Logicladder Tech Pvt. Ltd., Gurgaon V. ITO, Ward- 2(1), Gurgaon

ITA 4262/DEL/2018

• Counselvise Citation: [2019] 118 COUNSELVISE.COM (IT) 3188 (ITAT-DELHI)
• Duration Of Justice: 8 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-02-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2014-2015
• Appeal Filed On: 04-06-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S L ANURAGI
• Section: 143(3); 142(1); 144

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH : SMC : NEW DELHI BEFORE SHRI R.K. PANDA, ACCOUNTANT MEMBER ITA NO.4262/DEL/2018 ASSESSMENT YEAR: 2014-15 LOGICLADDER TECH PVT. LTD. 204, UNITECH ARCADIA, SOUTH CITY-II, SECTOR-49, GURGAON. PAN: AABCL9980G VS. ITO, WARD-2(1), GURGAON. (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI SANJAY JAIN, CA REVENUE BY : SHRI S.L. ANURAGI, SR.DR DATE OF HEARING : 21.02.2019 DATE OF PRONOUNCEMENT : 26.02.2019 ORDER THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER DATED 5 TH FEBRUARY, 2018 OF THE CIT(A)-1, GURGAON, RELATING TO ASSESSME NT YEAR 2014-15. 2. LEVY OF PENALTY OF RS.10,000/- U/S 271(1)(B) OF THE IT ACT BY THE ASSESSING OFFICER AND CONFIRMED BY THE CIT(A) IS THE ONLY ISS UE RAISED BY THE ASSESSEE IN VARIOUS GROUNDS OF APPEAL. 3. FACTS OF THE CASE, IN BRIEF, ARE THAT THE ASSESS EE IS A COMPANY AND FILED ITS RETURN OF INCOME ON 19 TH SEPTEMBER, 2014 DECLARING AN INCOME OF RS.3,10,660 /-. THE CASE OF ITA NO.4262/DEL/2018 2 THE ASSESSEE WAS SELECTED FOR SCRUTINY AND STATUTOR Y NOTICE U/S 143(2) OF THE IT ACT WAS ISSUED TO THE ASSESSEE ON 18 TH SEPTEMBER, 2015 WHICH WAS DULY SERVED ON THE ASSES SEE. SUBSEQUENTLY, NOTICE U/S 142(1) WAS ALSO ISSUED BY THE ASSESSING OFFICER. SINCE THERE WAS NON-COMPLIANCE ACCORDING TO THE ASSESSING OFFIC ER, TO THE VARIOUS STATUTORY NOTICES ISSUED BY HIM, THE ASSESSING OFFICER LEVIED PENALTY OF RS.10,000/- U/S 271(1)(B) OF THE IT ACT. 4. IN APPEAL, THE LD. CIT(A) CONFIRMED THE ACTION O F THE ASSESSING OFFICER IN LEVYING THE PENALTY U/S 271(1)(B) OF THE ACT. AGGR IEVED WITH SUCH ORDER OF THE CIT(A), THE ASSESSEE IS IN APPEAL BEFORE THE TRIBUN AL. 5. THE LD. COUNSEL FOR THE ASSESSEE DREW THE ATTENT ION OF THE BENCH TO THE ASSESSMENT ORDER WHICH READS AS UNDER:- THE RETURN OF INCOME WAS FILLED ON 19.09.2014 DECLA RING AN INCOME OF RS.3,10,660/-. THE CASE WAS SELECTED FOR SCRUTINY ASSESSMENT AND A CCORDINGLY NOTICE U/S 143(2) WAS ISSUED ON 18.09.2015 BY THE I TO-2(2),GURGAON, WHICH WAS DULY SERVED UPON THE ASSESSEE. LATER ON THE CAS E WAS TRANSFERRED TO THIS OFFICE DUE TO CHANGE OF JURISDICTION. THEREAFTER ST ATUTORY NOTICES U/S 142(1) ISSUED AND COMPLIED WITH BY THE ASSESSEE. THE INFOR MATION/DETAILS ASKED FOR HAVE BEEN FURNISHED, DISCUSSED - AND PLACED ON RECORD. THE ASSESSMENT P RO CEEDINGS WERE ATTENDED BY SHRI SANJAY JAIN, CA WITH WHOM THE CASE WAS DISCUSSED. AFTER DISCUSSION, ASSESSMENT IS COMPLETED AT RETURNED INC OME OF RS 3,10,660/-. ASSESSED, ISSUE REQUISITE DOCUMENT ALONGWITH A COPY OF THIS ORDER TO THE ASSESSEE. CHARGE PENAL INTEREST AS PER IT ACT. 6. HE SUBMITTED THAT ASSESSMENT IN THE INSTANT CASE HAS BEEN COMPLETED U/S 143(3). THE ASSESSEE HAS FILED THE REQUISITE DETAILS BEFORE THE ASSESSING OFFICER, THEREFORE, NO PENALTY U/S 271(1)(B) SHOULD HAVE BEEN LEVIED.. RE FERRING TO THE DECISION OF THE COORDINATE BENCH IN THE CASE OF GLOBUS INFOCOM LIMITED VS. DCIT IN ITA ITA NO.4262/DEL/2018 3 NO.738/DEL/2014, ORDER DATED 29 TH JUNE, 2016 , HE SUBMITTED THAT UNDER IDENTICAL CIRCUMSTANCES, THE TRIBUNAL HAS CANCELLED THE PENAL TY LEVIED U/S 271(1)(B) OF THE ACT ON THE GROUND THAT WHEN THE ORDER HAS BEEN PASSED U /S 143(3) AND NOT U/S 144 OF THE IT ACT THE SUBSEQUENT COMPLIANCE IN THE ASSESSMENT PRO CEEDINGS IS CONSIDERED AS GOOD COMPLIANCE AND THE DEFAULT COMMITTED EARLIER CAN BE IGNORED BY THE ASSESSING OFFICER AND IT CANNOT BE SAID THAT THE DEFAULT IS WILLFUL. ACCORDINGLY, THE PENALTY LEVIED BY THE ASSESSING OFFICER AND SUSTAINED BY THE CIT(A) WAS D ELETED BY THE TRIBUNAL. HE ACCORDINGLY SUBMITTED THAT SINCE THE FACTS OF THE P RESENT CASE ARE IDENTICAL TO THE FACTS OF THE CASE DECIDED BY THE TRIBUNAL, THEREFORE, PEN ALTY LEVIED U/S 271(1)(B) OF THE IT ACT BY THE ASSESSING OFFICER WHICH HAS BEEN UPHELD BY THE CIT(A) SHOULD BE DELETED. 7. THE LD. DR, ON THE OTHER HAND, HEAVILY RELIED ON THE ORDER OF THE ASSESSING OFFICER AND CIT(A). 8. I HAVE CONSIDERED THE ARGUMENTS MADE BY BOTH THE SIDES AND PERUSED THE ORDERS OF THE AUTHORITIES BELOW. I FIND THE ASSESSING OFF ICER LEVIED PENALTY OF RS10,000/- U/S 271(1)(B) OF THE IT ACT ON THE GROUND THAT THE ASSE SSEE DID NOT COMPLY WITH THE VARIOUS STATUTORY NOTICES ISSUED BY HIM. HOWEVER, A PERUSAL OF THE ASSESSMENT ORDER SHOWS THAT THE ORDER HAS BEEN PASSED U/S 143(3) ON 10.11.2016. FURTHER, THE ASSESSING OFFICER, IN THE BODY OF THE ASSESSMENT ORDER HAS M ENTIONED THAT THE ASSESSEE HAS COMPLIED WITH THE STATUTORY NOTICES ISSUED U/S 142( 1) AND THE INFORMATION/DETAILS ASKED FOR HAVE BEEN FURNISHED WHICH WERE DISCUSSED AND PL ACED ON RECORD. HE HAS FURTHER MENTIONED THAT THE ASSESSMENT PROCEEDINGS WERE ATTE NDED BY SHRI SANJAY JAIN, CA ITA NO.4262/DEL/2018 4 WITH WHOM THE CASE WAS DISCUSSED. SINCE THE ASSESS EE HAS FURNISHED REQUISITE DETAILS FOR COMPLETION OF ASSESSMENT BY COMPLIANCE OF STATU TORY NOTICES ISSUED BY THE ASSESSING OFFICER AND THE ASSESSMENT HAS BEEN COMPL ETED U/S 143(3), THEREFORE, UNDER THE FACTS AND CIRCUMSTANCES OF THE CASE, I AM OF TH E CONSIDERED OPINION THAT IT IS NOT A FIT CASE FOR LEVY OF PENALTY U/S 271(1)(B) OF THE A CT. I, THEREFORE, SET ASIDE THE ORDER OF THE CIT(A) AND DIRECT THE ASSESSING OFFICER TO CANC EL THE PENALTY SO LEVIED. THE GROUNDS RAISED BY THE ASSESSEE ARE ACCORDINGLY ALLO WED. 9. IN THE RESULT, THE APPEAL FILED BY THE ASS ESSEE IS ALLOWED. THE DECISION WAS PRONOUNCED IN THE OPEN COURT ON 2 6.02.2019. SD/- ( R.K. PANDA) ACCOUNTANT MEMFBE R DATED:26 TH FEBRUARY, 2019 DK COPY FORWARDED TO 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR ASSTT. REGISTRAR, ITAT, NEW DELHI