Appeal details
Counselvise Citation
[2019] 116 COUNSELVISE.COM (IT) 6743 (ITAT-DELHI)
Assessee PAN
Bench
Appeal Number
Duration Of Justice
8 month(s) 5 day(s)
Appellant
Respondent
Appeal Type
Income Tax Appeal
Pronouncement Date
01-08-2019
Appeal Filed By
Assessee
Order Result
Allowed
Bench Allotted
SMC
Assessment Year
2005-2006
Appeal Filed On
26-11-2018
Judgement Text
IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCHES SMC: DELHI BEFORE SHRI BHAVNESH SAINI, JUDICIAL MEMBER ITA.NO.7453/DEL./2018 ASSESSMENT YEAR 2005-06 ETHNIC OVERSEAS (P) LTD. C/O M/S RRA TAXINDIA, D-28, SOUTH EXTENSION, PART-1, NEW DELHI. AABCE2286J VS. INCOME TAX OFFICER, WARD 11(2), NEW DELHI. (APPELLANT) (RESPONDENT) FOR ASSESSEE : SHRI SOMIL AGGARWAL, ADVOCATE FOR REVENUE : SHRI S.L. ANURAGI, SR. DR DATE OF HEARING : 1 8 .07 .201 9 DATE OF PRONOUNCEMENT : 01.08 .201 9 ORDER THIS APPEAL BY ASSESSEE HAS BEEN DIRECTED AGAINST THE ORDER OF LD. CIT(APPEALS)-13, NEW DELHI DATED 01.06 .2018 FOR AY 2005-06, CHALLENGING THE LEVY OF PENALTY U/S 271 (1)(B) OF THE ACT. 2. THE AO NOTED IN THE PENALTY ORDER THAT ASSESSEE COMPANY WAS REQUIRED TO FURNISH DETAILS/INFORMATION/EXPLANA TION BY 2 ITA.NO.7453/DEL./2018 ISSUE AND SERVICE OF NOTICES/LETTERS MENTIONED IN T HE PENALTY ORDER PERTAINING TO NOTICE DATED 18.08.2006, 26.04. 2007, 04.05.2007, 28.05.2007, 17.08.2007, 05.09.2007, 20.09.2007, 28.09.2007 AND 05.10.2007. THE AO NOTE D THAT THERE WAS NO COMPLIANCE TO THE NOTICES WHICH WAS CO NSIDERED AS DEFAULT U/S 271(1)(B) OF THE ACT. THE AO ISSUED SHOW-CAUSE NOTICE FOR LEVY OF PENALTY AND IN ABSENCE OF ANY EX PLANATION, THE AO LEVIED THE PENALTY OF RS. 10,000/- FOR FAILU RE TO COMPLY WITH NOTICES U/S 142(1)/143(2) OF THE ACT. THE ASS ESSEE CONTENDED BEFORE LD. CIT(A) THAT THERE WAS A CHANGE IN ADDRESS AS REPORTED IN ITR FOR SUBSEQUENT AY 2006-0 7. THEREFORE, NO NOTICE HAS BEEN SERVED UPON THE ASSES SEE AT THE NEW ADDRESS. THE LD. CIT(A) DID NOT ACCEPT THE CON TENTION OF THE ASSESSEE AND NOTED THAT THE RECORD SHOWS ASSESS EE HAS FOUR ADDRESSES AND ON 05.09.2007, COUNSEL FOR ASSES SEE APPEARED, THEREFORE, CHANGE OF ADDRESS SHOULD HAVE BEEN INTIMATED TO THE AO. THE APPEAL WAS ACCORDINGLY DI SMISSED. 3 ITA.NO.7453/DEL./2018 3. LD. COUNSEL FOR ASSESSEE SUBMITTED THAT THE AO H AS MENTIONED OLD ADDRESS EVEN IN THE PENALTY ORDER DES PITE IN THE INCOME TAX RETURN FOR AY 2006-07 FILED ON 31.12.200 6 ASSESSEE HAS REPORTED NEW ADDRESS AT E-6/9, VASANT VIHAR, NEW DELHI. NO NOTICE HAS BEEN SERVED UPON THE ASS ESSEE AT NEW ADDRESS, THEREFORE, PENALTY CANNOT BE LEVIED AG AINST THE ASSESSEE. HE HAS FURTHER SUBMITTED THAT EVEN IN TH E PENALTY ORDER AO WAS NOT SPECIFIC AS TO FOR WHICH NOTICE PE NALTY HAS BEEN LEVIED AGAINST THE ASSESSEE. HE HAS SUBMITTED THAT ORDER OF THE CIT(A) ON QUANTUM HAS BEEN SET ASIDE BY ITAT VIDE ORDER DATED 20.12.2017 AND APPEAL IS PENDING BEFORE LD. CIT(A) AND, AS SUCH, MATTER IS STILL PENDING ON QUA NTUM. HE HAS RELIED UPON THE JUDGMENT OF HONBLE DELHI HIGH COURT IN THE CASE OF PR. CIT-1 VS. ATLANTA CAPITAL PVT. LTD. , ITA NO. 665/2014 DATED 21.09.2015 IN WHICH IT WAS NOTED THA T AO WAS AWARE OF CHANGE OF ADDRESS OF THE ASSESSEE AND YET THE NOTICE U/S 148 OF THE ACT WAS ISSUED AT OLD ADDRESS . THEREFORE, ISSUE WAS DECIDED AGAINST THE REVENUE. 4 ITA.NO.7453/DEL./2018 4. ON THE OTHER HAND, LD. DR RELIED UPON THE ORDERS OF THE AUTHORITIES BELOW AND SUBMITTED THAT AS PER PAN, AO ISSUED NOTICE WHICH HAS NOT BEEN COMPLIED BY THE ASSESSEE. THEREFORE, PENALTY WAS RIGHTLY LEVIED AGAINST THE A SSESSEE. 5. I HAVE CONSIDERED THE RIVAL SUBMISSIONS. IN THE PRESENT CASE THE AO PASSED THE ASSESSMENT ORDER U/S 144 OF THE ACT DATED 11.12.2007 (PB-6) IN WHICH AO HAS MENTIONED A DDRESS OF THE ASSESSEE AT 1378/21, 3 RD FLOOR, NAIWALA, KAROL BAGH, NEW DELHI. SAME ADDRESS IS MENTIONED IN THE PENALT Y ORDER. THE ASSESSEE, HOWEVER, FILED RETURN OF INCOME FOR S UBSEQUENT AY 2006-07 ON 31.12.2006 IN WHICH ASSESSEE HAS MENT IONED NEW ADDRESS AT E-6/9, VASANT VIHAR, NEW DELHI. IT IS, THEREFORE, CLEAR THAT PRIOR TO COMPLETION OF THE AS SESSMENT FOR ASSESSMENT YEAR UNDER APPEAL, ASSESSEE HAD ALREADY REPORTED NEW ADDRESS TO THE REVENUE DEPARTMENT. HOWEVER, TH E AO FOR THE REASONS BEST KNOWN TO HIM HAVE SENT THE NOTICES TO THE ASSESSEE AT THE OLD ADDRESS. NO ATTEMPT HAS BEEN M ADE TO SERVE ASSESSEE AT THE NEW ADDRESS. THEREFORE, THER E COULD NOT 5 ITA.NO.7453/DEL./2018 BE ANY REASON TO BELIEVE THAT ASSESSEE HAD DEFAULTE D IN MAKING COMPLIANCE TO THE NOTICES. LD. CIT(A) NOTED THAT ON 05.09.2007 COUNSEL FOR ASSESSEE APPEARED BEFORE AO BUT NO NEW ADDRESS HAS BEEN INTIMATED. HOWEVER, IN THE IN COME TAX RETURN FILED FOR SUBSEQUENT AY 2006-07, ASSESSEE HA D ALREADY REPORTED NEW ADDRESS TO THE DEPARTMENT. THERE IS T HUS, NO DEFAULT ON THE PART OF THE ASSESSEE TO COMPLY WITH THE NOTICES U/S 142(1)/143(2) OF THE ACT. FURTHER, AO HAS RECO RDED SEVERAL DATES ON WHICH NOTICES HAVE BEEN ISSUED TO THE ASSESSEE, BUT IT IS NOT MENTIONED IN THE PENALTY OR DER AS TO FOR WHICH DEFAULT OF NOTICE PENALTY HAS BEEN LEVIED. I N THE ABSENCE OF ANY SPECIFIC CHARGE AGAINST THE ASSESSEE , IT IS DIFFICULT TO ACCEPT THAT ASSESSEE WOULD DEFAULT TO MAKE ANY REPLY BEFORE THE AUTHORITIES BELOW. THE QUANTUM MA TTER IS PENDING BEFORE THE CIT(A) AS PER DIRECTIONS OF THE TRIBUNAL. CONSIDERING ALL THESE FACTS AND CIRCUMSTANCES, I AM OF THE VIEW THAT ASSESSEE HAD A REASONABLE CAUSE FOR FAILU RE TO COMPLY WITH THE NOTICES. THEREFORE, PENALTY IS NOT LEVIABLE IN 6 ITA.NO.7453/DEL./2018 THE MATTER. I, ACCORDINGLY, SET ASIDE THE ORDERS O F THE AUTHORITIES BELOW AND CANCEL THE PENALTY. 6. IN THE RESULT, APPEAL OF ASSESSEE IS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT. SD/- (BHAVNESH SAINI) JUDICIAL MEMBER DATED 01.08.2019 *KAVITA ARORA COPY TO 1. THE APPELLANT 2. THE RESPONDENT 3. CIT(A) CONCERNED 4. CIT CONCERNED 5. D.R. ITAT SMC BENCH, DELHI 6. GUARD FILE. // BY ORDER // ASSISTANT REGISTRAR : ITAT DELHI BENCHES : DELHI. 7 ITA.NO.7453/DEL./2018 DATE OF DICTATION 1 8 .07.2019 DATE ON WHICH THE TYPED DRA FT IS PLACED BEFORE THE DICTATING MEMBER 1 9 .07.2019 DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE OTHER MEMBER DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR. P S/PS 01.08.2019 DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE D ICTATING MEMBER FOR PRONOUNCEMENT 01.08.2019 DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR. PS/PS 01.08.2019 DATE ON WHICH THE FINAL ORDER IS UPLOADED ON THE WE BSITE OF ITAT 01.08.2019 DATE ON WHICH THE FILE GOES TO THE BENCH CLERK 01.08.2019 DATE ON WHICH THE FILE GOES TO THE HEAD CLERK THE DATE ON WHICH THE FIL E GOES TO THE ASSISTANT REGISTRAR FOR SIGNATURE ON THE ORDER DATE OF DISPATCH OF THE ORDER
