Command Detective and Security Services Pvt. Ltd., New Delhi V. ACIT, New Delhi

ITA 4461/DEL/2013

• Counselvise Citation: [2014] 140 COUNSELVISE.COM (IT) 81927 (ITAT-DELHI)
• Duration Of Justice: 1 year(s) 3 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-11-2014
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 11-11-2014
• Assessment Year: 2009-2010
• Appeal Filed On: 25-07-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: PARMINDER KAUR
• Assessee Lawyers: B K DHINGRA
• Keywords: Non compliance

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH: B: NEW DELHI BEFORE SHRI J.S. REDDY, ACCOUNTANT MEMBER AND SHRI GEORGE GEORGE K, JUDICIAL MEMBER ITA NO. 4461/DEL/2013 ASSESSMENT YEAR 2009-10 COMMAND DETECTIVE AND SECURITY VS. ACIT SERVICES PVT. LTD. CENTRAL CIRCLE-21, (NOW KNOWN AS VALERIA MARKETING E-2, AR A CENTRE PVT. LTD.) JHANDEWALAN EXTN. RZ-61, GALI NO. 25C, INDIRA PARK, NEW DELHI 110 055. PALAM COLONY, NEW DELHI. (PAN AAACCC7707R) (APPELLANT) (RESPONDENT ) APPELLANT BY : S HRI B.K. DHINGRA, CA RESPONDENT BY : SHRI PARMINDER KAUR, SR. DR ORDER PER GEORGE GEORGE K, JUDICIAL MEMBER THIS APPEAL AT THE INSTANCE OF ASSESSEE IS DIRECTED AGAINST CIT(A)S ORDER DATED 25.6.2013. THE RELEVANT ASSTT. YEAR IS 2009- 10. 2. THE SOLITARY ISSUE THAT ARISES FOR OUR CONSI DERATION IS WHETHER THE CIT (A) IS JUSTIFIED IN CONFIRMING THE LEVY OF PENALTY U/S 271 (1)(B) OF THE ACT AMOUNTING TO RS. 10,000/- 3. THE LD. COUNSEL FOR THE ASSESEE AT THE VERY O UTSET SUBMITTED THAT THE ISSUE IN QUESTION IS SQUARELY COVERED BY THE COORDINATE B ENCH OF THE TRIBUNAL IN THE CASE OF SHIVAANSH ADVERTISING AND PUBLICATIONS (P) LTD. (NOW KNOWN AS BERT ITA NO. 4461/DEL/13 2 MARKETING PVT. LTD.) IN ITA NO. 4239/DEL/2013 DATED 3.1.2014. THE LD. DR ON THE OTHER HAND WAS UNABLE TO DISPEL THE ASSERTION M ADE BY THE LD. COUNSEL FOR THE ASSESSEE. 4. WE HAVE HEARD RIVAL SUBMISSION AND PERUSED TH E MATERIAL ON RECORD. PENALTY U/S 271(1)(B) OF THE ACT HAS BEEN LEVIED BY THE AO FOR NON COMPLIANCE OF THE NOTICE DATED 8.11.2010. FROM THE ASSESSMENT ORDER, IT IS EVIDENT THAT THE NOTICE UNDER SECTION 142(1)/143(2) DATED 8.11.2010 ALONG W ITH THE DETAILED QUESTIONNAIRE WAS ISSUED FIXING THE CASE FOR 18.11. 2010. THESE DETAILS HAVE BEEN MENTIONED BY THE ASSESSING OFFICER IN PARAGRAPH 2 P AGE 1 ON ASSESSMENT ORDER , THUS, TOTAL TEN DAYS TIME WAS ALLOWED FROM THE DATE OF ISSUE OF THE NOTICE. THE TIME OF LESS THAN 10 DAYS TO COMPLY WITH THE DETAIL ED QUESTIONNAIRE CANNOT BE SAID TO BE A SUFFICIENT TIME BEING ALLOWED TO THE A SSESSEE COMPANY AND FAILURE OF THE ASSESSEE COMPANY TO COMPLY WITH SUCH NOTICE CAN NOT BE SAID TO BE A DEFAULT WHICH MAY JUSTIFY THE LEVY OF PENALTY UNDER SECTION 271(1)(B) OF THE INCOME TAX ACT. 5. THE COORDINATE BENCH OF THE TRIBUNAL IN THE CASE OF SHIVAANSH ADVERTISING AND PUBLICATIONS (P) LTD. (SUPRA) ON IDENTICAL FACT S HAVE DELETED THE PENALTY LEVIED U/S 271(1)(B) OF THE ACT. (THE SAME SEARCH W AS BASIS OF ACTION IN BOTH CASE). RELEVANT FINDING OF THE COORDINATE BENCH OF THE TRIBUNAL IN THE CASE OF SHIVAANSH ADVERTISING AND PUBLICATIONS (P) LTD. (SU PRA) READS AS FOLLOWS :- ITA NO. 4461/DEL/13 3 WE HAVE HEARD BOTH THE SIDES AND PERUSED THE MATER IAL PLACED BEFORE US. THE PENALTY HAD BEEN LEVIED BY THE ASSESSING OFFICE R FOR NON-COMPLIANCE OF THE NOTICE DATED 8.11.2010. FROM THE ASSESSMENT ORDER, IT IS EVIDENT THAT THE NOTICE UNDER SECTION 142(1)/143(2) DATED 8 .11.2010 ALONGWITH THE DETAILED QUESTIONNAIRE WAS ISSUED FIXING THE CA SE FOR 18.11.2010. THESE DETAILS HAVE BEEN MENTIONED BY THE ASSESSING OFFICER IN PARAGRAPH 2 PAGE 1 OF THE ASSESSMENT ORDER. THUS, TOTAL TEN D AYSTIME WAS ALLOWED FROM THE DATE OF ISSUE OF THE NOTICE. IN THE ASSESS MENT ORDER, THE ASSESSING OFFICER HAS NOT MENTIONED THE DATE ON WH ICH SUCH NOTICE WAS SERVED UPON THE ASSESSEE. THEREFORE, IN OUR OPINION , THE TIME OF LESS THAN TEN DAYS ALLOWED BY THE ASSESSING OFFICER FOR COMPL YING WITH THE DETAILED QUESTIONNAIRE CANNOT BE SAID TO BE A SUFFICIENT TIM E BEING ALLOWED TO THE ASSESSEE AND , THEREFORE, FAILURE OF THE ASSESEE TO COMPLY WITH SUCH NOTICE CANNOT BE SAID TO BE A DEFAULT WHICH MAY JUSTIFY TH E LEVY OF PENALTY UNDER SECTION 271(1)(B) OF THE ACT. ACCORDINGLY, THE SAME IS CANCELLED. 6. IN VIEW OF THE COORDINATE BENCH ORDER OF THE TRIBUNAL IN SHIVAANSH ADVERTISING AND PUBLICATIONS (P) LTD. (SUPRA) WHIC H IS IDENTICAL TO THE FACTS OF THE INSTANT CASE, WE HOLD THAT PENALTY LEVIED U/S 271(1 )(B) OF THE ACT IS NOT JUSTIFIED AND HENCE WE DELETE THE SAME. IT IS ORDERED ACCORD INGLY. 7. IN THE RESULT APPEAL FILED BY THE ASSESSEE IS ALLOWED. THIS DECISION WAS PRONOUNCED IN THE OPEN C OURT ON 13 TH NOVEMBER, 2014. SD/- SD/- (J.S. REDDY) ( GEORGE GEORGE K) ACCOUNTANT MEMBER JUDICIAL MEMBER DATE . 13 TH NOVEMBER, 2014 *VEENA COPY OF ORDER FORWARDED TO: 1. APPELLANT 2. RESPONDENT ITA NO. 4461/DEL/13 4 3. CIT(A) 4. CIT 5. DR BY ORDER ASSTT. REGISTRAR, ITAT