Sh. Jeet Singh, Ghaziabad V. ITO, Ghaziabad

ITA 3250/DEL/2015

• Counselvise Citation: [2018] 121 COUNSELVISE.COM (IT) 5644 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-06-2018
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: C
• Assessment Year: 2009-2010
• Appeal Filed On: 22-05-2015
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: ASHIMA NEB
• Keywords: Reasonable cause; Non compliance; Reason to believe
• Section: 143(3); 142(1)

Judgement Text

PAGE | 1 INCOME TAX APPELLATE TRIBUNAL DELHI BENCH C : NEW DELHI BEFORE SHRI SUDHANSHU SRIVASTAVA , JUDICIAL MEMBER AND SHRI PRASHANT MAHARISHI, ACCOUNTANT MEMBER ITA NO. 3250 & 3 2 5 1 /DEL/2015 (ASSESSMENT YEAR: 2009 - 10 ) JEET SINGH, C/O. M/S. LM AGARWAL & CO, CAS, KA - 32, KAVI NAGAR, GHAZIABAD PAN: CAKPS6394B VS. ITO, WARD - 1(3), INCOME TAX DEPARTMENT, CGO COMPLEX - 1, HAPUR CHUNGI, GHAZIABAD (APPELLANT) (RESPONDENT) ASSESSEE BY : NONE REVENUE BY: MS. ASHIMA NEB, SR. DR DATE OF HEARING 20/06 / 2018 DATE OF PRONOUNCEMENT 20 / 06 / 2018 O R D E R PER PRASHANT MAHARISHI , A. M. 1. TH ESE ARE THE APPEALS FILED BY THE ASSESSEE AGAINST THE ORDER OF THE LD CIT(A), MUZAFFARNAGAR BOTH DATED 26.02.2015, WHEREIN, HE HAS CONFIRMED THE PENALTY LEVIED BY THE LD CIT(A) U/S 271A OF RS. 25000/ - AND U/S 271(1)(B) OF RS. 10000/ - FOR ASSESSMENT YEAR 2009 - 10. 2. FIRST WE TAKE UP ITA NO. 3250/DEL/2015 AGAINST THE LEVY OF PENALTY U/S 271A OF THE ACT. 3. THE ASSESSEE IS AN I NDIVIDUAL WHO FILED HIS RETURN OF INCOME 29.03.2010 FOR RS. 271150/ - . THE ASSESSEES CASE WAS SELECTED FOR SCRUTINY ON THE BASIS OF AIR (ANNUAL INFORMATION REPORT). THE INFORMATION WAS THAT THE ASSESSEE HAS DEPOSITED CASH OF RS. 12 , 30 , 000/ - IN HIS BANK ACC OUNT WITH UNION BANK OF INDIA, MODEL TOWN BRANCH, GHAZIABAD. IT WAS INFORMED TO THE LD AO THAT THE ASSESSEE HAS CARRIED OUT BUSINESS OF PURCHASE AND SALE OF LAND. THE LD AO ASKED THE ASSESSEE TO PRODUCE THE BOOKS OF ACCOUNT BUT SAME WERE NEVER PRODUCED BEF ORE THE LD AO. CONSEQUENTLY, ASSESSMENT U/S 143(3) OF THE ACT WAS MADE ON INCOME OF RS. 20 , 00 , 010/ - . DURING THE ASSESSMENT PROCEEDINGS THE ASSESSEE FURNISHED JEET SINGH VS. ITO, ITA NO. 3250/DEL/2015 (ASSESSMENT YEAR: 2009 - 10) PAGE | 2 COPY OF THE PROFIT AND LOSS ACCOUNT AND BALANCE SHEET AND DISCLOSED SALE OF LAND OF RS. 22 , 26 , 500/ - BUT NO BOOKS OF ACCOUNT WERE MAINTAINED. THE LD AO NOTED THAT PROVISION OF SECTION 44AA PROVIDES THAT THE ASSESSEE IS REQUIRED TO MAINTAIN BOOKS OF ACCOUNT. THE PENALTY NOTICE WAS ISSUED TO THE ASSESSEE ON 26.12.2011. AFTER ISSUE OF MANY NOTICES , ON 20.06.2012, THE COUNSEL OF THE ASSESSEE APPEARED AND STATED THAT THE ASSESSEE HAS PRODUCED THE BOOKS OF ACCOUNT BEFORE THE LD AO. HE REFERRED TO THE ORDER SHEET ENTRY DATED 2 AND 12/12/2011. THE LD AO VERIFIED THE ORDER SHEET ENTRY AND FOUND THE CLAIM OF THE ASSESSEE IS INCORRECT. THEREFORE, HE LEVIED A PENALTY U/S 271A OF RS. 25000/ - VIDE ORDER DATED 29.06.2012. THE ASSESSEE CHALLENGED THE ORDER BEFORE LD CIT(A) , WHO CONFIRMED THE PENALTY AND THEREFORE, THE ASSESSEE IS IN APPEAL BEFORE US. 4. DESPITE NOT ICE NONE APPEARED ON BEHALF OF THE ASSESSEE AND HENCE, THE ISSUE IS DECIDED ON MERITS OF THE CASE. 5. THE LD DR VEHEMENTLY SUPPORTED THE ORDERS OF THE LOWER AUTHORITIES. 6. WE HAVE CAREFULLY CONSIDERED THE CONTENTION OF THE LD DR AND FOUND THAT ACCORDING TO THE PROVISIONS OF SECTION 44AA OF THE ACT THE ASSESSEE IS REQUIRED TO MAINTAIN THE BOOKS OF ACCOUNT. THESE FACTS REMAINS UNDISPUTED BEFORE THE LOWER AUTHORITIES. DESPITE R EPEATED OPPORTUNITIES THE ASSESSEE DID NOT PRODUCE BOOKS OF ACCOUNT BEFORE THE LD AO. HE PRODUCED ONLY THE BALANCE SHEET AND PROFIT AND LOSS ACCOUNT. THE CLAIM OF THE ASSESSEE IS THAT HE HAS PRODUCED THE BOOKS OF ACCOUNTS DURING THE COURSE OF ASSESSMENT PR OCEEDINGS. SUCH CLAIM WAS FOUND TO BE FALSE BY THE LD AO AND LD CIT(A). EVEN DURING THE COURSE OF PENALTY PROCEEDINGS THE ASSESSEE DID NOT PRODUCE THE BOOKS OF ACCOUNTS TO PROVE HIS BONA FIDE. IF THE ASSESSEE HAS PRODUCED THE BOOKS OF ACCOUNTS DURING THE O RIGINAL ASSESSMENT PROCEEDINGS AND THE LD AO HAS NOT MENTIONED THE SAME IN THE ORDER SHEET ENTRIES , THEN THE ASSESSEE COULD HAVE EXPLAIN ED HIS VERSION OF PRODUCING THE SAME BOOKS OF ACCOUNTS IN PENALTY PROCEEDING . IT WAS NOT DONE. IN VIEW OF THIS , WE DO NO T FIND THAT THERE IS ANY REASON TO BELIEVE THAT THE ASSESSEE HAS MAINTAINED THE BOOKS OF JEET SINGH VS. ITO, ITA NO. 3250/DEL/2015 (ASSESSMENT YEAR: 2009 - 10) PAGE | 3 ACCOUNTS. THERE IS NO REASONABLE CAUSE SHOWN BEFORE THE LOWER AUTHORITIES. IN VIEW OF THIS , WE DO NOT INTERFERE WITH THE ORDER OF THE LOWER AUTHORITIES. HENCE, WE CONF IRM THE ORDER OF THE LD CIT(A) IN CONFIRMING THE PENALTY OF RS. 25000/ - LEVIED BY THE LD AO U/S 271A OF THE ACT. 7. ACCORDINGLY, ITA NO. 3250/DEL/2015 FILED BY THE ASSESSEE IS DISMISSED. 8. NOW WE COME TO THE APPEAL NO. 3251/DEL/2015 FOR ASSESSMENT YEAR 2009 - 10 AGAINST CONFORMATION OF PENALTY OF RS. 10,000/ - U/S 271(1)(B) OF THE ACT. 9. DURING THE COURSE OF ASSESSMENT PROCEEDING , THE ASSESSEE WAS ISSUED FOUR NOTICES AS MENTIONED IN PARA NO. 5 OF THE ORDER OF THE LD CIT(A), HOWEVER, THE ASSESSEE DID NOT APPE AR ON ALL THE FOUR DATES BEFORE THE LD AO. SUBSEQUENTLY, ON 17.11.2011 WHICH WAS NOT A SCHEDULED DATE OF HEARING , THE COUNSEL OF THE ASSESSEE ATTENDED AND FURNISHED THE PART DETAILS. THEREFORE, THE LD AO INITIATED THE PENALTY PROCEEDINGS U/S 271(1)(B) OF THE ACT AND NOTICE WAS ISSUED ON 26.12.2011. DESPITE SEVERAL NOTICE S NONE APPEARED EVEN IN THE PENALTY PROCEEDINGS AND SUBSEQUENTLY, ON THE LAST DATE OF HEARING THE COUNSEL OF THE ASSESSEE SUBMITTED A WRITTEN SUBMISSION. THE LD AO REJECTED THE SUBMISSION O F THE ASSESSEE BY HOLDING THAT THE ASSESSEE IS NON - COOPERATIVE AND DELIBERATELY AVOIDING THE PROCEEDINGS IN THE MATTER. THEREFORE, DESPITE THERE BEING FOUR DEFAULTS THE LD AO LEVIED PENALTY OF RS. 10000/ - VIDE ORDER DATED 27.06.2011 FOR NON COMPLIANCE OF N OTICE U/S 142(1) OF THE ACT DATED 03.11.2011 FIXING THE DATE OF HEARING ON 14.11.2011. AGAINST THE ORDER OF THE LD AO THE ASSESSEE PREFERRED AN APPEAL BEFORE THE LD CIT(A) WHO CONFIRMED THE PENALTY. 10. DESPITE NOTICE NONE APPEARED ON BEHALF OF THE ASSESSEE AN D THEREFORE, THE APPEAL IS DECIDED ON THE MERITS OF THE CASE. 11. THE LD DR RELIED UPON THE ORDERS OF THE LOWER AUTHORITIES. 12. WE HAVE CAREFULLY CONSIDERED THE CONTENTION OF THE LD DR AND FIND THAT THE LD AO HAS ISSUED FOUR NOTICES WHICH WAS NOT COMPLIED BY TH E ASSESSEE. FURTHER , IN THE PENALTY PROCEEDINGS ALSO MORE THAN ONE NOTICE JEET SINGH VS. ITO, ITA NO. 3250/DEL/2015 (ASSESSMENT YEAR: 2009 - 10) PAGE | 4 WERE ISSUED AND ASSESSEE DID NOT COMPLY. THE LD AO NOTED THAT THE ASSESSEE IS NON COOPERATIVE AND DELIBERATELY AVOIDING THE PROCEEDINGS IN THE MATTER. WE HAVE ALSO SEEN FROM THE RECORD THAT THE ASSESSEE DID NOT PRODUCE THE BOOKS OF ACCOUNTS AND FURTHER DURING THE ASSESSMENT PROCEEDINGS ALSO ONLY PART DETAILS WERE PRODUCED. THEREFORE, IT IS APPARENT THAT THE ASSESSEE IS NOT APPEARING BEFORE THE AUTHORITIES ON TH E DATE OF HEARING. BEFORE THE LOWER AUTHORITIES ALSO THE ASSESSEE COULD NOT SHOW ANY REASONABLE CAUSE FOR NON - APPEAR ANCE ON THE APPOINTED DATES. THE EXPLANATION GIVEN BEFORE THE LD CIT(A) WHICH IS REPRODUCED AT PAGE 3 OF HIS ORDER ALSO DOES NO T SHOW N ANY R EASONABLE CAUSE EXCEPT WITH RESPECT TO THE NOTICE DATED 18.10.2011. WE NOTE THAT THE LD AO HAS NOT LEVIED PENALTY FOR NONE APPEARANCE ON THAT DATE. IN VIEW OF THIS , WE FOUND THAT THE ASSESSEE HAS NOT SHOWN ANY REASONABLE CAUSE FOR HIS NON APPEARANCE ON APP OINTED DATE OF HEARING. HENCE, WE DO NOT FIND ANY INFIRMITY IN THE ORDER OF THE LOWER AUTHORITIES WITH RESPECT TO THE LEVY OF PENALTY U/S 271(1)(B) OF RS. 10000/ - . ACCORDINGLY , THE APPEAL OF THE ASSESSEE IN ITA NO. 3251/DEL/2015 IS DISMISSED. 13. ACCORDINGLY, BOTH THE APPEAL OF THE ASSESSEE ARE DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 20/ 06 / 2018 . - SD/ - - SD/ - ( SUDHANSHU SRIVASTAVA ) (PRASHANT MAHARISHI) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 20/ 06 / 2018 A K KEOT COPY FORWARDED TO 1. APPLICANT 2. RESPONDENT 3. CIT 4. CIT (A) 5. DR:ITAT ASSISTANT REGISTRAR ITAT, NEW DELHI