Ravi Kathpalia, New Delhi v. ITO, New Delhi

ITA 1837/DEL/2013 | 2005-2006
Pronouncement Date: 11-10-2013 | Result: Allowed

Appeal Details

RSA Number 183720114 RSA 2013
Assessee PAN AAZPK4833A
Bench Delhi
Appeal Number ITA 1837/DEL/2013
Duration Of Justice 6 month(s) 9 day(s)
Appellant Ravi Kathpalia, New Delhi
Respondent ITO, New Delhi
Appeal Type Income Tax Appeal
Pronouncement Date 11-10-2013
Appeal Filed By Assessee
Order Result Allowed
Bench Allotted F
Tribunal Order Date 11-10-2013
Date Of Final Hearing 08-10-2013
Next Hearing Date 08-10-2013
Assessment Year 2005-2006
Appeal Filed On 01-04-2013
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH : F : NEW DELHI BEFORE SHRI S.V. MEHROTRA ACCOUNTANT MEMBER AND SHRI A.D. JAIN JUDICIAL MEMBER ITA NO.1837/DEL/2013 ASSESSMENT YEAR : 2005-06 RAVI KATHPALIA PROP. M/S TRAVEL ARC. 8/12 HOSPITAL ROAD JANGPURA EXTENSION NEW DELHI. PAN : AAZPK4833A VS. ITO WARD 32 (1) NEW DELHI. (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI GURJEET SINGH CA REVENUE BY : SHRI SHAMEER SHARMA DR ORDER PER A.D. JAIN JUDICIAL MEMBER THIS IS AN APPEAL FILED BY THE ASSESSEE FOR ASSESSMENT YEAR 2005-06 AGAINST THE ACTION OF THE LD. CIT (A) IN CON FIRMING THE PENALTY OF ` 20 000/- LEVIED U/S 271 (1)(B) OF THE IT ACT. 2. THE FACTS ARE THAT ASSESSMENT ORDER U/S 144 OF THE IT ACT WAS PASSED ON 28.11.2008. THE ASSESSEE WAS ASKED TO SHOW CAUSE AS TO WHY PENALTY BE NOT LEVIED ON HIM U/S 271 (1)(B) OF T HE ACT FOR NON- COMPLIANCE OF STATUTORY NOTICES UNDER SECTIONS 143(2) AND 142 (1) OF THE IT ACT. THERE WAS NO COMPLIANCE. PENALTY OF ` 50 000/- WAS LEVIED FOR DEFAULTS COMMITTED ON FIVE OCCASIONS I.E. ` 10 0 00/- FOR EACH DEFAULT. ITA NO.1837/DEL/2013 2 3. BY VIRTUE OF THE IMPUGNED ORDER THE LD. CIT (A) HELD AS FOLLOWS:- 5. ..HOWEVER SINCE THE APPELLANT HAS NOT GIVEN ANY SATISFACTORY EXPLANATION FOR THE NON COMPLIANCE OF THE F IRST TWO NOTICES DATED 16.1.2007 AND 23.5.2007 U/S 142 (1) AN D 143 (2) I CONFIRM THE PENALTY OF RS.20 000/- U/S 271 (1)(B) FOR THE DEFAULTS COMMITTED FOR NON COMPLIANCE OF THESE TWO NOTICES. 4. BEFORE US THE LD. COUNSEL FOR THE ASSESSEE HAS SOUGHT T O EXPLAIN THE NON-COMPLIANCE OF THE NOTICES DATED 16.01.2007 A ND 23.05.2007 ISSUED U/S 142(1) AND 143(2) OF THE ACT BY CONTENDING THAT THE ASSESSEE HAD NEVER RECEIVED ANY NOTICE DATED 16.01.2007 AND THAT SO FAR AS REGARDS THE NOTICE DATED 23.05.2007 HE HAD GI VEN THE NOTICE TO HIS ADVOCATE WHO LATER EXPIRED AND WHO HAD NOT COM PLIED WITH THE NOTICE NOR GIVEN ANY INFORMATION IN THIS REGARD TO THE ASSESSEE. AN AFFIDAVIT OF THE ASSESSEE IN THIS REGARD HAS BEEN FILED. 5. THE LD. DR ON THE OTHER HAND HAS PLACED STRONG R ELIANCE ON THE IMPUGNED ORDER CONTENDING THAT THE ASSESSEE HAS FAILED TO EXPLAIN THE NON-COMPLIANCE OF NOTICES DATED 16.01.2007 AND 23.05 .2007; AND THAT THEREFORE THE LD. CIT (A) HAS CORRECTLY UPHELD THE LEVY OF PENALTY QUA THESE TWO NOTICES. 6. CONSIDERING THE EXPLANATION OFFERED BY THE ASSESSEE B Y WAY OF THE AFFIDAVIT FILED WE FIND THAT THERE IS NOTHING O N RECORD TO SHOW SERVICE OF THE NOTICE DATED 16.01.2007 ON THE ASSESSEE. THAT BEING SO OBVIOUSLY SINCE THE ASSESSEE WAS NEVER INFORMED ABOUT THE HEARING BEFORE THE ASSESSING OFFICER THE NON-COMPLIANCE IN THI S REGARD CANNOT BE ATTRIBUTED TO ANY MAL-INTENTION ON THE PART OF T HE ASSESSEE. 7. THE AFFIDAVIT ALSO STATES THAT IT WAS THE ASSESSEES DECE ASED COUNSEL WHO DID NOT APPEAR ON THE ASSESSEES BEHALF BEFOR E THE ASSESSING OFFICER NOR GAVE ANY INFORMATION IN THIS REGAR D TO THE ITA NO.1837/DEL/2013 3 ASSESSEE THOUGH THE ASSESSEE HAD HANDED OVER THE NOTICE TO HIM. THE SAID COUNSEL IS STATED TO HAVE EXPIRED. 8. IN THE ABOVE FACTS AND CIRCUMSTANCES FINDING THE EXPLANATION OF THE ASSESSEE TO BE TENABLE QUA BOTH THE NOTICES IN QUEST ION WE HEREBY ACCEPT THE SAME. ACCORDINGLY THE PENALTY L EVIED ON ACCOUNT OF NON-COMPLIANCE OF THESE NOTICES IS HEREBY DELETED. 9. IN THE RESULT THE APPEAL FILED BY THE ASSESSEE IS ALL OWED. THE ORDER PRONOUNCED IN THE OPEN COURT ON 11.10.20 13. SD/- SD/- [S.V. MEHROTRA] [A.D. JAIN] ACCOUNTANT MEMBER JUDICIAL MEMBER DATED 11.10.2013. DK COPY FORWARDED TO: - 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR ITAT TRUE COPY BY ORDER DEPUTY REGISTRAR ITAT DELHI BENCHES