M/s. Karat 87 Inn Pvt. Ltd., Delhi V. ACIT, New Delhi

ITA 6402/DEL/2014

• Counselvise Citation: [2018] 121 COUNSELVISE.COM (IT) 5551 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 4 month(s) 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-04-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Assessment Year: 2009-2010
• Appeal Filed On: 24-11-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Reasonable cause; Non compliance

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH D NEW DELHI BEFORE SHRI J. S. REDDY, ACCOUNTANT MEMBER & SHRI AMIT SHUKLA, JUDICIAL MEMBER I.T.AS. NO.6401 & 6402/DEL/2014 ASSESSMENT YEARS: 2009-10 KARAT 87 INN PVT. LTD., A-1, CC-COLONY, OPP. R.P. BAGH, DELHI. V. ACIT, CENTRAL CIRCLE-12, NEW DELHI. TAN/PAN: AADCK 5511G (APPELLANT) (RESPONDENT) APPELLANT BY: NONE RESPONDENT BY: SHRI AMIT JAIN, SR.D.R. DATE OF HEARING: 02 04 2018 DATE OF PRONOUNCEMENT: 02 04 2018 O R D E R PER AMIT SHUKLA, J.M.: THE AFORESAID APPEALS HAVE BEEN FILED BY THE ABOVE NAMED ASSESSEE AGAINST COMMON ORDER DATED 01.09.201 4 PASSED BY LD. CIT(A)-XXXI, NEW DELHI IN RELATION TO PENALTY PROCEEDINGS U/S.271(1)(B) FOR THE ASSESSMENT YEAR 2009-10. SINCE ISSUES INVOLVED IN BOTH THE APPEALS ARE COMMO N ARISING OUT OF IDENTICAL SET OF FACTS, THEREFORE, SAME ARE BEING DISPOSED OF BY WAY OF THIS CONSOLIDATED ORDER. 2. THE ASSESSEE IS MAINLY AGGRIEVED BY LEVY OF PEN ALTY OF RS.10,000/- U/S.271(1)(B) FOR NON COMPLIANCE OF NOT ICE U/S.143(2)/142(1) DATED 25.09.2012 FIXING THE DATE OF HEARING I.T.AS. NO.6401 & 6402/DEL/2014 2 ON 09.10.2012. 3. NONE ATTENDED ON BEHALF OF THE ASSESSEE DESPITE SERVICE OF NOTICE. ACCORDINGLY, WE ARE PROCEEDING TO DECIDE THE APPEAL ON THE BASIS OF MATERIAL AVAILABLE ON RECORD. 4. AS CULLED OUT FROM THE IMPUGNED PENALTY ORDERS, THE ASSESSING OFFICER HAD ISSUED NOTICE U/S.143(2)/142( 1) ON 25.09.2012 FIXING THE DATE OF HEARING ON 09.10.2012 AND ANOTHER NOTICE WAS ISSUED ON 04.02.2013 FIXING THE DATE OF HEARING ON 11.01.2013. ON THE SAID DATES NEITHER AN YONE APPEARED NOR WAS ANY WRITTEN REPLY FILED. ACCORDING LY, THE ASSESSING OFFICER INITIATED THE PENALTY PROCEEDINGS U/S. 271(1)(B) AND ISSUED A SHOW CAUSE NOTICE TO THE ASS ESSEE U/S.274 R.W.S. 271(1)(B). AGAIN THERE APPEARS TO BE NO COMPLIANCE BY THE ASSESSEE. ACCORDINGLY, HE LEVIED THE PENALTY OF RS.10,000/- FOR BOTH THE FAULTS. 5. BEFORE THE LD. CIT (A), IT WAS SUBMITTED THAT TH E PRINCIPAL OFFICER OF THE ASSESSEE COMPANY, NAMELY, MR. SATYA PRAKASH GUPTA HAD TO BE HOSPITALIZED DUE TO HEART ATTACK AN D DUE TO THIS REASON NO COMPLIANCE COULD BE MADE ON THE FIXE D DATE BY THE ASSESSING OFFICER. LD. CIT(A) OBSERVED THAT WHY THE SAME EXPLANATION COULD NOT BE GIVEN BEFORE THE ASSESSING OFFICER AND SOMEBODY FROM THE ASSESSEE SIDE COULD HAVE APPR OACHED THE ASSESSING OFFICER TO EXPLAIN THE MATTER AND THE RE HAS BEEN COMPLETE NON COMPLIANCE OF SHOW CAUSE NOTICE U/S.27 1(1)(B) ALSO. SINCE IT WAS A TIME BARRING, ASSESSING OFFICE R HAS TO PASS THE ORDER. HE CONFIRMED THE PENALTY OF RS.10,0 00/- EACH FOR THE ASSESSMENT YEAR 2009-10. HOWEVER, FOR A.YS . 2010- I.T.AS. NO.6401 & 6402/DEL/2014 3 11 AND 2011-12, WHEREIN SAME PENALTY WAS IMPOSED, T HE SAME WAS DELETED BY HIM. 6. LEARNED DEPARTMENT REPRESENTATIVE STRONGLY RELIE D UPON THE ORDER OF THE ASSESSING OFFICER AND LD. CIT(A) A ND SUBMITTED THAT ONCE A NOTICE WAS ISSUED AND SERVED UPON THE ASSESSEE IT WAS INCUMBENT TO MAKE A DUE COMPLIANCE AND IF THERE WAS ANY BONA FIDE AND GENUINE REASON FOR NON COMPLIANCE, THEN INTIMATION TO THE ASSESSING OFFICE R SHOULD HAVE BEEN GIVEN BY THE ASSESSEE. THUS, ASSESSING OF FICER WITHOUT ANY EXPLANATION HAS NO CHOICE BUT TO LEVY T HE PENALTY WHICH HAS RIGHTLY BEEN CONFIRMED BY THE LD. CIT (A) . 7. AFTER CONSIDERING THE RELEVANT FINDINGS GIVING IN THE IMPUGNED ORDERS, WE FIND THAT EVEN THOUGH NO PROPER EXPLANATION COULD BE GIVEN BEFORE THE ASSESSING OFF ICER FOR THE NON COMPLIANCE OF THE NOTICES ISSUED BY THE ASSESSI NG OFFICER, HOWEVER BEFORE THE LD. CIT (A) IT WAS BROUGHT ON RE CORD THAT THE PRINCIPAL OFFICER OF THE COMPANY, MR. SATYA PRA KASH GUPTA WAS HOSPITALIZED DUE TO HEART ATTACK. UNDER T HESE CIRCUMSTANCES NON COMPLIANCE OF DATE OF HEARING CAN BE SAID TO FALL WITHIN THE REALM OF REASONABLE CAUSE AS ENV ISAGED IN SECTION 273B. ACCORDINGLY, WE HOLD THAT NO PENALTY SHOULD BE LEVIED IN THE WAKE OF EXCEPTIONAL CIRCUMSTANCES AND REASONABLE CAUSE, AS WHEN THE PRINCIPAL OFFICER WHO WAS RESPONSIBLE FOR COMPLIANCE OF NOTICE, HIMSELF HAD S UFFERED HEART ATTACK AND WAS HOSPITALIZED DURING THAT PERIO D, HE CANNOT BE EXPECTED TO ATTEND OR DELEGATE. ACCORDING LY, WE DELETE THE LEVY OF PENALTY OF RS.10,000/- EACH FOR NON COMPLIANCE OF NOTICE DATED 25.09.2012 AND 04.01.201 3. I.T.AS. NO.6401 & 6402/DEL/2014 4 8. IN THE RESULT, THE APPEALS OF THE ASSESSEE ARE A LLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 2 ND APRIL, 2018. SD/- SD/- [J.S. REDDY] [AMIT SHUKLA] ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 2 ND APRIL, 2018 PKK: COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT(A) 4. CIT 5. DR ASSISTANT REGISTRAR