BABOO RAM HARI CHAND, DELHI V. DCIT, Central Circle 29, DELHI

ITA 3942/DEL/2023

• Counselvise Citation: [2024] 101 COUNSELVISE.COM (IT) 6292 (ITAT-DELHI)
• Duration Of Justice: 5 month(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-06-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: H
• Next Hearing Date: 17-06-2024
• Assessment Year: 2014-2015
• Appeal Filed On: 29-12-2023
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 2; 153

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “H” DELHI BEFORE SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER AND SHRI SUDHIR KUMAR, JUDICIAL MEMBER ITA No.3942/Del/2023 Assessment Year 2014-15 Baboo Ram Hari Chand 2114, Khari Baoli Delhi Vs. DCIT, Central Circle-29 New Delhi TAN/PAN: AAAFB2868D (Appellant) (Respondent) Applicant by: Shri Prahlad Rai Jain, AR Respondent by: Shri Amit Katoch, Sr.DR Date of hearing: 18 06 2024 Date of pronouncement: 27 06 2024 O R D E R PER PRADIP KUMAR KEDIA - A.M.: T he c a p ti o n e d a p pe a l h as b e e n fi le d b y t he a ss es se e ag ai n s t t h e or d e r o f t h e C o m m is s io ne r o f In c o me T a x ( A p pe a l s)- 30, N e w D el hi (‘ C IT (A ) ’ i n s h o rt ) da t e d 27 . 1 0. 2 02 3 a ri si ng fr o m the p e n a l t y o r d e r da t ed 23 . 0 9. 2 02 2 pa s se d b y t h e A s se s si ng O f fi c er ( AO ) un de r S ec t i on 2 7 1 ( 1 )( b) o f t h e I nc o m e T a x A c t , 1 96 1 (t he A c t ) c onc e r n i n g A . Y . 2 01 4 -1 5. 2. A s pe r t h e g ro un d s o f a p p ea l , t he a ss e ss e e h a s cha l l e n ge d t he i mp o si t i o n o f pe n a l t y o f Rs. 6 0, 00 0 / - o n a c co un t o f a l le ge d n on - c o mp l ia nc e o f v ar i ou s st a t u t or y n ot i c e s i ss ue d f or t h e p u rp o s es o f c ar ry i n g o u t as s e ss m e nt un de r S e c t i o n 1 5 3C r. w . S e cti o n 14 3( 3 ) o f t he A ct . 3. O n pe r u s a l o f t h e c as e r e c o r d s, i t i s o b se r v e d th a t or i g i n a l ITA No.3942/Del/2023 2 re t ur n o f i nc o m e i n th e pr e s e n t c a se w a s fi l e d o n 30. 11 . 2 01 4 de c la ri n g i nc o m e o f Rs. 2 2 , 35 , 7 0 0 / - . S ub s eq ue nt l y, th e A O i ni t i at e d pr o c e e d i n g s un de r S e ct i on 1 53 C o f th e A c t . T h e A O iss ue d n ot i ce un d e r S ec t i o n 14 2( 1 ) r. w . S ec t i on 1 4 3 ( 2) o f t he A c t w hi c h a l l e ge dl y re m ai ne d un co mp li e d w i t h. Th e A O a c co rd i n g l y i m po sed pe na l t y o f Rs. 1 0 , 000 / - f o r n o n-c o m pl i a nc e o f e a c h n o t i c e i s su ed un de r S e c t io n 14 2 (1 ) o f t he A c t w hi l e fr a m i n g t he a ss e s s m en t u n d er S ec t i o n 1 53 C r. w . S e ct i o n 143 (3 ) of t h e A c t . 4. B e f or e t h e F i r st A pp e ll a t e A ut h or i t y , t he a ss e s se e po i n t e d o ut t ha t t he p ro c e e di ng s un de r S ec t i o n 1 5 3C i ts e l f i s vit i a te d by l a ck o f j ur i s d i c t io n a nd i ni t ia t e d w it ho ut a n y ma t er i a l a n d do c u me n t s pe r t a i n i n g t o t h e a ss e ss e e f o un d i n t he c o urs e o f se a r c h o f o t h e r pe r so n. D e spi t e se v e r a l r e q ui si t i on s, t h e A O fa i l e d t o p r ov i d e c o p y o f d o c u me n t s a nd ma t e r i a l pu r p o r t ed l y se i z e d a s r e qui re d un de r la w fo r va l i d i n i t i at i o n o f p ro c ee di ng s u nd er S e c t io n 153 C. T h e a ss e s see t hu s s o u gh t r ev er s a l o f t h e i m p o s it i on o f p e n a l t y wh i c h w a s d ec l i ne d by t h e C I T (A ) v i d e o rd e r d a te d 2 7. 1 0 . 2 02 3. 5. H e nc e t h e p r e s e n t a p pe a l. 6. T he a s se ss ee c o nt e nd s t h at no t i c e is s ue d u n de r Se c t i on 15 3 C a nd c on se q u e n t pr o c e e d i n g s i n w h i c h th e p e n a l t y w a s i mp os e d fo r no n -c o m pl i a nc e o f t he n ot i c e s i s, at t he fi r st i n sta nc e, ou t si d e t he a m bi t o f t h e a s se s s me n t u nd e r S e c ti o n 1 5 3 C o f t h e Ac t . Th e A . Y . 20 1 4- 15 i n q ue st i o n i s o ut si de t h e p ur v i ew o f S e c t io n 1 5 3C o w i n g t o t he fa c t t ha t t he ‘s a t i s fa c t i o n n o t e’ g i v in g r i se to j u r i s d i ct i on u n d e r S ec t i on 15 3 C h a s be e n r e co rd e d i n t h e p re vi o u s ye a r 2 02 2- 2 3 re l ev an t t o A . Y . 20 23- 24 w h e n si x ye a r s a re c o u nt e d w i t h re f er e n c e t o su c h a ss es s m e n t y e a r . T he a ss e s se e c on te nd s t h a t su c h vi e w i s fo r t i f i e d fro m t he j ud g me nt i n t h e c a s e o f CI T v s J as j i t S i ng h [ 20 23] 15 5 T a x m a n n . c o m 15 5 (S C ). It w a s co nt e nd e d t ha t b y v i r t ue o f su c h ITA No.3942/Del/2023 3 j ud g me n t , t he p r e vi ou s y e a r o f s e a rc h w ou l d s ta nd su bs t i t ut e d by t h e da t e o r th e y e a r i n w hi c h b o ok s o f a cc o u n t o r d o c u me n t s e t c . a re ha n d e d o ve r to t h e ju r i s di c t i o n a l A s s es s in g O ff i ce r. I n t he l i g ht o f suc h o bs e r v a t i o n s, t he A . Y . 20 14- 15 is o ut o f r ec k oni ng fo r t he pu r po se s o f S e c t i o n 153 C o f th e A c t . 5. O n pe r us a l, t w o r el e va nt f a c t s c o me t o su r fa c e. F i rs t l y , t he a ss es s m e n t ha s b e e n u l t i m a t e l y c a rr i e d o u t u nd er S ect i o n 1 4 3 (3 ) o f t he A c t. H en c e , t h e as se s se e c a n no t b e t re a t e d a s ch ro ni c de fa u lt e r. S ec o n dl y, t h e a s se sse e ha s r a i se d q u e st i on ma r k o n t he as s u m pt io n o f ju ri sdi c t io n i t sel f. Wi t h ou t go i ng i n t o t h e m e r it s o f t h e c on t e nt i o ns ra i s e d o n be ha l f o f t he a s se ss e e on t h e a sp ec t s o f j ur i s d i c t io n i n v i e w o f l at e r a me nd me nt s i n ma i n p rovi si on s o f S ec t i on 1 5 3C o f t he A ct by t h e F i n a nc e A c t , 20 1 7, we a r e o f t h e vi e w t ha t t h e e xt e n u at i n g c i rc u m st an c e s e xi st s t o re v e rse t h e pe n al t y i mp o se d u n d e r S e c t i on 1 5 3 C o f t h e A c t . T h e pe na l ty i m p ose d u n d e r S ec t i on 2 71 ( 1 ) (b ) i n di s pu te i s t hu s c a nc e l l e d. 6. I n t h e re s ul t , th e a p p e a l o f th e a s se ss e e i s a l lo w ed . Order pronounced in the open Court on 27 th June, 2024. Sd/- Sd/- [SUDHIR KUMAR] [PRADIP KUMAR KEDIA] JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: June, 2024 Prabhat