M/s Bela Madan, New Delhi V. DCIT, New Delhi

ITA 4738/DEL/2013

• Counselvise Citation: [2014] 140 COUNSELVISE.COM (IT) 82054 (ITAT-DELHI)
• Duration Of Justice: 1 year(s) 3 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-11-2014
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 25-11-2014
• Assessment Year: 2009-2010
• Appeal Filed On: 08-08-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: A MISRA
• Assessee Lawyers: A K SRIVASTAVA
• Section: 143(3); 144

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH: A NEW DELHI BEFORE SMT DIVA SINGH, JUDICIAL MEMBER AND SH. T.S.KAPOOR, ACCOUNTANT MEMBER I.T.A .NOS. - 4759 TO 4762 /DEL/201 3 (ASSESSMENT YEARS - 2 005 - 06 TO 2008 - 09 ) MS. BELA MADAN, A - 9/4, VASANT VIHAR, NEW DELHI. P AN - ACPPM5847N (APPELLANT) VS DCIT , CENTRAL CIRCLE - 21, NEW DELHI. (RESPONDENT) I.T.A .NOS. - 4738 TO 4740 /DEL/201 3 (ASSESSMENT YEARS - 2 009 - 10 TO 2011 - 12 ) MS. BELA MADAN, A - 9/4, VASANT VIHAR, NEW DELHI. P AN - ACPPM5847N (APPELLANT) VS DCIT , CENTRAL CIRCLE - 21, NEW DELHI. (RESPONDENT) APPELLANT BY SH. A.K.SRIVASTAVA, CA RESPONDENT BY SMT. A.MISRA, CIT DR ORDER PER DIVA SINGH, JM TH E SE SEVEN APPEAL S HAVE BEEN FILED BY THE ASSESSEE AGAINST THE SEPARATE ORDER OF THE CIT(A) WHO HAS CONFIRMED THE PENALTY IMPOSED U/S 271(1)(B) IN 2005 - 06 TO 2011 - 12 ASSESSMENT YEARS . ALL THESE APPEALS ARE BEING DECIDED BY A COMMON ORDER AS FACTS, CIRCUMSTANCES AND ARGUMENTS OF THE PARTIES IN RE GARD TO THE SPECIFIC DEFAULT NOTED BY THE AO REMAIN THE SAME. THE RECORD SHOWS THAT PENALTY ORDER IN EACH OF THE YEARS MENTIONED ABOVE IS BASED ON THE FACT THAT NO COMPLIANCE WAS MADE BY THE ASSESSEE IN RESPONSE TO THE NOTICE DATED 19.11.2012 ISSUED U /S 1 42(1) OF THE INCOME TAX ACT, 1961. THE RECORD SHOWS THAT THE AO VIDE THE AFORE - MENTIONED NOTICE SENT ALONGWITH QUESTIONNAIRE IN 2 I.T.A .NO S . - 475 9 TO 4762 /DEL/2013 & 4738 TO 4740/DEL/2013 RESPECT OF THE 7 YEARS REQUIRED THE ASSESSEE TO BE PRESENT WITH EXPLANATION ON 26.11.2012. O N THE SAID DATE NO ONE ATTENDED O N BEHALF OF THE ASSESSEE NOR THE REQUISITE INFORMATION/DETAILS WERE FILED. CONSEQUENTLY A SHOW CAUSE NOTICE WAS ISSUED TO THE ASSESSEE ON 07.12.2012. IN RESPONSE TO THE SAME AS PER REPLY DATED 26.12.2012 REFERRED TO IN THE PENALTY ORDER THE ASSESSEE EX PLAINED THAT HIS ACCOUNTANT WAS NOT FEELING WELL. NOT SATISFIED WITH THE EXPLANATION OFFERED PENALTY OF RS.10,000/ - U/S 271(1)(B) WAS IMPOSED FOR EACH OF THE YEARS. THE SAID ORDER WAS CONFIRMED IN APPEAL BY THE CIT(A). 2. THE L D. AR RELYING UPON VARIOUS ORDERS OF THE TRIBUNAL CONTENDED THAT ON SIMILAR FACTS AND CIRCUMSTANCES, DIFFERENT BENCHES OF THE ITAT IN CONNECTED CASES HAVE QUASHED THE PENALTY IMPOSED . IT WAS HIS SUBMISSION THAT IN THE FACTS OF THE PRESENT CASE THE ASSESSMENTS AS IN THE CONNECTED CASES HAVE BEEN COMPLETED U/S 143(3) AND IN THE FACTS OF THE PRESENT CASE RE FERRING TO THE COPY OF THE QUESTIONNAIRE FILED IT WAS POINTED OUT THAT IN THE VERY SHORT TIME THE AO SOUGHT A REPLY ON THE 34 QUESTIONS RAISED. C OPY OF THE QU ESTIONNAIRE IT IS SEEN IS AVAILABLE AT PAGE 33 TO 36 OF THE PAPER BOOK. RELIANCE WAS ALSO PLACED ON THE FOLLOWING ORDERS OF THE CO - ORDINATE BENCHES FILED IN THE PAPER BOOK: - NAME OF ASSESSEE ITA NOS. BENCH DATE OF ORDER SMT. KAMLA MADAN 4671,4672,4673,4674,4675,4676 & 4677/DEL/2013 D 31.01.2014 LAKSHMI CHAND MADAN 4691,4692, 4693, 4694, 4695, 4696, & 4697/DEL/2013 D 31.01.2014 MANJUSHA M ADAN 4698,4699,4700,4701,4702 & 4703/DEL/2013 E 31.01.2014 ROOP KISHORE MADAN 4743,4744,4745,4746,4747,4748 & 4749/DEL/2013 F 30.01.2014 SANYA HOSPITAL & DIAGNOSTIC PVT. LTD. 4661, 4662, 4663 & 4664/DEL/2013 G 14.02.2014 SANYA HOSPITALITY PVT. LTD. 4665, 4666, 4667, 4668, 4669, 4670/DEL/2013 G 14.02.2014 DHRUV MADAN 4678, 4679, 4680, 4681, 4682 & 4683/DEL/2013 B 24.06.2014 CHHAVI DASS 4684, 4685, 4686, 4687, 4688, 4689 4690/DEL/2013 B 25.06.2014 3 I.T.A .NO S . - 475 9 TO 4762 /DEL/2013 & 4738 TO 4740/DEL/2013 2.1. THE LD. CIT DR PLACED RELIANCE UPON THE IMPUGNED ORDER. 3. WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE MATERIAL AVAILAB LE ON RECORD. IT IS SEEN THAT THE AO SOUGHT A REPLY TO DETAILED QUESTIONS NO. - 34 GIVING ONLY SIX DAYS TIME TO THE ASSESSEE . THE RECORD DOES NOT SHOW AS TO WHEN NOTICE ISSUED ON 19.11.2012 WAS ACTUALLY SERVED UPON THE ASSESSEE AS THE RELEVANT INFORMATION IS FOUND TO BE MISSING IN THE PENALTY ORDER. A PERUSAL OF THE ASSESSMENT ORDER S FURTHER SHOWS THAT IT IS NOT A CASE OF NON - COOPERATION BY THE ASSESSEE WITH THE AO DURING THE ASSESSMENT PROCEEDINGS AS THE ASSESSMENT S A R E CONCLUDED U/S 143(3) OF THE INCOME T AX ACT, 1961. IN THESE CIRCUMSTANCES BEING GUIDED BY THE PRECEDENT LAID DOWN BY THE C O - ORDINATE BENCH IN AKHIL BHARTIYA PRATHMIK SHIKSHAK SANGH BHAWAN TRUST VS ADIT (2008) 115 TTJ (DEL.) 419 WHEREIN IT WAS HELD THAT IN THE CASE WHERE ASSESSMENTS WERE MADE U/S 143(3) AND NOT U/S 144 , I T MEANS THAT SUBSEQUENT COMPLIANCE IN ASSESSMENT PROCEEDINGS WAS CONSIDERED AS GOOD COMPLIANCE AND THE DEFAULTS COMMITTED EARLIER WERE IGNORED BY THE AO WHICH VIEW HAS BEEN FOLLOWED BY CO - ORDINATE BENCHES OF THE ITAT IN THE ORDERS RELIED UPON BY THE ASSESSEE AND BROUGHT TO OUR NOTICE. CONSIDERING THE PECULIAR FACTS AND CIRCUMSTANCES AND B EING SATISFIED BY THE EXPLANATION OFFERED RESPECTFULLY FOLLOWING JUDICIAL PRECEDENT SET OUT IN THE ORDERS , W E ARE OF THE VIEW THAT THE IMPUGNED ORDERS DESERVED TO BE SET ASIDE AND THE PENALTY ORDERS DESERVE TO BE QUASHED. THE SAID ORDER WAS PRONOUNCED IN THE OPEN COURT AT THE TIME OF HEARING IN THE PRESENCE OF THE PARTIES. 4 . IN THE RESULT THE APPEALS OF THE ASSESSEE ARE ALLOWED. THE ORDER IS PRONOUNCED IN THE OPEN COURT ON 2 8 T H OF NOVEMBER 2014. S D / - S D / - ( T.S.KAPOOR ) (DIVA SINGH) ACCOUNTANT MEMBER JUDICIAL MEMBER D ATED: 2 8 / 11 /2014 *AMIT KUMAR* 4 I.T.A .NO S . - 475 9 TO 4762 /DEL/2013 & 4738 TO 4740/DEL/2013 COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT ASSISTANT REGISTRAR ITAT NEW DELHI