Shri subhash Chand Soni, Sarafa Bazar, Mahwa, Dausa, Dausa V. ITO Ward, Dausa, Ward-Dausa

ITA 798/JPR/2019

• Counselvise Citation: [2020] 110 COUNSELVISE.COM (IT) 9758 (ITAT-JAIPUR)
• Duration Of Justice: 1 year(s) 1 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-06-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2009-2010
• Appeal Filed On: 28-05-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Principle of natural justice; Set aside
• Section: 271(1)(c)

Judgement Text

VK;DJ VIHYH; VF/KDJ.K] T;IQJ U;K;IHB] T;IQJ IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHE S,A JAIPUR JH FOT; IKY JKO] U;KF;D LNL; ,OA JH FOE FLAG ;KNO] YS[KK LNL; DS LE{K BEFORE: SHRI VIJAY PAL RAO, JM & SHRI VIKRAM SINGH YADAV, AM VK;DJ VIHY LA- @ ITA NO. 798/JP/2019 FU/KZKJ.K O'K Z @ ASSESSMENT YEAR : 2009-10 SHRI SUBHASH CHAND SONI PROP. M/S RAMNIWAS & SONS, SARAFA BAZAR, MAHUWA, DAUSA. CUKE VS. THE ITO, WARD, DAUSA. LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN/GIR NO.: AOCPS 1629 F VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT FU/KZKFJRH DH VKSJ L S@ ASSESSEE BY : SHRI ROHAN SOGANI (C.A.) JKTLO DH VKSJ LS @ REVENUE BY : MISS. CHANCHAL MEENA (ADDL.CIT) LQUOKBZ DH RKJH[ K@ DATE OF HEARING : 30/06/2020 MN?KKS'K.KK DH RKJH[ K@ DATE OF PRONOUNCEMENT: 30/06/2020 VKNS'K@ ORDER PER: VIJAY PAL RAO, J.M. THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST TH E ORDER DATED 29.03.2019 OF LD. CIT(A), ALWAR ARISING FROM PENALT Y ORDER PASSED U/S 271(1)(C) OF THE IT ACT FOR THE ASSESSMENT ORDER 20 09-10. THE ASSESSEE HAS RAISED THE FOLLOWING GROUNDS:- 1. IN THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW THE LD. CIT(A) HAS ERRED IN PASSING EX-PARTY ORDER WITHOUT GIVING REASONABLE OPPORTUNITIES OF BEING HEARD. THE ACTION OF THE LD. CIT(A) IS ILLEGAL, UNJUSTIFIED, ARBITRARY AND AGAIN ST THE PRINCIPLES OF ITA NO.798/JP/2019 SHRI SUBHASH CHAND SONI VS. ITO 2 NATURAL JUSTICE. RELIEF MAY PLEASE BE PROVIDED BY QUASHING THE SAID ORDER. 2. IN THE FACTS AND CIRCUMSTANCES OF THE CASE AND I N LAW THE LD. CIT(A) HAS ERRED IN CONFIRMING THE PENALTY OF RS. 7 ,26,800/- IMPOSED BY LD. AO U/S 271(1)(C) OF THE INCOME TAX A CT, 1961. THE ACTION OF THE LD. CIT(A) IS ILLEGAL, UNJUSTIFIE D, ARBITRARY AND AGAINST THE FACTS OF THE CASE. RELIEF MAY PLEASE B E GRANTED BY DELETING THE SAID PENALTY OF RS. 7,26,800/-. 2. THE HEARING OF THIS APPEAL WAS CONCLUDED THROUGH VIDEO CONFERENCE IN VIEW OF THE PREVAILING SITUATION OF C OVID-19 PANDEMIC. AT THE OUTSET, THE LD. AR OF THE ASSESSEE HAS SUBMITTE D THAT THE LD. CIT(A) HAS DISMISSED THE APPEAL OF THE ASSESSEE VIDE EX-PA RTE IMPUGNED ORDER. HE HAS POINTED THAT THE QUANTUM APPEAL WAS PENDING BEFORE THE TRIBUNAL AND THEREFORE, THE ASSESSEE WAS SEEKING AD JOURNMENT OF THE HEARING BEFORE THE LD. CIT(A). THE QUANTUM APPEAL W AS FINALLY DECIDED BY THIS TRIBUNAL ONLY ON 25.03.2019 AND THE ORDER W AS RECEIVED IN THE END OF MONTH WHEREAS THE LD. CIT(A) HAS DECIDED THE APPEAL OF THE ASSESSEE IN THE PENALTY PROCEEDING WITHOUT CONSIDER ING OUTCOME OF THE QUANTUM APPEAL BEFORE THE TRIBUNAL. HENCE, THE LD. AR HAS PLEADED THAT THE ASSESSEE MAY GIVEN ONE MORE OPPORTUNITY OF HEAR ING BEFORE THE LD. CIT(A) TO EXPLAIN ITS CASE IN LIGHT OF THE DECISION OF THIS TRIBUNAL IN THE QUANTUM APPEAL. ITA NO.798/JP/2019 SHRI SUBHASH CHAND SONI VS. ITO 3 3. ON THE OTHER HAND, LD. DR HAS SUBMITTED THAT THE LD. CIT(A)HAS RECORDED THE FACT THAT SEVERAL OPPORTUNITIES WERE G IVEN BUT NOBODY ATTENDED THE PROCEEDINGS BEFORE THE LD. CIT(A) AND THEREFORE, THE APPEAL OF THE ASSESSEE CANNOT BE KEPT IN ABYANCE IN DEFINITELY. THE LD. DR HAS OPPOSED TO THE PRAYER OF THE ASSESSEE FOR SE TTING ASIDE THE MATTER TO THE RECORD OF THE LD. CIT(A). 4. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS AS WELL AS RELEVANT MATERIAL ON RECORD. THERE IS NO DISPUTE THAT THE AP PEAL OF THE ASSESSEE FILED AGAINST THE LEVY OF PENALTY U/S 271(1)(C) OF THE ACT WAS DISMISSED BY THE LD. CIT(A) WHEN NOBODY HAS ATTENDED THE PROC EEDING DESPITE 12 OPPORTUNITIES WERE GIVEN BY THE LD. CIT(A). WE FURT HER, NOTE THAT OUT OF THESE 12 OPPORTUNITIES THE DATE OF HEARING UPTO 12. 04.2018 WERE PRIOR TO THE DISPOSAL OF THE QUANTUM APPEAL OF THE ASSESS EE BY THIS TRIBUNAL, THEREFORE, IT WAS APPROPRIATE TO WAIT FOR OUTCOME O F THE QUANTUM PROCEEDING THOUGH IT IS NOT NECESSARY. THE LD. CIT( A) HAS NOT DECIDED THE ISSUE BY A SPEAKING ORDER BUT DISMISSED THE APP EAL OF THE ASSESSEE SUMMARILY FOR WANT OF ANY ATTENDANCE ON BEHALF OF T HE ASSESSEE. IT IS PERTINENT TO NOTE THAT BEFORE THE IMPUGNED ORDER WA S PASSED BY THE LD. CIT(A) THE APPEAL OF THE ASSESSEE IN THE QUANTUM PR OCEEDING WAS DECIDED BY THIS TRIBUNAL AND THEREFORE, THE OBSERVA TIONS AND FINDINGS OF ITA NO.798/JP/2019 SHRI SUBHASH CHAND SONI VS. ITO 4 THE TRIBUNAL IN THE QUANTUM PROCEEDING OUGHT TO HAV E BEEN CONSIDERED WHILE DECIDING THE APPEAL AGAINST THE PENALTY ORDER . THIS TRIBUNAL IN THE QUANTUM APPEAL HAS GRANTED PART RELIEF TO THE ASSES SEE AND THEREFORE, THE SAID ORDER BECOMES RELEVANT FOR DECIDING THE PE NALTY APPEAL. IN THE FACTS AND CIRCUMSTANCES OF THE CASE WHEN THE LD. CI T(A) HAS NOT CONSIDERED THIS TRIBUNAL ORDER IN THE QUANTUM APPEA L WHILE PASSING THE IMPUGNED ORDER THE MATTER IS REQUIRED TO BE RECONSI DERED AFTER GIVING OPPORTUNITY OF HEARING TO THE ASSESSEE AS WELL AS C ONSIDERING THE ORDER OF THIS TRIBUNAL IN THE QUANTUM PROCEEDINGS. ACCORD INGLY, WE SET ASIDE THE IMPUGNED ORDER AND REMAND THE MATTER TO THE REC ORD OF THE LD. CIT(A) FOR DECIDING THE SAME FRESH AFTER GIVING AN OPPORTUNITY OF HEARING TO THE ASSESSEE. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALLOW ED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 30/06/2020. SD/- SD/- FOE FLAG ;KNO FOT; IKY JKO (VIKRAM SINGH YADAV) (VIJAY PAL RAO) YS[KK LNL;@ ACCOUNTANT MEMBER U;KF;D LNL;@ JUDICIAL MEMBER TK;IQJ@ JAIPUR FNUKAD@ DATED:- 30/06/2020. * SANTOSH. ITA NO.798/JP/2019 SHRI SUBHASH CHAND SONI VS. ITO 5 VKNS'K DH IZFRFYFI VXZSFKR@ COPY OF THE ORDER FORWARDED TO: 1. VIHYKFKHZ@ THE APPELLANT- SHRI SUBHASH CHAND SONI, DAUSA. 2. IZR;FKHZ@ THE RESPONDENT- ITO, WARD, DAUSA. 3. VK;DJ VK;QDR@ CIT 4. VK;DJ VK;QDR@ CIT(A) 5. FOHKKXH; IZFRFUF/K] VK;DJ VIHYH; VF/KDJ.K] T;IQJ@ DR, ITAT, JAIPUR. 6. XKMZ QKBZY@ GUARD FILE {ITA NO. 798/JP/2019} VKNS'KKUQLKJ@ BY ORDER, LGK;D IATHDKJ@ ASST. REGISTRAR