SHARDA SUGAR COMPANY, MUZAFFARNAGAR V. ITO, WARD- 2(3), MUZAFFARNAGAR

ITA 5316/DEL/2018

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 6554 (ITAT-DELHI)
• Duration Of Justice: 11 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 01-08-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2013-2014
• Appeal Filed On: 08-08-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S L ANURAGI
• Keywords: Set aside
• Section: 271(1)(c)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH : SMC : NEW DELHI BEFORE SHRI R.K. PANDA, ACCOUNTANT MEMBER ITA NO.5316/DEL/2018 ASSESSMENT YEAR: 2013-14 SHARDA SUGAR COMPANY, C/O N.K. ARORA, ADVOCATE, 219, CIVIL LINE SOUTH, MUZAFFARNAGAR, UTTAR PRADESH. PAN: AAFFS1902E VS. ITO, WARD 2(3), MUZAFFARNAGAR (UP). (APPELLANT) (RESPONDENT) ASSESSEE BY : SMT. PREM LATA BANSAL, SR. ADVO CATE & SHRI ABHISHEK KUMAR, ADVOCATE REVENUE BY : SHRI S.L. ANURAGI, SR.DR DATE OF HEARING : 30.07.2019 DATE OF PRONOUNCEMENT : 01.08.2019 ORDER THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER DATED 30.08.2017 OF THE CIT(A), MUZAFFARNAGAR, RELATING TO ASSESSMENT YEAR 2013-14. 2. THE ASSESSEE IN THE VARIOUS GROUNDS OF APPEAL HA S CHALLENGED THE ORDER OF THE CIT(A) IN CONFIRMING THE PENALTY OF RS.10 LAKHS U/S 271(1)(C) OF THE ACT. 3. THERE IS A DELAY OF 78 DAYS IN FILING OF THIS AP PEAL. THE LD. COUNSEL FOR THE ASSESSEE REFERRING TO THE CONDONATION APPLICATION F ILED ALONG WITH THE AFFIDAVIT OF THE ASSESSEE, SUBMITTED THAT DURING THE RELEVANT TIME, THE ASSESSEE WAS A PARTNERSHIP FIRM ITA NO.5316/DEL/2018 2 CONSISTING OF THREE PARTNERS, NAMELY, SHRI PUNEET T ANDON, SHRI SUMIT TANDAN AND SMT. SHARDA TANDAON. SHRI SUMIT TANDON WAS RETIRED FROM THE PARTNERSHIP FIRM ON 31.03.2015. THEREFORE, THE ENTIRE RESPONSIBILITY C AME TO SHRI PUNEET TANDON AND SMT. SHARDA TANDON. HOWEVER, SMT. SHARDA TANDON WAS A S ENIOR CITIZEN AND WAS SUFFERING FROM CANCER AND HAD ALSO UNDERGONE SURGERY TWICE DU E TO CANCER. EVEN SHRI PUNEET TANDON IS ALSO SUFFERING FROM DEPRESSIVE DISORDER A ND DURING THE MONTH OF MAY AND JUNE, HE WAS SERIOUSLY ILL FOR WHICH HE COULD NOT G IVE INSTRUCTIONS TO THE COUNSEL. SHE ACCORDINGLY SUBMITTED THAT DUE TO THIS UNAVOIDABLE CIRCUMSTANCES, THERE IS A DELAY IN FILING OF THE APPEAL BEFORE THE TRIBUNAL. 4. AFTER HEARING THE RIVAL CONTENTIONS MADE BY BOTH THE SIDES, THE DELAY IN FILING THE APPEAL BY THE ASSESSEE IS CONDONED. 5. THE LD. COUNSEL FOR THE ASSESSEE, AT THE OUTSET, FILED THE COPY OF THE ORDER OF THE TRIBUNAL IN ASSESSEES OWN CASE VIDE ITA NO.6891/DE L/2017, ORDER DATED 22 ND JULY, 2019 AND SUBMITTED THAT THE QUANTUM ADDITION HAS BE EN RESTORED TO THE FILE OF THE ASSESSING OFFICER FOR FRESH ADJUDICATION. THEREFOR E, THE PENALTY DOES NOT SURVIVE. SHE ACCORDINGLY SUBMITTED THAT THE PENALTY SO LEVIED BY THE ASSESSING OFFICER AND SUSTAINED BY THE CIT(A) SHOULD BE CANCELLED. 6. THE LD. DR, ON THE OTHER HAND, SUPPORTED THE ORD ER OF THE ASSESSING OFFICER AND CIT(A). ITA NO.5316/DEL/2018 3 7. I HAVE CONSIDERED THE RIVAL ARGUMENTS MADE BY BO TH THE SIDES AND PERUSED THE MATERIAL AVAILABLE ON RECORD. A PERUSAL OF THE ORD ER OF THE TRIBUNAL SHOWS THAT THE QUANTUM ADDITION HAS BEEN RESTORED TO THE FILE OF T HE ASSESSING OFFICER FOR DECIDING THE ISSUE AFRESH. THEREFORE, THE PENALTY SO LEVIED BY THE ASSESSING OFFICER AND SUSTAINED BY THE CIT(A) DOES NOT SURVIVE AND THEREFORE THE SA ME IS CANCELLED. HOWEVER, THE ASSESSING OFFICER IS AT LIBERTY TO INITIATE PENALTY PROCEEDINGS AFTER THE MATTER IS DECIDED BY HIM IN THE SET ASIDE PROCEEDINGS. 8. IN THE RESULT, THE APPEAL FILED BY THE ASS ESSEE IS ALLOWED. THE DECISION WAS PRONOUNCED IN THE OPEN COURT ON 0 1.08.2019. SD/- ( R.K. PANDA) ACCOUNTANT MEMFBE R DATED: 01 ST AUGUST, 2019 DK COPY FORWARDED TO : 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR ASSTT. REGISTRAR, ITAT, NEW DELHI