S.K. GUPTA,NEW DELHI vs. ADDL. DIT (INV.), NEW DELHI

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ITA 6287/DEL/2013Status: DisposedITAT Delhi23 February 2018AY 2012-133 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the authorities below should have adopted a liberal approach, especially considering the assessee had sought an adjournment. Consequently, the penalty imposed was deleted.

What were the facts?

The Income Tax Appellate Tribunal (ITAT) heard an appeal against a penalty imposed on the assessee for non-compliance with a summons issued under Section 131 of the Income Tax Act. The penalty was confirmed by the CIT(A) despite the assessee seeking an adjournment.

What were the issues?

The primary issue was whether the penalty for non-compliance with a summons was justified when the assessee had requested an adjournment, and if a liberal approach should have been taken by the authorities.

Which sections of the Income-tax Act were involved?

Section 131,Section 272A(1)(c)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH ‘G’, NEW DELHI

Before: SH. G.D.AGARWAL & SH. KUL BHARAT

Hearing: 22.02.2018Pronounced: 23.02.2018

ORDER PER KULBHARAT, J.M.

This appeal filed by the assessee is directed against the order of Commissioner of Income Tax (Appeals) – XXII, New Delhi dated 25.09.2013 pertaining to assessment year 2012-13. 2. The assessee has raised following grounds of appeal :- “The Learned CIT(A) has eared in law and in facts in upholding the penalty imposed in the instant case u/s 272A(1)(c) of the Act.

Relief Claimed A. The impugned order be cancelled and the penalty imposed by the Learned ADDL. DIT (Inv.) Unit-II, New Delhi be cancelled as well; B. Such other or further relief as deemed fit just and proper by this Hon’ble Tribunal in view of the facts and circumstances of the case be allowed in favour of the Appellant.”

3.

Briefly stated the facts are that tax evasion petition was received. For the purpose of making investigation in respect of the tax evasion petition, summon u/s 131 of the Income Tax Act was issued to the assessee. Subsequently, the assessing officer imposed a penalty of Rs. 10,000/- u/s 272A(1)(c) of the Income Tax Act, 1961 (hereinafter referred to as the “Act”). For non compliance of the summon u/s 131 of the Act. Against this, the assessee preferred an appeal before the CIT(A) who after considering submissions confirmed the penalty. Now the assessee is further appeal before this Tribunal.

4.

The only effective ground is against confirmation of penalty by the ld. CIT(A) of Rs. 10,000/-. Ld. Counsel for the assessee submitted that the authorities below were not justified imposing the penalty and confirming the same. He submitted that the authorities ought to have liberal approach. He submitted that the assessee, in fact, sought adjournment on the date when the summon was issued. On the contrary, Ld. DR opposed the submission and supported the orders of authorities below. 5. We have considered the rival contentions and perused the material available on record. After considering the totality of the facts and more particularly, when the assessee sought adjournment. In our view, the authorities below ought to have taken a liberal approach. We, therefore, deem it proper under the facts of the present case to delete the penalty.

5.

In the result, ground raised in the appeal is allowed. (Order Pronounced in the Open Court on 23/02/2018).

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