Sh.Sunil Kumar Sharma, Panchkula V. Addl.DITCPC/ITO-Ward-3(3), Chandigarh

ITA 285/CHANDI/2021

• Counselvise Citation: [2022] 106 COUNSELVISE.COM (IT) 0435 (ITAT-CHANDIGARH)
• Duration Of Justice: 2 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-01-2022
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2012-2013
• Appeal Filed On: 12-10-2021
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ASHOK KHANNA
• Keywords: Opportunity of being heard
• Section: 142(1); 250

Judgement Text

आयकर अपील य अ धकरण,च डीगढ़ यायपीठ, च डीगढ़ I N T H E I N C O M E T A X A P P E L L A T E T R I B U N A L D I V I S I O N B E N C H , “ S M C ” , C H A N D I G A R H B E F OR E SH R I N . K . SA I N I , V I C E P R E SI D E N T & S H R I S U D H A N S HU SR I V A S T A V A , J U D I C I A L M E M B E R आयकर अपील सं./ ITA No. 285/C H D / 2 0 2 1 नधा रण वष / Assessment Year : 2 0 1 2 - 1 3 Sh. Sunil Kumar Sharma, House No. 184, Sector 6, Panchkula बनाम The Addl. / Joint / Deputy / ACIT, NFAC, Delhi थायी लेखा सं./PAN NO: ABXPS6779C अपीलाथ /Appellant यथ /Respondent Hearing though video Conferencing नधा रती क ओर से/Assessee by : Shri Vineet Krishan, Advocate राज व क ओर से/ Revenue by : Sh. Ashok Khanna, Addl. CIT स ु नवाई क तार%ख/Date of Hearing : 06.12.2021 उदघोषणा क तार%ख/Date of Pronouncement : 07.01.2022 आदेश/Order P er S u d h an sh u S ri va s ta va , J u d i c i a l M e mb e r : T hi s a p pe a l i s pr e fe rr ed b y th e as s e s s ee ch al l e n g in g t h e o rd e r da t ed 28 . 0 8. 20 2 1 p as s e d u /s 2 50 o f t he I n c o m e T ax A c t , 1 961 (i n s ho r t 't he A c t' ) b y t h e L d. Co mm i s s i o ne r o f In co m e Ta x (A p p e a ls ) , N at i on a l F a ce l e s s A ppe a l Ce nt r e (N F A C), D el hi [ he r e i na ft er re f er re d t o as ‘C I T( A ) ’] . 2. T he s o l e is s ue be fo r e us i s le v y o f p en al t y o f Rs . 10, 0 00/ - i mp o se d u/ s 271 (1 ) ( b) o f t h e I nco me T a x A ct , 196 1 . ITA No. 285-Chd-2021 Sh. Sunil Kumar Sharma, Panchkula 2 3. T he g ro un ds ra is e d by t h e a ss e s s e e a re as un de r :- 1. That the order passed under section 250 by the Ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi in Appeal No. ITBA/NFAC/S/250/ 2021- 22/ 10351559718(1) dated 28.08.2021 is contrary to law and facts of the case. 2. That in the facts and circumstances of the case, the Ld. Commissioner of Income Tax (Appeals) gravelly erred in upholding the penalty of Rs. 10,000/-imposed by the ld. Assessing Officer under Section 271(l)(b) of the Income Tax Act, 1961. 3. That the appellant craves to add, amend or alter any ground of appeal before or at the time of hearing of appeal, with the permission of the Hon'ble Income Tax Appellate Tribunal, Chandigarh. 4. T he L d. A ut h or i se d R e p r es e n t a t i ve ( A R) d re w o ur a t te nt i on t o or d e r da te d 28 . 0 5 . 202 1, w h e r e i n, t he p en a l ty o f Rs . 10 , 0 00 / - u/ s 27 1(1 ) ( b) o f t h e A c t h a s be e n i m p os e d o n t he gr o u nd t h a t t he as s e s s ee ha d n o t s u b mi t t e d a ny s u b mi s s i o ns / re p l i e s i n r e s po n s e t o t he n ot i ce s a nd l e t te rs i ss u ed d u ri ng t h e co urs e o f a s s es s me n t pr oc e e di n gs . T h e L d. A R d r ew o ur at t e nt i on t o P ar a 4 o f th e i m p ug n e d orde r w h ic h r ea ds a s un der :- "This is in response to the Show Cause Notice dated 25.02.2021 issued by Ld Assessing Officer for penalty under Section 271(1)(b) of the Income Tax Act, 1961 in the case of the appellant, the appellant had filed reply dated 01.03.2021 (copy enclosed) before the Id. Assessing Officer and had explained the reasons for the alleged non-compliance for notice under Section 142(1) dated 07.11.2019. During the penalty proceedings under Section 271(1)(b) of the Income Tax Act, 1961, the appellant had explained and submitted the reply on 01.03.2021 which is reproduced as below:- ITA No. 285-Chd-2021 Sh. Sunil Kumar Sharma, Panchkula 3 "It is submitted that penalty proceedings were initiated on the ground that the assessee had failed to comply with the notice dated 07.11.2019 which was fixed for hearing on 13.11.2019. It is further submitted that there is no non-compliance on the part of the assessee only 13.11.2019 and the assessee immediately as per letter dated 13.11.2019 (copy enclosed) explained to Id. Income Tax Officer, Ward 3(3), Chandigarh as under:- "It is submitted that the said notice has been received today only and for proper reply to all the questions called for will take some time. We appreciate that you are in hurry to decide the case but hurry also will take some time". I shall feel grateful if the above said case may kindly be adjourned for about a week". The said letter was submitted on the same day. The copy of e- proceedings acknowledgement is attached. No reasonable opportunity of being heard. It is further submitted here that explanation submitted before the Id Assessing Officer will show that there was a valid and reasonable ground for filing of adjournment, as the time given for compliance of notice u/s 142(1) was merely a symbolic and no reasonable time was given to the appellant to make the compliance. However, there was no non-compliance as alleged by the Id. Assessing Officer as the appellant had filed adjournment application which was never rejected by the Id. Assessing Officer and as explained supra that the time given by the Id. Assessing Officer for compliance was merely a symbolic and no reasonable opportunity of being heard was given to the appellant. In view of the above facts and circumstances, it is humbly prayed that penalty levied under Section 271(1)(b) of the Income Tax Act, 1961 may kindly be deleted.” 4. 1 T he L d. A R s ub mi t t e d t h a t , t he re fo r e, t he a s s ert i o n o f th e D ep ar t m en t t h a t n o s u b mi s s i ons ha d b ee n r e c ei v e d f ro m th e a s s e s se e ’s s i de i s i n co r re c t i n a s mu c h as t h e as s e s s ee w a s not a ffo r d e d pr o pe r ti me a nd o p p or t u n i t y t o fi l e t he r ep l y. Th e L d. A R p r a yed t h a t th e pe n a l t y b e de l et e d. ITA No. 285-Chd-2021 Sh. Sunil Kumar Sharma, Panchkula 4 5. 0 P e r co n t r a, t h e L d. S r . D R pl ac e d r e l i an ce o n th e ord er s of t he a ut ho ri t i es be l ow . 6. 0 We h a v e h e a r d t he ri v a l s ub mi s s io ns an d ha v e g on e t hr ou gh t he m at er ia l o n re c o r d. We ag re e w it h t h e c on t e n ti o n of t h e Ld. A ut ho r is e d Re pre s e nt at i ve t h a t t h e i mp u gn e d p en al t y h as b e e n wr o n gl y i m p os e d a s t he re w a s no fa ul t on t h e pa rt o f th e a s s e ss ee for t he s i mpl e r ea s o n t h at a s s es s e e d id no t ge t a de qu a t e t i me t o re s po n d t o the q u e r ie s ra i s ed b y t he D e p a r t me n t . I n s uc h a s i tu a t i o n, w e a re u n a bl e t o u ph o l d t h e pe n a l t y s o i mp o se d . We s et a s i d e t h e or d er o f t h e L d. F i rs t A pp e ll a t e A ut h or i t y a nd d i re c t t he A s s e s s i ng of fi ce r t o de l e te t he p e n al t y. 7. 0 In th e fi n a l r es u lt , t h e pe na l t y o f t h e a s s es s ee s t a nds a ll ow e d. O r d e r p r o n o u n c e d o n 0 7 . 0 1 . 2 0 2 2 . Sd/- Sd/- (N. K. SAINI) (SUDHANSHU SRIVASTAVA) Vice President Judicial Member Dated : 07.01.2022 “आर.के .” आदेशक त,ल-पअ.े-षत/ Copy of the order forwarded to : 1. अपीलाथ / The Appellant 2. यथ / The Respondent 3. आयकरआय ु /त/ CIT 4. आयकरआय ु /त (अपील)/ The CIT(A) 5. -वभागीय त न2ध, आयकरअपील%यआ2धकरण, च4डीगढ़/ DR, ITAT, CHANDIGARH 6. गाड फाईल/ Guard File आदेशान ु सार/ By order, सहायकपंजीकार/ Assistant Registrar