Arora Fabrics Pvt. Ltd., Ludhiana v. ACIT, Ludhiana

IN THE INCOME TAX APPELLATE TRIBUNAL CHANDIGARH BENCHES B CHANDIGARH BEFORE SHRI T.R.SOOD ACCOUNTANT MEMBER AND MS SUSHMA CHOWLA JUDICIAL MEMBER ITSS NO. 5/CHD/2012 BLOCK PERIOD 01.04.1996 TO 05 .02.2002 M/S ARORA FABRICS PVT. LTD VS THE ACIT SARDAR NAGAR CIRCLE III RAHON ROAD LUDHIANA. LUDHIANA. PAN NO.AABCA-5335J (APPELLANT) (RESPONDENT) APPELLANT BY : NONE. RESPONDENT BY : SHRI J.S.NAGAR DATE OF HEARING : 26.09.2013 DATE OF PRONOUNCEMENT : 25.10.2013 O R D E R PER SUSHMA CHOWLA J.M. THE ASSESSEE HAS FILED THE APPEAL AGAINST THE ORDER OF THE CIT(APPEALS)-II LUDHIANA DATED 16.08.2012 RELATING TO BLOCK PERIOD 01.04.1996 TO 05.02.2003 AGAINST THE ORDER P ASSED UNDER SECTION 221(1) OF THE INCOME-TAX ACT 1961 ( 'THE A CT' FOR SHORT). 2. THE ASSESSEE HAS RAISED THE FOLLOWING GROUNDS OF APPEAL: 1. THE LEARNED ASSTT. COMMISSIONER OF INCOME TAX H AS LEVIED PENALTY OF RS. 1 38 953/- U/S 221(1) OF THE INCOME TAX WITH OUT GIVING THE REASON OF OPPORTUNITY IS BEING HEARD. 2. THE ORIGINAL DEMAND OF TAX OF RS.27 79 072.00 AG AINST WHICH PENALTY U/S 221(1) WAS LEVIED HAS ALREADY BEEN DELE TED BY CIT (APPEAL) AS WELL AS WORTHY INCOME TAX TRIBUNAL CHA NDIGARH. 2 4. THE ASSESSEE IS AGGRIEVED BY THE ORDER OF THE CI T(APPEALS) IN DISMISSING THE APPEAL EX-PARTE WITHOUT ADJUDICATING UPON THE MERITS OF THE ISSUE RAISED IN THE APPEAL FILED BEFO RE THE CIT(APPEALS). 5. DESPITE SERVICE OF NOTICE NONE APPEARED ON BEHA LF OF THE ASSESSEE AND WE PROCEED TO DECIDE THE PRESENT APPEA L AFTER HEARING THE LD. DR FOR THE REVENUE. 6. ON THE PERUSAL OF THE RECORD AND THE ORDER OF TH E CIT(APPEALS) WE FIND THAT THERE WAS FAILURE ON BEH ALF OF THE ASSESSEE IN APPEARING BEFORE THE CIT(APPEALS) AND C ONSEQUENTLY THE APPEAL OF THE ASSESSEE WAS DISMISSED IN-LIMINE BY THE CIT(APPEALS). UNDER THE PROVISIONS OF SECTION 250 OF THE ACT IT IS PROVIDED THAT THE CIT(APPEALS) IS TO PASS A SPEAKIN G ORDER ON THE MERITS OF THE ISSUE RAISED BEFORE HIM. THE CIT(APP EALS) HAS FAILED TO PASS A SPEAKING ORDER IN THIS CASE. IN THE INTE REST OF JUSTICE WE DEEM IT FIT TO RESTORE THE ISSUE BACK TO THE FILE O F THE CIT(APPEALS) TO DECIDE THE ISSUE ON MERITS. 7. THE ASSESSEE BY WAY OF GROUND NO.2 BEFORE US HAS POINTED OUT THAT THE ADDITION MADE BY THE ASSESSING OFFICER HAS BEEN DELETED BY THE CIT(APPEALS) AND CONFIRMED BY THE TR IBUNAL AND CONSEQUENTLY THERE WAS NO MERIT IN THE LEVY OF PEN ALTY UNDER SECTION 221(1) OF THE ACT. THE CIT(APPEALS) SHALL VERIFY THE ABOVESAID FACT AND DECIDE THE ISSUE OF LEVY OF PENA LTY UNDER SECTION 221(1) OF THE ACT IN ACCORDANCE WITH LAW A FTER AFFORDING REASONABLE OPPORTUNITY OF HEARING TO THE ASSESSEE. THE ASSESSEE IS ALSO DIRECTED TO APPEAR BEFORE THE CIT(APPEALS) ON THE SLATED DATE/S OF HEARING AND PLACE ON RECORD THE RELEVANT ORDERS AGAINST 3 THE QUANTUM ADDITION. THE GROUND OF APPEAL RAISED BY THE ASSESSEE ARE THUS ALLOWED FOR STATISTICAL PURPOSES. 8. IN THE RESULT APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON THIS 25 TH DAY OF OCTOBER 2013. SD/- SD/- (T.R.SOOD) (SUSHMA CHOWLA) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED 25 TH OCTOBER 2013 POONAM COPY TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT 4. THE CIT(A) 5. THE DR BY ORDER ASSISTANT REGISTRAR ITAT CHANDIGARH