JSD Steel (P) Ltd., New Delhi V. ITO, New Delhi

ITA 3638/DEL/2017

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 4427 (ITAT-DELHI)
• Duration Of Justice: 3 month(s) 20 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-09-2017
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: SMC
• Assessment Year: 2011-2012
• Appeal Filed On: 06-06-2017
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: T VASANTHAN
• Keywords: Opportunity of being heard
• Section: 147; 148

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH SMC, NEW DELHI BEFORE SHRI R.K.PANDA, ACCOUNTANT M EMBER ITA NO. 3638/DEL/2017 ASSTT. YEAR : 2011-12 JSD STEEL (P) LTD. (EARLIER KNOWN AS CBS STEEL (P) LTD.) OFFICE NO. 9, FIRST FLOOR, RAJDHANI ENCLAVE, PITAMPURA NEW DELHI VS ITO WARD-5(4) NEW DELHI (APPELLANT) (RESPONDENT) PAN NO. AACCC7004P ASSESSEE BY : SH. SACHIN KUMAR, CA REVENUE BY : SH. T.VASANTHAN, SR. DR DATE OF HEARING : 27.09.2017 DATE OF PRONOUNCEMEN T : 27 . 09.2017 ORDER PER R.K.PANDA, AM: THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAIN ST THE ORDER DATED 31 ST MARCH, 2017 OF THE CIT(A)-II, NEW DELHI RELATING T O ASSESSMENT YEAR, 2011-12. 2. LEVY OF PENALTY OF RS. 8,93,535/- U/S 271(1)(C) OF THE IT ACT BY THE AO AND UPHELD BY THE CIT(A) IS THE ONLY ISSU E RAISED BY THE ASSESSEE IN THE GROUND OF APPEAL. 3. THE FACTS OF THE CASE, IN BRIEF, ARE THAT THE AS SESSEE COMPANY HAD NOT FILED ITS RETURN OF INCOME FOR THE IMPUGNED ITA NO. 3638/DEL/2017 (JSD STEEL (P) LTD.) 2 ASSESSMENT YEAR. IN RESPONSE TO NOTICE U/S 148 OF T HE IT ACT WAS ISSUED ON 21 ST FEBRUARY, 2014, THE ASSESSEE FILED ITS RETURN OF I NCOME ON 16 MARCH, 2015 DECLARING INCOME OF RS. 16,79,349/-. TH E AO COMPUTED THE ASSESSMENT U/S 143(3)/ 147 ON A TOTAL INCOME OF RS. 45,71,040/- BY MAKING ADDITION OF RS. 28,91,688/-. SUBSEQUENTLY, T HE AO LEVIED PENALTY OF RS. 8,93,535/- U/S 271(1)(C) OF THE IT A CT WHICH HAS BEEN CONFIRMED BY THE CIT(A). 4. AGGRIEVED WITH SUCH ORDER OF CIT(A), ASSESSEE IS IN APPEAL BEFORE TRIBUNAL. 5. THE LD. COUNSEL FOR THE ASSESSEE AT THE OUTSET S UBMITTED THAT THE QUANTUM APPEAL IS STILL PENDING BEFORE THE CIT( A) AND THEREFORE, THE ORDER LEVYING PENALTY U/S 271(1)(C) OF THE IT ACT BY THE AO AND UPHELD BY THE CIT(A) IS NOT PROPER. IN HIS ALTERNAT E CONTENTION, HE SUBMITTED THAT HE HAS NO OBJECTION IF THE MATTER IS RESTORED TO THE FILE OF THE CIT(A). 6. THE LD. DR ALSO FAIRLY CONCEDED THAT HE HAS NO O BJECTION IF THE MATTER IS RESTORED TO THE FILE OF THE CIT(A) WI TH A DIRECTION TO DECIDE THE ISSUE AFRESH AFTER THE QUANTUM APPEAL IS DECIDED. 7. AFTER HEARING BOTH THE SIDES, I FIND THE QUANTUM APPEAL IS STILL PENDING BEFORE THE CIT(A). THEREFORE, THE CIT (A) WAS NOT JUSTIFIED IN CONFIRMING THE PENALTY LEVIED BY THE A O U/S 271(1)(C) OF THE IT ACT BEFORE PASSING OF THE ORDER IN THE QUANT UM PROCEEDING. CONSIDERING THE TOTALITY OF THE FACTS OF THE CASE A ND IN THE INTEREST OF JUSTICE, I DEEM IT PROPER TO RESTORE THE ISSUE TO T HE FILE OF THE CIT(A) WITH A DIRECTION TO DECIDE THE ISSUE AFRESH AFTER T HE QUANUM APPEAL IS DECIDED. NEEDLESS TO SAY THE CIT(A) SHALL GIVE DUE OPPORTUNITY OF BEING HEARD THE ASSESSEE AS PER LAW. I HOLD AND DIR ECT ACCORDINGLY. THE ITA NO. 3638/DEL/2017 (JSD STEEL (P) LTD.) 3 GROUNDS RAISED BY THE ASSESSEE ARE ACCORDINGLY ALLO WED FOR STATISTICAL PURPOSES. 8. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. (ORDER PRONOUNCED IN THE COURT AT THE TIME OF HEARI NG ITSELF I.E. ON 27.09.2017) SD/- (R.K.PANDA) ACCOUNTANT MEMBER DATED: 27 /09/2017 *BINITA* COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT ASSISTA NT REGISTRAR ITA NO. 3638/DEL/2017 (JSD STEEL (P) LTD.) 4 DATE INITIAL 1. DRAFT DICTATED ON 27/09/2017 2. DRAFT PLACED BEFORE AUTHOR 27/09/2017 3. DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER /09/2017 4. DRAFT DISCUSSED/APPROVED BY SECOND MEMBER. 5. APPROVED DRAFT COMES TO THE SR.PS/PS 6. KEPT FOR PRONOUNCEMENT ON 7. FILE SENT TO THE BENCH CLERK 8. DATE ON WHICH FILE GOES TO THE AR 9. DATE ON WHICH FILE GOES TO THE HEAD CLERK. 10. DATE OF DISPATCH OF ORDER.