Bharat Rana Chaudhry, Noida V. ITO ward-1(2), Noida

ITA 3837/DEL/2019

• Counselvise Citation: [2022] 105 COUNSELVISE.COM (IT) 0703 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 1 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-05-2022
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2012-2013
• Appeal Filed On: 30-04-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 27; 43; 13

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “A” DELHI BEFORE SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER & SHRI NARENDER KUMAR CHOUDHRY, JUDICIAL MEMBER I.T.A. No.3837 & 3838/DEL/2019 Assessment Year 2012-13 Bharat Rana Chaudhry, 238, Sector 15A, Noida, Uttar Pradesh. v. ITO, Ward-1(2), Noida. TAN/PAN: ANCPC7694P (Appellant) (Respondent) Appellant by: Mrs. Yashoda Rana, Assessee in person Respondent by: Mrs. Kirti Sankratyayan, Sr.DR Date of hearing: 12 05 2022 Date of pronouncement: 31 05 2022 O R D E R PER PRADIP KUMAR KEDIA, A.M.: The c apt io ne d ap p eal ha s be en f i le d at th e i ns ta nc e o f the ass es se e a ga in st t he or der of t he Co mmi s si on er of Inc o me Ta x (Ap pe al s) -I, N oi da (‘ CI T( A) ’ i n sh or t ), da te d 2 8. 03.2 01 8 ar is in g i n the as se ss me nt or der da te d 3 0.0 3. 2 01 5 pa ss ed b y th e As se ss in g Of f icer ( AO ) u nd er Sec ti on 1 43 (3 ) of t he I nc o me Ta x A ct , 196 1 (t he Act ) co nc ern in g A Y 2 0 12- 13 . IT A No .3 83 8/ Del /2 01 9 2. The g ro un ds of a pp eal r ais ed b y t h e a s ses se e reads a s un d er: “ 1 . B e c a u s e t h e C o m m i s s i o n e r o f I n c o m e t a x ( A p p e a l s) h a s e r r e d i n l a w a n d o n f a c t s i n p a s s i n g t h e i m p u g n e d o r d e r un d e r s e c t i o n 2 5 0 o f I . T . A c t a r b i t r a r i l y w i t h o u t g o i n g i n t o t h e b a r e f a c t s o f t h e c a s e . I.T.A. No.3837 & 3838/Del/2019 2 2 . B e c a u s e t h e C o m m i s s i o n e r o f I n c o m e t a x ( A p p e a l s ) h a s e r r e d i n l a w a n d o n f a c t s i n p a s s i n g t h e i m p u g n e d o r d e r w i t ho u t a f f o r d i n g p r o p e r o p p o r t u n i t y o f b e i n g h e a r d t o t h e A p p e l l a n t a s n o f i x t u r e o f a p p e a l n o t i c e h a s e v e r b e e n s e r v e d u p o n t h e A p p e l l an t . 3 . B e c a u s e t h e C o m m i s s i o n e r o f I n c o m e t a x ( A p p e a l s ) h a s e r r e d i n l a w a n d o n f a c t s i n p a s s i n g t h e i m p u g n e d o r d e r w i t ho u t a p p r e c i a t i n g t h e f a c t s o f t h e c a s e a n d w i t h o u t c o n si d e r i n g t h e g r o u n d s o f a p p e a l t a k e n b e f o r e h i m b y t h e A p p e l l a n t. 4 . B e c a u s e t h e C o m m i s s i o n e r o f I n c o m e t a x ( A p p e a l s ) h a s e r r e d i n l a w a n d o n f a c t s i n p a s s i n g t h e i m p u g n e d o r d e r u n d er s e c t i o n 2 5 0 o f I . T . A c t , w h i c h c a n n o t b e c o n s i d e r e d t o b e a n s pe a k i n g o r d e r . 5 . B e c a u s e t h e C o m m i s s i o n e r o f I n c o m e t a x ( A p p e a l s ) h a s e r r e d i n c o n f i r m i n g t h e O r d e r o f t h e L d A O , a g a i n s t w h i c h , th e A p p e l l a n t w a s s e e k i n g a r e l i e f f r o m 1 % o f t h e N e t P r o f i t a s s es s e d a n d l a t e r o n t h e A p p e a l w a s d i s m i s s e d . 6 . B e c a u s e t h e C o m m i s s i o n e r o f I n c o m e T a x ( A p p e a l s ) h a s e r r e d o n f a c t s i n c o n f i r m i n g t h e i m p u g n e d o r d e r o f L d . A O i n w h i c h t h e A O h a d a s s e s s e d a n I n c o m e o f R s . 5 7 2 5 8 4 8 . 0 0 a f t e r r a n do m l y a p p l y i n g t h e n e t p r o f i t r a t e o f 1 % o f t h e t u r n o v e r a r b i t r a r il y w i t h o u t f o r m i n g a n y b a s i s t h e r e o f . 7 . B e c a u s e t h e C o m m i s s i o n e r o f I n c o m e t a x ( A p p e a l s ) h a s e r r e d i n l a w a n d o n f a c t s i n c o n f i r m i n g t h e i m p u g n e d a d d i t i on o f R s . 5 3 2 5 8 7 1 7 . 0 0 b y a r b i t r a r i l y a d d i n g t h e s u n d r y c r e d i to r s u n d e r s e c t i o n 6 8 o f I . T . A c t t o t h e I n c o m e o f t h e A p p e l l an t , w i t h o u t h e a r i n g t h e A p p e l l a n t . 8 . B e c a u s e t h e C o m m i s s i o n e r o f I n c o m e t a x ( A p p e a l s ) h a s e r r e d i n l a w a n d o n f a c t s i n c o n f i r m i n g t h e i m p u g n e d a d d i t i on o f R S . 3 , 5 6 , 2 0 0 / - m a d e b y t h e l d . A O o n t h e b a s i s o f A IR w i t h o u t g o i n g i n t o t h e f a c t s & c i r c u m s t a n c e s o f t h e c a s e . 9 . B e c a u s e t h e C o m m i s s i o n e r o f I n c o m e t a x ( A p p e a l s ) h a s e r r e d i n l a w a n d o n f a c t s i n c o n f i r m i n g t h e i m p u g n e d a d d i t i on o f R s . 4 5 , 6 0 0 / - u n d e r s e c t i o n 6 9 o f I . T . A c t m a d e b y t he l d . A O o n I.T.A. No.3837 & 3838/Del/2019 3 a c c o u n t o f a d d i t i o n m a d e i n t h e f i x e d a s s e t s , t h e so u r c e o f w h i c h c o u l d n o t b e e x a m i n e d a t t h e t i m e o f a p p e a l p r o c e e di n g s . 3. The or de r of t he CI T( A) wh ich i s s ou g ht t o be i mpu gn ed i n t he cap ti on ed ap pe al r e ads a s un de r: “ T h e p r e s e n t a p p e a l i s f i l e d b y t h e a p p e l l a n t a g a i ns t a n a s s e s s m e n t o r d e r d a t e d 3 0 / 0 3 / 2 0 1 5 p a s s e d b y t h e I d . A . O . u / s . 14 3 ( 3 ) o f I . T . A c t , 1 9 6 1 f o r A . Y . 2 0 1 2 - 1 3 o n a t o t a l i n c o m e o f R s .5 , 9 3 , 8 6 , 3 7 0 / - a g a i n s t r e t u r n i n c o m e o f R s . ( - } 4 , 2 5 , 3 2 5 / - A g g r i e ve d b y t h e s a m e * t h e a p p e l l a n t h a s p r e f e r r e d t h e p r e s e n t a p p e a l . 2 . T h e a p p e a l o f t h e a p p e l l a n t w a s f i x e d f o r h e a r i ng f o r 2 5 / 0 9 / 2 0 1 7 a n d a g a i n f o r 1 8 / 1 0 / 2 0 1 7 , T h e r e h a s b e e n n o r e s p o n se . N e i t h e r t h e a p p e l l a n t h a s e n t e r e d a p p e a r a n c e n o r a n y r e q u e s t f or a d j o u r n m e n t h a s b e e n ' r e c e i v e d . A s t h e a p p e l l a n t i s n o t k e e n o n p r o s e c u t i n g i t s a p p e a l t h e s a m e i s d i s m i s s e d f o r w a n t o f p r o s e c u t i on . T h e i m p u g n e d a s s e s s m e n t o r d e r s t a n d s c o n f i r m e d . ” 4. It i s ev id en t f ro m t he r ead in g of th e f irs t ap pell at e or de r tha t the C IT (A ) ha s di s mi sse d th e ap pe al of th e as se sse e su mma ri l y f or wa nt of pr os ec ut io n ow in g t o n on a tt e nda nc e o n tw o o cc asi on s. It i s not ic ed th at w hi le dis mi ss in g t he ap p eal of the as se ss ee in l im in e, the CI T( A) ha s n o t re nd ere d a n y de c isi on s o n mer it s as obl ig at ed un der Sec ti on 25 0( 6) of th e Ac t. I t is thu s s een that t he o rde r of the CI T( A) suf f er s f rom the v io la ti on of pri nc ip le s of natu ra l jus ti ce a nd hen ce re qu ire s t o be set as id e f or f resh ad ju di cat io n o n meri ts wit ho ut a n y d e mur . 5. Sec ti on 25 0(6 ) of t he A ct e nj oi ns t ha t CIT (A ) shal l st ate the poi nt s f o r d et er mi n ati on b ef ore i t a nd the d eci si on s ha ll b e r en der ed on su ch po in ts al o ng wi th th e r ea so n s f or the d eci si on . It was t hu s inc u mbe nt u po n th e CIT( A) t o de al w it h the g ro un ds o n meri ts e ve n in an e x- pa rt e or de r. A ba re g la nc e of the o rd er of th e CI T( A) sh o ws I.T.A. No.3837 & 3838/Del/2019 4 tha t C IT (A ) ha s n o t ad dre ss ed it self o n va ri ou s po in ts pl ace d f or i ts det er mi na ti on at a l l and d is mi ss ed t h e app ea l of the as ses se e f or def au lt i n a pp ea ra nce . Ne ed les s to s a y th e CI T( A) pl a ys a ro le of bot h ad ju dic at in g a uth or it y a s we ll as app el la te auth ori t y. Th us , t he CI T( A) co ul d no t have s hu nn ed t h e app ea l f or no n compli an ce wit ho ut a dd re ss in g the i ss ue o n mer it s. 6. In th e to ta lit y of circ u mst an ce s, w e con si de r it ju st and exp ed ie nt to re st or e th e ma tte r b ac k to th e C IT (A ) i n the la rg er int er es t of ju sti ce wit h a vie w to e na ble t he as se ss ee to ava il pr op er op por tu ni t y f o r d is po sal of ap pe al b y the CI T( A) on va ri ou s p oi nts . Nee dl es s to sa y, t he a ss ess ee sh all e xte nd f ul l c o-o pe ra tio n t o th e CI T( A) w ith ou t an y d e mu r, f ail in g w hic h, t he C IT (A ) s hal l be a t lib er t y t o co nc lu d e the a pp el la te p r oce ed in gs i n acco r dan ce w it h law . H en ce , t he or der of th e C IT (A ) app ea le d a gai nst, i s se t a si de and al l t he is su es r ais ed in th e i mp ug n ed a pp ea l a re r es to r ed b ac k t o the f i le of the C IT( A) f or f r es h a dj ud i cat io n i n a cc ord an c e wi th la w af ter gi vi ng r ea so n abl e op po rt un it y of he ar in g t o th e as se sse e. 7. In t he re su lt , th e app eal of the a sse ss ee i s al lo we d f or sta ti st ica l pu rp os es . IT A No .3 83 7/ Del /2 01 9 8. The c ap ti one d ap p eal b y t he A ss es se e i s dir ec te d a ga in st th e ord er of the Co mmi s si on er of I n co me T ax (A pp ea ls) -, No ida , [ CIT( A) in sh ort ] dat ed 28 .0 3.2 01 8 rel ev ant to As ses s ment Ye ar 20 06- 07 wh er eb y a cti on of the CI T( A ) in co nf ir min g t he pen al t y of Rs .1, 81 ,9 7, 94 8/ - i mp os ed b y th e A s ses si ng Of f icer un der Sec ti on 27 1(1 )( c) of t he I n co me Ta x Ac t, 1 9 61 (h er ei naf te r ref err ed t o a s ‘th e Ac t’) h as b ee n ass ai le d b y th e As s ess ee . I.T.A. No.3837 & 3838/Del/2019 5 9. As n ot ed , th e s ol ita r y gri ev an ce i n the pre se nt ap pe al i s aga in st t he i mpo sit ion of pen al t y l ev i ed u nd er S ec ti on 2 71( 1) (c ) of the A ct . 10. The L d. D R re lie d up on th e or der of t he CI T( A) . 11. The L d. A R f or the a ss es see s ub m itt ed t hat t he ad d iti on a mou nti ng t o Rs. 5, 32, 58 ,7 17 /- in t he qua nt u m p ro ceedi n gs ag it ate d in IT A N o. 38 38 /D el/ 20 19 ha s res ul te d i n t he pe na lt y p roc ee di ng s un der S ec ti on 2 71( l )(c ) of th e Ac t. 12. On d ue co ns id er at ion of t he f act s a nd ci rcu ms ta nc es of th e cas e, w e f in d tha t su b- cl au se (i ii) o f sec tio n 27 1(l) (c) pr ov id es mec ha ni s m f o r q u ant if ica ti on of pe n alt y. It c on te mpla t es t ha t t he ass es se e w ou ld b e dir ec te d to pa y a s u m i n a dd it io n to t axe s, if an y, pa ya b le hi m, w hi ch sh al l n ot b e le ss th an b ut wh ich sh al l not ex cee d thr ee t i mes th e a mo un t of ta x so ug ht to b e eva de d by r ea so n of con ce al me nt of in c o me an d f urni sh in g of inac cu ra te pa rti cu lar s of inc o me. In ot he r wo rd s, t he qu an tif ic ati on of th e pen al t y is dep en de nt up on t h e ad di tio ns ma de t o th e in co me of th e as se ss ee. Up to a nd un til th e is su e re ga rd in g det er mi na ti on of t he t ax abl e inc o me is f i nal iz e d, pe nal t y u nd er sec ti on 27 1( l) (c) of the A ct can no t be i mpo se d up on t he as se sse e. Th e d et er mi na ti on of ta xa bl e inc o me of the a ss e sse e is p re se nt l y s ubj ud ic ed b ef ore t he C IT( A) ow in g to th e o rd e r of th e I TA T i n qua nt u m pr oc ee di ngs i n I TA No. 3 83 8/ Del /2 01 9 (su pr a) . Af t er ad ju dic at io n t he issu e of qu ant u m on mer it, i t w ill be in th e di scr et io n of the C IT( A) to c on sid er t he app ro pr ia te mo dif i cat io n i n p en al t y a mo un t o n t he is sue aga in st th e ass es se e in ac co rd anc e wi th la w. T h e a pp ea l i s th us s e t a si de a nd res to re d t o t he f il e of CI T( A) f or f r es h ad ju di ca tion in t he l ig ht of out co me of qu an tu m a pp ea l. I.T.A. No.3837 & 3838/Del/2019 6 13. In t he re su lt , th e app eal of the a sse ss ee i s allo we d f or sta ti st ica l pu rp os es . 14. In t he c o mb ine d r esu lt , b ot h th e a p pea ls of the as se s see is all ow ed f or st at is ti cal p ur po se s. Order pronounced in the open Court on 31/05/2022. Sd/- Sd/- [NARENDER KUMAR CHOUDHRY] [PRADIP KUMAR KEDIA] JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 31/05/2022 Prabhat