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Income Tax Appellate Tribunal, MUMBAI BENCHES “A”, MUMBAI
Before: Shri Joginder Singh, & Shri Sanjay Arora
आदेश / O R D E R Per Bench Both these appeals are by the assessee for A.Y. 2009-10 imposing penalty u/s 271(1)(c) and 271 (1)(b) of the Income Tax Act, 1961(hereinafter the Act).
2 Audrey Joe Coutinho & 4197/Mum/2014
First, we shall take up appeal of the assessee in wherein, the ld. First Appellate Authority declined to condone the delay of 284 days in filing the appeal before him. The ld. counsel for the assessee, Shri Mandar Vaidya, contended that the Tribunal vide order dated 14/08/2015 (ITA No.4195/Mum/2014), directed the Ld. First Appellate Authority to condone the delay and to adjudicate the issues on merit after allowing a reasonable opportunity of being heard. However, the ld. DR, Shri Mohammad Rizwan contended that there was a deliberate delay on the part of the assessee in not filing the appeal before the ld. Commissioner of Income Tax (Appeals), therefore, the ld. Commissioner of Income Tax (Appeals) rightly confirmed the penalty.
2.1. We have considered the rival submissions and perused the material available on record. Before coming to any conclusion, we are reproducing hereunder the relevant portion of the aforesaid order for ready reference:-
“From the above, I find there is sufficient reason for not filing the appeal before the ld. Commissioner of Income Tax (Appeals) within the prescribed period of limitation and with a delay of 406 days. With the strained relationship between the assessee and her husband, who normally is in touch with the CAs, it is likely her husband did not give requisite attention to the Income Tax appeal matters of his wife. Therefore, there is a delay of 406 days in filing the appeals before the Commissioner of Income Tax (Appeals). Considering the same, I am of the opinion the order
3 Audrey Joe Coutinho & 4197/Mum/2014 of the Commissioner of Income Tax (Appeals) is required to be reserved on the issue of condonation of delay. I order accordingly and the Commissioner of Income Tax (Appeals) is directed to condone the delay and to adjudicate the issues on merits after allowing a reasonable opportunity of being heard to the assessee as per the principles of natural justice. Thus, the grounds raised by the assessee are allowed for statistical purposes.”
2.2. We find that, so far as, the issue of condonation of delay is concerned, the Tribunal has already directed the ld. First Appellate Authority to condone the delay. The issue before us, pertains with respect to confirmation of penalty. Since, the issue of quantum addition has been remanded back to the file of the ld. Commissioner of Income Tax (Appeals) for adjudication of merit, therefore, in all fairness, the appeal on penalty also deserves to be sent back to the file of the ld. Commissioner of Income Tax (Appeals) as the same will be offshoot of the quantum addition, therefore, this appeal of the assessee is remanded back to the file of the ld. Commissioner of Income Tax (Appeals) for adjudication on merit. The assessee be given opportunity of being heard with further liberty to furnish evidence, if any, in support of his claim. This appeal is allowed for statistical purposes only.
Now, we shall take up appeal of the assessee ( Rs.10,000/- was imposed u/s 271(1)(b) of the Act for not attending the notices
4 Audrey Joe Coutinho & 4197/Mum/2014 issued to the assessee. The ld. counsel for the assessee, contended that this issue may also be sent back to the file of the ld. Commissioner of Income Tax (Appeals). On the other hand, the ld. DR, contended that in spite of sufficient opportunities to the assessee, there was a non-compliance of the notices/show cause notice, therefore, the penalty was rightly imposed/confirmed.
3.1. We have considered the rival submissions and perused the material available on record. The facts, in brief, are that the assessee declared income of Rs.1,89,710/- in his return filed on 31/07/2009. The case of the assessee was selected for scrutiny. On 08/09/2011, the assessee filed a letter dated 03/09/2011 along with copy of return, computation of income, balance sheet, profit & loss account and the matter was adjourned to 20/09/2011. However, as per the Revenue, no details were filed. Show-cause notice was served upon the assessee to which, there was no compliance. In the absence of a valid explanation, penalty of Rs.10,000/- was imposed u/s 271(1)(b) of the Act. However, there is no dispute to the fact that the assessee on 08/09/2011 filed the necessary details, therefore, by taking a lenient view, we condone the delay and direct the ld. Commissioner of Income Tax (Appeals) to dispose of the penalty appeal on merit and decide afresh, thus, the penalty appeal is also sent to the file of the ld. Commissioner of Income Tax (Appeals) for fresh adjudication in accordance with law. The assessee be given
5 Audrey Joe Coutinho & 4197/Mum/2014 opportunity of being heard. Thus, this appeal is also allowed for statistical purposes.
Finally, both the appeals are allowed for statistical purposes.
This order was pronounced in the open court in the presence of the ld. representative from both sides at the conclusion of the hearing on 10/12/2015