Durgesh Vanijya Pvt. Ltd., Kolkata V. I.T.O., Ward - 3(1), Kolkata, Kolkata

ITA 71/KOL/2023

AI Insights

The case involves Durgesh Vanijya Pvt. Limited appealing against a penalty imposed by the Income Tax Officer for non-compliance with statutory notices during the assessment year 2013-2014. The notices were issued under section 142(1) of the Income Tax Act, and the assessee failed to comply with them. The penalty was confirmed by the Commissioner of Income Tax (Appeals) at the National Faceless Appeal Centre, Delhi. The Tribunal, however, decided to delete the penalty, taking into account the challenges posed by the newly introduced National Faceless e-Assessment system, which was being implemented for the first time.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 129136 (ITAT-KOLKATA)
• Duration Of Justice: 1 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-03-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 12-03-2023
• Assessment Year: 2013-2014
• Appeal Filed On: 26-01-2023
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL

Judgement Text

ITA No. 71/KOL/2023 Assessment Year: 2013-2014 Durgesh Vanijya Pvt. Limited 1 IN THE INCOME TAX APPELLATE TRIBUNAL, ‘B’ BENCH, KOLKATA Before Shri Rajpal Yadav, Vice-President (KZ) & Shri Girish Agrawal, Accountant Member I.T.A. No. 71/KOL/2023 Assessment Year: 2013-2014 Durgesh Vanijya Pvt. Limited,..................Appellant 20B, Abdul Hameed Street, 5 th Floor, Room No. 7, Kolkata-700069 [PAN: AACCD3555E] -Vs.- Income Tax Officer,................................Respondent Ward-3(1), Kolkata Aayakar Bhawan, P-7, Chowringhee Square, Kolkata-700069 Appearances by: N o n e, appeared on behalf of the assessee Shri P.P. Barman, Addl. CIT, appeared on behalf of the Revenue Date of concluding the hearing : March 13, 2023 Date of pronouncing the order : March 13, 2023 O R D E R Per Rajpal Yadav, Vice-President (KZ):- The present appeal is directed at the instance of assessee against the order of ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi dated 29.11.2022 passed for A.Y. 2013-14. ITA No. 71/KOL/2023 Assessment Year: 2013-2014 Durgesh Vanijya Pvt. Limited 2 2. The solitary grievance of the assessee is that the ld. CIT(Appeals) has erred in confirming the penalty of Rs.30,000/- imposed by the ld. Assessing Officer under section 271(1)(b) of the Income Tax Act on account of non-compliance of the assessee of statutory notices dated 09.02.2021, 19.02.2021 and 17.08.2021. 3. In response to the notice of hearing, a Clerk from the Office of the Tax Consultant appeared for seeking adjournment. However, we do not find any reason to grant an adjournment and proceed to decide the appeal of the assessee. 4. With the assistance of ld. D.R., we have gone through the record carefully. A perusal of the assessment order would reveal that ld. Assessing Officer has reproduced the details of notices and their non-compliance. Such details reflected as under:- “Further, the case was transferred to the National e- Assessment Center under FAS and thereafter, various notices were issued to the assessee from time to time which are listed as under:- Sr. No. Notice Details Date of issue Due Date of compliance 1. Notice u/s 142(1) 19.02.2021 23.02.2021 2. Notice u/s 142(1) 09.02.2021 12.02.2021 3. Notice u/s 142(1) 17.08.2021 23.08.2021 ITA No. 71/KOL/2023 Assessment Year: 2013-2014 Durgesh Vanijya Pvt. Limited 3 However, the assessee company has not made compliance any of the above notices. In view of this, penalty proceedings u/s 271(1)(b) of the I.T. Act, 1961 are being initiated separately for non- compliance to the statutory notice as listed above”. 5. The assessee thereafter submitted necessary details in reply to notice dated 12.09.2021. It is pertinent to observe that National Faceless e-Assessment was introduced for the first time and in the case of this assessee must be the first assessment. Therefore, there may be certain issues for service of notice upon the assessee, difficulty in submission of the replies and understanding of the assessee of the procedure required to be followed by it. 6. Considering the above, we deem it appropriate to delete the penalty imposed upon the assessee under section 271(1)(b) of the Income Tax Act. 7. In the result, the appeal of the assessee is allowed. Order pronounced in the open Court on13 th March, 2023. Sd/- Sd/- (Girish Agrawal) (Rajpal Yadav) Accountant Member Vice-President (KZ) Kolkata, the 13 th day of March, 2023 ITA No. 71/KOL/2023 Assessment Year: 2013-2014 Durgesh Vanijya Pvt. Limited 4 Copies to :(1) Durgesh Vanijya Pvt. Limited, 20B, Abdul Hameed Street, 5 th Floor, Room No. 7, Kolkata-700069 (2) Income Tax Officer, Ward-3(1), Kolkata Aayakar Bhawan, P-7, Chowringhee Square, Kolkata-700069 (3) Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi; (4) Commissioner of Income Tax- , Kolkata; (5) The Departmental Representative (6) Guard File TRUE COPY By order Assistant Registrar, Income Tax Appellate Tribunal, Kolkata Benches, Kolkata Laha/Sr. P.S.