M/S. ZOOM VALLABH STEEL LTD.,MUMBAI vs. JCIT, NEW DELHI

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ITA 984/DEL/2017Status: DisposedITAT Delhi10 July 2023AY 2009-102 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal found that the assessee's submissions were not properly considered by the lower authorities. Therefore, the matter was remanded to the CIT(A) to adjudicate the issue on merits after giving the assessee an opportunity to file their submissions.

What were the facts?

The assessee, M/s Zoom Vallabh Steel Ltd., appealed against a penalty levied under Section 271C of the Income Tax Act. The assessee argued that the penalty should be set aside due to the company being a sick unit with a closed plant and reasons beyond their control for not depositing TDS.

What were the issues?

Whether the penalty under Section 271C was rightly levied without considering the assessee's submissions regarding the company's sick status and reasons beyond control for non-deposit of TDS.

Which sections of the Income-tax Act were involved?

Section 271C

AI-generated summary — verify with the full judgment below

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

Before: Sh. C. M. GargDr. B. R. R. Kumar

Hearing: 06.07.2023Pronounced: 10.07.2023

ORDER

Per Dr. B. R. R. Kumar, Accountant Member:

1.

The present appeal has been filed by assessee against the order of ld. CIT(A)-41, New Delhi dated 28.12.2016.

2.

Following grounds have been raised by the assessee:

1. The learned Jt. Commissioner of Income Tax (TDS), Range-51, New Delhi [hereinafter referred to as the “AO ] erred in levying the penalty of Rs.25,86,269/- u/s 271C of the Income Tax Act, 1961.

2. He erred in not considering the submission made by the appellant company by their letter dated 22 nd April 2014 addressed to the AO and sent to the office of the AO by speed post. [copy of the letter dated 22n d April 2014 enclosed for ready reference].

3.

He further erred in no appreciating the fact that: (a) The appellant company had become a sick unit and its plant was closed down resulting in a huge loss.

Zoom Vallabh Steel Ltd. (b) The appellant company was prevented from depositing the TDS on account of reasons beyond the control of the appellant company as its business is totally closed.

4. The appellant company therefore humbly prays that the order levying of Rs.25,86,269/- be set aside.”

3. On going through the grounds and statement of fact, we find that the ld. CIT(A) has summarily confirmed the order of the Assessing Officer and dismissed the appeal of the assessee. It was pleaded in the grounds that the submissions of the assessee have not been considered. We find that no prejudice would be caused to the revenue, if an opportunity is given to the assessee to file their submissions. Hence, the matter is being remanded to the file of the ld. CIT(A) to adjudicate the issue on merits. The department would be at liberty to initiate proceedings in accordance with the provisions of Income Tax Act for non-compliance to the notices, if any.

4.

In the result, the appeal of the assessee is allowed for statistical purposes. Order Pronounced in the Open Court on 10/07/2023.

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