Sh. Sushil Gupta, Delhi V. ACIT, New Delhi

ITA 6422/DEL/2014

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 3922 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 11 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-10-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: G
• Assessment Year: 2007-2008
• Appeal Filed On: 24-11-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Non compliance
• Section: 142(1)

Judgement Text

INCOME TAX APPELLATE TRIBUNAL DELHI BENCH G: NEW DELHI BEFORE SHRI AMIT SHUKLA, JUDICIAL MEMBER AND SHRI PRASHANT MAHARISHI, ACCOUNTANT MEMBER ITA NO.:- 6422/DEL /2014 ASSESSMENT YEAR: 2007-08 SUSHIL GUPTA H. NO. 11, BLOCK-5, ROOP NAGAR DELHI 110 007 PAN AGEPG7570K VS. ACIT, CENTRAL CIRCLE 12 NEW DELHI. (APPELLANT) (RESPONDENT) O R D E R PER AMIT SHUKLA, J.M. THE AFORESAID APPEAL HAS BEEN FILED BY THE ASSESSEE AGAINST THE IMPUGNED ORDER DATED 1.9.2014 FOR THE ASSESSMENT YEAR 2007-08 IN RELATION TO THE PENALTY PROCEEDINGS U/S 271(1)(B). 2. THE ASSESSEE IS AGGRIEVED BY LEVY OF PENALTY OF RS. 10,000/- FOR NON COMPLIANCE OF NOTICE U/S 142(1) ISSUED ON 21.9. 2012 FIXING THE CASE OF HEARING ON 9.10.2012, ON WHICH DATE AS PER TH E AO NONE APPEARED NOR ANY WRITTEN REPLY WAS FILED. ACCORDINGLY , PENALTY ASSESSEE BY: SHRI S.B. GUPTA, CA DEPARTMENT BY : SHRI KAUSHLENDRA TIWARI, SR. DR DATE OF HEARING 24/10/2017 DATE OF PRONOUNCEMENT 24/10/2017 ITA NO. 6422/DEL/2014 SHRI SUSHIL G UPTA VS. ACIT 2 PROCEEDINGS U/S 271(1)(B) WAS INITIATED AND A SUM O F RS. 10,000/- WAS LEVIED AGAIN ON THE GROUND THAT IN RESPONSE TO THE SH OW CAUSE NOTICE FOR LEVY OF PENALTY NO REPLY WAS SUBMITTED. LD. CIT ( A)TOO HAS CONFIRMED THE SAID PENALTY. 3. BEFORE US LD. COUNSEL SUBMITTED THAT SIMILAR PENALTY WAS LEVIED IN THE OTHER GROUP CASES, WHEREIN THE HONBLE TRIBUNAL HAS DELETED THE SAID PENALTY BEFORE US. IN SUPPORT HE FILED THE FOLLO WING DECISIONS OF THE TRIBUNAL :- NAME: ITA NOS. M/S. MACADAM ROAD MAKERS P. LTD. VS. ACIT: 6403 & 6 404/DEL/2014 SHRI GHANSHYAM GUPTA VS. ACIT: 6375 & 6378/DEL/2 014 SARASWATI RESORTS PVT. LTD. VS. ACIT: 6281 TO 6383/D EL/2014 SANJAY GUPTA VS. ACIT: 6284 & 6385/DEL/ 2014 4. LD. DR ON THE OTHER HAND RELIED UPON THE ORDER O F THE A.O. AND THE CIT(A). 5. AFTER CONSIDERING THE RELEVANT FINDING GIVEN I N THE IMPUGNED ORDER AS WELL AS THE TRIBUNAL ORDER FILED BEFORE US, WE FIND THAT THE REASONS FOR NON COMPLIANCE OF NOTICE U/S 142(1) DATED 19.9.2012 WAS THAT, THE AUNT OF THE ASSESSEE, MRS. ANJU GUPTA WAS SUFF ERING FROM SEVERE DISEASE AND WAS HOSPITALIZED ON 6.10.2012 AND THEREAFTER ON 9.10.2012, WHICH WAS THE DATE FIXED FOR HEARING, MR. SATYA PRAKASH ITA NO. 6422/DEL/2014 SHRI SUSHIL G UPTA VS. ACIT 3 GUPTA HEAD OF THE FAMILY AND GRANDFATHER OF THE ASSESS EE WAS HOSPITALIZED DUE TO HEART ATTACK. IN THIS SITUATION THE WH OLE FAMILY WAS DISTURBED AND ACCORDINGLY, NO COMPLIANCE WOULD BE M ADE. WE FIND THAT THE LD. CIT (A) OUT OF PENALTY PROCEEDING INITIATED AND LEVIED FOR SEVEN YEARS ON SIMILAR GROUNDS HAS DELETED THE PENAL TY FOR FOUR ASSESSMENT YEARS BUT HAS CONFIRMED THE SAME FOR THREE ASSESSMENT YEARS. SUCH AN ADHOCISM ADOPTED BY LD. CIT(A) FOR CO NFIRMING THE PENALTY CANNOT BE APPRECIATED. SINCE THERE WAS A REAS ONABLE CAUSE FOR NOT ATTENDING THE HEARING ON 9.1.2012, THEREFORE, IN V IEW OF PROVISION OF SECTION 273B, THE PENALTY OF RS. 10,000/- AS LEVI ED BY THE A.O. IS DIRECTED TO BE DELETED. 3. IN THE RESULT APPEAL OF THE ASSESSEE IS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 24 TH OCTOBER, 2017. SD/- SD/- (PRASHANT MAHARISHI) (A MIT SHUKLA) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 31 /10/2017 VEENA COPY FORWARDED TO 1. APPLICANT 2. RESPONDENT 3. CIT 4. CIT (A) 5. DR:ITAT ASSISTANT REGISTRAR ITAT, NEW DELHI