NISAR MALIK,NEW DELHI V. JCIT RANGE-29, NEW DELHI

ITA 1508/DEL/2024

AI Insights

The case involves Nisar Malik, the appellant, who appealed against the order of the CIT(A) confirming a penalty levied by the JCIT under section 271D of the Income Tax Act, 1961 for accepting cash in transactions contrary to section 269SS. The penalty was initially imposed due to the assessee's failure to appear during the penalty proceedings, leading to an ex-parte decision. The ITAT found the reasons for the delay in filing the appeal to be genuine, as the assessee was unaware of the proceedings due to his accountant's abrupt departure and mismanagement of communication. Consequently, the ITAT decided to remit the matter back to the CIT(A) for a fresh hearing.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 295070 (ITAT-DELHI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-04-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2017-2018
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Condonation of delay; Opportunity of being heard
• Section: 271D

Judgement Text

"1 ITA no. 1508/Del/2024 Nisar Malik v. JCIT A.Y. 2017-18 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “SMC”: NEW DELHI Ms. MADHUMITA ROY, JUDICIAL MEMBER ITA No. 1508/DEL/2024 Assessment Year: 2017-18 Nisar Malik, 80/6 A, Second Floor, Malviya Nagar, New Delhi-110017. PAN- ATCPM 5101 H Vs JCIT, Range-29, New Delhi. APPELLANT RESPONDENT Assessee represented by Shri V. Rajkumar, Adv.& Shri Rakesh Jha, CA Department represented by Sh. Sanjay Kumar, Sr. DR Date of hearing 27.02.2025 Date of pronouncement 23.04.2025 O R D E R PER Ms. MADHUMITA ROY, JM: 1. The instant appeal filed by the assessee is directed against the order dated 10.10.2023 passed by the Ld. CIT(A), NFAC, New Delhi, arising out of order passed by Joint Commissioner of Income Tax, Range 29, New Delhi dated 30.09.2019 u/s 271D of the Income Tax Act, 1961 (hereafter referred to as “The Act”) for Assessment Year 2017-18 . 2. Regarding delay of 116 days involving the filing of this appeal, an application for the condonation of delay has been preferred by the assessee, wherein it has been stated that the assessee relied on his account and that for assistance in tax matters including the filing of appeal. The accountant had provided his own contact details for correspondence at the time of filing of appeal 2 ITA no. 1508/Del/2024 Nisar Malik v. JCIT A.Y. 2017-18 before CIT(A), however had left the office without informing the appellant. Consequently the appellant was unaware of notices issued to him as these were sent to accountant’s e-mail id. Later on appellant took the necessary steps to access the e-filing portal through Chartered Accountant who after logging into the portal informed to the appellant that NFAC had already passed an appellate order on 10.10.2023.Considering the application for condonation of delay, reasons appear to be genuine and, therefore, the delay is condoned. 3. Briefly Stated, the AO received information from DIT(I&CI) that the assessee has made transactions for sale of immovable property and had accepted cash in contravention of provisions of section 269SS of the Act. The details of the sale of immovable properties are as under:- S. No. Sale deed No. and date Property Description Total Sale Consideration Cash component of Sale consideration for levy of penalty u/s 271D Share of assessee in cash component @ 25% for levying penalty u/s 271D 1 3852 dated 08.07.2016 Unit No. A- 1, Upper GF, 1081, Ward No. 1, Mehrauli New Delhi 14,00,000 7,00,000 1,75,000 2 3855 dated 08.07.2016 Unit No. D- 2, Third Floor, 1081, Ward No. 1, Mehrauli New Delhi 14,00,000 12,00,000 3,00,000 3 ITA no. 1508/Del/2024 Nisar Malik v. JCIT A.Y. 2017-18 3 3827 dated 08.07.2016 Unit No. D- 3, Third Floor, 1081, Ward No. 1, Mehrauli New Delhi 14,00,000 10,50,000 2,82,500 4 3853 dated 08.07.2016 Unit No. A- 3, UG Floor, 1081, Ward No. 1, Mehrauli New Delhi 14,00,000 11,00,000 2,75,000 5 3829 dated 08.07.2016 Unit No. D- 1, Third Floor, 1081, Ward No. 1, Mehrauli New Delhi 14,00,000 1,00,000 2,50,000 6 3828 dated 08.07.2016 Unit No. A- 2, Upper GF, 1081, Ward No. 1, Mehrauli New Delhi 14,00,000 1,00,000 2,50,000 3.1 The AO refer the matter for initiation of penalty proceeding u/s 271D of the Act to the Joint Commissioner of Income Tax, Range 32, New Delhi (hereinafter referred to as “JCIT”) 3.2 The JCIT on perusal of Registered sale deeds made by the assessee was of the view that the provision of section 269SS of the Act have been violated by the assessee by accepting sale consideration of Rs. 15,12,500/- on the sale of plot/property in cash, being ‘specified sum’ u/s 269SS of the Act. Further, before 4 ITA no. 1508/Del/2024 Nisar Malik v. JCIT A.Y. 2017-18 the JCIT, the assessee did not appear, thus the penalty proceedings was concluded wherein he had levied the penalty for Rs. 15,12,500/- u/s 271D of the Act. 3.3 Against the above order, assessee preferred an appeal before the Ld. CIT(A).The CIT(A)has confirmed the penalty too by passing ex-parte order, since despite several opportunity given to the assessee/appellant, nobody represented before him. 4 Thus, having heard the ld. Counsels appearing for the parties and having regard to the facts and circumstances of the case, in order to prevent the miscarriage of justice, I dispose of this appeal by remitting the issue to the Ld. CIT(A), to deal with the same afresh and to pass orders accordingly, upon granting an opportunity of being heard to the assessee and upon considering the evidence on record or any other evidence which the assessee may choose to file at the time of hearing of the matter. 5. In the result, the appeal of the assessee in ITA No. 1508/Del/2024 is allowed for statistical purposes. Order pronounced in open court on 23.04.2025. Sd/- (Ms. MADHUMITA ROY) JUDICIAL MEMBER *MP* Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR ITAT, NEW DELHI "