Bodhsons Investment & Finance Pvt. Ltd., New Delhi V. ITO, New Delhi

ITA 5931/DEL/2013

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 7542 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 6 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-05-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 25-05-2016
• Assessment Year: 2000-2001
• Appeal Filed On: 05-11-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: K K JAISWAL
• Keywords: Reopening of assessment; Principle of natural justice

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH A , NEW DELHI BEFORE SHRI I.C.SUDHIR, JUDICIAL MEMBER AND SHRI J. SUDHAKAR REDDY, ACCOUNTANT MEMBER ITA NO. 5931 /DEL/201 3 AY: 2000 - 01 BODHSONS INVESTMENT & FINANCE P.LTD. VS. ITO, WARD 3(1) THROUGH HS SETHI, ADV. NEW DELHI J.S.SETHI & ASSOCIATES E 32C, RAJOURI GARDEN NEW DELHI 110 027 PAN: AAACB 3937 (APPELLANT) (RESPONDENT) APPELLANT BY : SH. SALIL AGARWAL, ADV. AND SH.SHAILESH GUPTA, C.A. RESPONDENT BY : SH. K.K. JAISWAL, D.R. ORDER PER J. SUDHAKAR REDDY, ACCOUNTANT MEMBER THIS IS AN APPEAL FILED BY THE ASSESSEE DIRECTED AGAINST THE ORDER DATED 6. 9.2013 OF LD.CIT(A) - V I , NEW DELHI PERTAINING TO THE ASSESSMENT YEAR (HEREINAFTER REFERRED TO AS THE A.Y.) 200 0 - 01 , WHEREIN A PENALTY LEVIED U/S 271(1)(C) OF THE INCOME TAX ACT, 1961 (HEREINAFTER REFERRED TO AS THE ACT ) DATED 28.3.2011 WAS CONFIRMED BY THE LD.CIT(APPEALS). 2. WE HAVE HEARD SHRI SALIL AGARWAL , THE LD.COUNSEL FOR THE ASSESSEE AND SH. K.K.JAISWAL, LD.D.R. ON BEHALF OF THE REVENUE. 3. THE ARGUMENT OF THE LD.COUNSEL FOR THE ASSESSEE IS THAT THERE IS NO S PECIFIC CHARGE IN THE NOTICE ISSUED U/S 271((1)(C) OF THE ACT AND HENCE THE PENALTY ORDER IS BAD IN LAW. HE ALSO ARGUED THAT THE REOPENING OF ASSESSMENT IS BAD IN LAW ON VARIOUS COUNTS AND HENCE THE PENALTY LEVIED ON SUCH INVALID ASSESSMENT IS BAD IN LAW . ITA 5931 /DEL/201 3 A.Y. 200 0 - 01 BODHSONS INVESTMENT & FINANCE PVT. LTD., NEW DELHI 2 4 . LD.D.R. SUBMITS THAT THE REOPENING OF ASSESSMENT IS HELD AS VALID BY THE LD.CIT(A) IN THE QUANTUM PROCEEDINGS VIDE ORDER DT. 14.10.2009 AND THIS ORDER HAS ATTAINED FINALITY, AND HENCE THE ASSESSEE CAN NOT ARGUE OTHERWISE. ON THE ISSUE OF THERE BEING NO SPECIFIC CHARGE IN THE NOTICE U/S 271(1)(C) OF THE ACT , T HE LD.D.R. SUBMITTED THAT THERE WERE OTHER NOTICES U/S 271(1)(C) OF THE ACT ALSO IN THIS CASE. HE HAS NOT PRODUCED ANY O SUCH NOTICES BEFORE THE TRIBUNAL. 4.1. A COPY OF THE NOTICE ISSUED U/S 274 R.W. S.271 OF THE ACT DATED 28.12.2007 IS AT PAGE 77 OF THE ASSESSEE S PAPER BOOK. A PERUSAL OF THE SAME DEMONSTRATES THAT NONE OF THE ALTERNATIVE CHARGES IN THE PRINTED FORM HAVE BEEN STRUCK DOWN. FROM A READING OF T HIS NOTICE, IT IS NOT CLEAR THAT THE CHARGE FOR WHICH THE NOTICE WAS GIVEN IS NOT CLEAR. 4.2. THE HON BLE KARNATAKA HIGH COURT IN THE CASE OF CIT VS. MANJUNATHA COTTON GINNING FACTORY, 359 ITR 565, WHEREIN THE HON BLE HIGH COURT CONSIDERED THE ENTIRE CA SE LAW ON THE SUBJECT OF LEVY OF PENALTY U/S 271(1)(C ) OF THE ACT AND HELD AS FOLLOWS. (P) NOTICE UNDER SECTION 274 OF THE ACT SHOULD SPECIFICALLY STATE THE GROUNDS MENTIONED IN SECTION 271(1)(C), I.E., WHETHER IT IS FOR CONCEALMENT OF INCOME OR FOR FUR NISHING OF INCORRECT PARTICULARS OF INCOME. (Q) SENDING PRINTED FORM WHERE ALL THE GROUND MENTIONED IN SECTION 271 ARE MENTIONED WOULD NOT SATISFY REQUIREMENT OF LAW. (R) THE ASSESSEE SHOULD KNOW THE GROUNDS WHICH HE HAS TO MEET SPECIFICALLY. OTHERWISE, PRINCIPLES OF NATURAL JUSTICE IS OFFENDED. ON THE BASIS OF SUCH PROCEEDINGS, NO PENALTY COULD BE IMPOSED TO THE ASSESSEE. 4.3 . SIMILARLY THE ITAT, MUMBAI BENCH IN THE CASE OF SHRI HAFEEZ S.CONTRACTOR VS. ACIT (IN ITA NOS. 6222 AND 6223/2013 HELD THAT THE PENALTY U/S 271(1)(C ) CANNOT BE IMPOSED IN CASE WHERE NO SPECIFIC CHARGES ARE MENTIONED IN THE PENALTY NOTICE. 5. BY APPLYIN G THE PROPOSITIONS LAI D DOWN IN THE ABOVE CITED CASES TO THE FACTS OF THIS CASE, WE DELETE THE PENALTY LEVIED U/S 271(1)(C) OF THE ACT AND ALLOW THE GROUNDS OF THE ASSESSEE. ITA 5931 /DEL/201 3 A.Y. 200 0 - 01 BODHSONS INVESTMENT & FINANCE PVT. LTD., NEW DELHI 3 6. IN THE RESULT THIS APPEAL OF THE ASSESSEE IS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 30 TH MAY, 2016 . SD/ - SD/ - (I.C.SUDHIR ) (J. SUDHAKAR REDDY) JU DICIAL MEMBER ACCOUNTANT MEMBER DATED: THE 30 TH MAY, 2016 M ANGA COPY FORWARDED TO: - 1 . APPELLANT 2 . RESPONDENT 3 . CIT 4 . CIT(A) 5 . DR, ITAT - TRUE COPY - BY ORDER, ASSISTANT REGISTRAR ITA 5931 /DEL/201 3 A.Y. 200 0 - 01 BODHSONS INVESTMENT & FINANCE PVT. LTD., NEW DELHI 4