M/s Esajv D-Art Indo India Pvt. Ltd., New Delhi V. Addl. DIT (Inv), New Delhi

ITA 3714/DEL/2012

• Counselvise Citation: [2012] 140 COUNSELVISE.COM (IT) 65472 (ITAT-DELHI)
• Duration Of Justice: 2 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-09-2012
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: misc
• Appeal Filed On: 18-07-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: PRITHI LAL
• Keywords: Non compliance

Judgement Text

ITA NO. 3714/DEL/2012 1 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH B, NEW DELHI BEFORE SHRI JOGINDER SINGH, JUDICIAL MEMBER AND SHRI SHAMIM YAHYA, ACCOUNTANT MEMBER I.T.A. NO. 3714/DEL/2012 A.Y. : ---- M/S ESAJV D - ART INDO INDIA PVT. LTD., C/O RRA TAXINDIA, D-28, SOUTH EXTN. PART-I, NEW DELHI (PAN : AACCE4266D) VS. ADDL. DIRECTOR OF INCOME TAX (INV.), UNIT-IV, NEW DELHI (APPELLANT ) (APPELLANT ) (APPELLANT ) (APPELLANT ) (RESPONDENT ) (RESPONDENT ) (RESPONDENT ) (RESPONDENT ) ASSESSEE BY : SH. ASHWANI TANEJA/ SOMIL AGARWAL/ TARUN KUMAR, ADV. DEPARTMENT BY : SH. PRITHI LAL, SR. D.R. ORDER ORDER ORDER ORDER PER SHAMIM YAHYA: AM PER SHAMIM YAHYA: AM PER SHAMIM YAHYA: AM PER SHAMIM YAHYA: AM THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST T HE ORDER OF THE LD. COMMISSIONER OF INCOME TAX, IN WHICH THE LD. COMMI SSIONER OF INCOME TAX (A) HAS UPHELD THE IMPOSING OF PENALTY O F ` 10000/- U/S. 272A(1)(C) OF THE ACT. 2. IN THIS CASE ASSESSING OFFICER IMPOSED A PENALT Y OF ` 10,000/- FOR NON-COMPLIANCE OF SUMMONS AND NOTICES IN TERMS OF SEC TION 272A(1)(C) OF THE ACT. 3. ON ASSESSEES APPEAL LD. COMMISSIONER OF INCOME T AX (A) AFFIRMED THE LEVY OF PENALTY. 4. AGAINST THE ABOVE ORDER THE ASSESSEE IS IN APPEA L BEFORE US. ITA NO. 3714/DEL/2012 2 5. WE HAVE HEARD THE RIVAL CONTENTIONS AND PERUSE D THE RECORDS. LD. COUNSEL OF THE ASSESSEE SUBMITTED THAT IN RESPO NSE TO THE VARIOUS SUMMONS OF THE CONCERNED OFFICERS, AUTHORISED REPR ESENTATIVE HAD DULY APPEARED. HOWEVER, A NUMBER OF TIME NO ORDER SHEET WAS RECORDED. IT WAS FURTHER SUBMITTED THAT ASSESSE ES REPRESENTATIVE SHRI ASHWANI TANEJA, DULY APPEARED BEFORE THE ASSES SING AUTHORITY AND FILED THE NECESSARY REPLIES. IN THIS REGARD, IT HAS BEEN SUBMITTED THAT SHRI PRAVEEN BAKSHI, WHO WAS THE MAIN PERSON LOOKING AFTER THE BUSINESS OF THE ASSESSEE COMPANY WAS ARRESTED BY THE CBI AND REMAINED IN JUDICIAL CUSTODY. IT HAS BEEN SUBMITTED THAT DURING THIS PERIOD THE FAMILY AND ENTIRE STAFF OF THE COMPANY WAS SO PERTURBED AND IT WAS HUMANLY IMPOSSIBLE TO COME OUT FROM SUCH MENTAL TRAUMA AND THUS IF THERE WAS ANY NON-COMPLIANCE TO ANY OF THE A BOVE SUMMONS ON ANY SPECIFIC DATE, THAT CAN BE ONLY BECAUSE OF THIS SOLE REASON. FURTHERMORE, IT HAS BEEN SUBMITTED THAT EVEN IF THERE IS SOME NON COMPLIANCE, THE SAME WAS NEITHER INTENTIONAL NOR IN THE KNOWLEDGE OF ASSESSEE. 6. LD. DEPARTMENTAL REPRESENTATIVE ON THE OTHER HAND SUBMITTED THAT THE PENALTY MAY BE SUSTAINED IN THIS REGARD. 7. WE HAVE CAREFULLY CONSIDERED THE SUBMISSIONS AND PERUSED THE RECORDS. WE FIND THAT IT IS ASSESSEES CLAIM THE A SSESSEE HAS DULY COMPLIED WITH THE NOTICES AND SUMMONS ISSUED BY TH E ASSESSING AUTHORITY. IN SOME CASES IT HAS BEEN SUBMITTED NO ORDER SHEET WAS RECORDED. FURTHER SOME NON-COMPLIANCE THAT OCCURR ED HAS BEEN CLAIMED TO BE UNINTENTIONAL. FURTHERMORE, ARREST O F A KEY PERSONNEL BY CBI ALSO HAS BEEN GIVEN AS A REASON FOR SOME NON -COMPLIANCE. ITA NO. 3714/DEL/2012 3 8. IN THE BACKGROUND OF THE AFORESAID DISCUSSIONS, IN OUR CONSIDERED OPINION ON THE FACTS AND CIRCUMSTANCES OF THE CASE, WE HOLD THAT PENALTY IS NOT LEVIABLE IN THIS CASE. ACCORDINGLY , WE SET ASIDE THE ORDER OF THE AUTHORITIES BELOW AND DELETE THE PENA LTY IN THIS CASE. 9. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE STANDS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 21/9/2012. SD/- SD/- [ [[ [JOGINDER SINGH] JOGINDER SINGH] JOGINDER SINGH] JOGINDER SINGH] [SHAMIM YAHYA] [SHAMIM YAHYA] [SHAMIM YAHYA] [SHAMIM YAHYA] JUDICIAL MEMBER JUDICIAL MEMBER JUDICIAL MEMBER JUDICIAL MEMBER ACCOUNTANT MEMBER ACCOUNTANT MEMBER ACCOUNTANT MEMBER ACCOUNTANT MEMBER DATE 21/9/2012 SRBHATNAGAR SRBHATNAGAR SRBHATNAGAR SRBHATNAGAR COPY FORWARDED TO: COPY FORWARDED TO: COPY FORWARDED TO: COPY FORWARDED TO: - -- - 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT (A) 5. DR, ITAT TRUE COPY BY ORDER, ASSISTANT REGISTRAR, ITAT, DELHI BENCHES