Taj Exim International Ltd, New Delhi V. ACIT, Circle-25(1), New Delhi

ITA 613/DEL/2019

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 4036 (ITAT-DELHI)
• Duration Of Justice: 1 year(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-02-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: G
• Assessment Year: 2001-2002
• Appeal Filed On: 29-01-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: D C AGARWAL
• Keywords: Recovery proceedings; Set aside
• Section: 144; 10

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH FRIDAY-A NEW DLEHI BEFORE SHRI G.S. PANNU, VICE-PRESIDENT AND SHRI K. NARASIMHA CHARY, JUDICIAL MEMBER ITA NOS. 244, 245, 246, 247 & 249/DEL/2020 ASSESSMENT YEARS: 2005-06, 2007-08, 2007-08, 2009-1 0 & 2009-10 TAJ EXIM INTERNATIONAL LTD., VS. ACIT, CIRCLE 25( 1), FIRST FLOOR, D-7/7 VASANT VIHAR, NEW DELHI. NEW DELHI. PAN : AACFT6983H ITA NOS. 613, 614, 615 & 617/DEL/2019 ASSESSMENT YEARS: 2001-02, 2002-03, 2003-04 & 2006- 07 TAJ EXIM INTERNATIONAL LTD., VS. ACIT, CIRCLE 25( 1), FIRST FLOOR, D-7/7 VASANT VIHAR, NEW DELHI. NEW DELHI. (APPELLANT) (RESPONDENT) APPELLANT BY : SH. D.C. AGARWAL, ADV. RESPONDENT BY: MS. RAKHI VIMAL, SR. DR DATE OF HEARING: 14.02.2020 DATE OF ORDER : 14.02.2020 ORDER PER K. NARASIMHA CHARY, J.M. ALL THESE APPEALS RELATE TO THE VERY SAME ASSESSE E, NAMELY TAJ EXIM INTERNATIONAL LTD. FOR ASSESSMENT YEARS 2001-02 TO 2003-04, 2005-06 TO 2007-08 AND 2009-10 AND ALSO PENALTY IN RESPECT OF ASSESSME NT YEARS 2007-08 AND 2009- 10. 2 2. SINCE THE FACTS GIVING RISE TO THESE APPEALS AND THE ARGUMENTS ADVANCED ON EITHER SIDE ARE IDENTICAL, WE DEEM IT JUST AND C ONVENIENT TO DISPOSE OF THESE APPEALS BY WAY OF THIS COMMON ORDER. 2. THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESSE E, TAJ EXIM INTERNATIONAL LTD. IS ENGAGED IN THE BUSINESS OF STITCHED AND ULTRASON IC WELDING, APPAREL, CONSUMER PACKS IN INTERNATIONAL MARKET AND FOR SUCH PURCHASE , THEY OBTAINED LOAN FROM BANK OF BARODA. FOR REALISATION OF THE DEBT, THE BA NK ATTACHED THE PROPERTY OF ASSESSEE AND DURING THE PENDENCY OF RECOVERY PROCEE DINGS, THE MANAGING DIRECTOR OF THE COMPANY, MR. JBS BAKSHI DIED ON 17. 03.2009 AND ANOTHER SHAREHOLDER, NAMELY, JEET BAHADUR SINGH BAKSHI WAS MENTALLY RETORTED PERSON SINCE BIRTH AND WAS BEING LOOKED AFTER BY MRS. JK B AKSHI, WHO HAPPENED TO BE THE WIFE OF MR. JEET BAHADUR SINGH BAKSHI. MR. JEET BAH ADUR BAKSHI EXPIRED ON 09.03.2016. WIFE OF SHRI JEET BAHADUR SINGH BAKSHI, NAMELY, MRS.J.K BAKSHI BECAME THE DIRECTOR BUT DUE TO RECOVERY PROCEEDINGS BY BANK OF BARODA AND DEATH OF HER HUSBAND, SHRI JBS BAKSHI IN MARCH, 200 9, THE BUSINESS OF THE ASSESSEE CAME TO STAND STILL AND THE ONLY SOURCE OF INCOME, THE LD. AR SUBMITTED THAT TO MAINTAIN THE NAME OF COMPANY AND TO MAINTAI N THE DIRECTOR MRS. J.K. BAKSHI WAS THE RENTAL RECEIPTS FROM M/S. JEUS, BUT AS A MATTER OF FACT SUCH PROPERTY ALSO STOOD ATTACHED BY THE DEPARTMENT. 3. IN VIEW OF THE FINANCIAL AND PERSONAL SITUATION AND ALSO BECAUSE OF HER ADVANCED AGE OF 75 YEARS, MRS. J.K. BAKSHI WAS NOT IN FIT MENTAL CONDITION TO TAKE CARE OF THE AFFAIRS OF THE COMPANY AND SHE HAS BEEN REELING UNDER SEVERE MENTAL SHOCKS AND GRIEF. IN THESE CIRCUMSTANCES, SHE WAS U NABLE TO TAKE CARE OF THE APPELLATE PROCEEDINGS RESULTING INTO IMPUGNED ORDER S. 4. HE DEMONSTRATED TO US THAT IN RESPECT OF ASSESSM ENT YEARS 2005-06, 2007- 08 AND 2009-10, THE ORDERS OF THE ASSESSING OFFICER WERE PASSED U/S. 144 WHICH CLEARLY CORROBORATES THE CONTENTION OF THE ASSESSEE THAT THE NON PROSECUTION OF 3 THE ASSESSMENTS AND FIRST APPELLATE PROCEEDINGS DIL IGENTLY IS NOT A WILFUL ONE AND DUE TO THE FORCED CIRCUMSTANCES STATED ABOVE. IN TH ESE CIRCUMSTANCES, LD. AR URGED THAT A LENIENT VIEW MAY BE TAKEN IN THESE MAT TERS ON HUMANITARIAN CONSIDERATION AND THE IMPUGNED ORDERS MAY BE SET AS IDE AND THE MATTERS MAY BE REMANDED TO THE FILE OF THE ASSESSING OFFICER FOR D ISPOSAL AFRESH AND THE ASSESSEE IS READY TO COOPERATE WITH THE PROCEEDINGS BY FURNI SHING THE EVIDENCES AVAILABLE IN THE CUSTODY OF SURVIVING DIRECTOR, NAMELY MRS. J .K. BAKSHI. 5. WE HEARD THE LD. DR ALSO AND PERUSED THE MATERIA L PAPERS ON RECORD IN THE LIGHT OF SUBMISSIONS MADE. IT COULD BE SEEN FROM TH E RECORD THAT THE QUANTUM APPEALS IN RESPECT OF ASSESSMENT YEARS 2005-06, 200 7-08 AND 2009-10 AND PENALTY APPEALS FOR ASSESSMENT YEARS 2007-08 AND 20 09-10 WERE DECIDED EXPARTE AND ALSO THE ASSESSMENTS FOR THE ASSESSMENT YEARS 2 005-06, 2007-08 AND 2009- 10 WERE U/S. 144 OF THE ACT. IN VIEW OF THE HARDSHI P PLEADED ON BEHALF OF THE ASSESSEE THAT DUE TO RECOVERY PROCEEDINGS INITIATED BY BANK OF BARODA, ALL THE ASSETS OF THE ASSESSEE WERE ATTACHED AND MOST OF TH E ASSETS WERE SOLD, BUSINESS WAS STOPPED, THE MANAGING DIRECTOR AND ANOTHER DIRE CTOR DIED IN MARCH, 2009 AND THE MANTEL HAD BURNT ON THE SURVIVOR OF THE MAN AGING DIRECTOR WHO IS ALSO AGED ABOUT 75 YEARS, WE ARE OF THE CONSIDERED OPINI ON THAT THERE IS PROPER EXPLANATION ON BEHALF OF THE ASSESSEE FOR NON-DILIG ENT CONDUCT OF THE ASSESSMENT AND APPELLATE PROCEEDINGS. IN THE CIRCUMSTANCES, WE ARE OF THE CONSIDERED OPINION THAT AN OPPORTUNITY MAY BE GRANTED TO THE A SSESSEE TO ESTABLISH THEIR CASES BEFORE THE ASSESSING OFFICER IN VIEW OF THE S UBMISSIONS MADE ACROSS THE BAR BY THE LD. AR THAT GIVEN AN OPPORTUNITY, THE AS SESSEE WOULD COOPERATE WITH THE AUTHORITIES FOR GETTING THE MATTER DISPOSED OF ON MERITS. WITH THIS VIEW OF THE MATTER, WE SET ASIDE THE IMPUGNED ORDERS AND REMAND THE MATTERS TO THE FILE OF ASSESSING OFFICER TO AFFORD AN OPPORTUNITY TO THE A SSESSEE AND TO CONCLUDE THE ASSESSMENTS AFRESH. IN VIEW OF THE REMAND OF THE QU ANTUM APPEALS, THE PENALTY 4 APPEALS ARE ALSO SENT BACK TO TAKE A VIEW IN CONSON ANCE WITH THE ASSESSMENT ORDERS FOR THE RELEVANT YEARS. 6. IN THE RESULT, ALL THESE APPEALS OF THE ASSESSEE ARE ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 14 TH FEBRUARY, 2020. SD/- SD/- (G.S. PANNU) (K. NARASIMHA CHARY) VICE-PRESIDENT JUDICIAL MEMBER DATED:14/02/2020 AKS