M/s. Varsha Spinning Mills Limited, New Delhi V. JCIT, New Delhi

ITA 776/DEL/2014

• Counselvise Citation: [2017] 128 COUNSELVISE.COM (IT) 2785 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 4 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-07-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Next Hearing Date: 04-07-2017
• Assessment Year: 1997-1998
• Appeal Filed On: 11-02-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SHRAVAN GOTRU
• Assessee Lawyers: S K CHATURVEDI
• Keywords: Principle of natural justice

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH D , NEW DELHI BEFORE SH. N. K. SAINI, AM AND SH. H. S. SIDHU , JM ITA NO. 776 /DEL/201 4 : ASSTT. YEAR : 1997 - 98 VARSHA SPINNING MILLS LTD., C/O M/S S. CHATURVED I & ASSOCIATES, 305, DEEP SHIKHA, 8, RAJENDRA PLACE, NEW DELHI - 110008 VS JCIT, SPL. RANGE - 20, NEW DELHI (APPELLANT) (RESPONDENT) PAN NO. A A ACV2835K ASSESSEE BY : SH. S. K. CHATURVEDI, CA REVENUE BY : SH. SHRAVAN GOTRU, SR. DR DAT E OF HEARING : 04.07 .201 7 DATE OF PRONOUNCEMENT : 04 . 0 7 .201 7 ORDER PER N. K. SAINI, AM: THIS IS AN APPEAL BY THE ASSESSEE AGAINST THE ORDER DATED 21.10 .2013 OF LD. CIT(A) - XIX , NEW DELHI . 2. THE ONLY GRIEVANCE OF THE ASSESSEE IN TH IS APPEAL RELATES TO THE SUSTENANCE OF PENALTY LEVIED BY THE AO U/S 271(1)(C) OF THE INCOME TAX ACT, 1961 (HEREINAFTER REFERRED TO AS THE ACT). 3. DURING THE COURSE OF HEARING, THE LD. COUNSEL FOR THE ASSESSEE AT THE VERY OUTSET STATED THAT THE QUANTUM AD DITION ON THE BASIS OF WHICH THE IMPUGNED PENALTY WAS LEVIED BY THE AO AND SUSTAINED BY THE LD. CIT(A) WAS SET ASIDE BY THE ITAT IN ITA NO.6676/DEL/2013 VIDE ORDER DATED ITA NO. 776 /DEL /201 4 VARSHA SPINNING MILLS LTD. 2 27.07.2016 IN ASSESSEE S OWN CASE. THEREFORE, THE PENALTY U/S 271(1)(C) OF THE ACT IS NOT LEVIABLE, SINCE THE ADDITION ON THE BASIS OF WHICH THIS PENALTY WAS LEVIED HAS BEEN SET ASIDE. 4. IN HIS RIVAL SUBMISSIONS THE LD. DR ALTHOUGH SUPPORTED THE ORDERS OF THE AUTHORITIES BELOW BUT COULD NOT CONTROVERT THE AFORESAID CONTENTION OF THE LD. COUNSEL FOR THE ASSESSEE. 5. WE HAVE CONSIDERED THE SUBMISSIONS OF BOTH THE PARTIES AND PERUSED THE MATERIAL AVAILABLE ON THE RECORD. IN THE PRESENT CASE, IT IS NOTICED THAT THE ADDITION ON THE BASIS OF WHICH THE IMPUGNED PENALTY WAS LEVIED BY THE AO U /S 271(1)(C) OF THE ACT WAS A SUBJECT MATTER OF THE ASSESSEE S APPEAL IN ITA NO. 6676/DEL/2013 WHEREIN VIDE ORDER DATED 27.07.2016, THE ISSUE HAS BEEN SET ASIDE TO THE FILE OF THE AO AND THE RELEVANT FINDINGS HAVE BEEN GIVEN IN PARA 4 OF THE SAID ORDER WHI CH READ AS UNDER: 4. IN VIEW OF THE ABOVE SUBMISSIONS OF THE PARTIES WE ARE OF THE CONSIDERED OPINION THAT DUE TO ONE REASON OR OTHER, T HE ASSESSEE COULD NOT GET OPPORTUNITY TO PLACE HIS CASE PRO PERLY BEFORE THE AO AND CIT(A) AND THUS TO MEET ENDS OF JUST ICE AND TO PREVENT INJURY CAUSED TO IT DUE TO VIOLATION OF PRINCIPLES OF NATURAL JUSTICE, WE FIND IT APPROPRIATE TO RESTORE THE CASE TO THE FILE OF THE AO FOR AFRESH AND DE NOVO FRAMING OF ASSESSMENT ORDER AFTER AFFORDING DUE OPPORTUNITY OF HEARING TO THE ASSESSEE. WE ORDER ACCORDINGLY. ITA NO. 776 /DEL /201 4 VARSHA SPINNING MILLS LTD. 3 6. IN THE PRESENT CASE, NOW, IT IS CLEAR THAT THE ADDITION ON THE BASIS OF WHICH THE IMPUGNED PENALTY WAS LEVIED, HAS BEEN SET ASIDE TO THE FILE OF THE AO . THEREFORE, THE ISSUE RELATING TO LEVY OF PENALTY U/S 271(1)(C) OF THE ACT BEING CONSEQUENTIAL IS ALSO SET ASIDE TO THE FILE OF THE AO. 7 . IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES . (ORD ER PRONOUNCED IN THE COURT ON 04 /0 7 /2017) SD/ - SD/ - ( H. S. SIDHU ) (N. K. SAINI) JUDICIAL MEMBER ACCOUNTANT MEMBER DAT ED: 04 /07 /2017 *SUBODH* COPY FORWARDED TO: 1 . APPELLANT 2 . RESPONDENT 3 . CIT 4 . CIT(APPEALS) 5 . DR: ITAT ASSISTANT REGISTRAR