Shri Gopal Gauba, Gurgaon V. DCIT, New Delhi

ITA 4263/DEL/2015

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 3120 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 5 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-12-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Assessment Year: 2003-2004
• Appeal Filed On: 02-07-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Reasonable cause
• Section: 273B

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCHES : D : NEW DELHI BEFORE SHRI R.S. SYAL, VICE PRESIDENT AND SHRI KULDIP SINGH, JUDICIAL MEMBER ITA NOS.4263 TO 4268/DEL/2015 ASSESSMENT YEARS : 2003-04 TO 2008-09 GOPAL GAUBA, H.NO.29 (1 ST FLOOR), SECTOR-15, PHASE-I, GURGAON. PAN: AIHPG3651Q VS. DCIT, CENTRAL CIRCLE-14, NEW DELHI. ITA NOS.4269 TO 4272/DEL/2015 ASSESSMENT YEARS : 2005-06 TO 2008-09 GEE GEE BUILDTEK PVT. LTD., FLAT NO.4, R.R. APARTMENT, 3-4, MANGLAPURI, MEHRAULI, NEW DELHI. PAN: AACCG2103P VS. DCIT, CENTRAL CIRCLE-14, NEW DELHI. ASSESSEE BY : SHRI GAUTAM JAIN,& SHRI PIYUSH KAMAL & SHRI LALIT MOHAN, ADVOCATES DEPTT. BY : SHRI AMIT JAIN, SR. DR DATE OF HEARING : 12.12.2017 DATE OF PRONOUNCEMENT : 13.12.2017 ITA NOS.4263 TO 4268 & 4269 TO 4272/DEL/2015 2 ORDER PER BENCH: THESE TEN APPEALS BY TWO DIFFERENT BUT RELATED ASSE SSEES ARE DIRECTED AGAINST THE CONFIRMATION OF PENALTY AM OUNTING TO RS.20,000/- EACH UNDER SECTION 271(1)(B) OF THE INC OME-TAX ACT, 1961 (HEREINAFTER ALSO CALLED `THE ACT) IN RE LATION TO THE ASSESSMENT YEARS 2003-04 TO 2008-09. 2. BRIEFLY STATED, THE FACTS OF THE CASES ARE THAT THE 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 ASSESSEES HAVE FILED THE I NSTANT APPEALS BEFORE THE TRIBUNAL. 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 ITA NOS.4263 TO 4268 & 4269 TO 4272/DEL/2015 3 REASONABLE CAUSE AS THE ASSESSEE GROUP HAD TO COMPL ETE 303 GROUP ASSESSMENTS WITHIN A SHORT SPAN OF FIVE MONTH S AND FURTHER ONE OF THEIR DIRECTORS WAS IN JUDICIAL CUST ODY. WE FIND THAT THE NON-COMPLIANCE OF THE STATUTORY NOTICES BY THE ASSESSEES WAS DUE TO THE LARGE VOLUME OF WORK TO BE COMPLETED BY THE GROUP IN A SHORT SPAN OF TIME, WHICH CONSTIT UTES A REASONABLE CAUSE WITHIN THE MEANING OF SECTION 273B OF THE ACT. WE, THEREFORE, DELETE THE PENALTIES U/S 271(1 )(B) OF THE ACT. OUR VIEW IS FORTIFIED BY SEVERAL ORDERS INCLUD ING AN ORDER OF THE TRIBUNAL DATED 06.11.2017 IN THE CASE OF ANO THER GROUP CONCERN OF THE ASSESSEE, NAMELY, M.M. BUILDCON PVT. LTD. VS. DCIT IN ITA NOS.4518 TO 4521/DEL/2015, IN WHICH A S IMILAR PENALTY IMPOSED U/S 271(1)(B) OF THE ACT AMOUNTING TO RS.20,000/- HAS BEEN DELETED. A COPY OF SUCH ORDER HAS BEEN PLACED ON RECORD. ITA NOS.4263 TO 4268 & 4269 TO 4272/DEL/2015 4 4. IN THE RESULT, ALL THE APPEALS OF THE ASSESSEES ARE ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 13.12.2017. SD/- SD/- [KULDIP SINGH] [R.S. SYAL] JUDICIAL MEMBER VICE PRESIDENT DATED, 13 TH DECEMBER, 2017. DK COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT (A) 5. DR, ITAT AR, ITAT, NEW DELHI.