Kalinga Conduits & Electricables P.Ltd, New Delhi V. ITO, Ward-14(1), New Delhi

ITA 8089/DEL/2018

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 5698 (ITAT-DELHI)
• Duration Of Justice: 7 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-08-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2010-2011
• Appeal Filed On: 20-12-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S L ANURAGI
• Keywords: Set aside

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH SMC, NEW DELHI BEFORE SH. R. K. PANDA, ACCOUNTANT MEMBER ITA NO.8089/DEL/2018 ASSESSMENT YEAR: 2010-11 M/S. KALINGA CONDUITS & ELECTRICABLES (P), 81-B, ROAD. 41, PUNJABI BAGH, WEST, NEW DELHI-110026 PAN NO. AACCK5284H VS INCOME TAX OFFICER WARD 14 (1) NEW DELHI (APPELLANT) (RESPONDENT) APPELLANT BY SH. RAJEEV SABHARWAL, FCA RESPONDENT BY SHRI S. L. ANURAGI, SR. DR DATE OF HEARING: 07/08/2019 DATE OF PRONOUNCEMENT: 08/08/2019 ORDER PER R.K. PANDA, AM: THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAIN ST THE ORDER DATED 23.08.2018 OF THE CIT(A)-5, DELHI RELAT ING TO A.Y. 2010-11. 2. LEVY OF PENALTY OF RS.10,000/-U/S. 271 (1) (B) O F THE ACT BY ASSESSING OFFICER WHICH HAS BEEN UPHELD BY THE CIT( A) IS THE ONLY ISSUE RAISED BY THE ASSESSEE IN THE GROUNDS OF APPEAL. 3. FACTS OF THE CASE, IN BRIEF, ARE THAT THE ASSESS EE COMPANY PAGE | 2 FILED ITS RETURN OF INCOME ON 28.05.2014 DECLARING TOTAL INCOME OF RS.5,994/-. SINCE THE ASSESSEE DID NOT COMPLY TO THE STATUTORY NOTICE ISSUED BY THE ASSESSING OFFICER U/ S. 142 (1) OF THE ACT, THE ASSESSING OFFICER LEVIED PENALTY OF RS .10,000/- U/S. 271 (1) (B) OF THE ACT. SINCE THE ASSESSEE DID NOT APPEAR BEFORE THE CIT(A), THE LD. CIT(A) IN THE EXPARTE ORDER PAS SED BY HIM SUSTAINED THE PENALTY LEVIED BY THE ASSESSING OFFIC ER. 4. AGGRIEVED WITH SUCH ORDER OF THE CIT(A), THE ASS ESSEE IS IN APPEAL BEFORE THE TRIBUNAL. 5. THE LD. COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE LD. CIT(A) HAS PASSED AN EXPARTE ORDER CONFIRMING THE P ENALTY LEVIED BY THE ASSESSING OFFICER U/S. 271 (1) (B) OF THE ACT. HE SUBMITTED THAT IN THE INTEREST OF JUSTICE THE MATTE R MAY BE SET ASIDE TO THE FILE OF THE CIT(A) WITH A DIRECTION TO GRANT ONE FINAL OPPORTUNITY TO THE ASSESSEE TO SUBSTANTIATE ITS CAS E. 6. THE LD. DR ON THE OTHER HAND STRONGLY SUPPORTED THE ORDER OF THE CIT(A) AND SUBMITTED THAT THE ASSESSEE IS VE RY CASUAL IN ITS APPROACH AND HAS SCANT REGARD TO THE STATUTORY NOTICES ISSUED BY THE ASSESSING OFFICER. IN THE INSTANT CAS E THE LD. CIT(A) HAS RIGHTLY SUSTAINED THE PENALTY LEVIED BY THE AO AND, THEREFORE, THE SAME SHOULD BE UPHELD. 7. I HAVE CONSIDERED THE RIVAL ARGUMENTS MADE BY BO TH THE SIDES AND PERUSED THE ORDERS OF THE ASSESSING OFFIC ER AND THE PAGE | 3 LD. CIT(A). IT IS AN ADMITTED FACT THAT DUE TO NON APPEARANCE BY THE ASSESSEE BEFORE THE CIT(A), THE CIT(A) HAS CONF IRMED THE PENALTY SO LEVIED BY THE ASSESSING OFFICER U/S. 271 (1) (B) OF THE ACT. CONSIDERING THE TOTALITY OF THE FACTS OF THE CASE AND IN THE INTEREST OF JUSTICE I DEEM IT PROPER TO RESTORE THE ISSUE TO THE FILE OF THE CIT(A) WITH A DIRECTION TO GRANT ONE FINAL O PPORTUNITY TO THE ASSESSEE TO SUBSTANTIATE ITS CASE AND DECIDE TH E ISSUE AS PER FACT AND LAW. THE ASSESSEE IS ALSO HEREBY DIRECTED TO APPEAR BEFORE THE CIT(A) WITHOUT SEEKING ANY ADJOURNMENT U NDER ANY PRETEXT AND SUBSTANTIATE ITS CASE FAILING WHICH THE LD. CIT(A) IS AT LIBERTY TO PASS APPROPRIATE ORDER AS PER LAW. I HOLD AND DIRECT ACCORDINGLY. THE GROUNDS RAISED BY THE ASSESSEE AR E ACCORDINGLY ALLOWED FOR STATISTICAL PURPOSES. 8. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSE. ORDER PRONOUNCED IN THE OPEN COURT ON 08.08.2019. SD/- (R.K PANDA) ACCOUNTANT MEMBER *NEHA* DATE:- 08.08.2019 COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT ASSISTANT REGISTRAR ITAT NEW DELHI PAGE | 4 DATE OF DICTATION 07.08.2019 DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER 07.08.2019 DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR.PS /PS 07.08.2019 DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE D ICTATING MEMBER FOR PRONOUNCEMENT 07.08.2019 DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR. PS/ PS 08.08.2019 DATE ON WHICH THE FINAL ORDER IS UPLOADED ON THE WE BSITE OF ITAT 08.08.2019 DATE ON WHICH THE FILE GOES TO THE BENCH CLERK DATE ON WHICH FILE GOES TO THE HEAD CLERK. THE DATE ON WHICH FILE GOES TO THE ASSISTANT REGIST RAR FOR SIGNATURE ON THE ORDER DATE OF DISPATCH OF THE ORDER