KVR VCPL JV, VIJAYAWADA V. ACIT, Circle-2(1), Vijayawada

ITA 80/VIZ/2024

• Counselvise Citation: [2024] 101 COUNSELVISE.COM (IT) 7342 (ITAT-VISAKHAPATNAM)
• Duration Of Justice: 2 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-05-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 05-05-2024
• Assessment Year: 2017-2018
• Appeal Filed On: 28-02-2024
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: APARNA VILLURI; ASSESSEES NON COMPLIANCE
• Keywords: Opportunity of being heard; Principle of natural justice
• Section: 148; 142(1)

Judgement Text

आयकरअपीलीयअधिकरण, धिशाखापटणम “SMC” पीठ, धिशाखापटणम IN THE INCOME TAX APPELLATE TRIBUNAL, VISAKHAPATNAM “SMC” BENCH, VISAKHAPATNAM श्री द ु व्वूरु आर एल रेड्डी, न्याधयक सदस्य BEFORE SHRI DUVVURU RL REDDY, HON’BLE JUDICIAL MEMBER आयकर अपील सं./I.T.A.No.80/Viz/2024 (ननधधारण वर्ा / Assessment Year : 2017-18) KVR VCPL JV, 54-20-6, Kanakadurga Gazetted Officers Colony Gurunanak Nagar Vijayawada [PAN : AAPFK8561K] Vs. Asst.Commissioner of Income Tax Circle-2(1) Vijayawada (अपीलार्थी/ Appellant) (प्रत्यर्थी/ Respondent) अपीलधथी की ओर से/ Appellant by : Shri M.V.Prasad, AR प्रत्यधथी की ओर से / Respondent by : Dr.Aparna Villuri, DR सुनवधई की तधरीख / Date of Hearing : 06.05.2024 घोर्णध की तधरीख/Date of Pronouncement : 08.05.2024 आदेश /O R D E R Per Shri Duvvuru RL Reddy, Judicial Member : This appeal is filed by the assessee against the order of Commissioner of Income Tax (Appeals) [CIT(A)], National Faceless Appeal Centre (NFAC), Delhi in DIN & Order No. ITBA/NFAC/S/250/2023-24/1060280673(1) dated 30.01.2024, arising out of order passed u/s 270A of the Income Tax Act, 1961 (in short ‘Act’) dated 23.09.2022 for the Assessment Year (A.Y.) 2017-18. 2 I.T.A. No.80/Viz/2024, A.Y.2017-18 KVR VCPL, JV, Vijayawada 2. Brief facts of the case are that the assessee firm engaged in execution of contract works, did not file it's return of income for the Asst.Year 2017-18 and on observation of the same, a notice u/s. 148 of the Act was issued on 23.03.2021. Accordingly in response to the notice issued, the assessee firm filed return on 18.02.2022, declaring a taxable income of Rs.97,11,940 /-. Subsequently, notices u/ s. 143 (2) and 142(1) of the Act were issued by the NFAC and the assessee firm submitted requisite information before the NFAC. After examining such information, the NFAC finalised the assessment u/s.147 r.w.s. 144B of the Act on 25.03.2022, accepting the income returned. The Assessing Officer (AO) while completing the assessment, initiated penalty proceedings u/s 270A of the Act for under reporting of income by the assessee firm. As it is observed that no explanation has been filed by the assessee firm in respect of the penalty proceedings initiated, the penalty proceedings were transferred and assigned to the jurisdictional Assessing Officer and after affording a reasonable opportunity under the provisions of section 129 of I.T. Act, levied penalty of Rs.15,00,495/-. 3. Aggrieved by the order of the AO, the assessee preferred an appeal before the CITIAJ and the Ld.CIT(A) dismissed the appeal of the assessee for non-compliance to various notices issued by the Ld.CIT(A). 3 I.T.A. No.80/Viz/2024, A.Y.2017-18 KVR VCPL, JV, Vijayawada 4. Aggrieved by the order of the Ld.CIT(A), the assessee preferred an appeal before the Tribunal by raising the following grounds of appeal : 1. The order of the Learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi is erroneous and opposed to the facts of the case and law. 2. On the facts and circumstances of the case and in law, the Ld.clr(A) erred in upholding the Penalty order dated 23.09.2022 passed u/s 270A of the IT Act, 1961 by the AO, National Faceless Assessment Unit. 3. On the facts and circumstances of the case and in law, the Ld.CIT(A) ought to have provided further opportunity of being heard before dismissing the appeal due to non compliance since the appellant was prevented from furnishing of the written submissions was only due to unavoidable reasons. 4. On the facts and circumstances of the case, the Ld.CIT(A) ought to have appreciated that the penalty levied u/s 270A is unwarranted in view of the fact that the income returned was accepted and payment of entire amount of tax was made at the time of the filing of the return of income itself, therefore no income was under reported. 5. Any other legal and factual ground that may be urged at the time of hearing of the appeal. 5. At the outset, it is the Ld.AR submitted that the assessee filed the return of income in response to the notice issued, which was accepted and payment of entire amount of tax was made at the time of filing of the return of income itself and hence, no income was under reported. The Ld.AR further submitted that the reason for assessee's non compliance before the Ld.CIT(A) was that it was prevented from furnishing of the written submissions due to the unavoidable reasons and the Ld.CIT(A) is 4 I.T.A. No.80/Viz/2024, A.Y.2017-18 KVR VCPL, JV, Vijayawada not justified in upholding the penalty order dated 23.09.2022. The Ld.AR submitted that the assessee firm should have been given an opportunity of being heard by the Ld.CIT(A) before dismissing the appeal of the assessee. He, therefore, pleaded to afford an opportunity of being heard before the Ld.CIT(A) to substantiate it's case in support of the grounds raised. 6. Per contra, the Ld.DR argued that the assessee was given sufficient opportunities, but the assessee firm did not comply with the notices issued, hence, the Ld..CIT(A) is justified in dismissing the appeal of the assessee firm. The Ld.DR, therefore, pleaded to uphold the order passed by the Ld.clr(AJ and dismiss the appeal of the assessee. 7. We have heard both the parties and perused the material available on record. It is undisputed fact that the assessee firm filed it's return of income on 18.02.2022, which was accepted and the assessee firm made the payment of entire taxes. As submitted by the Ld.AR, the assessee firm could not comply with the notices issued by the department and failed to furnish written submissions due to the unavoidable reasons. He, pleaded for an opportunity of being heard before the Ld.CIR(A) to substantiate it’s case in support of it’s claim, in the interest of justice. In view of the foregoing facts and circumstances of the case and in order to meet the 5 I.T.A. No.80/Viz/2024, A.Y.2017-18 KVR VCPL, JV, Vijayawada principles of natural justice, we are inclined to remit the matter back to the file of the Ld.CIT(A) with a direction to afford an opportunity of being heard to the assessee before the Ld.CIT(A). The assessee is also directed to adhere to the notices issued and cooperate with the department during the proceedings. Accordingly, the grounds raised by the assessee are allowed for statistical purpose. 8. In the result, appeal of the assessee is allowed for statistical purpose. Order pronounced in the open court on 8 th May, 2024. Sd/- Sd/- (एस बालाकृ ष्णन) (द ु व्वूरु आर.एल रेड्डी) (S.BALAKRISHNAN) (DUVVURU RL REDDY) लेखा सदस्य/ACCOUNTANT MEMBER न्याधयक सदस्य/JUDICIAL MEMBER Dated : 08.05.2024 L.Rama, SPS 6 I.T.A. No.80/Viz/2024, A.Y.2017-18 KVR VCPL, JV, Vijayawada आदेश की प्रतितिति अग्रेतिि/Copy of the order forwarded to:- 1. ननधधाऩरती/ The Assessee– KVR VCPL JV, 54-20-6, Kanakadurga Gazetted Officers Colony, Gurunanak Nagar, Vijayawada 2. रधजस्व/The Revenue – The Asst.Commissioner of Income Tax, Circle- 2(1), Ground Floor, CR Buildings, MG Road, Governorpet, Vijayawada 3. The Principal Commissioner of Income Tax, Vijayawada 4. नवभधगीय प्रनतनननध, आयकर अपीलीय अनधकरण, नवशधखधपटणम / DR,ITAT, Visakhapatnam 5..गधर्ा फ़धईल / Guard file आदेशधनुसधर / BY ORDER Sr. Private Secretary ITAT, Visakhapatnam