ZENITH GLOBAL CONSULTANT LTD., MUMBAI V. DCIT (3)(3), MUMBAI

ITA 3729/MUM/2015

• Counselvise Citation: [2016] 131 COUNSELVISE.COM (IT) 3946 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 1 month(s) 14 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 01-08-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2007-2008
• Appeal Filed On: 17-06-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: AJAY PRATAP SINGHDR
• Assessee Lawyers: ISHA SEKHRI
• Keywords: Opportunity of being heard

Judgement Text

, - , IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES SMC, MUMBAI , ! ' , BEFORE SHRI JOGINDER SINGH, JUDICIAL MEMBER, ITA NO.3729/MUM/2015 ASSESSMENT YEAR: 2007-08 ZENITH GLOBAL CONSULTANT LTD. 202, SHAKTI SADAN, B WING, BLDG. NO.14, OPPOSITE PROVIDENT FUND OFFICE, BANDRA(EAST), MUMBAI-400051 / VS. DCIT-3(3), MUMBAI / ASSESSEE / REVENUE P.A. NO . AAACZ0423H $ % & / ASSESSEE BY SHRI ISHA SEKHRI $ % & / REVENUE BY SHRI AJAY PRATAP SINGH-DR / DATE OF HEARING 01/08/2016 & / DATE OF ORDER: 08/08/2016 & / O R D E R THE ASSESSEE IS AGGRIEVED BY THE IMPUGNED ORDER DATED 26/03/2015 OF THE LD. FIRST APPELLATE AUTHORI TY, MUMBAI, LEVYING PENALTY U/S 271(1)(C) OF THE INCO ME TAX ITA NO.3729MUM/2015 ZENITH GLOBAL CONSULTANT LTD. 2 ACT, 1961 (HEREINAFTER THE ACT) AMOUNTING TO RS.40,44,549/- DISREGARDING LETTER DATED 05/03/2013 AND FURTHER BY PASSING AN EX-PARTE ORDER, THEREBY OVERL OOKING THE FACT THAT NOTICED WAS NOT RECEIVED BY THE ASSES SEE DUE TO CHANGE IN ADDRESS FROM GHATKOPAR TO BANDRA. 2. DURING HEARING, MS. ISHA SEKHRI, LD. COUNSEL FO R THE ASSESSEE CONTENDED THAT ON QUANTUM ADDITION, TH E TRIBUNAL VIDE ORDER DATED 31/05/2016 (ITA NO.2920/MUM/2013) REMANDED THE MATTER BACK TO THE FILE OF THE LD. COMMISSIONER OF INCOME TAX (APPEAL) FOR FRESH ADJUDICATION AS THE ASSESSEE, DUE TO BONA FID E REASONS, COULD NOT APPEAR BEFORE THE LD. COMMISSION ER OF INCOME TAX (APPEAL). THE LD. COUNSEL ALSO FURNISHE D THE COPY OF THE ORDER OF THE TRIBUNAL. IT WAS PLEADED THAT THIS PENALTY APPEAL MAY ALSO BE SENT TO THE FILE OF THE LD. COMMISSIONER OF INCOME TAX (APPEAL). ON THE OTHER H AND, THE LD. DR, SHRI AJAY PRATAP SINGH, DEFENDED THE IMPOSITION AS WELL AS CONFIRMATION OF PENALTY BUT H AD NO OBJECTION IF THE PENALTY APPEAL IS ALSO SENT TO THE FILE OF THE LD. COMMISSIONER OF INCOME TAX (APPEAL). 2.1. I HAVE CONSIDERED THE RIVAL SUBMISSIONS AND PERUSED THE MATERIAL AVAILABLE ON RECORD. I FIND TH AT THE TRIBUNAL VIDE ORDER DATED 31/05/2016 REMANDED THE QUANTUM APPEAL TO THE FILE OF THE LD. COMMISSIONER OF INCOME TAX (APPEAL) FOR FRESH ADJUDICATION WITH A D IRECTION TO PROVIDE FAIR AND ADEQUATE OPPORTUNITY TO THE ASS ESSEE. THIS FACTUAL MATRIX WAS CONSENTED TO BE CORRECT BY THE LD. ITA NO.3729MUM/2015 ZENITH GLOBAL CONSULTANT LTD. 3 DR. CONSIDERING THE TOTALITY OF FACTS AND ALSO THAT THE PENALTY IS OFFSHOOT OF QUANTUM ADDITION, WHICH HAS BEEN SENT TO THE FILE OF THE LD. COMMISSIONER OF INCOME TAX (APPEAL), IN ALL FAIRNESS, I AM OF THE VIEW THAT TH E PENALTY APPEAL DESERVES TO BE SENT TO THE FILE OF THE LD. COMMISSIONER OF INCOME TAX (APPEAL) AS THE OUTCOME OF THE QUANTUM ADDITION WILL DECIDE THE FATE OF THE PE NALTY. THUS, THE PENALTY APPEAL IS ALSO REMANDED BACK TO T HE FILE OF THE LD. COMMISSIONER OF INCOME TAX (APPEAL) FOR FRESH ADJUDICATION IN ACCORDANCE WITH LAW. THE ASSESSEE B E GIVEN OPPORTUNITY OF BEING HEARD WITH FURTHER LIBER TY TO FURNISH EVIDENCE, IF ANY, IN SUPPORT OF ITS CLAIM, CONSEQUENTLY, THIS APPEAL IS ALLOWED FOR STATISTICA L PURPOSES. FINALLY, THE APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. THIS ORDER WAS PRONOUNCED IN THE OPEN IN THE PRESENCE OF LD. REPRESENTATIVE FROM BOTH SIDES AT T HE CONCLUSION OF THE HEARING ON 01/08/2016. SD/- (JOGINDER SINGH) ! ' / JUDICIAL MEMBER MUMBAI; DATED : 08/08/2016 F{X~{T? P.S / ! ITA NO.3729MUM/2015 ZENITH GLOBAL CONSULTANT LTD. 4 & $ )!*+ ,&+-* / COPY OF THE ORDER FORWARDED TO : 1. '#$%& / THE APPELLANT 2. '(%& / THE RESPONDENT. 3. ) ) * / THE CIT, MUMBAI. 4. ) ) * / CIT- , MUMBAI 5. +,- ' , ) '#$ ' / , / DR, ITAT, MUMBAI 6. -0 1$ / GUARD FILE. & / BY ORDER, (+# ' //TRUE COPY// / (DY./ASSTT. REGISTRAR) , / ITAT, MUMBAI