M/s. Arora Jewellers Pvt. Ltd., Delhi V. ACIT, New Delhi

ITA 6002/DEL/2014

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 6819 (ITAT-DELHI)
• Duration Of Justice: 1 year(s) 8 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-07-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC 1
• Next Hearing Date: 26-07-2016
• Assessment Year: 2002-2003
• Appeal Filed On: 05-11-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: SUMANGLA SAXENA ADVS
• Keywords: Opportunity of being heard; Principle of natural justice

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH SM C - 1 , NEW DELHI BEFORE SH. N. K. SAINI, A CCOUNTANT M EMBER ITA NO S . 6002 TO 6005/DEL/2014 : ASSTT. YEAR S : 2002 - 03 TO 2005 - 06 M/S ARORA JEWELLERS PVT. LTD . L - 9, VIJAY CHOWK, LAXMI NAGAR, DELHI VS ACIT, CENTRAL CIRCLE - 12, NEW DELHI (APPELLANT) (RESPONDENT) PAN NO. A AECA2119B ASSESSEE BY : SH. RAJIV SAXENA & MS. SUMANGLA SAXENA, ADVS. REVENUE BY : NONE DATE OF HEARING : 26 .07 .201 6 DATE OF PRONOUNCEMENT : 28 .07 .201 6 ORDER THESE APPEALS BY THE ASSESSEE ARE DIRECTED AGAINST THE SEPARATE ORDERS EACH DATED 31.01.2014 OF LD. CIT(A) - VI, NEW DELHI FOR THE ASSESSMENT YEARS 2002 - 03 TO 2004 - 05. 2 . COMMO N ISSUE PERTAINING TO CONFIRMATION OF PENALTY U/S 271(1)(C) OF THE INCOME TAX ACT, 1961 (HEREINAFTER REFERRED TO AS THE ACT) IS INVOLVED IN ALL THESE APPEAL S WHICH WERE HEARD TOGETHER SO THESE ARE BEING DISPOSED OFF BY THIS CONSOLIDATED ORDER FOR THE SAKE OF CONVENIENCE AND BREVITY. 3 . THE REGISTRY HAS POINTED OUT THAT EACH OF THE APPEAL OF THE ASSESSEE IS BARRED BY LIMITATION BY 230 DAYS. THE DIRECTOR OF THE ASSESSEE FILED ITA NO S. 6002 TO 6005 /DEL /201 4 ARORA JEWELLERS PVT. LTD. 2 APPLICATIONS FOR CONDONATION OF DELAY. THE CONTENTS OF THE EACH APPLICATION ARE AS UNDER: SIR, THE AFORESAID ASSESSEE COMPANY WAS LOOKED AFTER BY LATE SH. SATISH ARORA. AFTER HIS SUDDEN DEMISE ON 23 - 03 - 2010, THE BUSINESS WAS LOOKED AFTER BY LATE SMT. SUSHMA ARORA THE ANOTHER SHAREHOLDER, WHO WAS DEPENDENT ON PROFESSIONALS. AFTER HIS D EATH SH. V. K. GUPTA AN EMPLOYEE WAS APPOINTED AS DIRECTOR AND THEREAFTER IN 2012 SH. KAPIL SACHDEVA WAS APPOINTED AS DIRECTOR. THE SHAREHOLDER WERE ONLY MR. & MRS. ARORA. MRS. SUSHMA ARORA WAS ALSO EXPIRED ON 25 - 05 - 2014. IT IS SUBMITTED THAT DIRECTOR SHRI KAPIL SACHDEVA WAS APPOINTED TO LOOK AFTER THE MATTER WHO WAS ASSISTED BY PROFESSIONALS. THE COMPANY DID NOT CONTINUE BUSINESS ACTIVITIES AFTER THEIR DEATH AND SO PROFESSIONALS ALSO DID NOT CARE. RECENTLY SMT. MONIKA SETHI IS APPOINTED AS DIRECTOR WHO IS SAMDHIN OF MRS. SUSHMA ARORA ABOUT FEW DAYS BEFORE. IT IS SUBMITTED THAT THE UNDERSIGNED IS APPOINTED AS DIRECTOR AND VERY NEW WHILE COMPANY WAS NOT DOING ANY BUSINESS AFTER THE DEATH OF BOTH MAIN SHAREHOLDERS , NOBODY FOLLOWED UP THE MATTER WITH THE COUNS EL AFTER SENDING THE ORDER PASSED BY THE CIT(A). THE PROFESSIONALS WHO WERE LOOKING AFTER THE MATTER ALSO DID NOT TAKE INTEREST AS A RESULT OF WHICH THE APPEAL COULD NOT BE PREPARED BY THEM AND RECENTLY THEY HAVE RETURNED THE ORDER OF CIT(A) DISMISSING ASS ESSEE'S APPEAL ON PENALTY. THE APPEALS ON QUANTUM IS ALREADY PENDING BEFORE THE HON'BLE ITAT. IT IS HUMBLY SUBMITTED THAT THIS APPEAL IS NOW PREPARED BY THE NEW COUNSEL WHO INFORMED THAT IT IS BARRED BY LIMITATION AND SO IT IS NECESSARY TO CONDONE THE DEL AY. IT IS HUMBLY PRAYED THAT KEEPING IN VIEW THE PRINCIPLES OF NATURAL JUSTICE & THE CIRCUMSTANCES IN WHICH BOTH THE MAIN SHAREHOLDERS AND THE DIRECTORS OF THE COMPANY EXPIRED, AN OPPORTUNITY OF BEING HEARD BE GIVEN AND THE DELAY MAY KINDLY BE CONDONED. S D/ - (MONIKA SETHI) DIRECTOR ITA NO S. 6002 TO 6005 /DEL /201 4 ARORA JEWELLERS PVT. LTD. 3 4 . DURING THE COURSE OF HEARING THE LD. COUNSEL FOR THE ASSESSEE REITERATED THE CONTENTS OF THE AFORESAID APPLICATION AND REQUESTED TO CONDONE THE DELAY WHICH WAS BEYOND THE CONTROL OF THE ASSESSEE . IN THE PRESENT CASE, IT APPE ARS THAT THE ASSESSEE COMPANY WAS HAVING ONLY TWO SHAREHOLDERS NAMELY, LATE SH. SATISH ARORA AND LATE SMT. SUSHMA ARORA WHO WERE ALSO THE DIRECTORS . HOWEVER, AFTER THEIR DEATH , THE PROFESSIONALS APPOINTED AS DIRECTOR DID NOT TAKE CARE . T HEREAFTER , SMT. MON IKA SETHI RELATIVE OF THE EARLIER DIRECTORS LATE SH. SATISH ARORA AND LATE SMT. SUSHMA ARORA WAS APPOINTED THE DIRECTOR. IT IS ALSO NOTICED THAT THE LD. CIT(A) PASSED THE IMPUGNED ORDERS EX - PARTE QUA THE ASSESSEE. AFTER CONSIDERING T HE AFORESAID NARRATED P ECULIAR FACTS OF THIS CASE, THE DELAY IN FILING THE APPEAL APPEARS TO BE BEYOND THE CONTROL OF THE ASSESSEE , THEREFORE, THE SAME IS CONDONED AND THE APPEALS ARE ADMITTED. 5 . DURING THE COURSE OF HEARING THE LD. COUNSEL FOR THE ASSESSEE AT THE VERY OUTSE T SATED THAT THE APPEALS ON QUANTUM IN ITA NOS. 3101 TO 3104/DEL/2011 HAD ALREADY BEEN HEARD BY THE ITAT A BENCH, NEW DELHI ON 26.07.2016 . THEREFORE, THESE CASES MAY BE SET ASIDE TO THE AO TO BE DECIDED AFTER CONSIDERING THE OUTCOME OF THE QUANTUM APPEAL S ALREADY HEARD BY THE A BENCH OF THE ITAT NEW DELHI. THE LD. SENIOR DR ALTHOUGH SUBMITTED THAT THESE CASES ARE ALLOTTED TO THE LD. CIT(A), WHO IS NOT AVAILABLE. ITA NO S. 6002 TO 6005 /DEL /201 4 ARORA JEWELLERS PVT. LTD. 4 6 . AFTER CONSIDERING THE SUBMISSIONS OF THE LD. COUNSEL FOR THE ASSESSEE AND THE MATERIAL O N RECORD, IT IS NOTICED THAT THE LD. CIT(A) PASSED THE IMPUGNED ORDER EX - PARTE AND DISMISSED THE APPEALS OF THE ASSESSEE IN LIMINE. I T IS ALSO NOTICED THAT THE APPEALS IN QUANTUM ADDITIONS HAVE ALREADY BEEN HEARD BY THE ITAT BENCH A , NEW DELHI ON 26.07.2 016 AND HAVE THE DIRECT BEARING ON THESE APPEALS PERTAINING TO THE PENALTY U/S 271(1)(C) OF THE ACT . THEREFORE, THESE APPEALS ARE SET ASIDE TO THE FILE OF THE AO TO BE DECIDED IN ACCORDANCE WITH LAW AFTER CONSIDERING THE OUTCOME OF THE AFORESAID REFERRED T O APPEALS OF THE ASSESSEE ON QUANTUM ADDITION. 7 . IN THE RESULT, THE APPEAL S OF THE ASSESSEE ARE ALLOWED FOR STATISTICAL PURPOSES . (O RD ER PRO NO UNCED IN THE COURT ON 28 /07 /2016 ) SD/ - (N. K. SAINI) ACCOUNTANT MEMBER DAT ED: 28 /07 /2016 *SUBODH* COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT ASSISTANT REGISTRAR