Lotus Food Stuff, Baddi V. ITO, Ward, Baddi

ITA 41/CHANDI/2023

AI Insights

This case involves an appeal by Lotus Food Stuff against the order of the Ld. CIT(A), NFAC, Delhi, which confirmed a penalty imposed by the Ld. AO under section 271B of the Income Tax Act, 1961. The penalty was initially contested due to procedural issues, including the claim that the assessee was not given a reasonable opportunity to be heard. The appeal was admitted despite a delay of six days, and the tribunal noted the absence of the assessee during previous hearings due to a personal tragedy. Consequently, the tribunal decided to set aside the matter to the Ld. CIT(A) for a fresh decision on merits.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 127591 (ITAT-CHANDIGARH)
• Duration Of Justice: 3 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-05-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: Not Allotted
• Next Hearing Date: 07-05-2023
• Assessment Year: 2011-2012
• Appeal Filed On: 01-02-2023
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Non compliance; Set aside
• Section: 250

Judgement Text

आयकर अपील य अ धकरण,च डीगढ़ यायपीठ “ए” , च डीगढ़ IN THE INCOME TAX APPELLATE TRIBUNAL, CHANDIGARH BENCH “A”, CHANDIGARH ी आकाश द प जैन, उपा य एवं ी #व$म &संह यादव, लेखा सद+य BEFORE: SHRI. AAKASH DEEP JAIN, VP & SHRI. VIKRAM SINGH YADAV, AM ITA NO. 41/Chd/ 2023 Assessment Year : 2011-12 Lotus Food Stuff, C/o Parikshit Aggarwal, Chartered Accountant H.No. 3035, Sector 27D, Chandigarh- 160019 The ITO Ward, Baddi- Himachal Pradesh PAN NO: AACFL6740Q Appellant Respondent ! " Assessee by : Shri Parikshit Aggarwal, CA # ! " Revenue by : Smt. Amanpreet Kaur, Sr. DR $ % ! & Date of Hearing : 08/05/2023 '()* ! & Date of Pronouncement : 08/05/2023 आदेश/Order PER VIKRAM SINGH YADAV, A.M. : This is an appeal filed by the Assessee against the order of the Ld. CIT(A), NFAC, Delhi dt. 28/11/2022 wherein the assessee has taken the following grounds of appeal; 1. That on the facts, circumstances and legal position of the case, the Worthy CIT(A), NFAC in Appeal No. CIT (A), Patiala/10029/2019-20 dated 28.11.2022 has erred in passing that order in contravention of provisions of s. 250 of the Income Tax Act, 1961. 2. That on law, facts and circumstances of the case, the Worthy CIT(A) has erred in confirming the order of the Ld. AO u/s 27IB even when the Ld. AO has erred in initiating and levying the impugned penalty of Rs. 1,42,587/-u/s 27IB of the Act. 3. That on law, facts and circumstances of the case, the impugned order passed by Worthy CIT(A) deserves to be quashed since the same has been passed in extreme haste and without affording reasonable opportunity of being heard to the appellant. 2 4. That the appellant craves leave for any addition, deletion or amendment in the grounds of appeal on or before the disposal of the same. 2. At the outset it is noted that there is delay in filing the present appeal by 6 days. 3. After considering the Affidavit filed by the assessee and hearing the Ld. DR the delay is hereby condoned and the appeal is admitted for adjudication. 4. During the course of hearing the Ld. AR further submitted that the appeal of the assessee has been dismissed exparte qua the assessee. It was submitted that during the pendency of the appeal, son of one of the partner’s of the assessee firm expired and since the said partner was handling the tax affairs, the proceedings before the Ld. CIT(A) couldn’t be attended to. It was further submitted that quantum proceedings are still pending before the Ld. CIT(A) and the Ld. CIT(A) has gone ahead and decided the penalty matter. It was accordingly submitted that the assessee may be allowed an opportunity to represent its case before the Ld. CIT(A), NFAC, Delhi, and the matter may be set aside to the file of the Ld. CIT(A) to decide the same on merit. 5. Per contra the Ld. DR has relied on the order of the lower authorities. 6. We have heard the rival contention and perused the material available on the record. It is noted that the matter has been scheduled for hearing on couple of occasions by the Ld. CIT(A), NFAC, Delhi, however there has been no appearance on the part of the assessee and during the course of hearing the 3 Ld. AR has submitted that the assessee has been prevented by sufficient cause for non compliance. In view of the same and given the fact that the matter has not been decided on merit, the matter is set aside to the file of the Ld. CIT(A), NFAC, Delhi to decide the same afresh after providing reasonable opportunity to the assessee. 7. In the result, appeal of the Assessee is allowed for statistical purposes. Order pronounced in the open Court on 08/05/2023. Sd/- Sd/- आकाश द प जैन #व$म &संह यादव (AAKASH DEEP JAIN) ( VIKRAM SINGH YADAV) उपा य / VICE PRESIDENT लेखा सद+य/ ACCOUNTANT MEMBER AG Date: 08/05/2023 ( + ! , - . - Copy of the order forwarded to : 1. The Appellant 2. The Respondent 3. $ / CIT 4. - 0 ग 2 3 & 2 3 456 ग7 DR, ITAT, CHANDIGARH 5. ग 6 8 % Guard File ( + $ By order, 9 # Assistant Registrar