M/s. D.R. Projects Pvt. Ltd., New Delhi v. ACIT, New Delhi

ITA 4573/DEL/2010 | 2006-2007
Pronouncement Date: 08-07-2011 | Result: Allowed

Appeal Details

RSA Number 457320114 RSA 2010
Bench Delhi
Appeal Number ITA 4573/DEL/2010
Duration Of Justice 8 month(s) 23 day(s)
Appellant M/s. D.R. Projects Pvt. Ltd., New Delhi
Respondent ACIT, New Delhi
Appeal Type Income Tax Appeal
Pronouncement Date 08-07-2011
Appeal Filed By Assessee
Order Result Allowed
Bench Allotted B
Tribunal Order Date 08-07-2011
Date Of Final Hearing 23-06-2011
Next Hearing Date 23-06-2011
Assessment Year 2006-2007
Appeal Filed On 15-10-2010
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH B DELHI BEFORE SHRI RAJPAL YADAV AND SHRI K.G. BANSAL ITA NOS. 4573 4574 & 4575(DEL)/2010 ASSESSMENT YEAR: 2006-07 M/S D.R. PROJECTS LTD. ASSISTANT COMMISSIONER OF C/O VINOD KUMAR BINDAL & CO. VS. INCOME -TAX CIRCLE 10(1) SHIV SUSHIL BHAWAN PHASE-I NEW DELHI. NEW DELHI. (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI SHIV KUMAR ARORA A.R . RESPONDENT BY : MS. Y. KAKKAR SR. DR ORDER PER K.G. BANSAL : AM THE FACTS OF THE CASE ARE THAT THE ASSESSEE F ILED ITS RETURN ON 30.11.2006 DECLARING TOTAL INCOME OF RS. 35 31 350 /-. THE RETURN WAS PROCESSED U/S 143(1) OF THE INCOME-TAX ACT 1961 ON 22.11.2007 AND THEREAFTER THE CASE WAS PICKED UP FOR SCRUTINY B Y SERVING NOTICE U/S 143(2) ON THE ASSESSEE ON 29.11.2007. SUBSEQUE NTLY OPPORTUNITIES WERE GIVEN TO THE ASSESSEE U/S 142(1) ON 27.11.2007 AND 17.12.2008. THE NOTICE IN RESPECT OF LATTER HEARING WAS RETURNED BY THE POSTAL AUTHORITIES WITH THE REMARKS LEFT. THUS THERE WAS NO COMPL IANCE TO ANY OF THE NOTICES ISSUED OR SERVED BY THE AO. IN VIEW TH EREOF THE TOTAL INCOME OF ITA NOS. 4573 4574&4575(DEL)/2010 2 THE ASSESSEE WAS COMPUTED UNDER THE PROVISION OF SECTION 144 OF THE ACT AT RS. 83 67 390/- AS UNDER:- UNEXPLAINED CASH CREDITOR U/S 68 RS. 34 10 253/- NET PROFIT FROM CIVIL CONTRACTOR BUSINESS (AS DISCU SSED) RS. 49 00 000/- MISCELLANEOUS INCOME RS. 57 132/- TOTAL INCOME RS. 83 67 385/- OR SAY RS. 83 67 390/ - THE ASSESSEE FILED APPEAL BEFORE THE CIT(APPEALS )-XIII NEW DELHI. NO APPEARANCE WAS MADE BY THE ASSESSEE BEFORE HIM ALSO IN SPITE OF OPPORTUNITIES GRANTED ON 24.12.2009 AND 21.01.2 010. ACCORDINGLY THE LD. CIT(APPEALS) DISPOSED OFF THE APPEAL EX-PAR TE. IT IS MENTIONED THAT NOBODY APPEARED TO SUBSTANTIATE THE GROUNDS TAKEN IN THE APPEAL. THUS THE APPEAL WAS DISMISSED. 1.1 THE AO HAD ALSO INITIATED PENALTY PROCEEDINGS UNDER SECTIONS 271(1)(C) AND 271(1)(B). THE PENALTY PROCEEDING U/S 271(1)(C) WAS DISPOSED OFF EX-PARTE BY LEVYING THE PENALTY OF RS. 16 02 759/-. THE ASSESSEE FILED APPEAL AGAINST THIS ORDER ALSO BUT NO APPEARANCE WAS MADE BEFORE THE LD. CIT(APPEALS) IN SPITE OF TWO OPPOR TUNITIES GIVEN BY HIM. IN ABSENCE OF ANY EXPLANATION THE LEVY OF PENALTY WA S UPHELD. ITA NOS. 4573 4574&4575(DEL)/2010 3 1.2 AS MENTIONED EARLIER PROCEEDINGS WERE ALSO I NITIATED FOR LEVY OF PENALTY U/S 271(1)(B) OF THE ACT. THESE PROCEE DINGS WERE DISPOSED OFF ON 18.06.2009 BY LEVYING THE PENALTY OF RS. 30 00 0/- IN RESPECT OF THREE DEFAULTS COMMITTED BY THE ASSESSEE IN THE COURSE OF HEARING ON 30.11.2007 27.10.2008 AND 04.12.2008. THE ASSESSEE FILED A PPEAL AGAINST THIS LEVY ALSO. HOWEVER NO APPEARANCE WAS MADE BEFORE THE LD. CIT(A) IN SPITE OF TWO OPPORTUNITIES GRANTED BY HIM. THEREFORE HE D ISPOSED OFF THIS APPEAL ALSO EX-PARTE AND CONFIRMED THE LEVY OF PENALTY. 2. ALL THE APPEALS WERE POSTED FOR HEARING ON 23 .06.2011. AN APPLICATION DATED 22.06.2011 WAS RECEIVED REQUE STING FOR ADJOURNMENT. AFTER HEARING BOTH THE PARTIES THE REQUEST WAS REFUSED. THEREAFTER THE AR OF THE ASSESSEE SUBMITTED THAT THE APPEARANCE COULD NOT BE MADE BEFORE THE LD. CIT(APPEALS) AS DISPUTES AROSE BETWEEN H IM AND SHRI JAG MOHAN THE OWNER OF THE PREMISES WHERE THE REGISTERED OF FICE OF THE COMPANY IS LOCATED. THEREFORE THE NOTICES ISSUED BY THE LD. CIT (APPEALS) COULD NOT BE RECEIVED. ACCORDINGLY IT WAS REQUESTED THA T THE QUANTUM APPEAL MAY BE RESTORED TO THE FILE OF THE LD. CIT(APPEALS) FOR DECIDING THE APPEAL ON MERITS. THE LD. DR HAD NO OBJECTION TO THIS COU RSE OF ACTION. WE HAVE CONSIDERED THE FACTS OF THE CASE AND SUBMISSIONS MADE BEFORE US. WE FIND ITA NOS. 4573 4574&4575(DEL)/2010 4 THAT THE REASON FOR NON-APPEARANCE BEFORE THE LD. CIT(A) FURNISHED BY THE ASSESSEE HAS NOT BEEN CONTROVERTED BY THE LD. DR. FURTHER THE APPEAL HAS BEEN DISMISSED WITHOUT GOING INTO THE MERITS OF T HE GROUNDS TAKEN BY THE ASSESSEE. IN OTHER WORDS THE APPEAL HAS BEEN DI SMISSED IN LIMINE WITHOUT ASSESSING THE MERITS OF THE GROUNDS TAKEN BY THE ASSESSEE BEFORE THE LD. CIT(APPEALS) WHICH COULD NOT HAVE BEEN DONE BY HI M AS HE WAS BOUND TO DISPOSE OFF THE APPEAL ON MERITS. ACCORDINGLY TH E MATTER IS RESTORED TO THE FILE OF THE LD. CIT(APPEALS) FOR FRESH ADJUDICAT ION AFTER GIVING A REASONABLE OPPORTUNITY OF BEING HEARD TO THE ASSE SSEE. 3. SINCE THE MATTER REGARDING DETERMINATION OF Q UANTUM HAS BEEN RESTORED TO THE FILE OF THE LD. CIT(APPEALS) IT WILL BE IN THE FITNESS OF THINGS THAT THE ISSUE OF LEVY OF PENALTY U/S 271 (1)(C) IS ALSO RESTORED TO HIS FILE WHICH MAY BE DECIDED ON MERITS AFTER THE DECISION IN QUANTUM APPEAL. IT IS ORDERED ACCORDINGLY. 4. IN SO FAR AS LEVY OF PENALTY U/S 271(1)(B) I S CONCERNED NO SATISFACTORY EXPLANATION COULD BE SUBMITTED BY THE ASSESSEE REGARDING THREE DEFAULTS MENTIONED BY THE AO IN THE ASSESS MENT ORDER. AS A MATTER OF FACT THERE IS NO EXPLANATION SUBMITTED BY THE AR OF THE ASSESSEE. IN ITA NOS. 4573 4574&4575(DEL)/2010 5 SUCH CIRCUMSTANCES IT IS HELD THAT THE AO WAS JUSTIFIED IN LEVYING THE PENALTY AND THE LD. CIT(APPEALS) WAS JUSTIFIED I N UPHOLDING THE PENALTY. 5. IN THE RESULT APPEAL NOS. 4573(DEL)/2010 AN D 4574(DEL)/2010 ARE TREATED AS ALLOWED FOR STATISTICAL PURPOSES. AP PEAL NO. 4575(DEL)/2010 IN RESPECT OF LEVY OF PENALTY U/S 271(1)(B) IS DISM ISSED. THE ORDER WAS PRONOUNCED IN THE OPEN COURT ON 8 JULY 2011. SD/- SD/- (RAJPAL YADAV) (K.G. BANSAL) JUDICIAL MEMBER ACCOUNTANT MEMBER DATE OF ORDER: 08 .07.2011. SP SATIA COPY OF THE ORDER FORWARDED TO:- M/S D.R. PROJECTS PVT. LTD. NEW DELHI. ACIT CIRCLE 10(1) NEW DELHI. CIT(A) CIT THE DR ITAT NEW DELHI. ASSISTANT REGISTRAR.