Loading judgment…
Facts
The assessee appealed an order dated 25.08.2023 by the Ld. CIT(A) for AY 2004-05, which confirmed a penalty levied by the Assessing Officer. The assessee argued that the Ld. CIT(A) passed an ex-parte order without considering their submissions, as they failed to comply with notices due to changes in employees responsible for tax matters.
Held
The Tribunal held that the assessee's failure to comply with notices was due to changes in employees handling tax matters. Given the undertaking from the assessee's counsel and pending quantum proceedings, the Tribunal deemed it appropriate to restore the issue to the Ld. CIT(A) for a fresh decision.
Key Issues
Whether the penalty under section 271(1)(C) was rightly confirmed without considering the assessee's submissions, and if the case should be remanded for fresh adjudication.
Sections Cited
271(1)(C)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, MUMBAI BENCH “F” MUMBAI
Before: SHRI OM PRAKASH KANT & SHRI RAHUL CHAUDHARY
This appeal by the assessee has been preferred against order dated 25.08.2023 passed by the Ld. Commissioner of Income-tax (Appeals) – National Faceless Appeal Centre, Delhi [in short ‘the Ld. CIT(A)’] for assessment year 2004-05, raising following grounds:
The Vithalnagar Co-operative Hsg. Society Ltd The Vithalnagar Co
The learned Commissioner of Income Tax (Appeals) erred in The learned Commissioner of Income Tax (Appeals) erred in The learned Commissioner of Income Tax (Appeals) erred in confirming the Order of the Assessing Officer levying penalty u/s confirming the Order of the Assessing Officer levying penalty u/s confirming the Order of the Assessing Officer levying penalty u/s 271 (1) (C) of the Income Tax Act, 1961. 271 (1) (C) of the Income Tax Act, 1961.
The learned The learned commissioner of Income Tax (Appeals) erred in commissioner of Income Tax (Appeals) erred in confirming penalty u/s 271 (1) (C) without having adjudicated on confirming penalty u/s 271 (1) (C) without having adjudicated on confirming penalty u/s 271 (1) (C) without having adjudicated on the appeal against the addition pursuant to which of the penalty the appeal against the addition pursuant to which of the penalty the appeal against the addition pursuant to which of the penalty was levied. was levied. 3. The assessee craves leave to add, alter or modify the grounds of The assessee craves leave to add, alter or modify the grounds of The assessee craves leave to add, alter or modify the grounds of appeal
and submit a detailed statement of facts, written eal and submit a detailed statement of facts, written eal and submit a detailed statement of facts, written submissions and case law relied upon at the time of the hearing. submissions and case law relied upon at the time of the hearing. submissions and case law relied upon at the time of the hearing.
2. At the outset, the Ld. counsel for the assessee submitted that At the outset, the Ld. counsel for the assessee submitted that At the outset, the Ld. counsel for the assessee submitted that the Ld. CIT(A) has passed order ex the Ld. CIT(A) has passed order ex-parte qua the assessee without parte qua the assessee without taking into consideration submission of the assessee and therefore, g into consideration submission of the assessee and therefore, g into consideration submission of the assessee and therefore, appeal might be restored back to the file of the Ld. CIT(A) for appeal might be restored back to the file of the Ld. CIT(A) for appeal might be restored back to the file of the Ld. CIT(A) for deciding afresh after taking into consideration submission of the deciding afresh after taking into consideration submission of the deciding afresh after taking into consideration submission of the assessee.
The Ld. Departmental Representative (DR) on the o The Ld. Departmental Representative (DR) on the o The Ld. Departmental Representative (DR) on the other hand objected that assessee objected that assessee did not make compliance of the various compliance of the various notices issued by the Ld. CIT(A) as noted on page 5 of the impugned notices issued by the Ld. CIT(A) as noted on page 5 of the impugned notices issued by the Ld. CIT(A) as noted on page 5 of the impugned order. In the rejoinder, the Ld. order. In the rejoinder, the Ld. Counsel for the assessee submitted for the assessee submitted that the assessee being that the assessee being a cooperative society, the notices issued on he notices issued on the portal of the Income the portal of the Income-tax Website could not be complied due to tax Website could not be complied due to change of employees from time to time. Before us, the ld Counsel change of employees from time to time. Before us, change of employees from time to time. Before us, gave undertaking that if the matter is restored back to the Ld. gave undertaking that if the matter is restored back to the Ld. gave undertaking that if the matter is restored back to the Ld. CIT(A) then due compliance shall be mad CIT(A) then due compliance shall be made by the assessee by the assessee.
We have heard rival submission of the parties and perused the We have heard rival submission of the parties and perused the We have heard rival submission of the parties and perused the material on record. Before us the ld counsel submitted that in the Before us the ld counsel submitted that in the Before us the ld counsel submitted that in the impugned order penalty for concealment/ furnishing of inaccurate impugned order penalty for concealment/ furnishing of inaccurate impugned order penalty for concealment/ furnishing of inaccurate particulars of income has been sustaine particulars of income has been sustained by the ld CIT(A) , whereas d by the ld CIT(A) , whereas
The Vithalnagar Co-operative Hsg. Society Ltd The Vithalnagar Co the appeal against quantum of addition is pending before him. As the appeal against quantum of addition is pending before him. the appeal against quantum of addition is pending before him. far as the issue of the impugned order passed far as the issue of the impugned order passed without without taking into consideration submission of the assessee is concerned, w submission of the assessee is concerned, we find that submission of the assessee is concerned, w various notices issued for the the assessee has not the assessee has not complied with various notices issued for the reason that concerned employees of the assessee dealing with reason that concerned employees of the assessee reason that concerned employees of the assessee accounts/tax matter accounts/tax matter got changed from time to time. In view of the from time to time. In view of the undertaking given by the Ld. counsel for the assessee before us and undertaking given by the Ld. counsel for the assessee undertaking given by the Ld. counsel for the assessee quantum proceedin quantum proceedings pending before ld CIT(A) gs pending before ld CIT(A), we feel it appropriate to restore the issue in dispute involved in this appeal appropriate to restore the issue in dispute involved in this appeal appropriate to restore the issue in dispute involved in this appeal back to the file of the Ld. CIT(A) for deciding afresh back to the file of the Ld. CIT(A) for deciding afresh after taking into after taking into consideration submission of the assessee consideration submission of the assessee. The assessee is directed The assessee is directed to ensure compliance of all the notices which will be issued by the e compliance of all the notices which will be issued by the e compliance of all the notices which will be issued by the ld CIT(A) for hearing of the matter ld CIT(A) for hearing of the matter. The grounds raised by the . The grounds raised by the assessee are accordingly allowed for statistical purposes. assessee are accordingly allowed for statistical purposes. assessee are accordingly allowed for statistical purposes.
In the result, the appeal of the assessee is allowed for In the result, the appeal of the assessee is allowed for In the result, the appeal of the assessee is allowed for statistical purposes.