Smt. Rekha Rani, Uttar Pradesh V. DCIT, New Delhi

ITA 6131/DEL/2013

• Counselvise Citation: [2015] 121 COUNSELVISE.COM (IT) 0039 (ITAT-DELHI)
• Duration Of Justice: 1 year(s) 5 month(s) 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-05-2015
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: F
• Next Hearing Date: 10-04-2015
• Assessment Year: 2009-2010
• Appeal Filed On: 14-11-2013
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: VIKRAM SAHAY
• Keywords: Reasonable cause
• Section: 144

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL DELHI DELHI DELHI DELHI BENCH BENCH BENCH BENCH F FF F : NEW DELHI : NEW DELHI : NEW DELHI : NEW DELHI BEFORE SHRI G.C. GUPTA BEFORE SHRI G.C. GUPTA BEFORE SHRI G.C. GUPTA BEFORE SHRI G.C. GUPTA, VICE , VICE , VICE , VICE PRESIDENT AND PRESIDENT AND PRESIDENT AND PRESIDENT AND SHRI SHRI SHRI SHRI INTURI RAMA RAO INTURI RAMA RAO INTURI RAMA RAO INTURI RAMA RAO, , , , ACCOUNTANT ACCOUNTANT ACCOUNTANT ACCOUNTANT MEMBER MEMBER MEMBER MEMBER ITA NO ITA NO ITA NO ITA NO . .. . 6131/DEL/2013 6131/DEL/2013 6131/DEL/2013 6131/DEL/2013 ASSESSMENT YEAR ASSESSMENT YEAR ASSESSMENT YEAR ASSESSMENT YEAR : : : : 2009 2009 2009 2009 - -- - 10 1010 10 SMT. REKHA RANI, SMT. REKHA RANI, SMT. REKHA RANI, SMT. REKHA RANI, TEACHER COLONY, TEACHER COLONY, TEACHER COLONY, TEACHER COLONY, OPP. GANDHI NAGAR OPP. GANDHI NAGAR OPP. GANDHI NAGAR OPP. GANDHI NAGAR TRA TRATRA TRANSFORMER, NSFORMER, NSFORMER, NSFORMER, DEOBAND (SAHARANPUR), DEOBAND (SAHARANPUR), DEOBAND (SAHARANPUR), DEOBAND (SAHARANPUR), U.P. U.P. U.P. U.P. PAN : AEDPR6313L. PAN : AEDPR6313L. PAN : AEDPR6313L. PAN : AEDPR6313L. VS. VS. VS. VS. DEPUTY COMMISSIONER OF DEPUTY COMMISSIONER OF DEPUTY COMMISSIONER OF DEPUTY COMMISSIONER OF INCOME TAX, INCOME TAX, INCOME TAX, INCOME TAX, CENTRAL CIRCLE CENTRAL CIRCLE CENTRAL CIRCLE CENTRAL CIRCLE- -- -8, 8,8, 8, NEW DELHI. NEW DELHI. NEW DELHI. NEW DELHI. (APPELLANT) (RESPONDENT) APPELLANT BY : NONE. RESPONDENT BY : SHRI VIKRAM SAHAY, SR.DR. DATE OF HEARING : 10.04.2015 10.04.2015 10.04.2015 10.04.2015 DATE OF PRONOUNCEMENT : 06.05.2015 06.05.2015 06.05.2015 06.05.2015 ORDER ORDER ORDER ORDER PER G.C. GUPTA PER G.C. GUPTA PER G.C. GUPTA PER G.C. GUPTA, VP , VP , VP , VP : :: : THIS APPEAL BY THE ASSESSEE FOR THE ASSESSMENT YEAR 2009-1 0 IS DIRECTED AGAINST THE ORDER OF LEARNED CIT(A)-XXXII, NEW DELHI DATED 20 TH SEPTEMBER, 2013. 2. THE ONLY ISSUE IN THIS APPEAL OF THE ASSESSEE IS REGARD ING VALIDITY OF PENALTY IMPOSED UNDER SECTION 271(1)(B) OF THE IN COME-TAX ACT, 1961 AMOUNTING TO `50,000/- CONFIRMED BY THE LEARNE D CIT(A). 3. AT THE TIME OF HEARING, NONE APPEARED ON BEHALF OF THE ASSESSEE AND, THEREFORE, THE APPEAL OF THE ASSESSEE IS BEING DECI DED EX PARTE ITA-6131/DEL/2013 2 QUA THE ASSESSEE APPELLANT ON MERITS AFTER HEARING THE A RGUMENTS OF LEARNED DR. 4. LEARNED DR SUBMITTED THAT THE ASSESSING OFFICER HAS ISSU ED NOTICE UNDER SECTION 143(2) OF THE ACT ON FIVE DIFF ERENT DATES AND THE ASSESSEE FAILED TO COMPLY WITH THE SAME. ACCORDINGLY, THE ASSESSING OFFICER HAS INVOKED THE PROVISIONS OF SECTION 271(1)(B ) OF THE ACT AND IMPOSED PENALTY OF `10,000/- FOR EACH DEFAULT TOTALI NG TO `50,000/-. HE SUBMITTED THAT THE ASSESSEE HAS NO REASONABLE CAUSE FOR NOT APPEARING ON THE DATE OF HEARING FIXED BEFORE THE A SSESSING OFFICER. HE RELIED ON THE ORDER OF THE ASSESSING OFFICER AND THE LEARNED CIT(A). 5. WE HAVE CONSIDERED THE SUBMISSIONS OF LEARNED DR AND HAVE PERUSED THE ORDER OF THE ASSESSING OFFICER AND THE LEAR NED CIT(A). WE FIND THAT THERE WAS NO REASONABLE CAUSE ON THE PART O F THE ASSESSEE FOR NOT APPEARING ON THE DIFFERENT DATES OF HEARING BEFO RE THE ASSESSING OFFICER IN RESPONSE TO NOTICE ISSUED UNDER SECTION 143( 2) OF THE ACT. HOWEVER, WE FIND THAT THE DEFAULT IS SAME AND, THERE FORE, PENALTY OF `10,000/- COULD BE IMPOSED FOR THE FIRST DEFAULT MADE BY THE ASSESSEE IN THIS REGARD. THE PENALTY UNDER SECTION 271(1)(B) COULD NOT BE IMPOSED FOR EACH AND EVERY NOTICE ISSUED UNDER SECTION 143(2), WHICH REMAINED NOT COMPLIED WITH ON THE PART OF THE ASSESSEE. THE PROVISION OF SECTION 271(1)(B) IS OF DETERRENT NATURE AND NOT FOR EARNING REVENUE. ANY OTHER VIEW TAKEN SHALL LEAD TO THE IMPOSITION OF PENALTY FOR ANY NUMBER OF TIMES (WITHOUT LIMITS) FOR THE SAME DEFAULT OF NOT APPEARING IN RESPONSE TO THE NOTICE UNDER SECTION 143(2) OF THE ACT. THIS DOES NOT SEEM TO BE THE INTENTION OF THE LEGISLATURE IN EN ACTING THE PROVISIONS OF SECTION 271(1)(B) OF THE ACT. IN CASE O F FAILURE OF THE ASSESSEE TO COMPLY WITH THE NOTICE UNDER SECTION 143(2) OF THE ACT, THE ITA-6131/DEL/2013 3 REMEDY WITH THE ASSESSING OFFICER LIES WITH FRAMING OF BEST JUDGEMENT ASSESSMENT UNDER THE PROVISIONS OF SECTION 144 OF THE AC T AND NOT TO IMPOSE PENALTY UNDER SECTION 271(1)(B) OF THE ACT AG AIN AND AGAIN. IN THIS VIEW OF THE MATTER, WE RESTRICT THE PENALTY LEVI ED UNDER SECTION 271(1)(B) OF THE ACT TO THE FIRST DEFAULT OF THE ASSESSE E IN NOT COMPLYING WITH THE NOTICE UNDER SECTION 143(2) OF T HE ACT. ACCORDINGLY, THE PENALTY IMPOSED IS RESTRICTED TO `10, 000/- AS AGAINST `50,000/- CONFIRMED BY THE LEARNED CIT(A). THE GRO UNDS OF APPEAL OF THE ASSESSEE ARE THUS PARTLY ALLOWED. 6. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS PARTLY AL LOWED. DECISION PRONOUNCED IN THE OPEN COURT ON 6 TH MAY, 2015. SD/- SD/- ( (( ( INTURI RAMA RAO INTURI RAMA RAO INTURI RAMA RAO INTURI RAMA RAO ) )) ) (G. (G. (G. (G. C. GUPTA C. GUPTA C. GUPTA C. GUPTA ) )) ) ACCOUNTANT ACCOUNTANT ACCOUNTANT ACCOUNTANT MEMBER MEMBER MEMBER MEMBER VICE PRESIDENT VICE PRESIDENT VICE PRESIDENT VICE PRESIDENT VK. COPY FORWARDED TO: - 1. APPELLANT : SMT. REKHA RANI, SMT. REKHA RANI, SMT. REKHA RANI, SMT. REKHA RANI, TEACHER COLONY, TEACHER COLONY, TEACHER COLONY, TEACHER COLONY, OPP. GANDHI NAGAR TRANSFORMER, OPP. GANDHI NAGAR TRANSFORMER, OPP. GANDHI NAGAR TRANSFORMER, OPP. GANDHI NAGAR TRANSFORMER, DEOBAND (SAHARANPUR), DEOBAND (SAHARANPUR), DEOBAND (SAHARANPUR), DEOBAND (SAHARANPUR), U.P. U.P. U.P. U.P. 2. RESPONDENT : DEPUTY COMMISSIONER OF INCOME TAX, DEPUTY COMMISSIONER OF INCOME TAX, DEPUTY COMMISSIONER OF INCOME TAX, DEPUTY COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE CENTRAL CIRCLE CENTRAL CIRCLE CENTRAL CIRCLE- -- -8, NEW DELHI. 8, NEW DELHI. 8, NEW DELHI. 8, NEW DELHI. 3. CIT 4. CIT(A) 5. DR, ITAT ASSISTANT REGISTRAR