M/s. Saraswati Resorts Pvt. Ltd., New Delhi V. ACIT, New Delhi

ITA 6282/DEL/2014

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 97223 (ITAT-DELHI)
• Duration Of Justice: 9 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-09-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC 1
• Next Hearing Date: 12-08-2015
• Assessment Year: 2007-2008
• Appeal Filed On: 17-11-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: GARIMA JAIN SENIOR

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 SMC SMC SMC SMC- -- -1 11 1 : 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 PRESIDENT PRESIDENT PRESIDENT ITA NO ITA NO ITA NO ITA NO S SS S . .. . 62 6262 62 81 8181 81 /DEL/2014 /DEL/2014 /DEL/2014 /DEL/2014 , ,, , 628 628 628 628 2 22 2 /DEL/2014 /DEL/2014 /DEL/2014 /DEL/2014 & 6283/DEL/2014 & 6283/DEL/2014 & 6283/DEL/2014 & 6283/DEL/2014 ASSESSMENT YEAR ASSESSMENT YEAR ASSESSMENT YEAR ASSESSMENT YEAR S SS S : : : : 200 200 200 200 6 66 6 - -- - 0 00 0 7 77 7 , 200 , 200 , 200 , 200 7 77 7 - -- - 0 00 0 8 88 8 & 200 & 200 & 200 & 200 8 88 8 - -- - 09 0909 09 M/S SARASWATI RESORTS M/S SARASWATI RESORTS M/S SARASWATI RESORTS M/S SARASWATI RESORTS PVT.LTD., PVT.LTD., PVT.LTD., PVT.LTD., A AA A- -- -1, CC 1, CC 1, CC 1, CC- -- -C CC COLONY, OLONY, OLONY, OLONY, OPPOSITE R.P. BAGH, OPPOSITE R.P. BAGH, OPPOSITE R.P. BAGH, OPPOSITE R.P. BAGH, DELHI. DELHI. DELHI. DELHI. PAN : AAJCS8450N. PAN : AAJCS8450N. PAN : AAJCS8450N. PAN : AAJCS8450N. VS. VS. VS. VS. ASSISTANT COMMISSIONER OF ASSISTANT COMMISSIONER OF ASSISTANT COMMISSIONER OF ASSISTANT COMMISSIONER OF INCOME TAX, INCOME TAX, INCOME TAX, INCOME TAX, CENTRAL CIRCLE CENTRAL CIRCLE CENTRAL CIRCLE CENTRAL CIRCLE- -- -12, 12, 12, 12, NEW DELHI. NEW DELHI. NEW DELHI. NEW DELHI. (APPELLANT) (RESPONDENT) APPELLANT BY : NONE. RESPONDENT BY : MS. GARIMA JAIN, SENIOR DR. DATE OF HEARING : 12.08.2015 12.08.2015 12.08.2015 12.08.2015 DATE OF PRONOUNCEMENT : 08.09.2015 08.09.2015 08.09.2015 08.09.2015 ORDER ORDER ORDER ORDER THESE THREE APPEALS BY THE ASSESSEE FOR THE ASSESSMENT YEAR 2006-07, 2007-08 & 2008-09 ARE DIRECTED AGAINST THE ORDER OF LEARNED CIT(A)-XXXI, NEW DELHI DATED 29 TH AUGUST, 2014. 2. AT THE TIME OF HEARING BEFORE ME, NONE APPEARED ON BEHALF OF THE ASSESSEE-APPELLANT. THE APPLICATION OF THE ASSESSEE FOR A DJOURNMENT OF THE CASE WAS REJECTED BY THE BENCH. ACCORDINGLY, THESE APPEALS OF THE ASSESSEE ARE BEING DISPOSED OF EX PARTE QUA THE ASSESSEE- APPELLANT ON MERITS AFTER HEARING THE ARGUMENTS OF LE ARNED DR. 3. THE IDENTICAL GROUND OF APPEAL OF THE ASSESSEE IN AL L THESE APPEALS READS AS UNDER:- ITA-6281 TO 6283/DEL/2014 2 THAT, ON THE FACTS AND CIRCUMSTANCES OF THE CASE, INIT IATION OF PENALTY PROCEEDINGS AGAINST THE ASSESSEE UNDER SECTI ON 274 READ WITH SECTION 271(1)(B) AND IMPOSITION OF PEN ALTY OF RS.10000/- UPON THE ASSESSEE UNDER SECTION 271(1)(B) I S ILLEGAL AND UNJUSTIFIED AND, THEREFORE, PENALTY IMPO SED SHOULD BE DELETED. 4. LEARNED DR SUBMITTED THAT THE ASSESSEE HAS COMMITTED DEFAULT BY NOT ATTENDING ON THE DATE OF HEARING FIXED VIDE NOTICE ISSUED BY THE ASSESSING OFFICER U/S 143(2)/142(1) AND, THEREFORE, THE PENALTY OF `10,000/- LEVIED U/S 271(1)(B) OF THE INCOME-TAX ACT , 1961 FOR ALL THESE YEARS WAS JUSTIFIED. SHE RELIED ON THE ORDER OF THE A SSESSING OFFICER AND THE LEARNED CIT(A). 5. I HAVE CONSIDERED THE SUBMISSIONS OF THE LEARNED DR A ND HAVE PERUSED THE ORDER OF THE AO AND THE LEARNED CIT(A). I FIND THAT THE ASSESSEE HAS NOT ATTENDED ON THE DATE OF HEARING FIXED F OR THE CASE VIDE NOTICE ISSUED BY THE ASSESSING OFFICER U/S 143(2)/142 (1). HOWEVER, IT HAS BEEN EXPLAINED BY THE ASSESSEE IN ITS WRI TTEN SUBMISSIONS THAT MRS. ANJU GUPTA, DAUGHTER-IN-LAW OF THE PRINCIPAL OFFICER OF THE ASSESSEE WAS SUFFERING FROM SEVERE DISEASE AN D HAD TO BE HOSPITALIZED DURING THE RELEVANT TIME AND THEREA FTER, SHRI SATYA PRAKASH GUPTA, PRINCIPAL OFFICER OF THE ASSESSEE HIMSELF BECAME ILL DUE TO HEART ATTACK AND HAD TO BE HOSPITALIZED AND THAT THE WHOLE FAMILY WAS DISTURBED AND, THEREFORE, THERE WAS NO COMPLIANCE. I FIND THAT THE LEARNED CIT(A) HAS RECORDED THAT IN THE GIVEN CIRCUM STANCES, THE PENALTY IS LEVIED AT `10,000/- EACH ONLY FOR THREE O F THE SIX ASSESSMENT YEARS INVOLVED AND THE PENALTIES FOR THE REMAINING TH REE ASSESSMENT YEARS WERE DELETED. I FIND THAT FOR THE SAME DEFAULT, MULTIPLE PENALTIES HAVE BEEN LEVIED IN THIS CASE. CONSIDERING THE TOTALI TY OF FACTS AND CIRCUMSTANCES OF THE CASE AND THE EXPLANATION OF THE A SSESSEE AND THAT THE PENALTY WAS LEVIED FOR THE SAME DEFAULT, I A M OF THE VIEW THAT THE ENDS OF JUSTICE SHALL BE MET IF THE PENALTY LEVIED U/S 271(1)(B) OF ITA-6281 TO 6283/DEL/2014 3 THE ACT IS RESTRICTED TO ONLY ONE ASSESSMENT YEAR AND IS DELETED FOR THE OTHER YEARS. ACCORDINGLY, THE PENALTY OF `10,000/- LEVIED FOR ASSESSMENT YEAR 2006-07 IN ITA NO.6281/DEL/2014 IS CONFI RMED AND THE PENALTIES LEVIED U/S 271(1)(B) OF THE ACT IN ITA NOS.6282/DEL/2014 AND 6283/DEL/2014 ARE DELETED. 6. IN THE RESULT, THE APPEAL OF THE ASSESSEE IN ITA NO.6 281/DEL/2014 IS DISMISSED AND THE APPEALS OF THE ASSESSEE IN ITA NOS.6282/ DEL/2014 AND 6283/DEL/2014 ARE ALLOWED. DECISION PRONOUNCED IN THE OPEN COURT ON 8 TH SEPTEMBER, 2015. SD/- (G. (G. (G. (G. C. GUPTA C. GUPTA C. GUPTA C. GUPTA ) )) ) VICE PRESIDENT VICE PRESIDENT VICE PRESIDENT VICE PRESIDENT VK. COPY FORWARDED TO: - 1. APPELLANT : M/S M/S M/S M/S SARASWATI RESORTS PVT.LTD. SARASWATI RESORTS PVT.LTD. SARASWATI RESORTS PVT.LTD. SARASWATI RESORTS PVT.LTD., ,, , A AA A- -- -1, CC 1, CC 1, CC 1, CC- -- -COLONY, OPPOSITE R.P. BAGH, COLONY, OPPOSITE R.P. BAGH, COLONY, OPPOSITE R.P. BAGH, COLONY, OPPOSITE R.P. BAGH, DELHI. DELHI. DELHI. DELHI. 2. RESPONDENT : ASSISTANT COMMISSIONER OF INCOME TAX, ASSISTANT COMMISSIONER OF INCOME TAX, ASSISTANT COMMISSIONER OF INCOME TAX, ASSISTANT COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE CENTRAL CIRCLE CENTRAL CIRCLE CENTRAL CIRCLE- -- -12, NEW DELHI. 12, NEW DELHI. 12, NEW DELHI. 12, NEW DELHI. 3. CIT 4. CIT(A) 5. DR, ITAT ASSISTANT REGISTRAR