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Income Tax Appellate Tribunal - Delhi

M/S. Shivji Palace Hotel & Club Pvt. ... vs Dcit, Uttar Pradesh on 11 January, 2018

        IN THE INCOME TAX APPELLATE TRIBUNAL
              DELHI BENCH 'G', NEW DELHI
      Before Sh. N. K. Saini, AM and Smt. Beena A. Pillai, JM
          ITA No. 5588/Del/2014 : Asstt. Year : 1998-99
          ITA No. 5589/Del/2014 : Asstt. Year : 1999-00
          ITA No. 5590/Del/2014 : Asstt. Year : 2000-01
          ITA No. 5591/Del/2014 : Asstt. Year : 2001-02
          ITA No. 5592/Del/2014 : Asstt. Year : 2002-03
Shivji Palace Hotel & Club Pvt. Vs Dy. Commissioner of Income Tax,
Ltd., C/o Hotel Clark              Circle Saharanpur,
International, Dehradun Road,      Uttar Pradesh
Saharanpur (U.P.)
(APPELLANT)                        (RESPONDENT)
PAN No. AACCS6882R

                Assessee by : Sh. Anil Jain, Adv.
                Revenue by : Sh. S. S. Rana, CIT DR

Date of Hearing : 04.01.2018     Date of Pronouncement : 11.01.2018

                               ORDER

Per Bench:

These appeals by the assessee are directed against the separate orders each dated 01.07.2014 of the ld. CIT(A), Muzaffarnagar.

2. Common issue is involved in all these appeals which were heard together so these are being disposed off by this consolidated order for the sake of convenience and brevity.

3. The only grievance of the assessee in these appeals relates to the sustenance of penalty levied by the AO u/s 271(1)(c) of the Income Tax Act, 1961.

Shivji Palace Hotel & Club Pvt. Ltd.

4. During the course of hearing, the ld. Counsel for the assessee submitted that the appeals of the assessee on quantum addition were subject matter of the assessee's appeal before the ITAT 'G' Bench, New Delhi in ITA Nos. 5583 to 5587/Del/2014 wherein vide order dated 05.02.2016, the issue has been set aside to the file of the ld. CIT(A).

5. In his rival submissions, the ld. DR supported the orders of the authorities below.

6. We have considered the submissions of both the parties and carefully gone through the material available on the record. In the present case, it is noticed that the quantum addition on the basis of which the impugned penalties were levied by the AO which were subsequently sustained by the ld. CIT(A) was a subject matter of the assessee's appeal in ITA Nos. 5583 to 5587/Del/2014 for the assessment year 1998-99 to 2002-03 wherein vide order dated 05.02.2016, the issue has been set aside to the file of the ld. CIT(A) and the relevant findings have been given in para 7.4 of the said order which read as under:

7.4 We find that the assessee, after the dismissal of the writ petitions, has duly filed the appeals within the 30 days, therefore, the period between 03.02.2005 and 20.08.2013 cannot be counted for the purpose of filing of appeal and we find that the assessee in fact had filed the statutory appeal well within 30 days from the date of disposal of the writ petition.

Shivji Palace Hotel & Club Pvt. Ltd.

Since the assessee has preferred an appeal on dismissal of the writ petition within 30 days, CIT (A) ought to have entertained the statutory appeal preferred u/s 246A which is a statutorily recognized right of the assessee and must have been admitted and adjudicated the issue on merits. Accordingly, we direct the CIT (A) to admit all the appeals since they are maintainable and restore the matters back to the file of the CIT (A) to be decided on merits after providing sufficient opportunity to the assessee. We order accordingly."

7. Since, the issue relating to the quantum addition has been set aside to the file of the ld. CIT(A) and the impugned penalties are co- related with the quantum additions. Therefore, these cases are also set aside to the file of the ld. CIT(A) to be adjudicated afresh in accordance with law after considering the outcome of quantum addition and by providing a due and reasonable opportunity of being heard to the assessee.

8. In the result, the appeals of the assessee are allowed for statistical purposes.

(Order Pronounced in the Court on 11/01/2018) Sd/- Sd/-

  (Beena A. Pillai)                              (N. K. Saini)
JUDICIAL MEMBER                              ACCOUNTANT MEMBER
Dated: 11/01/2018
*Subodh*
Copy forwarded to:
1. Appellant
2. Respondent
3. CIT
4. CIT(Appeals)
5.DR: ITAT
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