AMOL CAPITAL MARKETS P. LTD., MUMBAI V. DCIT 4(1), MUMBAI

ITA 5232/MUM/2016

• Counselvise Citation: [2017] 128 COUNSELVISE.COM (IT) 0672 (ITAT-MUMBAI)
• Duration Of Justice: 8 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-05-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: J
• Next Hearing Date: 13-04-2017
• Assessment Year: 2012-2013
• Appeal Filed On: 19-08-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ANJU GORADIA
• Section: 142(1)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH J MUMBAI BEFORE SHRI C.N. PRASAD (JUDICIAL MEMBER) AND SHRI N.K. PRADHAN (ACCOUNTANT MEMBER) ITA NO. 5232/MUM/2016 ASSESSMENT YEAR: 2012-13 M/S AMOL CAPITAL MARKETS P LTD VS. DCIT4( 1) ROOM NO.640, 6 TH FLOOR 106, MOTLIBAI WADIA BLDG, 1 ST FLOOR, AAYAKAR BHAVAN, 22-D, S A BRELVI ROAD, FORT, M.K. ROAD, MUMBAI-400001 MUMBAI 400020 PAN NO. AADCS8022N (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI PRATIK JAIN, AR REVENUE BY: SHRI ANJU GORADIA, DR DATE OF HEARING : 13/0 4/2017 DATE OF PRONOUNCEMENT: 12/05/2017 ORDER PER N.K. PRADHAN, AM THIS IS AN APPEAL FILED BY THE ASSESSEE. THE RELEVA NT ASSESSMENT YEAR IS 2012-13. IT IS DIRECTED AGAINST THE ORDER OF COM MISSIONER (APPEALS)-9, MUMBAI AND ARISES OUT OF THE ORDER U/S. 271(1)(B) O F THE INCOME TAX ACT, 1961 (THE ACT). 2. THE GROUNDS OF APPEAL FILED BY THE ASSESSEE READ AS UNDER: I. THE LD. CIT(A) ERRED IN FACTS AND CIRCUMSTANCES AN D IN LAW IN CONFIRMING PENALTY LEVIED U/S 271(1)(B) BY A.O. II. REASONS GIVEN BY LD. CIT(A) IN CONFIRMING THE AC TION OF A.O. ARE WRONG, INSUFFICIENT AND CONTRARY TO FACTS AND EVIDENCE ON RECORD AND IN LAW. ITA NO. 5232/MUM/2016 2 3. BRIEFLY STATED THE FACTS OF THE CASE ARE THAT TH E ASSESSEE FILED ITS RETURN OF INCOME FOR THE A.Y. 2012-13 ON 21.09.2012 DECLAR ING TOTAL INCOME OF RS. NIL. AS APPARENT FROM THE ORDER U/S 271(1)(B) OF TH E ACT DATED 09.10.2014 PASSED BY THE ASSESSING OFFICER (A.O.), A QUESTIONN AIRE U/S 142(1) DATED 09.05.2014 WAS ISSUED AND SERVED ON THE ASSESSEE RE QUIRING TO FURNISH CERTAIN DETAILS AND ATTEND THE HEARING ON 20.05.201 4. THE A.O. HAS MENTIONED THAT (I) THERE WAS NO COMPLIANCE BY THE A SSESSEE ON THE ABOVE DATE AND (II) THE ASSESSEE DID NOT EVEN FILE A LETT ER SEEKING ADJOURNMENT. HOWEVER, THE A.O. HAS MENTIONED THAT THE ASSESSEE S UBMITTED THE RELATED DETAILS VIDE LETTER DATED 19.05.2014. THE A.O. THEN ISSUED A SHOW CAUSE LETTER DATED 28.08.2014 TO THE ASSESSEE TO SHOW CAU SE AS TO WHY PENALTY U/S 271(1)(B) SHOULD NOT BE LEVIED AS THERE WAS FAILURE ON THE PART OF THE ASSESSEE TO COMPLY WITH THE NOTICE U/S 142(1) DATED 09.05.2014. THE A.O. FIXED THE PENALTY PROCEEDINGS FOR HEARING ON 19.09. 2014. THERE WAS NO COMPLIANCE BY THE ASSESSEE ON THE ABOVE DATE. THERE FORE, THE A.O. IMPOSED A PENALTY OF RS. 10,000/- U/S 271(1)(B) OF THE ACT. 4. AGGRIEVED BY THE ORDER OF THE A.O., THE ASSESSEE FILED AN APPEAL BEFORE THE LEARNED CIT(A). WE FIND THAT THE LEARNED CIT(A) OBSERVED THAT THE ASSESSEE NEITHER TOOK PERMISSION FROM THE A.O. TO P REPONE THE HEARING BY FILING ANY LETTER NOR DID THE ASSESSEE COMPLY FULLY BEFORE THE A.O. ON OR PRIOR TO THE FIRST DATE OF HEARING ON 20.05.2014. THEREFO RE, THE LEARNED CIT(A) UPHELD THE PENALTY OF RS. 10,000/- IMPOSED BY THE A .O. U/S 271(1)(B). 5. BEFORE US THE LEARNED COUNSEL OF THE ASSESSEE SU BMITS THAT IT COULD NOT APPEAR BEFORE THE A.O. ON 20.05.2014 BECAUSE OF GENUINE DIFFICULTY. HOWEVER, THE ASSESSEE FILED THE DETAILS CALLED FOR VIDE SUBMISSION DATED 19.05.2014. IT IS THUS SUBMITTED THAT NON-APPEARANC E ON A SINGLE DATE SHOULD NOT HAVE LED TO IMPOSITION OF PENALTY OF RS. 10,000/- BY THE A.O. U/S ITA NO. 5232/MUM/2016 3 271(1)(B) OF THE ACT. ON THE OTHER HAND, THE LEARNE D DR RELIED ON THE ORDER OF THE LEARNED CIT(A) CONFIRMING THE PENALTY IMPOSE D BY THE A.O. 6. WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE RELEVANT MATERIAL ON RECORD. WE FIND THAT THE A.O. HAS IMPOS ED THE SAID PENALTY ONLY BECAUSE THE ASSESSEE COULD NOT APPEAR BEFORE HIM ON 20.05.2014. HOWEVER, THE ASSESSEE FILED THE DETAILS CALLED FOR VIDE SUBM ISSION DATED 19.05.2014. THE ASSESSEE HAS THUS FILED THE DETAILS ONE DAY BEF ORE THE DATE OF HEARING FIXED ON 20.05.2014. THERE BEING NO SUFFICIENT REAS ON TO IMPOSE PENALTY U/S 271(1)(B), THE SAME IS CANCELLED. 7. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 12/05/2017 SD/- SD/- (C.N. PRASAD) (N.K. PRADHAN) JUDICIAL MEMBER ACCOUNTANT MEMBE R MUMBAI; DATED: 12/05/2017 BISWAJIT, SR. P.S. COPY OF THE ORDER FORWARDED TO : 1. THE APPELLANT 2. THE RESPONDENT. 3. THE CIT(A) - 4. CIT 5. DR, ITAT, MUMBAI 6. GUARD FILE . BY ORDER, //TRUE COPY// (DY./ASSTT. REGISTRAR) ITAT, MUMBAI