Climax Overseas Pvt Ltd, Gurgaon V. Addi. CIT Special Range-2, Gurgaon

ITA 38/DEL/2021

AI Insights

The case involves Climax Overseas Pvt. Ltd., which appealed against the penalty imposed by the Assessing Officer (AO) for non-payment of self-assessment tax and non-filing of the income tax return within the due date for the assessment year 2018-19. The AO issued notices under sections 142(1) and 221 of the Income Tax Act, 1961, due to the assessee's non-compliance. The assessee did not appear before the AO or the CIT(A), leading to the dismissal of their appeal and affirmation of the penalty. The Tribunal, noting the assessee's negligence and non-representation, dismissed the appeal, upholding the penalty.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 113001 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 2 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-04-2023
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: G
• Next Hearing Date: 05-04-2023
• Assessment Year: 2018-2019
• Appeal Filed On: 19-01-2021
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Section: 142(1)

Judgement Text

1 | Page IN THE INCOME TAX APPELLATE TRIBUNAL DELHI “H” BENCH: NEW DELHI BEFORE SHRI KUL BHARAT, JUDICIAL MEMBER & SHRI M BALAGANESH, ACCOUNTANT MEMBER ITA No.38/Del/2021 [Assessment Year : 2018-19] Climax Overseas Pvt. Ltd., Plot No.152, Sec-3, IMT Manesar, Gurgaon, Haryana-122050. PAN-AABCC5665R vs Addl.CIT, Special Range-2, Gurgaon APPELLANT RESPONDENT Appellant by None Respondent by Ms. Sapna Bhatia, CIT DR Date of Hearing 06.04.2023 Date of Pronouncement 17.04.2023 ORDER PER KUL BHARAT, JM : The present appeal filed by the assessee for the assessment year 2018- 19 is directed against the order of Ld. CIT(A)-2, New Delhi dated 04.02.2020. 2. The assessee has raised following grounds of appeal:- “Ground No.1 Ld.CIT(A) has erred in deciding the appeal without granting any opportunity to the assessee. Ground No.2 Ld.CIT(A) has erred in confirming levy of penalty by ld.AO amounting to Rs.25,00,000/- under sec 221 read with section 140A(3). Ground No.3 That the appellant craves leave to add, to alter or to amend grounds of appeal before the appeal is heard and disposed off.” 2 | Page 3. At the time of hearing, no one attended the proceedings on behalf of the assessee. It is seen from the record that neither any one has been attending the proceedings since 26.07.2022 nor any request has been filed for adjournment of hearing on behalf of the assessee. Under these facts, the appeal is taken up for hearing in the absence of the assessee and is being disposed off on the basis of material available on record. 4. Facts giving rise to the present appeal are that in this case, it is recorded by the Assessing Officer (“AO”) that no return of income was filed within due date. The AO issued a notice u/s 142(1) of the Income Tax Act, 1961 (“the Act”) on 14.03.2019 for filing return of income. It is further noted by the AO that the assessee had deposited short self assessment tax. Hence, a notice u/s 221 of the Act was issued to the assessee on 24.04.2019. In response to the notice, Ld. Authorized Representative (“AR”) of the assessee attended the proceedings before the AO. The AO noted that despite various opportunities, the assessee did not make payment of self assessment tax hence, he imposed penalty u/s 221 of the Act, amounting to Rs.25,00,000/-. 5. Aggrieved against this, the assessee preferred appeal before Ld.CIT(A). Before Ld.CIT(A), there was no representation on behalf of the assessee hence, Ld.CIT(A) dismissed the appeal and sustained the order of imposing penalty u/s 221 of the Act. 6. Aggrieved against the order of Ld.CIT(A), the assessee has preferred the instant appeal before the Tribunal. 7. Apropos to Grounds of appeal, Ld. CIT DR submitted that the assessee has been thoroughly negligent. The assessee did not appear before Ld.CIT(A) 3 | Page and did not comply with the statutory requirements. Therefore, the authorities below were justified in imposing penalty u/s 221 of the Act. 8. We have heard Ld. CIT DR and perused the material available on record. It is seen from the records that assessee has been thoroughly negligent. There was no representation before Ld.CIT(A) and even before this Tribunal despite having given various opportunities. The assessee choose not to appear before Ld.CIT(A) and also before this Tribunal. Therefore, in the absence of any material rebutting the finding of the Assessing Authority, we do not see any reason to interfere in the findings of lower authorities, the same is hereby affirmed. Grounds raised by the assessee are hence, dismissed. 9. In the result, the appeal of the assessee is dismissed. Order pronounced in the open Court on 17 th April, 2023. Sd/- Sd/- (M BALAGANESH) (KUL BHARAT) ACCOUNTANT MEMBER JUDICIAL MEMBER * Amit Kumar * Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR ITAT, NEW DELHI