M/s Agrawal Steel Traders, V. Income Tax Officer 1,

ITA 9/JAB/2014

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 5614 (ITAT-JABALPUR)
• Duration Of Justice: 2 year(s) 2 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-04-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: Not Allotted
• Next Hearing Date: 07-04-2016
• Assessment Year: 2002-2003
• Appeal Filed On: 10-01-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: D R LATHORIYA
• Section: 143(3); 144

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL JABALPUR BENCH, JABALPUR BEFORE SHRI N.S. SAINI , HONBLE ACCOUNTANT MEMBER AND SHRI N.K. CHOUDHRY , HONBLE JUDICIAL MEMBER ITA NO. 09 / J AB /201 4 (ASST. YEAR : 200 2 - 0 3 ) M/S. AGRAWAL STEEL TRADERS, LAKKAD GANJ, ITARSI. VS. ITO - 1, ITARSI. PAN NO. AAHFA 8962 A (APPELLANT) (RESPONDENT) ASSESSEE BY : NONE . DEPARTMENT BY : S HRI D.R. LATHORIYA - DR DATE OF HEARING : 0 7 / 0 4 /201 6 . DATE OF PRONOUNCEMENT : 0 7 / 04 /201 6 . O R D E R PER N.S. SAINI , ACCOUNTANT MEMBER THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST THE ORDER OF COMMISSIONER OF INCOME TAX (APPEALS) - 1 , BHOPAL , DATED 07 / 11 /201 3 . 2. THE SOLE GRIEVANCE OF THE ASSESSEE IN THIS APPEAL IS THAT THE COMMISSIONER OF INCOME TAX (APPEALS) ERRED IN CONFIRMING THE PENALTY UNDER SEC. 271(1)(B) OF RS. 70,000/ - . 3 . BRIEF FACTS OF THE CASE ARE THAT THE ASSESSING OFFICER OBSERVED THAT THE ASSESSEE FAILED TO MAKE COMPLIANCE TO THE NOTICES ISSUED UNDER SEC. 143(2)/142(1) ON THE FOLLOWING DATES: - 2 ITA NO. 09 / JAB /201 4 S.NO. NOTICE U/S DATE OF NOTICE DATE OF HEARING 1. 143(2)/142(1) 07/05/2004 20/05/2004 2 143(2)/142(1) 28/07/2004 12/08/2004 3 143(2) 22/09/2004 05/10/2004 4 143(2) 08/12/2004 13/12/2004 5 143(2) 01/02/2005 08/02/2005 6 AS PER ORDER SHEET DATED 14/02/2005 16/02/2005 15/03/2005 18/03/2005 THEREFORE, THE ASSESSING OFFICER LEVIED PENALTY OF RS. 70,000/ - UNDER SEC. 271(1)(B) OF THE ACT FOR 07 DEFAULTS , AT THE RATE RS.7,000/ - EACH . 4 . ON APPEAL, COMMISSIONER OF INCOME TAX (APPEALS) CONFIRMED THE ACTION OF THE ASSESSING OFFICER. 5. NOTICE WAS SENT TO THE ASSESSEE BY REGISTERED POST WITH AN ACKNOWLEDGMENT DUE AND THE SAME HAS NOT BEEN RETURNED BY THE POSTAL AUTHORITIES UN - SERVED. THE BENCH WAS OF THE VIEW THAT THE APPEAL OF THE ASSESSEE CAN BE DISPOSED OF WITHOUT ASSISTANCE OF THE ASSESSEE AND, THEREFORE, THE BENCH PROCEEDED TO HE A R THE APPEAL EXPARTE QUA THE ASSESSEE AND DISPOSED OF THE APPEAL AFTER TAKING INTO CONSIDERATION THE SUBMISSIONS OF THE DEPARTMENTAL REPRESENTATIVE. 6 . DEPARTMENTAL REPRESENTATIVE SUPPORTED THE ORDERS OF THE LOWER AUTHORITIES . 7. WE FIND THAT IN THE INSTANT CASE, IT IS NOT IN DISPUTE THAT THE ASSESSMENT HAS BEEN FRAMED UNDER SEC. 14 3 (3) OF THE ACT ON 28/03/2005 FOR THE ASSESSMENT YEAR 2002 - 03 . IN OUR CONSIDERED VIEW , WHEN AN ASSESSMENT HAS BEEN MADE UNDER SEC. 143(3) AND NOT UNDER SEC. 144 OF THE ACT , IT MEANS THAT SUBSEQUENT COMPLIANCE IN THE ASSESSMENT PROCEEDINGS WAS CONSIDERED , AS GOOD COMPLIANCE , AND DEFAULTS COMMITTED EARLIER WERE IGNORED BY THE ASSESSING OFFICER AND, THEREFORE, THERE IS NO CASE FOR LEVY OF PENALTY UNDER SEC. 271(1)(B) OF 3 ITA NO. 09 / JAB /201 4 THE ACT. IN THE PRESENT CASE, THE ASSESSEE SEEMS TO HAVE CO OPERATED WITH THE ASSESSMENT PROCEEDINGS IN RESPONDING TO THE NOTICE AND FILING INFORMATION , AND THE ASSESSMENT WAS COMPLETED UNDER SEC. 143(3) AND NOT UNDER SEC. 144 OF THE ACT. THEREFORE, WE HO LD THAT THERE IS NO CASE FOR LEVY OF PENALTY UNDER SEC. 271(1)(B) OF THE ACT IN ASSESSEES CASE, HENCE, WE DELETE THE LEVY OF PENALTY OF RS. 70,000/ - AND ALLOW THE GROUND OF APPEAL OF THE ASSESSEE. 8. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED . ORDER PRONOUNCED IN THE COURT AT THE CLOSE OF THE HEARING ON THURSDAY , THE 0 7 TH DAY OF APRIL , 201 6 AT JABALPUR . S D/ - SD/ - ( N.K. CHOUDHRY ) (N.S.SAINI) JUDICIAL MEMBER ACCOUNTANT MEMBER D ATED : 0 7 TH APRIL , 201 6 . VR/ - COPY TO: 1. THE ASSESS E E. 2. THE REVENUE. 3. THE CIT 4. THE CIT(A) 5. THE D.R . 6. GUARD FILE. BY ORDER SR. PRIVATE SECRETARY, ITAT, JABALPUR.