Lenzing Polypacks Ltd., New Delhi V. ITO, Ward-15(2), New Delhi

ITA 3517/DEL/2019

AI Insights

The case involves M/s Lenzing Polypacks Ltd., the Appellant, who appealed against the penalty imposed by the Income Tax Officer under section 271(1)(c) of the Income-tax Act, 1961, for the assessment year 2009-10. The penalty was based on additions made to the Assessee's income, which were initially challenged and led to a quantum appeal where the Tribunal set aside the additions and remanded the issue back to the Assessing Officer. The Tribunal in the current appeal decided to remand the penalty issue as well, following the same procedural fairness.

• Counselvise Citation: [2022] 140 COUNSELVISE.COM (IT) 112794 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 8 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-12-2022
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: E
• Next Hearing Date: 28-12-2022
• Assessment Year: 2006-2007
• Appeal Filed On: 22-04-2019
• Other Referred Cases: ITA no. 1832/Del/2016
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Opportunity of being heard; Accommodation entries; Set aside
• Section: 271(1)(c)

Judgement Text

1 ITA no. 3517/Del/2019 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “E”: NEW DELHI BEFORE SHRI SHAMIM YAHYA, ACCOUNTANT MEMBER AND SHRI NARENDER KUMAR CHOUDHRY, JUDICIAL MEMBER ITA No. 3517/Del/2019 [Assessment Year: 2006-07] M/s Lenzing Polypacks Ltd., 26, Sadhna Enclave, New Delhi-110017 PAN:AAACL1675M Vs Income Tax Officer, Ward-15(2), New Delhi. APPELLANT RESPONDENT Assessee represented by: None Department represented by: Sh. Jeetender Chand, Sr. DR Date of hearing 29.12.2022 Date of pronouncement 30.12.2022 O R D E R PER N.K.CHOUDHRY, JM: The Assessee has preferred the instant appeal against the order dated 15.02.2019 passed by the Ld. Commissioner of Income-tax (Appeals)-5, New Delhi, (in short “Ld. Commissioner”), pertaining to the assessment year 2009-10. 2. In the instant case vide assessment order dated 13.03.2014 passed u/s 143(3)/148 of the Income-tax Act, 1961 (in short “the Act”), additions of 2 ITA no. 3517/Del/2019 Rs. 90,00,000/- on account of accommodation entries and Rs. 1,80,000/- on account of commission paid by the Assessee have been made. The Assessing officer also initiated penalty proceedings u/s 271(1)(c) of the Act and vide order dated 22.09.2017 levied the penalty to the tune of Rs. 30,89,988/- on the income of Rs. 91,80,000/- sought to be evaded. 3. The Assessee being aggrieved, challenged the penalty order before the learned Commissioner, who vide order dated 15.02.2019 affirmed the penalty levied u/s 271(1)(c) of the Act, against which the Assessee is in appeal before us. 4. None appeared on behalf of the Assessee, inspite of sending notice for the date of hearing on 29.12.2022. Therefore, we deem it appropriate to decide this appeal as ex parte. 5. At the outset the Ld. DR fairly submitted that the Tribunal in quantum appeal ITA no. 1832/Del/2016 decided on 13.11.2019, for the assessment year in question itself, set aside the addition on the basis of which penalty was levied and restored the issue concerning the addition referred to above to the file of the Assessing officer, with a direction to decide the issue afresh in accordance with law, after giving due opportunity of being heard to the Assessee. 3 ITA no. 3517/Del/2019 6. Considering the peculiar facts and circumstances, the issue qua levy of penalty is also remanded to the file of the Assessing Officer for decision afresh, suffice to say by providing reasonable opportunity of being heard to the Assessee. 7. In the result, appeal filed by the Assessee stands allowed for statistical purposes. Order pronounced in open court on 30.12.2022. Sd/- Sd/- (SHAMIM YAHYA) (N.K.CHOUDHRY) ACCOUNTANT MEMBER JUDICIAL MEMBER *MP* Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR ITAT, NEW DELHI