SHRI HARISH CHANDRA BHATIA,DHANBAD V. ACIT CENTRAL CIRCLE, DHANBAD

ITA 89/RAN/2023

AI Insights

This case involves an appeal by Shri Harish Chandra Bhatia against the order of the CIT(A)-3, Patna, which was passed under section 250 of the Income Tax Act, 1961 for the Assessment Year 2012-13. The appeal arose from a penalty imposed due to concealment of income detected during an assessment following a survey operation. The assessee had initially declared an income significantly lower than what was assessed after the survey. Despite multiple opportunities, the assessee did not comply with the notices during the penalty proceedings, leading to the imposition of a penalty which was upheld by the CIT(A). The Income Tax Appellate Tribunal (ITAT) decided to remand the case back to the CIT(A) for a fresh assessment, emphasizing the need to adhere to the principles of natural justice.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 28653 (ITAT-RANCHI)
• Duration Of Justice: 1 year(s) 5 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-10-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2012-2013
• Appeal Filed On: 25-04-2023
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: P. K. KOLEY
• Section: 250

Judgement Text

" आयकर अपीऱीय अधिकरण, र ाँची न्य यपीठ, र ाँची IN THE INCOME TAX APPELLATE TRIBUNAL RANCHI BENCH, RANCHI BEFORE SHRI PARTHA SARATHI CHAUDHURY, JM AND SHRI PRABHASH SHANKAR, AM आयकर अपीऱ सं./ITA No.89/RAN/2023 (निि ारण वषा / Assessment Year :2012-13 Shri Harish Chandra Bhatia Vs. ACIT, Central Circle, Dhanbad स्थायी ऱेखा सं./जीआइआर सं./ PAN/GIR No. : ACJPB7691R (अपीऱाथी /Appellant) : (प्रत्यथी / Respondent) Appellant by : None Respondent by : Shri P. K. Koley, Sr. DR सुनवाई की तारीख / Date of Hearing : 03/10/2024 घोषणा की तारीख/Date of Pronouncement : 14/10/2024 आदेश / O R D E R Per Partha Sarathi Chaudhury, JM : This appeal preferred by the assessee emanates from the order of ld. CIT(A)- 3, Patna dated 23.02.2023 passed u/s. 250 of the Income Tax Act, 1961 (hereinafter referred to as the \"Act\") for Assessment Year 2012-13 as per the grounds of appeal on record. 2. At the time of hearing, none appeared for the assessee. The submissions of the learned DR are recorded and we have given considerable thought to the documents on record. Consequently, the matter is heard on merits. 3. The brief facts in this case are that a survey operation was conducted on 10.08.2017 in the case of the assessee. The assessee filed its return of income disclosing Rs.2,90,065/-. Subsequently, the assessment was completed at the total ITA No.89/RAN/2023 Shri Harish Chandra Bhatia A.Y. 2012-13 2 income of Rs.22,08,581/-. Penalty proceedings were initiated and statutory notices were issued to the assessee. The assessee did not comply with the notices issued to him and since concealment of income was detected by the AO as per his order, penalty of Rs.5,18,622/- was imposed. 4. That during the proceedings before the learned. CIT(A), three opportunities of hearing was provided to the assessee but there was absolutely no compliance by the assessee. These facts are evident from para 6 of the CIT(A)'s order. 5. We observe from the present facts and circumstances that the penalty had been imposed on the assessee for concealment of income and since there was no compliance by the assessee before the revenue authorities, the said penalty was upheld and confirmed at the first appellate level. Undoubtedly, in spite of reasonable opportunities being provided to the assessee to justify his matter, the assessee had failed to utilise the same. We are of the considered view and in our consistent approach in such situation, we have provided one final opportunity to the assessee to represent his matter on merits before the learned. CIT(A) and this case is of no difference. The Income Tax Act is within the purview of welfare legislation which is absolutely separate from penal legislation and therefore, whenever possible within the ambit of law, the interest of tax payer-assessee has to be protected, more so, since natural justice demands that the appellate authority should consider submissions of the assessee and decide his matter only on merits. Now, this is the case where no written submission or documentary evidences have been provided, therefore, the substantive rights and liabilities of the parties herein are yet to be determined. In view thereof, we provide one final opportunity to the assessee to represent his matter on merits before the learned. CIT(A) and that the learned. CIT(A) shall pass order in ITA No.89/RAN/2023 Shri Harish Chandra Bhatia A.Y. 2012-13 3 terms of section 250(4) and (6) of the Act while complying with the principles of natural justice. As per the above terms, the grounds of appeal stands allowed for statistical purposes. 6. In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced in the open court on 14/10/2024. Sd/- Sd/- (Prabhash Shankar) (Partha Sarathi Chaudhury) Accountant Member Judicial Member र ाँची Ranchi; ददनांक Dated: 14/10/2024 RS (on tour) आदेश की प्रनिलऱपप अग्रेपषि/Copy of the Order forwarded to : आदेश िुस र/ BY ORDER, (Senior Private Secretary) On tour, ITAT, Ranchi 1. अपीऱाथी / The Appellant- Shri Harish Chandra Bhatia, Prem Chand Nagar, Police Line, Hirapur, Dhanbad, Jharkhand - 826001. 2. प्रत्यथी / The Respondent- ACIT, Central Circle, Dhanbad. 3. आयकर आयुक्त(अपील) / The CIT(A)- 4. आयकर आयुक्त / CIT 5. विभागीय प्रविविवि, आयकर अपीलीय अविकरण, र ाँची / DR, ITAT, Ranchi 6. गार्ड फाईऱ / Guard file. सत्यापपत प्रतत //True Copy// "