PAP Chem (India) P.Ltd, Delhi V. ITO, Ward-19(3), New Delhi

ITA 5036/DEL/2018

• Counselvise Citation: [2019] 118 COUNSELVISE.COM (IT) 2569 (ITAT-DELHI)
• Duration Of Justice: 7 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-03-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2014-2015
• Appeal Filed On: 19-07-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S L ANURAGI
• Keywords: Opportunity of being heard; Principle of natural justice; Initiation of penalty proceedings
• Section: 271(1)(c)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH SMC : NEW DELHI) BEFORE SHRI H.S. SIDHU, JUDICIAL MEMBER ITA NO. 5036/DEL/2018 ASSESSMENT YEAR: 2014-15 M/S PAP CHEM (INDIA) PVT. LTD. VS. INCOME TAX OFF ICER, 311, 3 RD FLOOR, RG MALL, SJ, LSC, WARD 19(3), OPP. DHARAM KUNJ SOCIETY, NEW DELHI ROHINI, DELHI-85 (PAN: AABCP7859A) (APPELLANT) (RESPONDENT) ASSESSEE BY : SH. ANIL KUMAR JAIN, CA REVENUE BY : SH. SL ANURAGI, SR. DR. ORDER THE ASSESSEE HAS FILED THIS APPEAL AGAINST THE ORD ER DATED 01.6.2018 OF THE LD. COMMISSIONER OF INCOME TAX (AP PEALS)-7, NEW DELHI ON THE FOLLOWING GROUNDS:- 1. THAT ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND THE PROVISION OF LAW, THE LD. CITA(A) HAS ERRED IN NOT ADMITTING THE APPEAL AND DISMISSING THE SAME IN LIMINIE. 2. THAT ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND THE PROVISIONS OF THE LAW, THE INITIATION OF PENALTY PROCEEDINGS U/S. 271(1)(C) IS ILLEGAL AND BAD IN LAW AND THUS THE PENALTY ORDER PASSED BY AO REQUIRES TO BE QUASHED. 3. THAT ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN THE PROVISIONS OF THE LAW, THE AO HAS ERRED IN IMPOSING PENALTY OF RS. 2,42,520/- U/S. 271(1) OF THE ACT. 2 4. THAT THE APPELLANT CRAVES LEAVE TO RESERVE OR ITSELF THE RIGHT TO ADD, ALTER AMEND, VARY, MODIFY AND / OR WITHDRAW AND GROUNDS OF APPEAL AT OR BEFORE THE TIME OF HEARING. 2. FACTS NARRATED BY THE REVENUE AUTHORITIES ARE NO T DISPUTED BY BOTH THE PARTIES, HENCE, THE SAME ARE NOT REPEAT ED HERE FOR THE SAKE OF BREVITY. 3. DURING THE HEARING, LD. COUNSEL OF THE ASSESSEE HAS STATED THAT LD. CIT(A) HAS DISMISSED THE APPEAL O F THE ASSESSEE ON ACCOUNT OF DELAY IN FILING THE APPEAL W ITHOUT PROVIDING DUE, REASONABLE AND ADEQUATE OPPORTUNITY OF HEARING, IN CONTRAVENTION OF PRINCIPLES OF NATURAL JUSTICE A ND NOT DECIDED THE APPEAL ON MERIT OF THE CASE, WHICH IS NOT SUSTA INABLE IN THE EYES OF LAW. HE STATED THAT DELAY IN DISPUTE WAS OC CURRED DUE TO PLAUSIBLE REASONS IN FILING THE E-APPEAL BEFORE THE LD. CIT(A) I.E. THERE HAS BEEN A DELAY OF 50 DAYS IN THE FILING OF THE APPEAL ON ACCOUNT OF FAILURE TO OBTAIN ADVICE O F THE CA. NOW YOU ARE REQUESTED TO PLEASE CONDONE THE DELAY I N THE INTEREST OF JUSTICE, WHICH MAY KINDLY BE CONDONED AND THE ISSUES IN DISPUTE MAY BE SET ASIDE TO THE FILE OF T HE LD. CIT(A) WITH THE DIRECTIONS TO PASS A SPEAKING ORDER BY D ECIDING THE MERIT OF THE CASE, AFTER GIVING ADEQUATE OPPORTUNI TY OF BEING HEARD TO THE ASSESSEE 4. ON THE CONTRARY, LD. DR STRONGLY OPPOSED THE REQ UEST OF THE LD. COUNSEL OF THE ASSESSEE AND RELIED UPON THE ORDER OF THE LD. CIT(A). 5. I HAVE HEARD BOTH THE PARTIES AND PERUSED THE RE CORDS. I HAVE GONE THROUGH THE ORDERS PASSED BY THE REVENUE AUTHORITIES AS WELL AS THE CONTENTION RAISED BY THE ASSESSEE IN 3 THE GROUNDS OF APPEAL. I FIND THAT LD. CIT(A) HAS DISMISSED THE APPEAL ON ACCOUNT OF DELAY IN FILING THE APPEAL AND DID NOT DECIDE THE APPEAL ON MERIT OF THE CASE. I FURTHER F IND THAT T HERE HAS BEEN A DELAY OF 50 DAYS IN THE FILING OF THE E- APPEAL ON ACCOUNT OF FAILURE TO OBTAIN ADVICE OF THE CA, WHIC H REASON IS QUITE PLAUSIBLE. THEREFORE, IN MY CONSIDERED OPINION AND IN THE INTEREST OF JUSTICE, I CONDONE THE DELAY IN DISPUTE AND SET ASIDE THE ISSUES IN DISPUTE TO THE FILE OF THE LD. CIT(A) WITH THE DIRECTION TO DECIDE THE ISSUES ON MERITS, AFTER GIV ING ADEQUATE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE AND PASS A SPEAKING ORDER. 6. IN THE RESULT, ASSESSEES APPEAL IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED ON 07-03-2019. SD/- (H.S. SIDHU) JUDICIAL MEMBER DATED : 07-03-2019 SR BHATANGAR COPY FORWARDED TO: 1.APPELLANT 2.RESPONDENT 3.CIT 4.CIT(A), NEW DELHI. 5.CIT(ITAT), NEW DELHI. AR, ITAT NEW DELHI.