M/s. Kanda Agriculture Pvt. Ltd., New Delhi V. DCIT, New Delhi

ITA 4258/DEL/2015

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 3050 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 5 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-12-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Assessment Year: 2007-2008
• Appeal Filed On: 02-07-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Reasonable cause
• Section: 273B; 2

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCHES : D : NEW DELHI BEFORE SHRI R.S. SYAL, VICE PRESIDENT AND SHRI C.M. GARG, JUDICIAL MEMBER ITA NOS.4258 & 4259/DEL/2015 ASSESSMENT YEARS : 2007-08 & 2008-09 KANDA AGRICULTURE PVT. LTD., FLAT NO.4, R.R. APARTMENT, 3-4 MANGLAPURI, MEHRAULI, NEW DELHI . PAN: AADCK0216C VS. DCIT, CENTRAL CIRCLE-14, NEW DELHI. ASSESSEE BY : SHRI GAUTAM JAIN & SHRI PIYUSH KAMAL, ADVOCATES DEPTT. BY : SHRI AMIT JAIN, SR. DR DATE OF HEARING : 11.12.2017 DATE OF PRONOUNCEMENT : 11.12.2017 ORDER PER R.S. SYAL, VP: THESE TWO APPEALS BY THE ASSESSEE ARE DIRECTED AGAI NST THE CONFIRMATION OF PENALTY AMOUNTING TO RS.20,000/- EA CH UNDER ITA NOS.4258 & 4259/DEL/2015 2 SECTION 271(1)(B) OF THE INCOME-TAX ACT, 1961 (HERE INAFTER ALSO CALLED `THE ACT) IN RELATION TO THE ASSESSMENT YEA RS 2007-08 & 2008-09. 2. BRIEFLY STATED, THE FACTS OF THE CASE ARE THAT T HE ASSESSING OFFICER IMPOSED PENALTY U/S 271(1)(B) OF THE ACT FO R NON- COMPLIANCE OF THE STATUTORY NOTICES. THE LD. CIT(A) UPHELD THE PENALTY. AGGRIEVED, THE ASSESSEE HAS FILED THE INS TANT APPEALS. 3. WE HAVE HEARD THE PARTIES AND PERUSED THE RELEVA NT MATERIAL ON RECORD. IT WAS SUBMITTED BY THE LD. AR THAT THE NON-COMPLIANCE OF THE STATUTORY NOTICES OF HEARING ISSUED BY THE ASSESSING OFFICER WAS NOT INTENTIONAL, BUT, WAS FOR REASONABLE CAUSE AS THE ASSESSEE HAD TO COMPLETE 30 3 GROUP ASSESSMENTS WITHIN A SHORT SPAN OF FIVE MONTHS AND FURTHER ONE OF ITS DIRECTORS WAS IN JUDICIAL CUSTODY. WE FIND T HAT THE NON- COMPLIANCE OF THE STATUTORY NOTICES BY THE ASSESSEE WAS DUE TO THE LARGE VOLUME OF WORK TO BE COMPLETED BY THE ASS ESSEE IN A SHORT SPAN OF TIME, WHICH CONSTITUTES A REASONABLE CAUSE WITHIN ITA NOS.4258 & 4259/DEL/2015 3 THE MEANING OF SECTION 273B OF THE ACT. WE, THEREF ORE, DELETE THE PENALTIES U/S 271(1)(B) OF THE ACT. OUR VIEW IS FORTIFIED BY AN ORDER OF THE TRIBUNAL DATED 06.11.2017 IN THE CA SE OF ANOTHER GROUP CONCERN OF THE ASSESSEE, NAMELY, M.M. BUILDCON PVT. LTD. VS. DCIT IN ITA NOS.4518 TO 4521/DEL/2015 , IN WHICH A SIMILAR PENALTY IMPOSED U/S 271(1)(B) OF TH E ACT AMOUNTING TO RS.20,000/- EACH HAS BEEN DELETED. A COPY OF SUCH ORDER HAS BEEN PLACED ON RECORD. 4. IN THE RESULT, THE APPEALS OF THE ASSESSEE ARE A LLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 11.12.2017. SD/- SD/- [C.M. GARG] [R.S. SYAL] JUDICIAL MEMBER VICE PRESIDENT DATED, 11 TH DECEMBER, 2017. DK ITA NOS.4258 & 4259/DEL/2015 4 COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT (A) 5. DR, ITAT AR, ITAT, NEW DELHI.