aside

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD BENCH B AHMEDABAD BEFORE SHRI P.K.BANSAL, ACCOUNTANT MEMBER AND SHRI MAHAVIR SINGH, JUDICIAL MEMBER ITA NO.2831/AHD/2006 ASSESSMENT YEAR:2001-02 DATE OF HEARING:7.9.09 DRAFTED:13.10.09 ASST. C.I.T. CIRCLE-5, AHMEDABAD V/S . NITIN CONSTRUCTION PVT. LTD., 2 ND FLOOR, NAVNEET PLAZA, NR. MUNICIPAL MARKET, C.G. ROAD, AHMEDABAD PAN NO.AAACN5349J (APPELLANT) .. (RESPONDENT) APPELLANT BY :- SMT. NEETA SHAH, SR. DR RESPONDENT BY:- SHRI M.G. PATEL & SHRI A.N. SHAH, AR O R D E R PER MAHAVIR SINGH JUDICIAL MEMBER:- THIS APPEAL BY THE REVENUE IS ARISING OUT OF THE O RDER OF COMMISSIONER OF INCOME-TAX (APPEALS)-XI, AHMEDABAD IN APPEAL NO. CI T(A)-XI/163-87/2006-07 DATED 05-10-2006. THE ASSESSMENT WAS FRAMED BY THE ACIT, RANGE-5, AHMEDABAD U/S.144 OF THE INCOME-TAX ACT, 1961 (HEREINAFTER RE FERRED TO AS THE ACT) VIDE HIS ORDER DATED 29-03-2004 FOR THE ASSESSMENT YEAR 2001 -02. THE IMPUGNED PENALTY WAS LEVIED BY THE ACIT, CIRCLE-5, AHMEDABAD U/S.271 (1)(C) OF THE ACT VIDE ORDER DATED 27-03-2006. 2. THE ONLY ISSUE IN THIS APPEAL OF THE REVENUE IS AGAINST THE ORDER OF CIT(A) IN CANCELING THE LEVY OF PENALTY BY THE ASSESSING OFFI CER U/S.271(1)(C) OF THE ACT AMOUNTING TO RS.54,61,968/-. 3. AT THE OUTSET LD. SR. DEPARTMENTAL REPRESENTATIV E, SMT. NEETA SHAH AS WELL AS LD. COUNSEL FOR THE ASSESSEE, SHRI M.G. PATEL FA IRLY AGREED THAT THE CIT(A) HAS ITA NO.2831/AHD/2006 A.Y. 2001-02 ACIT CIR-5, ABD V. NITIN CONSTRUCTION P. LTD. PAGE 2 NOT DELETED THE PENALTY ON MERITS AND SIMPLY, THE C IT(A) HAS DELETED THE PENALTY ONLY ON THE BASIS THAT THE ASSESSEE WAS NOT SERVED THE P ENALTY NOTICE PROPERLY BY WAY OF AFFIXTURE AND THE PENALTY WAS LEVIED ON THE BASIS O F AFFIXTURE OF NOTICE ON THE LAST KNOWN ADDRESS. ACCORDINGLY, CIT(A) DELETED THE PEN ALTY. WE FIND THAT BOTH THE SIDES HAVE AGREED, LET FRESH OPPORTUNITY BE GIVEN T O THE ASSESSEE TO ARGUE HIS CASE BEFORE THE ASSESSING OFFICER. ACCORDINGLY, WE SET ASIDE THIS PENALTY PROCEEDING TO THE FILE OF THE ASSESSING OFFICER AND AO IS DIRECTE D TO ALLOW APPROPRIATE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE AFRESH AND DECIDED T HE ISSUE IN ACCORDANCE WITH LAW. THE ASSESSEE WILL CO-OPERATE WITH ASSESSING OFFICER DURING THE PROCEEDING. THIS ISSUE OF THE REVENUES APPEAL IS ALLOWED FOR STATIS TICAL PURPOSES. 4. IN THE RESULT, REVENUES APPEAL IS ALLOWED FOR STAT ISTICAL PURPOSES. ORDER PRONOUNCED IN OPEN COURT ON 30/10/2009 SD/- SD/- (P.K.BANSAL) (MAHAVIR SINGH) ACCOUNTANT MEMBER JUDICIAL MEMBER AHMEDABAD, DATED : 30/10/2009 *DKP COPY OF THE ORDER FORWARDED TO : 1. THE APPELLANT. 2. THE RESPONDENT. 3. THE CIT(APPEALS)- XI, AHMEDABAD 4. THE CIT CONCERNS. 5. THE DR, ITAT, AHMEDABAD 6. GUARD FILE. BY ORDER, /TRUE COPY/ DEPUTY / ASSTT.REGISTRAR ITAT, AHMEDABAD