Income Tax Appellate Tribunal - Delhi
Techmobia Digital Solution Pvt. Ltd., ... vs Dcit, New Delhi on 19 June, 2018
IN THE INCOME TAX APPELLATE TRIBUNAL
DELHI BENCH 'G', NEW DELHI
BEFORE SH. R. K. PANDA, ACCOUNTANT MEMBER
AND
MS. SUCHITRA KAMBLE, JUDICIAL MEMBER
ITA No.2979/DEL/2015
Assessment Year: 2008-09
M/s. Techmobia Digital DCIT
Solution Pvt. Ltd., Vs Co. Circle - 25 (2)
F-26, 1st Floor, Connaught New Delhi
Circus, New Delhi-110001
PAN AABCC8565A
(APPELLANT) (RESPONDENT)
Appellant by None
Respondent by Sh. K. Tiwari, Sr. DR
Date of hearing: 18/06/2018
Date of Pronouncement: 19/06/2018
ORDER
PER R. K. PANDA, AM:
This appeal filed by the assessee is directed against the ex-parte order dated 03.02.2015 passed by Ld. CIT (A)-19, New Delhi relating to A. Y. 2008-09.
2. None appeared on behalf of the assessee at the time of hearing. Therefore, the appeal is being decided on the basis of material available on 2 ITA No. 2979 /Del/2015 record and after hearing the Ld. DR.
3. Although a number of grounds have been raised by the assessee, however, they all relate to the order of the CIT (A) in confirming the penalty of Rs.10,98,069/- levied by the Assessing Officer u/s 271 (1) (c) of the IT Act.
4. After hearing the Ld. DR and on perusal of the orders of the authorities below, we find the assessee is a company engaged in the business of SMS services. It filed its return of income on 29.09.2008 declaring total income of Rs.92,60,844/-. The Assessing Officer completed the assessment u/s. 143 (3) determining the total income at Rs. 1,29,11,840/- wherein he made the following three additions totalling to Rs.30,51,040/-.
(i) Set up fee : Rs.26,71,040/-
(ii) Earnest money written off : Rs.3,50,000/-
(iii) Security written off : Rs.30,000/-
5. The appeal filed by the assessee was dismissed by the CIT (A) in the quantum proceedings. The Assessing Officer thereafter initiated penalty proceedings u/s. 271 (1) (c) of the IT Act. Rejecting the explanation given by the assessee and relying on various decisions, the Assessing Officer levied penalty of Rs.10,98,069/- u/s. 271 (1 ) (c) of the IT Act being 100% of the tax sought to be evaded. Since none appeared on behalf of the assessee, the Ld. CIT (A), in the ex-parte order passed by him, sustained the penalty 3 ITA No. 2979 /Del/2015 levied by the Assessing Officer.
6. A perusal of the order of the CIT (A) shows that notices were issued to the assessee only twice by speed post and there was non compliance for which the Ld. CIT (A) passed the ex-parte order confirming the penalty levied by the Assessing Officer.
7. Considering the totality facts of the case and in the interest of justice we deem it proper to restore the issue to the file of the CIT (A) with a direction to grant one final opportunity to the assessee to substantiate its case. The assessee is also hereby directed to appear before the Ld. CIT (A) and substantiate his case failing which the Ld. CIT (A) is at liberty to pass appropriate order as per law. We hold and direct accordingly. The grounds raised by the assessee are accordingly allowed for statistical purposes.
8. In the result, the appeal filed by the assessee is allowed for statistical purposes.
Order pronounced in the open court on 19.06.2018.
Sd/- Sd/-
(SUCHITRA KAMBLE) (R.K.PANDA)
JUDICIAL MEMBER ACCOUNTANT MEMBER
*NEHA*
Date:- 19.06.2018
Copy forwarded to:
1. Appellant
2. Respondent
3. CIT
4. CIT(Appeals)
5. DR: ITAT
ASSISTANT REGISTRAR
ITAT NEW DELHI
4 ITA No. 2979 /Del/2015
Date of dictation 18.06.2018
Date on which the typed draft is placed 19.06.2018
before the dictating Member
Date on which the typed draft is placed 19.06.2018
before the Other member
Date on which the approved draft comes to 19.06.2018
the Sr.PS/PS
Date on which the fair order is placed before 19.06.2018 the Dictating Member for Pronouncement Date on which the fair order comes back to 19.06.2018 the Sr. PS/ PS Date on which the final order is uploaded 19.06.2018 on the website of ITAT Date on which the file goes to the Bench 19.06.2018 Clerk Date on which file goes to the Head Clerk.
The date on which file goes to the Assistant Registrar for signature on the order Date of dispatch of the Order