Income Tax Appellate Tribunal - Chandigarh
Smt. Kalpana Bedi, Ludhiana vs Dcit, Cc-I, Ludhiana on 30 May, 2019
IN THE INCOME TAX APPELLATE TRIBUNAL,
CHANDIGARH BENCH "A", CHANDIGARH
BEFORE: Sh.SANJAY GARG, JUDICIAL MEMBER
AND MS. ANNAPURNA GUPTA, ACCOUNTANT MEMBER
ITA No. 1594 & 1595/Chd/2018
Assessment Year : 2006-07
Smt Kalpana Bedi Vs. DCIT
C/o M/s V.V. Bhalla & Co. Central Circle-1
E-64, Rishi Nagar, Ludhiana, Punjab
Ludhiana, Punjab
PAN No: AFWPB6242G
Appellant Respondent
Assessee by : Shri. Ashwani Kumar, CA for Shri Pankaj Bhalla
Revenue by : Dr. Ashish Gupta, CIT(DR)
Date of Hearing : 22/05/2019
Date of Pronouncement : 30/05/2019
Order
PER ANNAPURNA GUPTA, A.M:
Both the captioned appeals relate to the same assessee, one filed against the order passed by the Ld. CIT(A) in quantum proceedings, while the other against the order passed by the Ld. CIT(A) confirming the levy of penalty under section 271(1)(c) of the Income Tax Act,1961,(hereinafter referred to as "Act").
2. Both the appeals were delayed for filing by seven days. Considering the shortness of the delay , the same was condoned in open court and the hearing of the appeals was proceeded with.
3. At the outset itself it was pointed out that consequent to search action undertaken on the assessee on 12/10/2010,assessment for the impugned year had been framed u/s 153A r.w.s 143(3) of the Act. It was pointed out that the appeals of the assessee for A.Y. 2008-2009 to A.Y. 2011-12 ,assessment for which had also been framed u/s 153A of the Act consequent to search undertaken on the assessee had been adjudicated by the ITAT vide their order in ITA No. 1313 to 1320/Chd/2018 dt. 17/05/2019. It was pointed out that in the impugned case also, as in the case dealt with by the ITAT ,assessment had been framed ex- parte under section 153A r.w.s 144 of the Act, and even before the Ld. CIT(A) the appeal had been filed delayed. That an application had been filed before the ld. CIT(A) requesting condonation of the delay but the Ld. CIT(A) had dismissed the appeal on account of non prosecution by the assessee. It was pointed out that the facts and circumstances in the impugned case were identical to that in A.Y. 2008-09 to 2011-12 which had lead to the ex-parte framing the assessment and the delay in filing appeal before the Ld. CIT(A) and the non prosecution of the same before him. It was pointed out that in the said cases it had been explained to the ITAT that the reason for delay were the peculiar circumstances in which the assessee was embroiled both on the personal front and in its business also, on account of which it was unable to attend the proceedings both before the AO and the Ld. CIT(A). On considering the same the ITAT had restored the issue back to the file of the AO to adjudicate the same afresh after condoning the delay before the Ld. CIT(A). Our attention was drawn to para 3 to para 11 of the order as under:
3. We s h a l l f i rst b e dea l i n g wi t h t h e a p p ea l s fi l ed a ga i n st ord er s p a s se d b y t h e L d. CI T ( A ) i n q u a n t um p r oc eedi n g s i .e IT A N os .1 31 3 t o 13 16, 1 32 5, 1 32 7, 1 32 1 a n d 13 22 / Ch d/ 20 1 8.
4. Al l t h e a f o rem en t i o n ed a p p ea l s we re d el a ye d f or f i li n g b y on e da y . An a p p l i c a t i on req ue st i n g c on d on i n g t h e d el a y wa s f i l ed , exp l a i n i n g t h e del a y a s b ei n g on a c c o u n t of m i st a ke i n c a l c ul a t i on of n um b er of da y s b y t h e c o un sel of t h e a s se s se e. C on si de ri n g t h e sh ort n e s s of t h e de l a y, t h e s a m e wa s c on d on e d a n d all the a p p ea l s we re p r oc e ede d t o b e h ea rd wi t h .
5. At t h e o ut set i t sel f i t wa s p oi n t ed o ut t h a t i n a l l t h e i m p ugn e d c a s es sea rc h a c t i on u / s 13 2 of t h e Ac t t o ok p l a c e on t h e a ss es se e s on 22 .1 0. 20 10 , a n d s ub se q uen t l y a s se s sm en t wa s f ra m ed ex p a rt e u /s 1 53 A r. w. s. 14 4 of t h e Ac t . It wa s f urt h er p oi nt ed o ut t h a t t h e a p p ea l f i l ed b ef o re t h e Ld. CI T( A ) wa s del a y ed b y m or e t h a n 10 0 da ys i n a l l t h e c a s es . Th a t t h e a ss e ss ee m ov ed a n a p p l i c a t i on exp l a i n i n g t h e rea s o n s f or t h e del a y a n d a c c or di n gly r eq ue st i n g f or c on d on a t i on of del a y . B ut , t h a t t h e sa m e wa s r ej ec t ed b y t h e Ld . CI T( A ) a n d t h e a p p ea l of t h e a ss e ss ee t h er eb y di sm i ssed a s b ei n g b a rr ed b y l i mi t a ti on . T h a t a gg ri ev ed b y t h e af or e sa i d ord er of t h e C I T( A ), t h e a s s es se e h a s c om e i n a p p ea l b ef or e u s .
6. Th e l d. C o un sel f o r t h e a s se ss ee st a t ed t h a t b ef ore t h e l d . CI T( A ), t h e a ss es s ee h a d c l ea rl y b r o ug h t o ut t h e p ecul i a r c i rc um st a n c e s a n d s i t ua ti on i n wh i c h i t wa s em b r oi l ed, a n d wh i c h c a us ed t h e del a y . Th a t i t wa s f a c i n g di f fi c ul t i es b ot h on t h e p er s on a l a n d b u si n es s f r on t , on a c c o u n t of wh i c h i t wa s un de r ext rem e p re ss u re a n d dep re s si on a n d a l s o t h a t t h ey we r e un der t h e b on a f i de b el i ef t h a t t h ei r c oun sel wo u l d l o ok i n t o t h e i n c om e t a x m a t t ers. Th a t t h ere wa s n o c om m u n i c a t i on b et we en t he a s se s se e a n d h i s Ch a rt ere d Ac c o u n t a n t d uri n g t h i s p eri o d b eca u s e of t h e p ec ul i a r c i rc um st a n c es . Th a t f urt h er t h e a ss es sm en t or d er wa s se rv ed b y wa y of a f f i xt ure i n t h e h o us e wh e re t h e a ss es s ee wa s n o m ore t h a n re si di n g a n d wa s t h us n ot a wa r e of t h e p a ssi n g of t h e a s se s sm en t ord er . O ur a t t en t i on wa s dr a wn t o t h e p lea di n g s m a d e b ef or e t h e l d. CI T( A ) i n t hi s rega rd rep r o du c e d a t Pa ra 2 t o 2.1 of t h e CI T( A ) ' s o rd er i n t h e c a s e of t h e a ss es se e Sm t . Ka l p a n a B edi i n IT A N o . 13 13 / Ch d/ 20 18 p e rt a i n i n g t o A .Y . 20 08- 09 a s un d er :
" 2. In t h e p res en t a p p ea l p r oc eedi n g s, t he f ol l o wi n g wri t t en s ub m i ssi on s we re f i led b y t h e a p p el l a n t t o c o n t en d t h a t t h e p ro c e d ur e f ol l o we d f or a f f i xt ure s uf f er ed f un da m en t a l p r oc e du ra l i n fi rmi ti es a n d t h er e f ore t h e da t e of a f i xt ure c a nn ot b e t a k en a s da t e of s er vi c e i n t h ese c a s es . Th e wri t t en sub m i ssi on s a r e rep r o d uc ed h er e u n der :
At t h e o ut s et i t m a y b e p oi n t ed o ut b y y o ur h on o ur t h a t t h e re i s a del a y i n fi li n g of q u a n t um a p p e a l . H o wev er t h e s ub m i ssi on of t h e a p p el l a n t a re t h a t t h e da t e of se rvi c e o f a ss es sm en t or der c a n n ot b e t a k en i n m on t h of N ov 20 13 a n d c a n o n l y b e t a k en f or Ma y 201 4. Th e s ub m i ssi on of t h e a p p el l a n t a r e f ort i fi ed b y t h e f a c t t h a t t h e H ob 'b l e I T A T C h a n di ga rh i n g r o up c a se s of P u n e et F ash i on g r o up of IT A N o 1 06 5 t o 10 6 7/ c h d /2 01 7 h a s c a t eg ori c a l l y h el d r eg a rdi n g se rvi c e of ord er b y a f f i ct ure i n t h e m on t h of N ov em b er 20 13 a s un der :-
a. Adm i t t edl y t h e As s es si n g Of f i c er h a s a d o p t ed t h e m et h o d of se rvi c e b y a f f i xt ure f or s ub st i t ut ed se rvi c e un de r o rd er V r ul e 17 a n d rul e 2 0 of t h e C P C. B ut a s n ot ed a b o ve t h e p resc ri bed p r o c ed u re un der or de r V r ul e 1 7 a n d R ul e 20 o f t h e CP C h a s n ot b e en a d op t ed .
b. Th e re i s n o e vi den c e on r ec or d t h a t t he A O h a d m a d e a n y ef f ort t o t ra c e t h e a ss e ss ee /di re c t or . Th e a f f i xt ure wa s n ot d on e i n t h e p re sen c e of a n y e vi den c e. F u rt h er, t h ere wa s n o sa t i sf a c t i on rec or de d b y t h e A O /s er vi n g of f i c er t ha t a f t er usi n g a l l due a n d rea s on a b l e di l i gen c e t h e a ss e ss ee c o ul d n ot b e f o un d a n d t h a t t h ere wa s n o l i k el i h o od of h i s b ei n g f oun d a t t h e resi den c e wi t hi n a rea s on a b l e t i m e. E v en n o a f f i da vi t of t h e se rvi n g of f i c er wa s f i l ed a l on g wi t h t h e r et urn rep o rt of t h e o rd er / n ot i c e v eri f yi n g t h e a b o ve f a c t s a n d j u st i f yi n g su b st i t ut ed ser vi c e t h ro ugh a f f i xt ure on t h e a l rea d y l ef t o ver h o u se of t h e a ss e ss ee . T h e n ot i c es, s en t b y t h e A O t h ro ug h r egi st er ed p o st , h a s b een re c ei v ed b a c k wi t h t h e r e m a rk s 12 " a d dre s se e l ef t " . Un d er t h e c i rc um st a n c e s, wh en t h e a s s es si n g of f i c er wa s we l l a wa re of t h e f a c t t h a t th e a ss es s ee /di rec t or wer e n ot a f f i xt ure wa s m e a n i n gl es s. N o ot h e r m ode of s ubst i t ut ed se rvi c e wa s a d op t ed b y t h e A O. N o w i t i s m ost h um b l y p ra ye d t h a t t h e a p p ea l of t h e a s se s se e b e t rea t ed a s re g ul a r t o en a b l e t h e un d er si gn ed t o m a ke f urt h er s ub m i ssi on .
2.1 Th e a p p el l a n t h a s a l s o f i l ed p et i ti on f or c on d on a t i on of del a y vi de l et t er d a t ed 18 / 11 /2 01 4 e xp l a i n i n g t h e c i rc um st a n c es b e c a us e of wh i c h sh e c o ul d n ot f i l e t h e a p p ea l wi t h i n t h e li mi t a ti on p eri od .
Th e a s s es s ee a l s o ex p l a i n ed t h a t t h e sh o w c a u se n ot i c es i ss u ed b y t h e A s se ssi n g Of f i c er h a d b ee n s en t i n th e ordi n a r y c o u r se a t t h e h o u se i n wh i c h t h e di rec t or s of t h e a s s es se e g r o up we r e r esi di n g b ut i t s p o ss es si on wa s t a k en o ve r b y t h e Al l a h a b a d B a n k a n d t h a t t h e di rec t or s h a d b een r en d er ed h om el es s a n d h a ve sh i f t ed t o a ren t e d a c c om m oda t i on . F u rt h er, t h a t du e t o ext rem e f i na n c i a l c r un c h a n d ot h er di f f i c ul ti es of l i f e, t a ki n g ov er of a l l t h e a s s et s b y t h e B a n k , l i ti ga ti on wi t h c ust om s & D RI , p en di n g p r oc ee di n g a ga i n st t h e a s s es se e un de r sec u ri t y a n d re c on s t ruc t i on of f i n a n c i a l a s set a n d E n f or c em en t of s ec uri t y i n t er est ( S A R F AE S I ) Ac t , t h e re we re f a mi l y p ro b l em s of di vor c e a n d t h e di r ec t o rs we r e u n d er e xt rem e p re ss u re a n d de p r es si on a n d c o ul d n ot est a b l i sh c o n t a c t wi t h t h ei r Ch a rt er ed Ac c o un t a n t . Th e di rec t or s were un de r b on af i de b el i ef t h a t t h ei r c o un s el wo ul d l o ok a f t er i n c o m e t a x p r oc eedi n g s. It wa s f urt h e r p oi n t ed o ut t h a t t h e a s se s sm e n t or der wa s n ev er se rv ed up on t h e a s se s se e. Th e se rvi c e wa s ef f ec t ed t h r o ugh a f f i xa ti on on t h e h o us e i n wh i c h t h e di rec t o rs we r e n o t re si di n g a s t h e sa m e wa s t a k en p o s se ssi on of b y t h e B a n k . "
7. Th e l d. C o un s el f or t h e a ss es s ee, t h er ea f t er, st a t ed t h a t i n a l l t h e i m p ugn ed c a s e s, t h e a p p ea l s we r e fi l ed del a y ed b ef or e t h e Ld . CI T( A ) f or t h e a f or es a i d rea s on a n d t h e sa m e h ad b een di sm i ssed b y t h e Ld. CI T( A ) b y n ot c on d o n i n g t h e del a y . L d. C o un sel f or t h e a ss e ss ee st a t ed t h a t t h ere wa s ge n ui n e a n d r ea s on a b l e c a us e f or t h e del a y a n d t h e L d. CI T( A ) h a d er re d i n n ot c on s i deri n g t h e sa m e. Ld . C o un s el f or t h e a s s es s ee f urt h er p oi n t ed o ut t h a t i n c a s e of ot h e r a ss es s es b el on gi n g t o t h e sa m e g r o up , t h e a p p ea l s h a d b een d el a y e d f o r f i li n g b ef o re t h e L d. CI T( A ) f o r i den t i c a l rea s on s a n d t h e Ld. CI T( A ) h a d di sm i ssed t h e a p p e a l s a s b a r r ed b y l i mi t a ti on , a ga i n st wh i c h t h e a s se ss ee h a d f i l ed a p p e a l b ef or e t h e IT A T wh o, t a k i n g n ot e of t h e p ec ul i a r c i r c um st a n c e s p re va i l i n g wi t h t h e a ss e ss ee, h a d s et a si de t h e or der of t h e CI T( A ) a n d f urt h er, t a k i n g n ot e of t h e f a c t t h a t even t h e a ss es sm en t o rde r wa s e x p a rt e or de r , h a d re st or ed t h e c a s e s b a c k t o t h e f i l e of t h e A ss es si n g Of f i c er f or de n ov o a s se s sm en t . O u r a t t en t i on wa s dra wn t o t h e or de r p a ss ed b y t h e IT A T i n t h e c a se o f M/ s P un eet Fa sh i o n Pvt . Lt d., M/ s Ni k h i l E xi m Pvt . Lt d, M/ s Ra j a n T ra di n g Pri va t e Lt d . , a n d M/ s . S. K. Te xt i l es , Mr . P un e et B e di , Sh ri Ti l a k Raj B e di , Ms Ne h a B e di , a l l c om p a n i e s/ a s se s se es b el on gi n g t o t h e g r o up , i n t h e g ro up of c a s es wi t h t h e l ea d c a s e b ei n g I T A N o. 10 56 t o 10 61 / Ch d/ 20 17 da t ed 3 1. 10. 2 01 7, a t Pa r a 10 t o 17 of t h e or de r a s u n de r :
" 10 . N o w c om i n g t o t h e m eri t s of t h e a p p ea l , t h e a pp ea l of t h e a s se s see h a s b ee n di sm i ssed b y t h e L d . CI T( A ) b ei n g b a rr ed b y l i mi t a ti on . Th e a ss e ss ee i n t h e a p p l i c a t i on of c on d on a t i on of del a y m ove d b ef or e t h e CI T( A ) h a d e xp l a i n e d a b o ut t h e c i rc um st a n c e s b ec a u se of wh i c h h e c o ul d n ot f i l e t h e a p p ea l wi t h i n t h e li mi t a ti on p eri od . Th e a s s es s ee a l s o exp l a i n ed t h a t n on e of t h e sh o w c a us e n ot i c es i s s ue d b y t h e A O h a d b een s er ve d i n t h e o rdi n a r y c o ur se up on t h e a ss es s ee a s t h e h o u s e i n wh i c h t h e di rec t ors of t h e a s se s see c om p a n y we r e re si di n g wa s t a k en p o s se s si on of b y t h e Al l a h a b a d B a n k a n d t h a t t h e di re c t or s h a d b ee n ren der ed h om el es s a n d h a ve sh i f t ed t o a ren t e d a c c om m oda t i on . F urt h er, t h a t du e t o e xt rem e f i n a n c i a l c run c h a n d ot h er di f fi c ul t i es o f l i f e, t a k i n g ov er of a l l t h e a ss et s b y t h e B a n k , l i ti ga t i on wi t h c ust om s & D RI , p en di n g p ro c e edi n g a ga i n st t h e a ss e ss ee un der se c uri t y a n d rec on st r uc t i on of f i n a n c i a l a s set a n d E n f orc em en t of s ec uri t y i n t erest ( S A R FA E S I ) A c t , t h e f ami l y p rob l em s s uc h a s di vo rc e a f t er f e w da y s of h e r m a rri a ge of t h e da ug h t er of Sh . Ti la k Ra j B e di a n d si st er of Sh . P un eet B edi ( b ot h di re c t o rs of t h e c om p a n y ) , t h e di rec t or s we re u n d e r ext r em e p re ss u re a n d d ep re ssi on a n d c o ul d n ot e st a b l i sh c on t a c t wi t h t h ei r Ch a rt er ed Ac c o u n t an t . Th e di rec t or s we r e un d er b on a f i de b el i ef t h a t t h ei r coun se l wo u l d l o ok a f t er i n c om e t a x p r oc ee di n g s. It wa s f u rt h er p oi n t ed o ut t h a t t h e a s se s sm en t ord er wa s n ev er s er ve d up o n t h e a sse s se e. T h e s ervi c e wa s ef f ec t ed t h r o ug h a f f i xa ti on on t h e h o u se i n wh i c h t h e di rec t or s wer e n ot r esi di n g a s t h e s a m e wa s t a k en p o ss es si o n of b y t h e B a n k . In o ur vi e w, t h e a b ove c i rc um st a n c e s c on st i t ut e s uf f i ci en t c a us e f or c on d on a t i on of del a y i n f i li n g of t h e a p p ea l b ef o re t h e CI T( A ) .
11. F urt h e r, b ef or e u s, t h e Ld . C o un sel f or t h e a s se s se e h a s t a k en a p l e a t h a t t h e se rv i c e of t h e ord er ef f e c t ed b y wa y of s ub st i t ut ed m ode of ser vi c e t h ro u gh a f f i xt ure on t h e h o u s e i n wh i c h t h e di rec t or s of t h e a s se ss ee h a d c ea se d t o r esi de wa s def e c t i ve a s t h e A ss e ssi n g Of f i c er wa s wel l a wa re of t h e f a c t t h a t t h e di rec t or s we re n ot r e si di n g i n t h e sa i d h o u se .
12. A s p e r t h e p r o vi si on of s ec t i on 28 2 of t h e Ac t , se rvi c e o f n ot i c e or s um m o n o r r eq ui si ti on or o rd er o r a n y ot he r c om m un i c a t i on un d er t h e In c om e Ta x Ac t c a n b e m a de b y del i veri n g o r t ra n s m i t ti n g a c op y t h er eof , t o t he p ers on t h erei n n a m ed, --
(a) b y p o st or b y s uc h c o uri er ser vi c es a s m a y b e a p p r o ved by t h e B oa r d; or
(b) i n suc h m a n n e r a s p r ovi de d un d er t h e C od e of Ci vi l Pr oc ed u re, 19 08 ( 5 o f 1908 ) f or t h e p ur p o se s of ser vi c e of s um m on s ;
or
(c) i n t h e f orm of a n y e l ec t r on i c rec o rd a s p ro vi ded i n Ch a p t er IV of t h e In f orm a t i on T ec h n ol o g y Ac t , 2 00 0 ( 21 of 20 00 ) ;
(d) b y a n y ot h e r m ea n s of t ra n sm i ssi on of d o c um en t s a s p r ovi de d b y r ul es m a de b y t h e B oa r d i n t h i s b eh a l f .
13 . Adm i t t edl y t h e As se s si n g Of f i c er h a d a d o p t ed t h e m et h od of se rvi c e b y a f f i xt ure a s a p p l i c a b l e f or s ub st i t ut ed s er vi c e un de r or de r V r ul e 17 a n d rul e 20 of t h e CP C . B ut a s n ot e d a b ov e t h e p re sc ri b e d p r oc e d u re u n d er ord er V r u l e 17 a n d R ul e 2 0 o f t h e C P C h a s n ot b e en a d op t ed . R ul e 17 & 2 0 o rd er V C P C r ea d a s un der :
" 17 . Pr oc ed ur e wh e n def e n da n t ref u se s t o a c c ep t s er vi c e, o r c a n n ot b e f o u n d.- Wh er e t h e def en da n t or h i s a gen t o r s uc h ot h er p er s on a s a f or es a i d ref us es t o si gn t h e a c k n o wl edgm e n t , or wh e re t h e se rvi n g of f i c er, a f t er usi n g a l l du e a n d rea s on a b l e di li gen c e, c a n n ot f i n d t h e def e n da n t , wh o i s a b sen t f r o m h i s re si den c e a t t h e t i me wh e n se rvi c e i s s o ug h t t o b e ef f ec t ed on h i m a t h i s re si den c e a n d t h ere i s n o l i k el i h o o d of h i s b ei n g f o u n d a t t h e re si den c e wi t h i n a rea so n a b l e t i m e a n d t h er e i s n o a gen t em p o we re d t o a c c ep t s ervi c e of t h e s um m on s on h i s b eh a l f , n or a n y ot h er p er s on o n wh om s ervi c e c a n b e m a d e, t h e se rvi n g of f i c er sh a l l a f f i x a c op y of t h e s um m on s o n t h e o ut er d o or or s om e ot h e r c on s p i c u o us p a rt of t h e h o u se i n wh i c h t h e def en da n t or di n a ri l y re si des or c a rri e s on b u si n es s o r p er s on a l l y wo r k s f or ga i n , a n d sh a l l t h en r et u r n t h e o ri gi n a l t o t h e c o u rt f rom wh i c h i t wa s i ssu ed, wi t h a rep o rt en d o rs ed t h er e on o r a n n ex ed t h er et o st a t i n g t h a t h e h a s s o a f f i xed t h e c op y, t h e c i rc um st a n c e s u n d er wh i c h h e di d so, a n d t h e n a m e a n d a ddr e ss of th e p er s on ( i f a n y) b y wh om t h e h o u s e wa s i den t i fi ed a n d ' wh os e p re se n c e t h e c op y wa s a f fi xed" .
20. S u b st i t ut ed ser vi c e.- ( 1 ) Wh er e t h e c o urt i s s at i sfi ed t h a t t h ere i s rea s on t o b e l i eve t h a t t h e def en da n t i s k eep i n g o ut of t h e wa y f or t h e p urp o se of a v oi di n g s er vi c e, or t h a t f or a n y ot h er rea s on t h e s um m on s c a n n ot b e se rv ed i n t h e or d i n a ry wa y, t h e c o ur t sh a l l or de r t h e s um m o n s t o b e s er ve d b y a f f i xi n g a c op y t h e re of i n s om e c on sp i c u o u s p l a c e i n t h e c o urt h o u se, a n d a l s o u p o n som e c on sp i c u o u s p a rt of t h e h o u se ( i f a n y ) i n wh i c h t h e d ef en d a n t i s k n o wn t o h a ve l a st re si ded or c a r ri ed on b u si n es s o r p e r s on a l l y wo r k ed f or ga i n , o r i n s u c h ot h e r m a n n er a s t h e c o urt t h i n k s f i t . ( 1 A ) Wh e re t h e c o ur t a c ti n g un d er s ub - r ul e ( 1 ) o rd er s s er vi c e b y a n a dv ert i sem en t i n a n e ws p a p e r, t h e n e ws p a p er s h a l l b e a da i l y n e ws p a p er c i rc ul a t i n g i n t h e l oc a l i t y i n wh i c h t h e d ef en d a n t i s l a st k n o wn t o h a ve a c t u a l l y a n d v ol un t a ri l y r esi de d, c a rri ed on b u si n es s or p e rs o n a l l y wo rk ed f or ga i n .
(2) E f f ec t of s ub st i t ut ed se rvi c e -- Ser vi c e s u b st i t ut ed b y or de r o f t h e c o urt sh a l l b e a s ef f ec t ua l a s i f i t h a d b e en m a d e o n t h e def en da n t p er s on a l l y.
(3) Wh er e s er vi c e s ub st i t ut ed, t i m e f or a p p e a ra n c e t o b e f i xed--
wh e re s er vi c e i s sub s t i t ut ed b y or de r of t h e C o urt , t h e C o urt sh a l l fi x s uc h t i m e f or t h e a p p ea ra n c e of t h e d ef en da n t a s t h e c a s e m a y req ui re.
14. Th e re i s n o e vi den c e on rec o rd t h a t t h e A O h a d m a de a n y ef f ort t o t ra c e t h e a ss e ss ee /di re c t or s . T h e a f f i xt ure wa s n ot d on e i n t h e p re sen c e of a n y wi t n es s . F urt h er, t h ere wa s n o sa t i sf a c t i on rec or de d b y t h e A O /s er vi n g of f i c er t ha t a f t er usi n g a l l due a n d rea s on a b l e di l i gen c e t h e a ss e ss ee c o ul d n ot b e f o un d a n d t h a t t h ere wa s n o l i k el i h o od of h i s b ei n g f oun d a t t h e resi den c e wi t hi n a rea s on a b l e t i m e. E v en n o a f f i da vi t of t h e se rvi n g of f i c er wa s f i l ed a l on g wi t h t h e ret ur n re p ort of t h e or der /n ot i c e ve ri f yi ng t h e a b o ve f a c t s a n d j u s t i f yi n g sub st i t ut ed s e rvi c e t h r o ugh a f f i xt ure on t h e a l r ea d y l ef t ov e r h o us e of t h e a ss es se e. Th e n ot i c es, s e n t b y t h e A O t h ro u gh r egi st er ed p o st , h a d b een rec ei ved b a c k wi t h t h e rem a rk s " a d dr es se e l ef t ". U n de r t h e c i rc um st a n c e s, wh e n t h e a s se s si n g of f i c er wa s wel l a wa r e of the fact t ha t the a s se s see / di rec t o rs we r e n ot r e si di n g i n t h e h o u se at wh i c h t h e a f fi xt ure wa s d o n e, t h e se rvi c e t h r o ugh a f fi xt ure wa s m ea n i n gl e ss . N o ot h e r m od e of s u b st i t ut ed se rvi c e wa s a d op t e d b y t h e A O. Th e H on ' b l e S up r em e Co u rt i n t h e c a se of ' CI T V s R avi n dra Na t h Gh o sh ' [ 19 71] 82 I T R 88 8 ( S C ) wh i l e ex a m i ni n g t h e va l i di t y of t h e se rvi c e a s p er t h e p ro vi si on of r ul e 17 ord er V of t h e C P C h a s ob se rv ed a s un d er :
" 10 . A s se en ea rl i er t h e c on t en t i on of t h e a ss e ss ee s wa s t h a t a t t h e rel e va n t t i m e t h e y h a d n o p l a c e of b u si n es s. T h e re p ort o f t h e se rvi n g of f i c er doe s n ot m en t i on t h e n a m es a n d a dd re s se s of t h e p er s on wh o i den t i fi ed t h e p l a c e of b u si n es s of t h e a s s es se e s. T h a t of f i c er d oe s n ot m e n t i on i n hi s rep o rt n or i n t h e af f i da vi t fi led b y h i m t h a t h e p er s on a l l y k n e w t h e p l a c e of b u si n es s of t h e a ss e ss ee s. H en c e, t h e se rvi c e o f n ot i c e m ust b e h el d t o b e n ot i n a c c or da n c e wi t h t h e l a w. Th e p o ssi b i l i t y of h i s h a vi n g g on e t o a wr on g p l a c e c a n n ot b e r ul ed o ut . Th e H i gh Co u rt a f t er g oi n g i nt o t h e f a c t s of t h e c a s e v er y el a b or a t el y, a f t er exa m i n i n g sev era l wi t n e ss es, h a s c om e t o t h e c on c l u si on t h a t t h e s er vi c e m a de wa s n ot a p ro p e r se rvi c e. H e n c e, i t i s n ot p o s si b l e t o h ol d t h a t t h e a s se s se e s h a d b een gi ven a p ro p er op p o rt un i t y t o p ut f o r wa rd t h ei r c a se a s req ui red b y S ec t i on 33B ".
15. F urt h e r, t h e H on ' b l e P un ja b & H a r y a n a H i gh C o u rt i n t h e c a s e of ' CI T Vs Sh e r Si n gh ' [ 2 01 3] 37 t a xm a n n .c om 41 8 ( P & H ) h a s ob se rv ed t h a t Wh er e As se s si n g Of f i c er c a m e t o k n o w t h a t a s se s se e i s n ot re si di n g a t h i s l a st k n o wn a d dr es s, h e sh o ul d f ol l o w p r o c ed ur e of s ub st i t ut ed s er vi c e of n ot i c e un d er C P C; se rvi c e b y a f f i xat i on a t sa i d l a st k n o wn a d dre s s wo u l d b e i n va l i d. Th e r el e va n t p a rt of t h e or de r of t h e H on ' b l e H i gh C o u rt i s r ep r o d uc ed a s un der :-
" 6. Th e r ep ort l ea ve s n o a m b i gui t y t h a t t h e As se s si n g Of f i cer wa s a wa re t h a t t h e re sp on d en t i s n ot r esi di n g a t h i s l ast k n o wn a ddr es s b ut s ur p ri si n gl y p er si st ed i n ord eri n g s er vi c e b y a f f i xa ti on , a t t hi s a dd re ss . At t h i s st a ge i t wo ul d b e a p p r op ri a t e t o c l a ri f y t h a t i f t h e rev en u e i s a wa r e t h a t a n a ss es s ee i s n ot re si di n g a t h i s l a st k n o wn a dd re ss, a n A ss es si n g Of f i c er, wo ul d b e req ui red t o se a rc h f or t h e a s se s see ' s n e w a dd r es s a n d i f st i l l n ot a v a i l a b l e, se rv e t h e a s se s se e i n a c c or da n c e wi t h p ro c e d ure f or s ub st i t ut ed s er vi ce a n d p ub l i c a t i on et c . p re sc ri b ed b y t h e C od e of Ci vi l Pr oc e d ur e. In t h e a b s en c e of a n y er r or of ju ri sdi c t i on of l a w i n t h e i m p ugn e d or de rs, we exp re ss o u r i n a b i l i t y t o en t ert a i n t h e a p p ea l on t h e q ue st i on s of l a w a s set o ut i n t h e m em o ra n d um of a p p ea l b ut p ro c eed t o c on si der wh et h er q ue st i on s of l a w f ra m ed b y c o un s el f o r t h e rev en u e i n c o urt sh o ul d b e a n s we red . Th e q u est i on s a re a s u n der :-
(1) " W h et h e r d ef ec t i n servi c e wo u l d e n t a i l set t i n g a si de of t h e sh o w c a u se n ot i c e a l on g wi t h a s se ssm e n t or de r; a n d (2) Wh et h e r i n suc h a s i t ua ti on t h e CI T( A ) or t h e I . T. A. T sh o ul d h a ve di re c t ed t h e A ss e ssi n g Of f i c er t o p ro c e ed f r om t h e st a ge of se rvi c e? "
7. A d ue c on si de ra t i o n of t h e a r g um en t s a dd re s se d f o r a n d a ga i n st t h es e q u est i on s r ev ea l s t h a t t h e y ra i se s ub st a n t i a l q u est i on s of l a w a s set t i n g a s i de of a n a ss e ssm e n t or de r wo ul d n ot en t a i l set t i n g a si de of t h e sh o w c a u se n ot i c e. Th e o rde r p a s s ed b y t h e A ss e ssi n g Of f i c er wa s h e l d t o b e i l l ega l f or wa n t of va l i d s ervi c e . Th e sh o w c a u se n ot i c e, h o we v er, h a s n o t b een h el d t o b e i n va l i d a n d, t h eref or e, s ub si st s. Th e C.I . T( A ) of t h e T ri b un a l , we r e, t h eref o re, req ui red wh i l e set t i ng a si de o rd er p a s se d b y A ss es si n g Of f i cer f or wa n t of va l i d se rv i c e t o rest or e t h e m a t t er t o t he of f i c e of t h e A ss e ssi n g Of f i c er f or p ro c e edi n g a f r es h f r om t h e st a g e of se rv i c e of sh o w c a u s e n ot i c e, i n st ea d of a l l o wi n g t h e a s se s se e t o go sc o t f ree. Fa i l ur e t o a d op t s uc h a c o u rs e h a s l e d t h e Ap p el l a t e A ut h o ri t y a n d t h e I. T. A . T t o c om m i t a n e rr or of j uri sdi c t i on .
8. Th e q u e st i on s of l a w a re, t h eref or e, a n s were d b y h ol di n g t h a t i f servi c e up on a n a ss e ss ee i s h el d t o b e i l l ega l t h e CI T( A ) or t h e IT A T wo u l d b e re q ui red t o r est or e t h e sh o w c a u se n ot i c e t o t h e A ss e ssi n g Of f i c er f ro m t h e st a ge of se rvi c e, f or a dj u di c a t i on a f resh a n d i n a c c o rda n c e wi t h l a w, s ub j ec t , h o we ve r t o a n y l ega l ob j ec t i on s t h a t m a y b e a va i l a b l e t o t h e a ss e ss ee t o b e ra i se d a t t h e a p p r op ri a t e st a g e b ef or e t h e A ss es si n g Of f i c er.
9. In t h i s vi e w of t h e m a t t er, wh i l e a f f i rmi n g o rde r s p a s s ed b y t h e C IT( A ) o r t h e I . T. A. T, wi t h r e sp e c t t o i l l ega l i t y of t h e As se s sm en t or de r f or wa n t of va l i d se rvi c e, t h e m a t t er i s rem it t ed t o t h e A ss e ssi n g Of f i c er t o a dj udi c a t e t h e sh o w c a u se n ot i c e a f resh f rom t h e st a g e p ri or t o i n i ti a ti on of ex- p a rt e p r oc e edi ng s, a n d wh i l e doi n g s o c on si der r el e va n t p r o vi si on s o f l a w a s we l l a s o b j ec t i on s a n d j u dgm en t s, ref e rre d t o b y t h e re sp o n den t . Th e ap p ea l s t a n ds di sp o se d of a c c or di n gl y" .
16. F urt h e r, a s ob s er ve d a b ov e, t h e c o un sel h a s e xp l a i n ed t h a t t h e a s se ssm e n t f ra med i n t hi s c a se i s h i gh l y a gg ra va t ed a n d h i gh p i t c h ed a s s es sm en t a n d t h e a s se s se e h a d n ot g ot r ea s on a b l e op p o rt un i t y of def e n di n g i t s c a se a s t h e a s se s sm en t s h a v e b een f ra m ed ex- p a rt e of t h e a s s es se e u/ s 1 44 of t h e I. T. Ac t . Th e a ss e ss ee h a s a l s o exp l a i n e d t h e c i rc um st a n c e s b e y on d t h e c on t r ol of i t s di rec t or s, wh i c h c on st i t ut e suf f i c i en t c a u se f o r t hei r n on - p r e s en c e b ef or e t h e A O. In vi e w of t h e a b o ve, t h e i m p ugn e d or de r of t h e CI T( A ) i s l i a b l e t o b e s et a si de. F u rt h er a t t h i s st a g e, re q ui ri n g t h e CI T( A ) t o d ec i de t h e rec t i fi c a ti on a p p l i c a t i on p en di n g b ef or e h i m wi l l n ot s ol ve a n y u s ef ul p u rp o se a s we h a ve a l r ea d y a d j udi c a t ed up on t h e r el e va n t i ss u e s. F u rt h er, i t wi l l res ul t i n t o m ul t i p li ci t y of l i ti ga ti on . In vi e w of t hi s, t h e i m p ugn ed orde r of t h e CI T( A ) i s h er eb y s et a si de a n d t h e m a t t er i s re st or ed t o t h e f i l e of A O f o r den o vo a ss e ssm en t . Ne edl e ss t o sa y t h a t A s se s si n g of f i c er wi l l gi ve t o p r op er o p p ort un i ty t o t h e a ss es s ee t o p re s en t i t s c a s e a n d a t the sa m e t i m e i t i s di rec t ed t h a t t h e a s se ss ee wo u l d n ot del i b era t el y c on t ri b ut e i n del a yi n g t h e c on c l usi on of t h e p ro c e edi n g s .
17 . Si n c e t h e f a c t s a n d c i rc um st a n c e s i n vol ve d in all the c a p t i on ed a p p ea l s a re i den t i c a l , h en c e, i n vi e w of o ur ob se rva t i on s m a d e a b o ve, a l l t h e c a p t i on ed a p p ea l s a re r est or ed t o t h e f i l e of t h e A O i n si mi l a r t erm s f o r d en ov o as s es sm en t . "
8. Th e l d . C o un sel f or t h e a ss e ss ee st a t e d t h a t si n c e t h e f a c t s i n t h e p re sen t c a se s were i den t i c a l t o t h a t i n t h e a p p ea l s de c i ded b y t h e IT A T a s a b o ve o f a sse s se es b el o n gi n g t o t h e sa m e g r o u p , t h e i m p ugn ed a p p ea l s a l s o b e re st o red b a c k t o t h e As se s si n g Of f i c er .
10. Th e l d . D R f a i rl y c o n c ed ed t h a t i den t i c a l i ss u e h a d b e en dec i de d b y t h e I T A T i n t h e a f or em en t i on e d c a s es .
11. W e h a v e h e a rd t h e c on t en t i on s m a de b ef or e us a n d h a ve a l s o g on e t h r o ugh t h e o rd er of t h e a ut h o ri ti es b el o w. We h a v e a l s o gon e t h r o u gh t h e or der of t h e I T A T ref e rr ed t o b ef ore u s da t ed 31- 10- 20 17, i n ITA N o. 105 6 t o 1 06 1 / Ch d /2 01 7 a n d ot h e rs, wh i c h a dm i tt edl y rel a t e t o a s se ss e s b el on gi n g t o t h e sa m e g r o u p a s t h e i m p ugn ed a ss e ss e s a n d wh i c h we re s ub jec t e d t o s ea rc h a c t i on on
12. 10 .1 0. W e h a ve n ot ed t h a t i n t h os e c a se s a l s o t h e a p p ea l s f i l ed b ef or e t h e CI T( A ) were del a y ed f or f i li ng , t h e rea s o n f or wh i c h wa s i den t i c a l a s t h a t i n th e i m p ugn e d a p p e a l s b ef ore u s, a s b ei n g t h e p ec ul i a r a n d p re s si n g p er s on a l a n d b u si n es s c i rc um st a n c e s p re va i l i n g. W e h a v e n ot ed t h a t t h e I T A T, h a d c on si deri n g t h e p re va i l i n g c i rc um st a n c e s , c on d on ed t h e d el a y a n d f u rt h er on n ot i n g t h a t ev en t h e a ss e ssm en t o rde r wa s e xp a rt e ha d r e st o red t h e c a se s b a c k t o t h e A O f o r den o vo a ss e ssm en t . Si nc e t h e f a c t s a n d c i rc um st a n c e s l ea di n g t o t h e d el a y i n fi li n g a p p e a l b ef o re t h e Ld . CI T( A ) i n t h e p re s en t a p p e a l s i s i den t i c a l t o t h a t de c i ded b y t h e IT A T a s a f or e sa i d a n d n o di st i n gui sh i n g fa c t s h a ve b een b r o u gh t t o o ur n ot i c e b y t h e Ld .D R, t h e p re s en t a p p ea l s a r e sq u a r el y c o ver ed b y t h e sa i d or de r of t h e IT A T. Fo l l o wi n g t h e sa m e we set a si de t h e or de r of t h e Ld . CI T( A ) i n t h e i m p ugn ed a p p ea l s a n d r est or e t h e m a t t er b a c k t o t h e A s se ssi n g Of f i c er f or den o v o a s se s sm en t . Ne edl e ss t o a dd, t h e a s se s se e b e g ra n t ed f ul l op p o rt u n i t y of h ea ri n g b y t h e AO .
In ef f ec t a l l t h e a pp ea l s f i l ed b y t h e di ff eren t a ss e ss ee s i n q ua n t um p r o c e edi n g s, i .e i n IT A N o . 1 31 3 t o 13 16, 13 25, 1 32 7, 13 21 a n d 13 22 / Ch d /2 01 8, st a n d a l l o we d f or st a t i sti c a l p ur p o s es .
4. Ld.Counsel for the assessee stated that identical facts and circumstances, as stated by the assessee in the other years, lead to the non- prosecution of the appeal in the present case also and therefore the decision of the ITAT in the other appeals of the assessee would apply to the present appeal also. It was therefore pleaded that the impugned appeal be also restored back to the AO for hearing afresh.
5. Ld DR fairly conceded that the facts and circumstances in the present case were identical to that in the case of the assessee for A.Y. 2008-09 to 2011- 12 which have been dealt with by the ITAT in ITA No. 1313 to 1320/Chd/2018 above.
6. In view of the above, since admittedly the succeeding years relating to the block of six years which were assessed in the case of the assessee on account of search undertaken on it 12/10/2010, have already been adjudicated by the ITAT vide its order dt. 17/05/2019 and the facts and circumstances admittedly in the present case being identical to that in the subsequent years, the decision rendered in those cases will apply to the present case also following which we set aside the order of the Ld. CIT(A) and restore the matter back to the AO for denovo assessment. Needless to add the assessee be granted full opportunity of hearing. The issue relating to levy of penalty, being consequential to the order passed in quantum proceedings, is also restored back to the AO to be decided afresh .
7. In effect both the appeals of the assessee are allowed for statistical purposes.
Order pronounced in the open court.
Sd/- Sd/- (SANJAY GARG) (ANNAPURNA GUPTA) JUDICIAL MEMBER ACCOUNTANT MEMBER Dated : 30/05/2019 AG
Copy to: The Appellant, The Respondent, The CIT, The CIT(A), The DR