Mr. Vinay Khaitan, Noida V. JCIT, Noida

ITA 5491/DEL/2016

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 6914 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 6 month(s) 10 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-05-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: G
• Assessment Year: 2005-2006
• Appeal Filed On: 24-10-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH G, NEW DELHI BEFORE SH. R.K PANDA, ACCOUNTANT MEMBER AND MS. SUCHITRA KAMBLE, JUDICIAL MEMBER ITA NO.5491& 5492/DEL/2016 ASSESSMENT YEAR: 2005-06 TO 2006-07 MR. VINAY KHAITAN PROP. VRINDAVAN OVERSEAS A-41 42, SECTOR -2 NOIDA,U.P. PAN NO.AFQPK4347B VS JOINT COMMISSIONER OF INCOME TAX, RANGE-I, NOIDA (APPELLANT) (RESPONDENT) APPELLANT BY NONE RESPONDENT BY SH. N. K. BANSAL, SR. DR DATE OF HEARING: 02/05/2019 DATE OF PRONOUNCEMENT: 03/05/2019 ORDER PER BENCH: 1. THE ABOVE TWO APPEALS FILED BY THE ASSESSEE ARE DIR ECTED AGAINST THE SEPARATE ORDERS DATED 30.03.2016 OF THE CIT (A)-1, NOIDA RELATING TO A. Y. 2005-06 AND 2006-07 RESPECT IVELY. FOR THE SAKE OF CONVENIENCE BOTH THESE APPEALS WERE HEARD T OGETHER AND ARE BEING DISPOSED OF BY THIS COMMON ORDER. PAGE | 2 2. DESPITE SERVICE OF NOTICE NONE APPEARED ON BEHAL F OF THE ASSESSEE. THEREFORE, BOTH THESE APPEALS WERE HEARD ON THE BASIS OF MATERIAL AVAILABLE ON RECORD AND AFTER HEARING T HE LD. DR. 3. LEVY OF PENALTY U/S 271 (1) (C ) OF THE IT ACT B Y THE ASSESSING OFFICER WHICH HAS BEEN UPHELD BY THE CIT(A) IS THE ONLY ISSUE RAISED BY THE ASSESSEE IN THE VARIOUS GROUNDS OF AP PEAL FOR BOTH THE YEARS. 4. FACTS OF THE CASE, IN BRIEF, ARE THAT THE ASSESS EE IS AN INDIVIDUAL AND IS ENGAGED IN THE BUSINESS OF MANUFA CTURING AND EXPORT OF QUILTS, CUSHIONS AND ACCESSORIES ETC. THE ASSESSING OFFICER COMPLETED THE ASSESSMENT U/S 143 (3) ON A T OTAL INCOME OF RS.2,34,66,740/- AS AGAINST THE RETURNED INCOME OF RS.2,17,33,610/- FOR ASSESSMENT YEAR 2005-06. SIMIL ARLY FOR ASSESSMENT YEAR 2006-07 THE ASSESSING OFFICER COMPL ETED THE ASSESSMENT ON A TOTAL INCOME OF RS.3,18,03,400/- AS AGAINST THE RETURNED INCOME OF RS.2,91,48,317/-. THE ASSESSEE PREFERRED APPEAL BEFORE THE LD. CIT(A) WHO GAVE PART RELIEF T O THE ASSESSEE. SUBSEQUENTLY THE ASSESSEE FILED APPEAL BEFORE THE T RIBUNAL AND THE TRIBUNAL RESTORED THE ISSUE TO THE FILE OF THE ASSESSING OFFICER WITH CERTAIN DIRECTIONS. THE ASSESSING OFFICER ACCO RDINGLY DETERMINED THE TOTAL INCOME OF THE ASSESSEE AT RS.2 ,33,66,740/- FOR ASSESSMENT YEAR 2005-06 AND RS.3,16,53,940/- FO R ASSESSMENT YEAR 2006-07. THE ASSESSING OFFICER THER EAFTER INITIATED PENALTY PROCEEDINGS U/S 271 (1) (C ) AND LEVIED OF PENALTY PAGE | 3 OF RS.2,20,000/- FOR ASSESSMENT YEAR 2005-06 AND RS .7,50,000/- FOR ASSESSMENT YEAR 2006-07. IN APPEAL THE LD. CIT( A) CONFIRMED THE PENALTY SO LEVIED BY THE ASSESSING OFFICER FOR BOTH THE YEARS IN THE EXPARTE ORDER PASSED BY HIM SINCE NONE APPEARED BEFORE HIM DESPITE SERVICE OF NOTICE. 5. AGGRIEVED WITH SUCH ORDER OF THE CIT(A), THE ASS ESSEE IS IN APPEAL BEFORE THE TRIBUNAL. 6. WE HAVE HEARD THE LD. DR AND PERUSED THE MATERIA L AVAILABLE ON RECORD. IT IS AN ADMITTED FACT THAT D UE TO NON APPEARANCE BEFORE THE CIT(A) DESPITE SUFFICIENT OPP ORTUNITIES GRANTED BY HIM, THE LD. CIT(A) IN THE EXPARTE ORDER PASSED BY HIM CONFIRMED THE PENALTY SO LEVIED BY THE ASSESSING OF FICER. HOWEVER, CONSIDERING THE TOTALITY OF THE FACTS OF T HE CASE AND IN THE INTEREST OF JUSTICE WE DEEM IT PROPER TO RESTOR E THE ISSUE TO THE FILE OF THE CIT(A) WITH A DIRECTION TO GRANT ONE FI NAL OPPORTUNITY TO THE ASSESSEE TO SUBSTANTIATE HIS CASE. THE ASSESSE E IS HEREBY DIRECTED TO APPEAR BEFORE THE CIT(A) AND EXPLAIN HI S CASE FAILING WHICH THE LD. CIT(A) IS AT LIBERTY TO PASS APPROPRI ATE ORDERS AS PER LAW. WE HOLD AND DIRECT ACCORDINGLY. THE GROUNDS R AISED BY THE ASSESSEE ARE ACCORDINGLY ALLOWED FOR STATISTICAL PU RPOSE. 7. IN THE RESULT, BOTH THE APPEALS FILED BY THE ASS ESSEE ARE ALLOWED FOR STATISTICAL PURPOSE. PAGE | 4 ORDER PRONOUNCED IN THE OPEN COURT ON 03.05.2019. SD/- SD/- (SUCHITRA KAMBLE) (R.K PANDA) JUDICIAL MEMBER ACCOUNTANT MEM BER *NEHA* DATE:- .05.2019 COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT ASSISTANT REGISTRAR ITAT NEW DELHI DATE OF DICTATION 01.05.2019 DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER 02.05.2019 DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR.PS /PS DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE D ICTATING MEMBER FOR PRONOUNCEMENT DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR. PS/ PS DATE ON WHICH THE FINAL ORDER IS UPLOADED ON THE WE BSITE OF ITAT 03.05.2019 DATE ON WHICH THE FILE GOES TO THE BENCH CLERK DATE ON WHICH FILE GOES TO THE HEAD CLERK. THE DATE ON WHICH FILE GOES TO THE ASSISTANT REGIST RAR FOR SIGNATURE ON THE ORDER DATE OF DISPATCH OF THE ORDER