SHREENATHJI BALAJI COMPUTECH P.LTD, MUMBAI V. ASST CIT 7(2), MUMBAI

ITA 3733/MUM/2012

• Counselvise Citation: [2013] 140 COUNSELVISE.COM (IT) 71932 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 6 month(s) 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-12-2013
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: E
• Next Hearing Date: 16-12-2013
• Assessment Year: 2007-2008
• Appeal Filed On: 25-05-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: NATASHA MANGAT IZRFKHZ DH LS
• Keywords: Principle of natural justice; Reasonable cause

Judgement Text

VK;DJ VIHYH; VF/KDJ.K BZ U;K;IHB EQACBZ ESAA IN THE INCOME TAX APPELLATE TRIBUNAL E BENCH, MUMBAI JH JH JH JH VKBZ VKBZ VKBZ VKBZ- -- - IH IH IH IH- -- - CALY] U;KF;D LNL; ,OA JH ,U CALY] U;KF;D LNL; ,OA JH ,U CALY] U;KF;D LNL; ,OA JH ,U CALY] U;KF;D LNL; ,OA JH ,U- -- - DS DS DS DS- -- - FCYYS;K FCYYS;K FCYYS;K FCYYS;K YS[KK LNL; YS[KK LNL; YS[KK LNL; YS[KK LNL; DS LE{K DS LE{K DS LE{K DS LE{K BEFORE SHRI I.P. BANSAL, JUDICIAL MEMBER AND SHRI N.K. BILLAIYA, ACCOUNTANT MEMBER VK;DJ VIHY LA[;K /ITA NO.3733 /MUM/2012 FU/KKZJ.K O'KZ @ ASSESSMENT YEAR:- 2007-08 SHREENATHJI BALAJI COMPUTECH PRIVATE LIMITED. 13/14, BHARAT NIWAS, SONAWALA AGARIYEE LANE, MAHIM WEST, MUMBAI 400016. CUKE@ VS. ASSISTANT COMMISSIONER OF INCOME TAX - 7(2), MUMBAI. PAN:- AAECS7702C VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT VIHYKFKHZ DH VKSJ LS @ APPELLANT BY MS. NATASHA MANGAT IZR;FKHZ DH VKSJ LS @ RESPONDENT BY SHRI ASHOK SURI. VKNS'K@ VKNS'K@ VKNS'K@ VKNS'K@ ORDER PER I.P. BANSAL, JM THIS APPEAL IS FILED BY THE ASSESSEE. IT IS DIRECTE D AGAINST THE ORDER PASSED BY CIT(A) DATED 12 TH DECEMBER 2011 FOR ASSESSMENT YEAR 2007-08. GROUNDS OF APPEAL READS AS UNDER:- 1. UNDER THE FACTS AND CIRCUMSTANCES OF THE CASE AN D IN LAW, THE LEARNED COMMISSIONER (APPEALS) [LD. CIT(A)] HAS ERR ED IN CONFIRMING LQUOKBZ DH RKJH[K@ DATE OF HEARING 16-12-2013 ?KKS'K.KK DH RKJH[K@ DATE OF PRONOUNCEMENT 16-12-2013 PENALTY LEVIED BY LEARNED ASSESSING OFFICER [ LD. A O] U/S 271(1)(B) OF INCOME TAX ACT, 1961. 2. UNDER THE FACTS AND CIRCUMSTANCES OF THE CASE AN D IN LAW, THE LD. CIT(A) HAS ERRED IN BRUSHING ASIDE SUBMISSION F ILED BY APPELLANT ON 08.12.2011WITH LD. CIT(A) OFFICE. 3. UNDER THE FACTS AND CIRCUMSTANCES OF THE CASE, L D. CIT(A) HAS ERRED BY DISREGARDING TO AFFORD ANY REAL OPPORTUNIT IES TO THE APPELLANT TO SHOW CAUSE FOR FAILURE TO APPEAR BEFORE THE ASSE SSING OFFICER, AGAINST THE PRINCIPLE OF NATURAL JUSTICE. 4. THE APPELLANT CRAVES LEAVE TO ADD, AMEND OR MODI FY THE GROUNDS OF APPEAL . 2. DURING THE COURSE OF ASSESSMENT PROCEEDINGS, FOR NON APPEARANCE ON THE FIXED DATE OF HEARING AND FOR NON FILING OF DOC UMENTS ON 7 TH OCTOBER. 2009, THE ASSESSEE HAS BEEN HELD LIABLE FOR PENALTY U/S 271 (1) (B) FOR A SUM OF RS. 10,000/-. LD. CIT(A) HAS ALSO UPHELD THE LEVY O F PENALTY DESPITE THE SUBMISSION OF THE ASSESSEE VIDE LETTER DATED 5 TH DECEMBER 2011 SUBMITTED TO HIM. IN THE SAID LETTER IT WAS MENTIONED THAT THE A DJOURNMENT APPLICATION WAS FILED BEFORE THE AO ON 7 TH OCTOBER 2009 IN THE DAK, A COPY OF THE SAID LETTER WAS ALSO SUBMITTED BEFORE CIT(A). THE CONTENTS OF THE LETTER FILED BEFORE CIT(A) DATED 5 TH DECEMBER 2011 AND COPY OF LETTER FILED BY THE ASSE SSEE BEFORE AO DATED 7 TH OCTOBER 2009 ARE REPRODUCED BELOW. (COPY OF THE LETTER DATED 5/11/2011 SUBMITTED BEFOR E CIT(A) ) DATED 5 TH DECEMBER, 2011 TO: THE COMMISSIONER OF INCOME TAX (A)-13 ROOM NO. 619. 6 TH FLOOR AYAKAR BHAVAN, MUMBAI 400 020. SIR, RE: M/S SHREENATHJI BALAJI COMPUTECH PRIVATE LIMIT ED- ASSESSMENT YEAR 2007-08 SUB:- REPLY TO YOUR NOTICE FOR LEVYING PENALTY U/S 271(1)(B) WITH REFERENCE TO THE ABOVE AND UNDER THE INSTRUCTI ONS OF OUR ABOVE MENTIONED CLIENT, WE HAVE TO STATE YOU AS UNDER: IN RESPONSE TO THE PENALTY NOTICE ISSUED EARLIER, T HE ASSESSEE HAS FILED THE REPLY TO THE SAID NOTICE VIDE LETTER DATED 7 TH OCTOBER 2009 EXPLAINING THE CIRCUMSTANCES FOR NON ATTENDANCE. THE COPY OF THE SAID LETTER IS ATTACHED HEREWITH FO R YOUR REFERENCE. IN THE CIRCUMSTANCES WE ARE REQUE STING YOU TO DROP THE PENALTY PROCEEDINGS. HOPE YOU WILL FIND THE ABOVE IN ORDER AND DO THE NE EDFUL IN THE MATTER. THANKING YOU YOURS FAITHFULLY FOR V.V. MEHTA & ASSOCIATES CHARTERED ACCOUNTANTS (VINOD V MEHTA) (PROPRIETOR) ENCL: AS ABOVE. (AS PER SEAL THE ABOVE LETTER WAS SUBMITTED IN THE OFFICE OF CIT(A) 13 ON 8 TH DECEMBER 2011.) (COPY OF THE LETTER SUBMITTED BEFORE AO ) 7 TH OCTOBER, 2009 TO, THE ASST. COMMISSIONER OF INCOME TAX 7(2) MUMBAI 400016 SIR, REF: SHREENATHJI BALAJI COMPUTECH PVT. LTD. PAN A AECS7702C AY: 2007-08 PENALTY NOTICE U/S 274 R/W 271 OF THE INCOME TAX AC T, 1961 DATED 22.09.09 SUB: SUBMISSION WITH REFERENCE TO ABOVE AND UNDER THE INSTRUCTIONS OF OUR ABOVE NAMED CLIENT, WE STATE THAT THE ASSESSEE IS IN RECEIPT OF THE ABOVE MENTIONED NOTIC E. IN RESPONSE TO THE SAME YOU MAY KINDLY CONSIDER THA T THE ACCOUNTANT OF THE ASSESSEE WAS PHYSICALLY UNFIT TO ATTEND THE OFFICE REGULARLY FROM JULY TO S EPTEMBER 2009 BECAUSE OF HIGH BLOOD PRESSURE AND SUGAR. THEREFORE, THE DETAILS ASKED FOR COULD NOT B E COMPLIED AND HENCE NON ATTENDANCE. IN THE CIRCUMSTANCES, WE REQUEST YOU TO KINDLY DROP THE PENALTY PROCEEDINGS IN THE CASE OF ASSESSEE, BEING FIT FOR THE SAME SORRY FOR THE INCONVENIENCE CAUSED TO YOU. HOPE YOU WILL FIND THE ABOVE IN ORDER AND TO THE NE EDFUL IN MATTER AND OBLIGE. THANKING YOU YOURS TRULY, FOR V.V. MEHTA & ASSOCIATES CHARTERED ACCOUNTANTS (PROPRIETOR) (AS PER THE OFFICE SEAL THE ABOVE LETTER WAS SUBMIT TED IN THE DAK ON 7 TH OCTOBER 2009). 3. IN THIS VIEW OF THE SITUATION, AFTER HEARING BOT H THE PARTIES, WE ARE OF THE OPINION THAT LEVY OF PENALTY U/S 271(1)(B) WAS NOT JUSTIFIED AS THE ASSESSEE WAS HAVING REASONABLE CAUSE FOR NON APPEARANCE ON THE F IXED DATE OF HEARING. ACCORDING TO THE LETTER SUBMITTED TO AO, THE ASSESS EE WAS SUFFERING FROM HIGH BLOOD PRESSURE AND SUGAR. THESE SUBMISSIONS IN THE LETTER HAVE NOT BEEN SHOWN TO BE INCORRECT. THEREFORE, WE DELETE THE PEN ALTY AND ALLOW THE APPEAL FILED BY THE ASSESSEE. 4. IN THE RESULT APPEAL OF THE ASSESSEE IS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 16 -12-2 013. SD/- SD/- (N.K. BILLAIYA) (I.P. BANSAL) ACCOUNTANT MEMBER JUDICIAL MEMBER SKS SR. P.S, MUMBAI DATED 16-12-2013 COPY TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CONCERNED CIT(A) 4. THE CONCERNED CIT 5. THE DR, E BENCH, ITAT, MUMBAI //TRUE COPY// BY ORDER ASSISTANT REGISTRAR ITAT, MUMBAI BENCHES, MUMBAI