Satkar Roadlines Private Ltd., New Delhi v. ACIT, New Delhi

IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH G NEW DELHI) BEFORE SHRI R.P. TOLANI JUDICIAL MEMBER AND SHRI T.S. KAPOOR ACCOUNTANT MEMBER I.T.A. NO.4462/DEL/2013 ASSESSMENT YEAR : 2009-10 SATKAR ROADLINES PVT. LTD. ACIT (NOW KNOWN AS ADEN MARKETING CENTRAL CIRCLKE-21 PVT. LTD.) RZF VIJAY ENCLAVE NEW DELHI. DWARKA PURI NEW DELHI. V. (APPELLANT) (RESPONDENT) PAN /GIR/NO. PAN /GIR/NO. PAN /GIR/NO. PAN /GIR/NO.AABCS AABCS AABCS AABCS- -- -7676 7676 7676 7676- -- -J JJ J APPELLANT BY : SHRI B.K. DHINGRA C.A. RESPONDENT BY : SMT. RENUKA JAIN GUPTA SR. DR. ORDER PER TS KAPOOR AM: THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST THE ORDER OF LD CIT(A) CONFIRMING THE PENALTY IMPOSED BY THE ASSESSING O FFICER U/S 271(1)(B) OF THE INCOME TAX ACT 1961 . 2. AT THE OUTSET THE LD AR SUBMITTED THAT LESS THAN 10 DAYS WERE GIVEN FOR COMPLYING WITH THE NOTICE AND IN FACT THE NOTICE WAS ALSO NOT RECEIVED BY THE ASSESSEE AND THEREFORE PENALTY U/S 271( 1)(B) WAS NOT JUSTIFIED. IT WAS FURTHER SUBMITTED THAT UNDER SIMILAR CIRCUMSTANCES THE HON'BLE ITAT IN I.T.A. NO.4239/DEL/2013 VIDE ORDER DATED 3.1.2014 PLACED AT PAPER BOOK PAGE 5 & 6 HAD DELETED THE PEN ALTY. 3. THE LD DR RELIED UPON THE ORDER OF ASSESSING OFFICE R AND LD CIT(A). ITA NO4462/DEL/2013 2 4. WE HAVE HEARD THE RIVAL SUBMISSIONS OF BOTH THE PAR TIES AND HAVE GONE THROUGH THE MATERIAL AVAILABLE ON RECORD. WE FIND THAT NOTICE DATED 1.11.2010 FIXING THE CASE FOR HEARING O N 10.11.2010 WAS ISSUED. IT IS NOT MENTIONED AS TO WHEN THE NOTICE WAS AC TUALLY SERVED UPON THE ASSESSEE. EVEN IF IT IS PRESUMED THAT NOTICE WA S SERVED ON THE NEXT DAY OR WITHIN 2-3 DAYS THE PERIOD LEFT WITH THE ASSESSEE TO COMPLY WITH THE NOTICE WAS TOO SHORT TO BE HELD AS A REASONABLE PERIOD FOR COMPLYING WITH THE NOTICE. THEREFORE IN OUR OP INION TIME OF LESS THAN 10 DAYS ALLOWED BY THE ASSESSING OFFICER FOR COMPL YING WITH THE DETAILED QUESTIONNAIRE CANNOT BE SAID TO BE SUFFICIEN T TIME BEING ALLOWED TO THE ASSESSEE AND THEREFORE THE FAILURE OF A SSESSEE TO COMPLY WITH SUCH NOTICE CANNOT THE SAID TO BE A DEFAU LT WHICH MAY JUSTIFY THE LEVY OF PENALTY U/S 271(1)(B) OF THE ACT. ACCORDINGLY THE SAME IS DELETED. 5. IN THE RESULT THE APPEAL FILED BY THE ASSESSEE IS ALL OWED. 6. ORDER PRONOUNCED IN THE OPEN COURT ON 11TH DAY OF APRIL 2014. SD/- SD/- (R.P.TOLANI) (T.S. KAPOOR) JUDICIAL MEMBER ACCOUNTANT MEMBER DT.11.04.2014. HMS COPY FORWARDED TO:- 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT 4. THE CIT (A)- NEW DELHI. 5. THE DR ITAT LOKNAYAK BHAWAN KHAN MARKET NEW DEL HI. TRUE COPY. (ITAT NEW DELHI). ITA NO4462/DEL/2013 3 DATE OF HEARING 21.1.2014 DATE OF DICTATION 4.4.2014 DATE OF TYPING 7.4.2014 DATE OF ORDER SIGNED BY BOTH THE MEMBERS & PRONOUNCEMENT. DATE OF ORDER UPLOADED ON NET & SENT TO THE BENCH CONCERNED.