AJMAIR SINGH BHULLAR,AMRITSAR vs. DCIT, CIRCLE-1, INTERNATIONAL TAXATION, CHANDIGARH
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Income Tax Appellate Tribunal, CHANDIGARH
Before: HONBLE JUSTICE (RETD) C.V. BHADANG & SHRI VIKRAM SINGH YADAV
आयकर अपीलीय अिधकरण,च�डीगढ़ �यायपीठ , च�डीगढ़ IN THE INCOME TAX APPELLATE TRIBUNAL, CHANDIGARH BENCH ‘A’ CHANDIGARH BEFORE: HON'BLE JUSTICE (RETD) C.V. BHADANG, PRESIDENT & SHRI VIKRAM SINGH YADAV, ACCOUNTANT MEMBER आयकर अपील सं./ ITA No. 573/CHD/2024 िनधा�रण वष� / Assessment Year : 2013-14 Shri Ajmair Singh Bhullar, बनाम The DCIT, 74-A Taylor Road, Circle-1, VS Amritsar. Intl. Taxation Chandigarh. �थायी लेखा सं./PAN /TAN No: AIUPB7704Q अपीलाथ�/Appellant ��यथ�/Respondent
िनधा�रती क� ओर से/Assessee by : Shri Parikshit Aggarwal, CA & Ms. Shruti Khandelwal, Advocate राज�व क� ओर से/ Revenue by : Smt. Amanpreet Kaur, Sr.DR तारीख/Date of Hearing : 12.07.2024 उदघोषणा क� तारीख/Date of Pronouncement : 12/07/2024 PHYSICAL HEARING आदेश/ORDER PER VIKRAM SINGH YADAV,A.M.
This is an appeal filed by the assessee against the order of ld. CIT(A) Delhi-43, dated 29.03.2024 pertaining to assessment year 2013-14 wherein the assessee has taken the following grounds of appeal :
“1. That on the facts, circumstances and legal position of the case, worthy CIT(A), NFAC in Appeal No. Delhi 43/10128/2012-13 has erred in passing order u/s 250 dated 29.03.2024 as the same is in
ITA 573/CHD/2024 A.Y.2013-14 2 contravention of provisions of s. 250 of the Income Tax Act, 1961 (hereinafter referred to as “Act”). 2. That on facts, circumstances and legal position of the case, worthy CIT(A) has erred in confirming the penalty of Rs.20,000/- imposed u/s 271(1)(b) by the ld. AO on account of alleged non- compliance to the notice(s) issued during the assessment proceedings. 3. That on facts, circumstances and legal position of the case, the order passed by ld. AO and then by worthy CIT(A) deserves to be quashed since the same have been passed without affording reasonable opportunity of being heard to the appellant.” 2. Briefly the facts of the case are that the assessee is a Non- Resident Indian. Proceedings u/s 147 were initiated in this case by issuance of notice u/s 148 dated 31.03.2021. In response, the assessee filed his return of income declaring total income of Rs.2,76,272/- on 29.04.2021. Thereafter, notice u/s 142(1) alongwith questionnaire dated 29.08.2021 and 07.09.2021 were issued to the assessee. Subsequently, a Show Cause Notice dated 03.03.2022 was also issued to the assessee. In response to all these notices, there was no compliance on the part of the assessee. Thereafter, given the non-compliance from the assessee, penalty proceedings u/s 271(1)(b) were initiated and notice u/s 271B read with Section 274 was issued to the assessee. In response to said notice also, there was no compliance. Thereafter, another notice was issued on 11.08.2022 which also remained un-complied with. Thereafter, the AO proceeded in the matter and held the assessee to be in default and held that it is a fit case for imposition of penalty u/s 271(1)(b) of the Act and penalty amounting to Rs.20,000/-
ITA 573/CHD/2024 A.Y.2013-14 3 (Rs.10,000/- for each default) for failure to comply with the aforesaid statutory notices was imposed on the assessee.
Being aggrieved, the assessee carried the matter in appeal before the ld. CIT(A) who has since passed the impugned order dismissing the appeal of the assessee. Against the said order, the assessee is in appeal before us.
During the course of hearing, the ld. AR submitted that the assessment was completed ex-parte u/s 144 by the AO and none of the notices issued during the assessment and also the assessment order was served on the assessee. It was submitted that the assessee was out of India and he was not aware of the assessment proceedings being initiated and completed in his case. It was further submitted that the ld. CIT(A) decided the appeal against the assessee by issuing only one notice of hearing dated 12.02.2024 against which the assessee sought an adjournment and instead of adjourning the matter, the ld. CIT(A) passed the impugned order dated 29.03.2024. In light of the aforesaid, it was submitted that the assessee be allowed an opportunity to represent his case and the matter may be remanded back to the file of the ld. CIT(A) for fresh adjudication on merits after providing reasonable opportunity to the assessee.
Per contra, the ld. DR is heard who has relied on the order of the ld. CIT(A) as well as that of the AO and it was submitted
ITA 573/CHD/2024 A.Y.2013-14 4 that there were number of opportunities which were provided to the assessee and all along right from the assessment proceedings to the appellate proceedings, there has been non compliance on the part of the assessee and in view of that, the ld. CIT(A) has rightly confirmed the levy of penalty u/s 271(1)(b) read with Section 274 of the Act as there was no reasonable cause being shown by the assessee for the non compliance.
We have heard the rival contentions and purused the material available on record. Admittedly, the assessee is a NRI and as claimed, the assessee was out of India during the relevant period and he was not aware of the assessment proceedings being initiated and various notices being issued to him. We find that the said claim of the assessee need to be verified before levy of penalty for non-compliance to the notices issued by AO u/s 271(1)(b) of the Act. The ld CIT(A) has decided the appeal ex- parte qua the assessee and apparently, one notice has been issued in respect of which the assessee has sought adjournment, thereafter the ld CIT(A) has passed the impugned order. There is thus lack of effective opportunity being granted to the assessee. In the facts and circumstances of the case, we therefore deem it appropriate to set-aside the matter to the file of the ld CIT(A) to decide the same afresh as per law after providing reasonable opportunity to the assessee.
ITA 573/CHD/2024 A.Y.2013-14 5 7. In the result, the appeal of the assessee is allowed for statistical purposes.
Order pronounced on 12th July,2024.
Sd/- Sd/- (JUSTICE (RETD) C.V. BHADANG) (VIKRAM SINGH YADAV) PRESIDENT ACCOUNTANT MEMBER
“Poonam” आदेश क� �ितिलिप अ�ेिषत/ Copy of the order forwarded to : अपीलाथ�/ The Appellant 1. ��यथ�/ The Respondent 2. आयकर आयु�/ CIT 3. िवभागीय �ितिनिध, आयकर अपीलीय आिधकरण, च�डीगढ़/ DR, ITAT, CHANDIGARH 4. गाड� फाईल/ Guard File 5. आदेशानुसार/ By order, सहायक पंजीकार/ Assistant Registrar
