M/s. M.M. Buildcon Pvt. Ltd., New Delhi V. DCIT, New Delhi

ITA 4518/DEL/2015

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 3540 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 3 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-11-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: I
• Assessment Year: 2005-2006
• Appeal Filed On: 09-07-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Reasonable cause
• Section: 273B; 153A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH E NEW DELHI BEFORE SH.G.D.AGRAWAL, HONBLE PRESIDENT AND SH.K.N.CHARY, JUDICIAL MEMBER ITA NOS. 4518 TO 4521/DEL/2015 (ASSESSMENT YEARS: 2005-06 TO 2 008-09) ORDER PER BENCH AGGRIEVED BY THE ORDER DATED 07.05.2015 IN APPEAL NO.340, 341, 342, 343/14-15 PASSING BY THE COMMISSIONER OF INCOME TAX (APPEAL) [IN SHORT CIT(A)]-XXVI, NEW DELHI FOR 2005-06 TO 2008-09 AS SESSMENT YEARS, THE ASSESSEE FILED THESE FOUR APPEALS. 2. FACTS ARE SIMILAR IN ALL THESE FOUR APPEALS AND, THEREFORE, DECIDED BY A COMMON ORDER. THE QUESTION INVOLVED IN THESE FOUR A PPEALS IS RELATING TO THE SUSTAINABILITY OF THE PENALTY OF RS.20,000/- FOR EA CH YEAR, U/S 271(1)(B) OF THE INCOME TAX ACT, 1961 (IN SHORT ACT) FOR THE FAILU RE OF THE ASSESSEE TO ATTEND THE PROCEEDINGS AS AND WHEN REQUIRED BY WAY OF NOTI CE ISSUED BY THE AO. THE PLEA TAKEN BY THE ASSESSEE BEFORE THE AO AND LD.CIT (A) WAS THAT THERE WAS A SEARCH CONDUCTED IN MDLR GROUP IN JANUARY 2008, DET ENTION IN JUDICIAL M.M.BUILDCON PVT. LTD., FLAT NO.4, R.R.APARTMENT, 3-4, MANGLAPURI, MEHRAULI, NEW DELHI-110030. PAN-AAECM5223C VS DCIT, CENTRAL CIRCLE- 14, NEW DELHI. (APPELLANT) (RESPONDENT) APPELLANT BY SH. PIYUSH K. KAMAL, ADV. & SH. LALIT MOHAN, CA RESPONDENT BY SH. U.C.DUBEY, SR. DR DATE OF HEARING 06 . 11 .2017 DATE OF PRONOUNCEMENT 06 . 11 .2017 ITA NOS. 4518 TO 4521/DEL/2015 PG. 2 CUSTODY OF ONE SH. GOPAL GOYAL, KEY PERSON IN TAKIN G CARE OF THE AFFAIRS OF THE GROUP OF COMPANIES, POOR TURN OUT OF THE EMPLOYEES AT WORK PLACE AND LARGE NUMBER OF PENDING ASSESSMENTS U/S 153A OF THE ACT, REQUIRING PREPARATION OF THE VOLUMINOUS DETAILS - THE CUMULATIVE EFFECT OF WHICH PREVENTED THE ASSESSEE FROM ENTRY APPEARANCE APPROPRIATE STAGE. HOWEVER, BOTH THE AUTHORITIES REJECTED THE PLEA OF THE ASSESSEE AND SUSTAINED THE PENALTY. 3. AT THE OUTSET, IT IS SUBMITTED BY THE LD.AR THAT IN A NUMBER OF CASES RELATING TO THE COMPANIES OF MDLR GROUP, AUTHORITIE S LEVIED PENALTY U/S 271(1)(B) OF THE ACT BUT AFTER CONSIDERING THE PLEA OF THE ASSESSEE ON FACTS, THE TRIBUNAL FOUND THAT THE DETENTION OF SH. GOPAL GOYA L WHO WAS ENTRUSTED WITH THE INCOME TAX MATTERS AND WAS LOOKING AFTER THE EN TIRE WORKING OF THE GROUP IN JUDICIAL CUSTODY, INITIATION OF ABOUT 300 GROUP ASS ESSMENTS IN THE WAY OF SEARCH PROCEEDINGS, POOR TURN OUT OF THE EMPLOYEES RESULTING IN THE DELAYED COMPLIANCE BEING MADE THROUGH POST DO CONSTITUTE RE ASONABLE CAUSE FALLING WITHIN THE SCOPE AND AMBIT OF SECTION 273B OF THE A CT AND ON THAT GROUND, THE TRIBUNAL DELETED THE PENALTY. COPIES OF THE ORDERS DATED 28.08.2017 & 29.08.2017 IN ITA NOS.4426 TO 4434/DEL/2015 ARE FIL ED. LD. DR PLACED RELIANCE ON THE ORDERS OF THE AUTHORITIES BELOW. 4. WE HAVE CAREFULLY GONE THROUGH THE RECORD AND TH E ORDERS FILED BY THE LD.AR AND FOUND THAT UNDER SIMILAR CIRCUMSTANCES, A CO-ORDINATE BENCH OF THIS TRIBUNAL CONSIDERED THE FACTS PLEADED BY THE A SSESSEE AT LENGTH AND HELD THAT THE REASONS PLEADED BY THE ASSESSEE, WHICH ARE SIMILARLY PLEADED NOW, CONSTITUTE REASONABLE CAUSE WITHIN THE MEANING OF S ECTION 273B OF THE ACT AND DELETED THE PENALTY LEVIED AGAINST THE ASSESSEE. W HILE RESPECTFULLY FOLLOWING THE ITA NOS. 4518 TO 4521/DEL/2015 PG. 3 SAME, WE HOLD THAT THE ASSESSEE WAS PREVENTED BY RE ASONABLE CAUSE FROM COMPLIANCE WITH THE NOTICE, AND ON THAT GROUND WE D ELETE THE PENALTY LEVIED U/S 271(1)(B) OF THE ACT. 5. IN THE RESULT, THE APPEALS OF THE ASSESSEE ARE A LLOWED. THE ORDER IS PRONOUNCED IN THE OPEN COURT ON 06TH NOVEMBER, 2017. SD/- SD/- (G.D.AGRAWAL) (K.N.CHARY) PRESIDENT JUDICIAL MEMBER *AMIT KUMAR* DATE:- 06.11.2017 COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT AS SISTANT REGISTRAR ITAT NEW DELHI