Jasmine Contractors P.Ltd, New Delhi V. ITO, Ward 1(3), Faridabad

ITA 776/DEL/2023

AI Insights

The case involves M/s Jasmine Contractors Pvt. Ltd., the appellant, contesting a penalty imposed by the Income Tax Officer (ITO), Ward 1(3), Faridabad, for alleged non-compliance with a notice under section 271(1)(b) of the Income Tax Act, 1961. The notice, dated 24.09.2018, required the assessee to appear on 08.10.2018, which they did not comply with as per the initial assessment. However, the assessee submitted relevant documents on 04.10.2018, prior to the scheduled date. The Tribunal, upon reviewing the submissions and the timing of the assessee's response, concluded that the penalty was unjustly imposed and ruled in favor of the assessee.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 121990 (ITAT-DELHI)
• Duration Of Justice: 4 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-08-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Next Hearing Date: 31-07-2023
• Assessment Year: 2016-2017
• Appeal Filed On: 20-03-2023
• Laws Referred To: Income Tax Act 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: R.K DOI
• Keywords: Non compliance
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH: C: NEW DELHI BEFORE SHRI CHANDRA MOHAN GARG, JUDICIAL MEMBER AND SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER ITA No.776/Del/2023 Assessment Year: 2016-17 M/s Jasmine Contractors Pvt. Ltd., IPSO Legal, H-35,1 st Floor, Jangpura Extension, New Delhi 110014 PAN AADCJ 3067 G vs. ITO, Ward 1(3), Faridabad, Haryana 121002 (Appellant) (Respondent) For Assessee: Shri Shyam Sundar, Adv. For Revenue : Shri R.K Doi, Sr. DR Date of Hearing : 01.08.2023 Date of Pronouncement : 04.08.2023 ORDER PER CHANDRA MOHAN GARG, J.M. This appeal has been filed against the order of Ld. NFAC, Delhi dated 28.01.2023 for AY 2016-17. 2. We have heard arguments of both the sides from the penalty order we note that the Assessing Officer imposed penalty u/s. 271(1)(b) of the I.T Act 1961 (for short the ‘ Act’) of Rs. 10,000/- on account of non compliance of notice dated 24.09.2018 wherein the assessee was called to appear on 08.10.2018. From top para at page 2 of assessment order dated 06.12.2018 u/s. 143(3) of the Act for AY 2016-17 we note that the Assessing Officer mentioned about the issuance of said notice dated 24.09.2018 wherein date of hearing was fixed on 08.10.2018 and in the same para Assessing Officer noted that on 04.10.2018 the assessee company has filed copies of the bank book along with names of the share holder to whom shares were allotted during the year. In this back drop we are unable to agree with the conclusion of authorities below imposing and upholding penalty u/s. 271(1)(b) of the Act on the assessee for non compliance of notice dated 24.09.2018 which in fact was replied by the assessee four days before the fix date on 04.10.2018. Accordingly, sole grievance of assessee is allowed and the Assessing Officer is directed to delete the impugned penalty. ITA No. 776/Del/2023 2 3. In the result, the appeal of the assessee is allowed. Order pronounced in the open court on 04.08.2023. Sd/- Sd/- (PRADIP KUMAR KEDIA) (CHANDRA MOHAN GARG) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated:04 th August, 2023. NV/- Copy forwarded to : 1. Appellant 2. Respondent 3. CIT 4. CIT(A) 5. DR // By Order // Asstt. Registrar, ITAT, New Delhi