Appeal Against Penalty Order Levied u/s 271(1)(c) – Albama Infra Pvt Ltd vs ITO Ward-2(2), New Delhi

Case Summary: Albama Infra Pvt Ltd vs ITO Ward-2(2), New Delhi

Case Number: ITA 6049/DEL/2019
Appellant: Albama Infra Pvt Ltd, New Delhi
Respondent: Income Tax Officer, Ward-2(2), New Delhi
Assessment Year: 2010-11
Case Filed On: 15th July 2019
Order Type: Final Tribunal Order
Date of Order: 28th September 2022
Pronounced On: 28th September 2022

Introduction

The case of Albama Infra Pvt Ltd vs ITO Ward-2(2), New Delhi, revolves around an appeal filed by the appellant against the penalty levied by the Assessing Officer (AO) under section 271(1)(c) of the Income Tax Act, 1961. The penalty was imposed due to alleged concealment of income or furnishing inaccurate particulars of income for the assessment year 2010-11. The appeal was dismissed by the Commissioner of Income Tax (Appeals)-I, New Delhi, leading the appellant to seek redressal from the Income Tax Appellate Tribunal (ITAT).

Background of the Case

Albama Infra Pvt Ltd, a company based in New Delhi, had filed its income tax return for the assessment year 2010-11. During the assessment, discrepancies were noted, leading to the imposition of a penalty under section 271(1)(c) of the Act. The penalty amounted to Rs. 4,13,627/-, which the appellant contested on the grounds of incorrect application of the penalty provisions.

Appeal Before the Commissioner (Appeals)

The appellant approached the Commissioner of Income Tax (Appeals)-I, New Delhi, challenging the penalty order. Despite several notices and opportunities provided for a hearing, the appellant did not appear or submit any relevant documents or explanations to support their case. Consequently, the Commissioner (Appeals) dismissed the appeal, upholding the penalty imposed by the AO.

Proceedings Before the ITAT

Following the dismissal by the Commissioner (Appeals), Albama Infra Pvt Ltd escalated the matter to the Income Tax Appellate Tribunal (ITAT), seeking relief from the penalty order. The appeal was registered as ITA No. 6049/DEL/2019. The hearing was scheduled for 28th September 2022, but similar to previous instances, the appellant failed to appear before the Tribunal.

Despite the non-appearance of the appellant, the Senior Departmental Representative (DR), Sh. Kanav Bali, presented the case on behalf of the respondent. The Tribunal took note of the appellant’s continuous non-compliance with the proceedings and the lack of cooperation, which compelled the Tribunal to decide the case ex parte.

Tribunal’s Decision

Upon reviewing the material on record and considering the arguments presented by the respondent’s representative, the Tribunal observed that the Commissioner (Appeals) had dismissed the appeal without adjudicating the merits of the case. The Tribunal highlighted that the order was passed without considering the material evidence that might have been available had the appellant cooperated during the proceedings.

In light of these circumstances, the Tribunal decided to set aside the impugned order passed by the Commissioner (Appeals). The case was remanded back to the Commissioner with specific instructions to hear the appeal afresh and pass a judgment on merits after affording a reasonable opportunity of being heard to the appellant.

Conclusion

The appeal by Albama Infra Pvt Ltd was allowed for statistical purposes, with the case being remanded back to the Commissioner of Income Tax (Appeals)-I, New Delhi. The Tribunal emphasized the importance of cooperation from the appellant during legal proceedings to ensure a fair judgment based on the merits of the case. The final decision is now pending a fresh hearing and review by the Commissioner (Appeals).

This case highlights the significance of timely compliance and active participation in tax-related disputes, especially when challenging penalty orders under section 271(1)(c) of the Income Tax Act. The outcome of the remanded proceedings will determine the fate of the penalty levied on Albama Infra Pvt Ltd for the assessment year 2010-11.

Order Pronounced in Open Court: 28th September 2022

Judicial Members: Shri Anil Chaturvedi and Shri Narender Kumar Choudhry

Assistant Registrar: ITAT, New Delhi

Appeal Against Penalty Order Levied u/s 271(1)(c) – Albama Infra Pvt Ltd vs ITO Ward-2(2), New Delhi