Fox Mandal & Co., New Delhi V. ACIT, Circle 61(1), New Delhi

ITA 3304/DEL/2019

• Counselvise Citation: [2020] 110 COUNSELVISE.COM (IT) 2846 (ITAT-DELHI)
• Duration Of Justice: 1 year(s) 7 month(s) 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-11-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2011-2012
• Appeal Filed On: 16-04-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 271(1)(c); 143(3)

Judgement Text

ITA NO.3304/DEL/2019 AYR. 2011-12 1 IN THE INCOME TAX APPELLATE TRIBUNAL, DELHI G BEN CH, NEW DELHI [THROUGH VIDEO CONFERENCE] BEFORE SHRI R.K. PANDA, ACCOUNTANT MEMBER AND MS. SUCHITRA KAMBLE, JUDICIAL MEMBER ITA NO. 3304/DEL/2019 [ASSESSMENT YEAR : 2011-12 ] M/S FOX MANDAL & CO., VS. ACIT, CIRCLE 61(1), 27, 1 ST FLOOR, BABAR LANE, NEW DELHI BENGALI MARKET, NEW DELHI 110 001 (PAN: AAAFF0687J) [APPELLANT] [RESPONDENT] ASSESSEE BY : SH. DEEPAK MALIK, ADV. REVENUE BY : SH. UMESH TAKYAR, SR. DR. DATE OF HEARING : 19.11.2020 DATE OF PRONOUNCEMENT : 25.11.2020 ORDER PER R.K. PANDA, AM: THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAI NST THE EXPARTE ORDER DATED 13.02.2019 OF THE LD. CIT(A)-20, NEW DELHI RE LATING TO ASSESSMENT YEAR 2011-12. THE ASSESSEE IN THE GROUNDS OF APPEA L HAS CHALLENGED THE ORDER OF THE LD. CIT(A) IN SUSTAINING THE PENALTY OF RS. 22, 71,540/- LEVIED BY THE AO U/S. 271(1)(C) OF THE I.T. ACT, 1961. ITA NO.3304/DEL/2019 AYR. 2011-12 2 2. THE FACTS OF THE CASE IN BRIEF ARE THAT THE ASSE SSEE IS A LAW FIRM AND DERIVED INCOME FROM BUSINESS OR PROFESSION. IT FILE D ITS RETURN OF INCOME ON 30.9.2011 DECLARING TOTAL INCOME OF RS. 1,43,28,720 /- WHICH WAS REVISED ON 31.3.2012 AT AN INCOME OF RS. 1,85,81,220/-. THE AO COMPLETED THE ASSESSMENT U/S. 143(3) OF THE ACT ON 22.3.2014 DETERMINING THE TOTAL INCOME OF RS. 2,86,19,320/-, WHEREIN APART FROM OTHER ADDITIO NS, HE MADE THE FOLLOWING ADDITIONS/DISALLOWANCES:- PARTICULAR AMOUNT BANK CHARGES 113399.37 INTEREST ON (C/CARD) 931587.70 INTEREST ON LOAN (BUSINESS) 1382417.82 INTEREST ON LOAN (CAR) 1111736.40 INTEREST ON LOAN (PROPERTY) 2583087.00 INTEREST ON O/D (HSBC) 637641.05 INTEREST ON SERVICE TAX 1625.00 PROCESSING CHARGES FOR LOAN 389759.00 GRAND TOTAL 7351253.34 3. SUBSEQUENTLY, THE AO INITIATED PENALTY PROCEEDIN GS U/S. 271(1)(C) OF THE ACT AND LEVIED PENALTY OF RS. 22,71,537/-. SINCE TH E ASSESSEE DID NOT APPEAR BEFORE THE LD. CIT(A) DESPITE THE ISSUANCE OF STATU TORY NOTICES, LD. CIT(A) VIDE EXPARTE HER ORDER DATED 13.02.2019, SUSTAINED THE PENALTY LEVIED BY THE AO U/S. ITA NO.3304/DEL/2019 AYR. 2011-12 3 271(1)(C) OF THE ACT. AGGRIEVED WITH SUCH ORDER OF THE LD. CIT(A) THE ASSESSEE IS IN APPEAL BEFORE THE TRIBUNAL. 4. LD. COUNSEL FOR THE ASSESSEE SUBMITTED THAT SUFF ICIENT OPPORTUNITY WAS NOT GRANTED BY THE LD. CIT(A) FOR HEARING OF THE CASE A ND THEREFORE IN THE INTEREST OF JUSTICE, THE ASSESSEE SHOULD BE GIVEN ONE FINAL OPP ORTUNITY TO SUBSTANTIATE ITS CASE. 5. LD. DR ON THE OTHER HAND OPPOSED THE ARGUMENTS A DVANCED BY THE ASSESSEES COUNSEL AND SUBMITTED THAT DESPITE NUMB ER OF OPPORTUNITIES GRANTED BY THE LD. CIT(A), THE ASSESSEE DID NOT APPEAR BEFO RE HER FOR WHICH LD. CIT(A) SUSTAINED THE PENALTY SO LEVIED BY THE AO. 6. WE HAVE HEARD THE RIVAL ARGUMENTS MADE BY BOTH S IDES AND PERUSED THE RECORD. IT IS AN ADMITTED FACT THAT DESPITE NUMBER OF OPPORTUNITIES GRANTED BY THE LD. CIT(A), THERE WAS NO COMPLIANCE FROM THE SI DE OF THE ASSESSEE FOR WHICH THE LD. CIT(A) WAS CONSTRAINED TO DECIDE THE APPEAL EXPARTE AND THEREAFTER SUSTAINED THE PENALTY LEVIED BY THE AO U /S. 271(1)(C) OF THE ACT. HOWEVER, CONSIDERING THE TOTALITY OF THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN THE INTEREST OF JUSTICE, WE DEEM IT PROPER TO RE STORE THE ISSUE TO THE FILE OF THE LD. CIT(A) WITH THE DIRECTIONS TO GRANT ONE FINAL O PPORTUNITY TO THE ASSESEE TO SUBSTANTIATE ITS CASE AND DECIDE THE ISSUE AS PER FACT AND LAW. THE ASSESSEE IS ALSO HEREBY DIRECTED TO APPEAR BEFORE THE LD. CIT(A ) AND SUBSTANTIATE ITS CASE, FAILING WHICH, THE LD. CIT(A) IS AT LIBERTY TO PASS APPROPRIATE ORDER, AS PER LAW. ITA NO.3304/DEL/2019 AYR. 2011-12 4 WE HOLD AND DIRECT ACCORDINGLY. THE GROUNDS RAISED BY THE ASSESSEE ARE ACCORDINGLY ALLOWED FOR STATISTICAL PURPOSES. 7. IN THE RESULT, THE ASSESSEES APPEAL IS ALLOW ED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 25.11.2020 . SD/- SD/- [SUCHITRA KAMBLE] [R.K. PANDA] JUDICIAL MEMBER ACCOUNTANT MEMBER 25.11.2020 SRB COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR ASST. REGISTRAR, ITAT, NEW DELHI