PROSAFE INTERNATIONAL PVT. LTD., Alwar V. ACIT, Alwar

ITA 743/JPR/2015

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 5120 (ITAT-JAIPUR)
• Duration Of Justice: 9 month(s) 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-07-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: Not Allotted
• Assessment Year: 2010-2011
• Appeal Filed On: 20-10-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RAGHUVIR SINGH DAGUR CIT DHK
• Keywords: Non compliance
• Section: 143(3)

Judgement Text

VK;DJ VIHYH; VF/KDJ.K] T;IQJ U;K;IHB] T;IQJ IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHE S, JAIPUR JH DQY HKKJR] U;KF;D LNL; ,OA JH FOE FLAG ;KNO] YS [KK LNL; DS LE{K BEFORE: SHRI KUL BHARAT, JM & SHRI VIKRAM SINGH YAD AV, AM VK;DJ VIHY LA-@ ITA NO. 743/JP/2015 FU/KZKJ.K O'K Z@ ASSESSMENT YEAR : 2010-11. M/S. PROSAFE INTERNATIONAL PVT. LTD., E-345, RIICO INDUSTRIAL AREA, BHIWADI, ALWAR. CUKE VS. THE ACIT, CIRCLE-2, ALWAR. LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN NO. AAFCP 1093 G VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT FU/KZKFJRH DH VKSJ LS@ ASSESSEE BY : NONE JKTLO DH VKSJ LS@ REVENUE BY : SHRI RAGHUVIR SINGH DAGUR (ADDL. CIT) LQUOKBZ DH RKJH[K@ DATE OF HEARING : 27.07.2016. ?KKS'K .KK DH RKJH[K @ DATE OF PRONOUNCEMENT : 28/07/2016. VKNS'K@ ORDER PER SHRI KUL BHARAT, J.M. THE APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF LD. CIT (APPEALS), ALWAR DATED 18.08.2015. THE ASSESSEE HAS RAISED TH E FOLLOWING GROUNDS OF APPEAL :- 1. IN THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN L AW THE LD. CIT (A) HAS ERRED IN SUSTAINING THE PENALTY ORDER U/S 271(1)(B) PASSED BY THE ASSTT. COMMISSIONER OF INCOME-TAX, CIRCLE-2, ALWAR. THE AC TION OF THE LD. CIT (A) IS ILLEGAL, ARBITRARY, UNJUSTIFIED AND AGAINST THE FACTS OF THE CASE. 2. IN THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN L AW, THE LD. CIT (A) HAS ERRED IN CONFIRMING THE ACTION OF THE LD. ACIT, CIR CLE-2, ALWAR IN IMPOSING THE PENALTY TO THE EXTENT OF RS. 40,000/- OUT OF RS . 70,000/-. 2 ITA NO. 743/JP/2015 PROSAFE INTERNATIONAL PVT. LTD. 3. THE ASSESSEE CRAVES ITS RIGHT TO ADD, AMEND OR ALTE R ANY OF THE GROUNDS ON OR BEFORE THE HEARING. 2. NO ONE APPEARED ON BEHALF OF THE ASSESSEE. THE APPEAL WAS TAKEN UP IN ABSENCE OF THE ASSESSEE FOR HEARING. 3. BRIEFLY STATED THE FACTS ARE THAT DURING THE COU RSE OF HEARING, THE AO INITIATED PENALTY PROCEEDINGS UNDER SECTION 271(1)(B) OF THE I.T. ACT, 1961 (HEREINAFTER REFERRED TO AS THE ACT) FOR NON COMPLIANCE OF THE N OTICE. SUBSEQUENTLY, A PENALTY ORDER WAS PASSED UNDER SECTION 271(1)(B) OF THE ACT . THE ASSESSEE AGGRIEVED BY THIS ORDER, PREFERRED AN APPEAL BEFORE LD. CIT (A), WHO AFTER CONSIDERING THE SUBMISSIONS, PARTLY ALLOWED THE APPEAL AND SUSTAINE D THE PENALTY OF RS. 40,000/- OUT OF THE TOTAL PENALTY OF RS. 70,000/-. 4. NOW THE ASSESSEE IS IN APPEAL BEFORE THE TRIBUNA L. 4.1. THE LD. D/R ARGUED THAT THE LD. CIT (A) WAS NO T JUSTIFIED IN REDUCING THE PENALTY. HE SUBMITTED THAT THE ASSESSEE DOES NOT DE SERVE ANY LIBERAL CONSIDERATION AS FROM THE RECORD IT IS EVIDENT THAT THE IS A HABI TUAL DEFAULTER. THE NOTICES ISSUED WERE NOT COMPLIED WITH DURING THE ASSESSMENT PROCEE DINGS. 4.2. WE HAVE HEARD THE LD. D/R AND CONSIDERED THE M ATERIAL AVAILABLE ON RECORD. WE FIND THAT THE ASSESSMENT HAS BEEN FRAMED UNDER S ECTION 143(3) OF THE ACT. THIS FACT HAS BEEN DULY CONCEDED BY THE LD. D/R. WE FIN D THAT THE CASE IS COVERED BY THE DECISION OF COORDINATE BENCH OF THE TRIBUNAL IN THE CASE OF AKHIL BHARTIYA PRATHMIK SHIKSHAK SANGH BJHAWAN TRUST VS. ASSISTANT DIRECTOR OF INCOME TAX, 115 TTJ 419 (DEL.) WHEREIN ON SIMILAR FACTS SUCH PENALTY HAS BE EN DELETED. RESPECTFULLY, 3 ITA NO. 743/JP/2015 PROSAFE INTERNATIONAL PVT. LTD. FOLLOWING THE DECISION OF THE COORDINATE BENCH, WE SET ASIDE THE ORDER OF LD. CIT (A) AND DELETE THE PENALTY. 5. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED . ORDER IS PRONOUNCED IN THE OPEN COURT ON 28/ 07/2016. SD/- SD/- FOE FLAG ;KNO ( DQY HKKJR ) (VIKRAM SINGH YADAV) ( KUL BHARAT ) YS[KK LNL;@ ACCOUNTANT MEMBER U;KF;D LNL;@ JUDICIAL MEMBER . JAIPUR DATED:- /07/2016. DAS/ VKNS'K DH IZFRFYFI VXZSF'KR@ COPY OF THE ORDER FORWARDED TO: 1. THE APPELLANT- M/S. PROSAFE INTRNATIONAL PVT. L TD., BHIWADI, ALWAR. 2. THE RESPONDENT- THE ACIT CIRCLE-2, ALWAR. 3. THE CIT(A). 4. THE CIT, 5. THE DR, ITAT, JAIPUR 6. GUARD FILE (ITA NO. 743/JP/2015) VKNS'KKUQLKJ@ BY ORDER, LGK;D IATHDKJ@ ASSISTANT. REGISTRAR