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Judgment
This appeal is directed against the order dated 16th January 2015 passed by the Income Tax Appellate Tribunal (''ITAT'') in ITA No. 1036/Del/2013 for the Assessment Year.
This appeal arises out of a penalty proceedings under Section 271(1)(c) of the Income Tax Act, 1961 (''Act'') initiated against the Respondent Assessee company pursuant to the assessment order passed on 10th February 2000. Soon thereafter on 23rd February 2000, the Board of Industrial and Financial Reconstruction (''BIFR'') ordered the winding up of the Assessee company. The High Court appointed the Official Liquidator as the Provisional Liquidator of the Assessee on 14th February 2001. An ex parte penalty order was passed on 27th May 2003 by the Assessing Officer (AO) at a time when the affairs of the company were still under the control of the OL.
It appears that a belated appeal was filed before the Commissioner of Income Tax (Appeals) [''CIT (A) ''] against the ex parte order of the AO in the penalty proceedings. The CIT (A) affirmed the penalty order by the order dated 15th January 2013. The CIT (A) held that the explanation offered by the Assessee for the delay in filing the appeal was unsatisfactory.
In the impugned order the ITAT has, in the facts and circumstances where the Assessee went into liquidation, held that there were justifiable reasons for the delay in filing appeal before the CIT (A). On merits, the ITAT held that the order of the AO does not spell out the reasons for levying of penalty.
Having heard learned counsel for the Appellant, the Court is not inclined to interfere with the impugned order of the ITAT. The fact that the Assessee company was under liquidation at the time the penalty proceedings was initiated, is not in dispute. It is also noted by the ITAT in the impugned order that the Assessee was not undertaking any business from the AY 1997-98 onwards. In the circumstances, the Court is not persuaded to hold that the impugned order of the ITAT gives rise to any substantial question of law which requires to be examined.
The appeal is dismissed.