Neptune Estates Pvt. Ltd., New Delhi vs Assessee
- CitationITA No. No.4902/Del/2013
Ratio decidendi
The rule this decision rests on
The tribunal reasoned that a penalty under Section 271(1)(b) for non-compliance with notices under Sections 143(2) and 142(1) is not to be levied where the assessee's default is attributable to genuine confusion as to the date of hearing, so that the assessee is entitled to the benefit of doubt, and where the returned loss is small, so that the case is not a fit one for the penalty.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
Appellant by : Shri M.S. Sekhon, Advocate. Respondent by : Shri P. Dam Kanunjha, Sr.DR.
Date of hearing : 12.03.2015 Date of pronouncement : 01.04.2015
ORDER
PER G.C. GUPTA, GUPTA, VP :
This appeal by the assessee for the assessment year 2009-10 is directed against the order of learned CIT(A)-XXXI, New Delhi dated 28th May, 2013.
2. The only ground of appeal raised is as under:-
"That the learned Commissioner of Income Tax (Appeals)-XXXI, Delhi, has erred in confirming a penalty amounting to Rs.10,000/- out of the penalty of Rs.20,000/- which had been imposed by the DCIT, Central Circle-20, New Delhi."
3. We find that the only issue in this appeal is regarding validity of penalty imposed under Section 271(1)(b) of the Income-tax Act, 1961 2 ITA-4902/D/2013
amounting to `10,000/-. We find that the penalty was imposed for non- compliance of notices issued under Section 143(2) and 142(1) of the Act. We find that there was some confusion regarding the date of hearing in this case and therefore, allowing the assessee benefit of doubt, and also considering the smallness of the returned loss at `3,000/-, we hold that it is not a fit case for levy of penalty under Section 271(1)(b) of the Act, which is accordingly deleted and ground of appeal of the assessee is allowed.
4. In the result, the appeal of the assessee is allowed.
Decision pronounced in the open Court on 1st April, 2015.
Sd/- Sd/- (T.S. KAPOOR) KAPOOR) (G.C. (G.C. GUPTA) GUPTA) ACCOUNTANT MEMBER VICE PRESIDENT
VK.
Copy forwarded to: -
1. Appellant : M/s Neptune Estates Pvt.Ltd., C-18-
18-19, Qutab Institutional Area, New Delhi - 110 016.
2. Respondent : Deputy Commissioner of Income Tax, Circle-20, 3rd Floor, ARA Centre, Central Circle-
Jhandewalan Extension, New Delhi - 110 055.
3. CIT
4. CIT(A)
5. DR, ITAT
Assistant Registrar
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