SUNITA ASHOKBHAI SHARMA,RAJKOT V. ITO,WARD-1(1)(1), RAJKOT, RAJKOT

ITA 580/RJT/2024

AI Insights

The case involves appeals by Sunita Ashokbhai Sharma against penalty orders under sections 271(1)(b), 271A, and 271F of the Income Tax Act, 1961, for the Assessment Year 2015-16. The penalties were initially imposed by the Assessing Officer and were contested in the appeals. The primary contention in the appeals was the procedural irregularity due to the non-receipt of notices and orders, which were sent to an incorrect email address. The Tribunal found the reasons for the delay in filing the appeals to be valid and condoned the delay. It was also noted that the quantum proceedings related to the same assessment year were remitted back to the Assessing Officer, which could potentially affect the penalty proceedings. Consequently, the Tribunal decided to remit the penalty matters back to the Assessing Officer for a fresh decision post the quantum assessment.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 40484 (ITAT-RAJKOT)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-12-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2015-2016
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ABHIMANYU SINGH YADAV
• Assessee Lawyers: MEHUL RANPURA
• Keywords: Condonation of delay; Set aside
• Section: 250

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL, RAJKOT BENCH (SMC), RAJKOT BEFORE DR. ARJUN LAL SAINI, ACCOUNTANT MEMBER आयकर अपील सं./ITA No.568, 569 &580/RJT/2024 Assessment Year: (2015-16) (Hybrid Hearing) Sunita Ashokbhai Sharma, At Maliyasan, B/h Kanaiya Hotel, Maliyasan, Dist.-Rajkot-360003 Vs. The I.T.O., Ward 1(1)(1), Rajkot. èथायीलेखासं./जीआइआरसं./PAN/GIR No.: CADPS 0576 C (Appellant) (Respondent) Appellant by Shri Mehul Ranpura, A.R. Respondent by Shri Abhimanyu Singh Yadav, Sr. DR Date of Hearing 14/10/2024 Date of Pronouncement 30/12/2024 आदेश / O R D E R PER DR. A. L. SAINI, AM: Captioned appeals filed by the assessee, pertaining to Assessment Year (AY) 2015-16, are directed against the separate orders passed by the Learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi [in short “the Ld. CIT(A)/NFAC”], all dated 08/11/2023, which in turn arises out of penalty orders passed by Assessing Officer (in short ‘the AO”) under sections, 271(1)(b), 271A and 271F of the Income Tax Act, 1961 (hereinafter referred to as “the Act”), dated 27/09/2022, 28/09/2022 and 24/09/2022 respectively. 2. In all these appeals, the assessee is common, and raised identical grounds of appeal, therefore with the consent of parties, all these ITA 568, 569 & 580/Rjt/2024 Sunita Ashokbhai Sharma Vs ITO Page | 2 appeals are clubbed and heard together and are decided by the consolidated order to avoid the conflicting decision. 3.At the outset, the Ld. Counsel for the assessee, has submitted that in ITA No. 568 and 569/Rjt/2024, for assessment year 2015-16, there are delay of 216 days, each in both these appeals, in filing these appeals before the Tribunal, for which the assessee has filed application for condonation of delay. In both these appeals, the reason for delay, is same and identical. Therefore, ld. Counsel for the assessee submitted that contents of application for condonation of delay, in one appeal may be considered to condone the delay, if any. The ld Counsel submitted the reasons for delay, stating that the email id registered with income tax department is [e-mail]. However, on accessing the income tax portal, upon receiving recovery notices from department, it is gathered that the notices issued u/s 250 of the Act and appellate orders were appears to be served on some email id [e-mail], which is not at all belonging to appellant or her family member or her tax consultant ( Assessee submitted, copies of screenshot of income tax department’s portal, which are attached at page No. 3 to 6 of paper book). Thus, the notices and appellate order were sent to above stated incorrect email id. Due to the above reasons all the notices issued u/s 250 of the Act, remained unattended and appellate proceedings finalized ex-parte by the ld. CIT(A) in faceless appellate proceedings, Consequently, the order of the Ld. CIT(A) was received late by the assessee, and because of this reason, the delay has occurred, which may be condoned in the interest of justice, in both the appeals. ITA 568, 569 & 580/Rjt/2024 Sunita Ashokbhai Sharma Vs ITO Page | 3 4. On the other hand, Learned Senior Departmental Representative (Ld. Sr. DR) for the Revenue has raised objection about condonation of delay and would submit that such delay, should not be condoned on such flimsy ground. The assessee, does not deserve any leniency at this stage. Hence, both the appeals of the assessee may be dismissed. 5. I have heard the submissions of both the parties and I have also gone through the reasons given by the assessee, for condonation of delay. I find that the email id registered with income tax department, is [e-mail]. However, on accessing the income tax portal, upon receiving recovery notices, from department, it was gathered by the assessee that the notices issued u/s 250 of the Act and appellate orders were appeared to be served on some email id [e-mail], which is not at all related to assessee or her family member or her tax consultant. Thus, the notices and appellate order were sent to above stated incorrect email id. Due to the which, all the notices issued u/s 250 of the Act, remained unattended/unserved. The reasons given by the assessee are found to be convincing and these reasons would constitute reasonable and sufficient cause for the condonation of delay in filing these two appeals. Therefore, I condone the delay of 216 days in filing both these appeals, that is, in ITA No. 568 & 569/Rjt/2024 and admit these appeals for hearing. 6.On merit of the case, I have heard both the parties.The Ld. Counsel for the assessee submitted that the assessee’s appeal in ITA No. 567/Rjt/2024, is on quantum proceedings, which have been restored back by this Tribunal to the file of Assessing Officer. Since the quantum proceedings have been remitted back to the file of Assessing Officer, therefore, these three appeals, pertaining to penalty proceedings, under ITA 568, 569 & 580/Rjt/2024 Sunita Ashokbhai Sharma Vs ITO Page | 4 Sections 271(1)(b), 271A and 271F of the Act, should also be remitted back to the file of Assessing Officer for fresh adjudication in accordance with outcome of the quantum proceedings. However, learned DR for the revenue, relied on the findings of the assessing officer. 7. I find that when the quantum proceedings are remitted back to the file of Assessing Officer, the Assessing Officer would frame fresh assessment order, on quantum appeal and may initiate these penalty proceedings, as per the quantum proceedings if any. However, at this stage, these penalties have been quashed by me, as the matter in quantum appeal has been restored to the file of Assessing Officer and the Assessing officer, as per the circumstances of the case, may initiate fresh penalty proceedings, in accordance with law, after providing fair and reasonable opportunity of hearing to the assessee. Therefore, I deem it fit and proper to set aside the order of the ld. CIT(A) and remit the matter back to the file of the assessing officer to adjudicate the issue afresh on merits. The assessee is also directed to submit all the documents, evidences and replies as soon as possible without any further delay. In the results, grounds of appeals in all these three appeals raised by the assessee, are allowed for statistical purposes. 8. In the combined result, all these three appeals of the assessee, are allowed for statistical purposes. Order is pronounced on 30 /12/2024 in the open court. Sd/- (Dr. A.L. SAINI) ACCOUNTANT MEMBER ITA 568, 569 & 580/Rjt/2024 Sunita Ashokbhai Sharma Vs ITO Page | 5 Rajkot *Ranjan Ǒदनांक/ Date: 30/12/2024 Copy of the Order forwarded to: 1. The Assessee 2. The Respondent 3. The CIT(A) 4. CIT 5. DR/AR, ITAT, Rajkot 6. Guard File By Order Assistant Registrar/Sr. PS/PS ITAT, Rajkot "