M/s. Satya Realtors Pvt. Ltd., Delhi V. ACIT, New Delhi

ITA 6414/DEL/2014

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 2756 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 1 month(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-12-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: G
• Assessment Year: 2006-2007
• Appeal Filed On: 24-11-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: KAUSLENDRA TIWARI
• Assessee Lawyers: SB GUPTA
• Keywords: Reasonable cause

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCHES: G , NEW DELHI BEFORE SHRI NK SAINI, ACCOUNTANT MEMBER AND SMT. BEENA A PILLAI, JUDICIAL MEMBER ITA NO. 6270/DEL/2014 A.Y. 2008 - 09 ITA NO. 6364/DEL/2014 A.Y. 2008 - 09 ITA NO. 6365/DEL/2014 A.Y. 2009 - 10 SPB 87 HOTELS PVT.LTD. A 1, CC COLONY OPP. RP BAGH NEW DELHI PAN: AALCS 7171E VS. ACIT, CENTRAL CIRCLE 12 NEW DELHI ITA NOS. 6296 - 6297 - 6298/DEL/2014 A.Y. 20 06 - 07, 2007 - 08 AND 2008 - 09 SATYA PRAKASH & BROS. P.LTD. A 1, CC COLONY OPP. RP BAG H NEW DELHI PAN: AAHCS 1210 Q VS . ACIT, CENTRAL CIRCLE 12 NEW DELHI ITA NOS. 6386 - 6387 - 6388 - 6389/DEL/2014 A.Y. 20 07 - 08, 2005 - 06, 2006 - 07 AND 2008 - 09 SH. SANJAY GUPTA NEW DELHI PAN: AELPG6586L VS . ACIT, CENTRAL CIRCLE 1 2 NEW DELHI PAGE 2 OF 10 ITA NOS. 6299 - 6300/DEL/2014 A.Y. 2008 - 09 AND 2009 - 10 KARAT 87 HOTELS P.LTD. NEW DELHI PAN: AADCK2600A VS . ACIT, CENTRAL CIRCLE 12 NEW DELHI ITA NOS. 6414 - 6415 - 6416 - 6417 - 6418 - 6419/DEL/2014 A.Y. 20 06 - 07, 2007 - 08, 2008 - 09 SATYA REALTORS P LTD. NEW DELHI PAN: AAJCS1332F VS . ACIT, CENTRAL CIRCLE 12 NEW DELHI ITA NOS. 6420 & 6421/DEL/2014 A.Y. 2005 - 06 & 2006 - 07 SH. SUSHIL GUPTA H NO. 11, BLOCK 5 ROOP NAGAR DELHI 110 007 PAN: AGEPG7570K VS . ACIT, C ENTRAL CIRCLE 12 NEW DELHI (APPELLANT) (RESPONDENT) APPELLANT BY SH. SB GUPTA, C.A. RESPONDENT BY SH. KA USLENDRA TIWARI, SR.D.R. DATE OF HEARING 2 8 /12/2017 DATE OF PRONOUNCEMENT /12/2017 PAGE 3 OF 10 O R D E R PER BE NCH T HE PRESENT PENALTY APPEAL S HA VE BEEN FILED BY ASSESSEE AGAINST ORDER PASSED BY LD.CIT(A) - XXXI THE DETAILS OF WHICH ARE AS UNDER : S.NO. ITA NO. ASST YR ASSESSEE DATE OF IMPUGNED ORDER 1. 6270/14 2008 - 09 SPB 87 HOTELS PVT.LTD 29/08/14 2. 6364/14 2008 - 09 DO 01/09/14 3. 6365/14 2009 - 12 DO 01/09/14 4. 629 6 /14 2006 - 7 SATYA PRAKASH & BROTHERS 01/09/14 5. 6297/14 2007 - 08 DO 01/09/14 6. 6298/14 2008 - 09 DO 01/09/14 7. 6386/14 2007 - 08 SANJAY GUPTA 01/09/14 8. 6387/14 2005 - 06 DO 01/09/14 9. 6388/14 2006 - 07 DO 01/09/14 10 6389/14 2007 - 08 DO 01/09/14 11 6299/14 2008 - 09 KARAT 87 HOTELS PVT.LTD 29/08/14 12. 6300/14 2009 - 10 DO 29/08/14 13. 6414/14 2006 - 07 SATYA REALTORS 01/09/14 14. 6415/14 2007 - 08 DO 01/09/14 15. 6416/14 2008 - 09 DO 01/09/14 16. 6417/14 2006 - 07 DO 01/09/14 17. 6418/14 2007 - 08 DO 01/09/14 PAGE 4 OF 10 18. 6419/14 2008 - 09 DO 01/09/14 19. 6420/14 2005 - 06 SUSHIL GUPTA 01/09/14 20. 6421/14 2006 - 07 DO 01/09/14 IN ALL THE ABOVE APPEALS, ASSESSEE HAS CHALLENGED INITIATION OF PENALTY PROCEE DINGS AGAINST THE ASSESSEE U/S 274 R.W.S. 271(1)(B) AND IMPOSITION OF PENALTY OF RS.10,000/ - UPON THE ASSESSEE U/S 271(1)(B) A S ILLEGAL AND UNJUSTIFIED AND HAS PRAYED FOR PENALTY TO BE DELETED WHICH HAVE BEEN CONFIRMED BY THE LD.CIT(A). 2. BRIEF FACTS O F THE CASE ARE AS UNDER : D URING THE ASSESSMENT PROCEEDINGS ASSESSEE HAD FAILED TO COMPLY WITH NOTICES UNDER SECTION 143(2)/142 ( 1) , ISSUED BY AO IN THE RESULT OF WHICH LD. AO PASSED PENALTY ORDERS UNDER SECTION 271 (1) (B) OF THE A CT FOR ALL THE ASSESSMEN T YEARS LEVYING PENALTY AS UNDER: S.NO. ITA NO. ASST YR DATE OF NOTICE NON - COMPLIED WITH PENALTY LEVIED 1. 6270/14 2008 - 09 25.09.12 10,000/ - 2. 6364/14 2008 - 09 04.01.13 10,000/ - 3. 6365/14 2009 - 12 04.01.13 10,000/ - 4. 6296/14 2006 - 7 17.09.12 10,000/ - 5. 6297/14 2007 - 08 17.09.12 10,000/ - 6. 6298/14 2008 - 09 17.09.12 10,000/ - 7. 6386/14 2007 - 08 18.09.12 10,000/ - 8. 6387/14 2005 - 06 04.01.13 10,000/ - 9. 6388/14 2006 - 07 04.01.13 10,000/ - PAGE 5 OF 10 10 6389/14 2007 - 08 04.01.13 10,000/ - 11 6299/14 2008 - 09 04.01.1 3 10,000/ - 12. 6300/14 2009 - 10 04.01.13 10,000/ - 13. 6414/14 2006 - 07 24.09.12 10,000/ - 14. 6415/14 2007 - 08 24.09.12 10,000/ - 15. 6416/14 2008 - 09 24.09.12 10,000/ - 16. 6417/14 2006 - 07 04.01.13 10,000/ - 17. 6418/14 2007 - 08 04.01.13 10,000/ - 18. 6419/1 4 2008 - 09 04.01.13 10,000/ - 19. 6420/14 2005 - 06 21.09.12 10,000/ - 20. 6421/14 2006 - 07 21.09.12 10,000/ - 2.1. IT HAS BEEN SUBMITTED BY LD. AR THAT MR SATYA PRAKASH GUPTA , FATHER OF ASSESSEE /GRAND FATHER OF ASSESSES/PRINCIPAL OFFICER OF THE COMPANIES W AS HOSPITALISED DUE TO SEVERE ILLNESS. IT HAS BEEN SUBMITTED THAT UNDER THE CIRCUMSTANCES ASSESSEE COULD NOT COMPLY WITH NOTICES ISSUED BY LD. AO. IT HAS BEEN SUBMITTED BY LD. AR THAT ON THE IDENTICAL FACTS PENALTY LEVIED FOR NON - COMPLIANCE OF NOTICE S ISSUED BY LD. AO IN THE CASE OF OTHER FAMILY MEMBERS OF ASSESSEE AND COMPANIES/PARTNERSHIPS WHERE SHRI SATYA PRAKASH IS THE PRINCIPAL OFFICER HAS BEEN CANCELLED BY VARIOUS ORDERS OF THIS T RIBUNAL. 2.2. HE PLACED RELIANCE UPON THE DECISION PASSED BY THIS T RIBUNAL IN THE CASE OF FAMILY MEMBERS AND BUSINESS CONCERNS OF SHREE SATYA PRAKASH GUPTA THE DETAILS OF WHICH ARE AS UNDER: S.NO. ITA NOS. ASST.YR. DATE OF ITAT ORDER 1. ITA NO. 6248 TO 6286/DEL/14; ITA NO. 6287 TO 6289/DEL/14; ITA 2005 - 06 TO 2007 - 08 04/11/15 PAGE 6 OF 10 NO. 6272 TO 6274/D EL/14 2. ITA NO. 6403 & 06/04/04/DEL/2014 2009 - 10 01/09/17 3 . 6375 & 6378/DEL/2014 2005 - 06 07/09/17 4 . 6569, 6570 AND 6571/DEL/2014 2005 - 06 TO 2007 - 08 15/09/2017 5 . ITANO.6422/DEL/14 2007 - 08 24/10/17 6 . ITA NO. 6423 - 6428/ DEL/2014 2005 - 06 TO 2008 - 09 29/11/17 LD. AR SUBMITTED THAT IN ALL THESE ABOVE REFERRED APPEALS ON SIMILAR FACTS AND CIRCUMSTANCES , VARIOUS BENCHES OF THE ITAT DELHI HAVE DELETED PENALTY LEVIED UNDER SECTION 271 (1) (B) OF THE A CT. HE FURTHER SUBMITTED THAT ALL THESE ASSESSEES BELONG TO SAME GROUP AND FAMILY CONCERN AND THEREFORE THE CIRCUMSTANCES THAT PREVAILED DURING THESE ASSESSMENT YEARS WERE SIMILAR . 2.3. ON THE CONTRARY LD. DR PLACED RELIANCE UPON THE ORDER S OF THE AUTHORITIES BELOW. 3. W E HAVE P ERUSED THE SUBMISSIONS ADVANCED BY BOTH THE SIDES IN THE LIGHT OF THE RECORDS PLACED BEFORE US AND THE DECISIONS RELIED UPON BY THE LD. AR PA SSED BY THIS T RIBUNAL . O N PERUSAL OF ALL THE ABOVE REFERRED TO ORDER S PASSED BY THIS T RIBUNAL , IT IS OBSERVED THAT MR SATYA PRAKASH GUPTA, GRAND FATHER OF ASSESSE S AND PRINCIPAL OFFICER OF THE COMPANIES WAS HOSPITALISED FOR TREATMENT OF HEART ATTACK, DURING THE RELEVANT PERIOD AND HE WAS THE PRINCIPAL OFFICER FOR ALL THE COMPANIES/PARTNERSHIP FIRMS . THIS TRIBUNAL CONS ISTENTLY HELD AS UNDER IN ALL APPEAL S TABULATED ABOVE. WE THINK IT PAGE 7 OF 10 APPROPRIATE TO REPRODUCE THE RELEVANT FINDING GIVEN IN PARA 8 OF THE ORDER DATED 4.11.2015 IN ITA NO.6284 TO 6289 & 6272 TO 6274/DEL/2014 FOR THE ASSESSMENT YEARS 2005 - 06 TO 2007 - 08 IN TH E CASES OF SMT. CHANDRAWATI GUPTA, SMT. ABHA GUPTA & SMT. RAJANI GUPTA, DELHI VS. ACIT, CENTRAL CIRCLE - 12, NEW DELHI WHICH READS AS UNDER. 8. I HAVE CONSIDERED THE SUBMISSIONS OF BOTH THE PARTIES AND CAREFULLY GONE THROUGH THE MATERIAL AVAILABLE ON THE RE CORD. IN THE PRESENT CASE, IT IS NOTICED THAT THE FACTS ARE IDENTICAL TO THE FACTS INVOLVED IN THE CASE OF SMT. USHA GUPTA VS. ACIT(SUPRA) AND EVEN THE RIVAL CONTENTIONS ARE ALSO ON THE SAME FOOTING AS WERE IN THE SAID CASE IN ITA 6368/DEL/2014 FOR THE A. Y. 2007 - 08. I HAVE ALREADY DISPOSED OFF THE ABOVE SAID REFERRED TO CASE OF SMT. USHA GUPTA VIDE THE ORDER OF EVEN DATE AND THE RELEVANT FINDINGS HAVE BEEN GIVEN IN PARA 9 OF THE SAID ORDER WHICH READ AS UNDER. 9. I HAVE CONSIDERED THE SUBMISSIONS OF BOT H THE PARTIES AND CAREFULLY GONE THROUGH THE MATERIAL AVAILABLE ON THE RECORD. IN THE PRESENT CASE, IT APPEARS THAT THE AO LEVIED THE PENALTY FOR NON - APPEARANCE OF THE ASSESSEE ON 09.10.2012, FOR THE SAID DATE NOTICES WERE ISSUED U/S 143(2)/142(1) OF THE ACT. THE EXPLANATION OF THE ASSESSEE BEFORE THE LD.CIT(A) WAS THAT HER SISTER - IN - LAW MRS. ANJU GUPTA WAS SUFFERING FROM SEVERE DISEASE AND HAD TO BE HOSPITALISED ON 6.10.2012. THEREAFTER ON THE DATE OF HEARING I.E. 9.10.2012, SH. SATYA PRAKASH GUPTA HE AD OF THE FAMILY AND FATHER - IN - LAW OF THE ASSESSEE BECAME ILL AND HAD TO BE HOSPITALISED DUE TO HEART ATTACK. IN MY OPINION THERE WAS A REASONABLE CAUSE FOR NON - APPEARANCE FOR THE HEARING FIXED ON 9.10.2012, AS SUCH THE CONFIRMATION OF PENALTY LEVIED B Y THE AO U/S 271(1)(B) OF THE ACT WAS NOT JUSTIFIED. IN THE PRESENT CASE, IT APPEARS THAT THE AO LEVIED PENALTY FOR 7 ASSESSMENT YEARS RUNNING FROM 2005 - 06 TO 2011 - 12 AND THE LD.CIT(A) DELETED THE PENALTY FOR THE 4 ASSESSMENT YEARS I.E. THE ASSESSMENT YEA RS 2008 - 09 TO 2011 - 12, CONSIDERING THE EXPLANATION OF THE ASSESSEE AS PAGE 8 OF 10 PLAUSIBLE. HOWEVER, THE SAME EXPLANATION WAS NOT CONSIDERED AS PROPER FOR THE REMAINING ASSESSMENT YEARS I.E. ASSESSMENT YEAR 2005 - 06 TO 2007 - 08. IN MY OPINION, THE STAND TAKEN BY THE LD.CIT(A) WAS NOT JUSTIFIED PARTICULARLY WHEN HE WAS SATISFIED THAT THERE WAS A PROPER AND PLAUSIBLE EXPLANATION FOR 4 OUT OF 7 ASSESSMENT YEARS FOR WHICH PENALTY WAS LEVIED BY THE AO U/S 271(1)(B) OF THE ACT. I, THEREFORE, CONSIDERING THE TOTALITY OF TH E FACTS DELETE THE PENALTY LEVIED BY THE AO AND SUSTAINED BY THE LD.CIT(A). 3.1. SO, RESPECTFULLY FOLLOWING THE AFORESAID REFERRED TO ORDER, WE ARE OF THE CONSIDERED OPINION THAT LD. CIT (A) WAS NOT JUSTIFIED IN CONFIRMING THE PENAL TIES FOR OTHER ASSESSM ENT YEARS UNDER CONSIDERATION. ACCORDINGLY WE ARE INCLINED TO DELETE THE PENALTY LEVIED BY LD. AO UNDER SECTION 271(1)(B) OF THE A CT AND CONFIRMED BY THE LD.CIT(A). 4. IN THE RESULT APPEAL S FILED BY THE ASSESSEE S FOR THE YEARS UNDER CONSIDERATION STAND ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 28/12/2017. SD / - SD/ - ( NK SAINI ) (BEENA A PILLAI) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED : THE 28 TH DE CEMBER , 2017. PAGE 9 OF 10 COPY OF THE ORDER FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR 6. GUARD FILE BY ORDER ASST. REGISTRAR ITAT, DEL HI BENCHES, NEW DELHI *MV G PAGE 10 OF 10 DATE 1. DRAGON DICTATION 2 8 .1 2 .2017 2. DRAFT PLACED BEFORE AUTHOR 2 8 .1 2 .2017 3. DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER 4. APPROVED DRAFT COMES TO SRPS/PS 5. KEPT FOR PRONOUNCEMENT ON 28.12.17 6. FILE SENT TO BENCH CLERK 7. ORDER UPLOADED