ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE, BHARATPUR V. SHRI RAGHUVEER SINGH JADON, DHOLPUR

ITA 1006/JPR/2018

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 9478 (ITAT-JAIPUR)
• Duration Of Justice: 9 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-06-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: SMC
• Assessment Year: 2013-2014
• Appeal Filed On: 30-08-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Reasonable cause
• Section: 273B

Judgement Text

VK;DJ VIHYH; VF/KDJ.K] T;IQJ U;K;IHB] T;IQJ IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHE S, JAIPUR JH JES'K LH- 'KEKZ] YS[KK LNL; ,O A H JH FOT; IKY JKWO] U;KF;D LNL; DS LE{K BEFORE: SHRI RAMESH C. SHARMA, AM & SHRI VIJAY PAL RAO, JM VK;DJ VIHY LA-@ ITA NO. 1006 & 1007/JP/2018 FU/KZKJ.K O'K Z@ ASSESSMENT YEAR : 2013-14 & 2014-15.. THE ACIT, CIRCLE BHARATPUR. CUKE VS. SHRI RAGHUVEER SINGH JADON VILLAGE RAVAI POST NIDHARA, TEHSIL BARI, DISTT. DHOLPUR. LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN NO. ADJPJ 4045 Q VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT JKTLO DH VKSJ LS@ REVENUE BY : SHRI RAJENDRA JHA (ADDL. CIT) FU/KZKFJRH DH VKSJ LS@ ASSESSEE BY : NONE (DEPARTMENTAL A/D ON RECORD) LQUOKBZ DH RKJH[K@ DATE OF HEARING : 25.04.2019. ?KKS'K .KK DH RKJH[K@ DATE OF PRONOUNCEMENT : 03/06/2019. VKNS'K@ ORDER PER VIJAY PAL RAO, JM : THESE TWO APPEALS BY THE REVENUE ARE DIRECTED AGAI NST TWO SEPARATE ORDERS OF THE LD. CIT (A), ALWAR BOTH DATED 13.06.2018 ARISIN G FROM LEVY OF PENALTY UNDER SECTION 271B OF THE I.T. ACT. NONE HAS APPEARED ON BEHALF OF THE ASSESSEE RESPONDENT DESPITE THE NOTICE OF HEARING WAS DULY S ERVED VIDE ACKNOWLEDGEMENT ON RECORD. ACCORDINGLY WE PROPOSE TO HEAR AND DISPOSE OFF THESE APPEALS EX PARTE. THE REVENUE HAS RAISED COMMON GROUND AS UNDER :- ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW LD. CIT (A) HAS ERRED IN DELETING THE PENALTY U/S 271B OF THE IT AC T HOLDING THAT THE ASSESSEE COULD NOT GET HIS BOOKS OF ACCOUNTS AUDITE D DUE TO SERIOUS SICKNESS OF HIS FATHER IGNORING THE FACTS THAT THE BUSINESS OF THE ASSESSEE WAS RUNNING EFFICIENTLY HAVING SUBSTANTIAL QUANTUM OF TURNOVER/RECEIPTS. 2 ITA NOS. 1006 & 1007/JP/2018 SHRI RAGHUVEER SINGH JADON, DHOLPUR. 2. THE LD. D/R HAS SUBMITTED THAT THE ASSESSEE HAS VIOLATED THE PROVISIONS OF SECTION 44AB OF THE IT ACT AS THE BOOKS OF ACCOUNT WERE NOT AUDITED ON OR BEFORE THE DUE DATE OF FILING OF THE RETURN UNDER SECTION 139(1) OF THE ACT. HE HAS POINTED OUT THAT THERE IS NO DISPUTE THAT THE ACCOUNTS OF T HE ASSESSEE WERE AUDITED ON 15.02.2015 WHEREAS THE DUE DATE OF FILING OF RETURN WAS 30 TH SEPTEMBER, 2013. THUS THERE IS A CLEAR VIOLATION OF PROVISIONS OF SE CTION 44AB OF THE ACT WHICH ATTRACTS THE PENAL PROVISIONS UNDER SECTION 271B OF THE ACT. HE HAS SUPPORTED THE PENALTY ORDER PASSED UNDER SECTION 271B AND SUBMITTED THAT WHEN THE ASSESSEES WAS NOT AFFECTED DUE TO ILLNESS OF THE FATHER OF THE ASSESS EE THEN HOW IT CAN BE A REASONABLE CAUSE FOR NOT GETTING THE ACCOUNTS AUDITED BY DUE D ATE. 3. WE HAVE CONSIDERED THE SUBMISSIONS OF THE LD. D/ R AND CAREFULLY PERUSED THE RELEVANT RECORD. THE DUE DATE OF FILING THE RETURN FOR THE ASSESSMENT YEAR 2013-14 U/S 139(1) WAS 30 TH SEPTEMBER, 2013 AND FOR THE ASSESSMENT YEAR 2014-1 5 WAS 30 TH SEPTEMBER, 2014. HOWEVER, THE ASSESSEE FILED THE R ETURN OF INCOME FOR BOTH THESE ASSESSMENT YEARS ONLY ON 20 TH FEBRUARY, 2015 AND 23 RD FEBRUARY, 2015 RESPECTIVELY. THE ACCOUNTS FOR BOTH THE YEARS WERE AUDITED ON 15 TH FEBRUARY, 2015. THEREFORE, THERE IS A DELAY FOR GETTING THE ACCOUNTS AUDITED F OR BOTH THE YEARS. HOWEVER, THE ASSESSEE EXPLAINED THE REASONS FOR NOT FILING THE R ETURN OF INCOME AS WELL AS AUDIT REPORT WITHIN THE DUE DATE FOR BOTH THE ASSESSMENT YEARS AS THE FATHER OF THE ASSESSEE WAS SUFFERING FROM HEART AND OTHER DISEASE S AND ALSO BECOME PARALYTIC SINCE AUGUST, 2013. THE ASSESSEE HAS ALSO EXPLAINE D THAT AFTER A LONG ILLNESS ULTIMATELY THE FATHER OF THE ASSESSEE DIED ON 29 TH APRIL, 2014. THESE REASONS HAVE BEEN REPRODUCED BY THE AO IN THE IMPUGNED ORDER AS UNDER :- 3 ITA NOS. 1006 & 1007/JP/2018 SHRI RAGHUVEER SINGH JADON, DHOLPUR. 1. THAT FATHER OF ASSESSEE SHRI RAM SWAROOP SINGH BECAME PARALYTIC AND WAS ALSO SUFFERING FROM HEART AND OTH ER DISEASES SINCE AUGUST 2013 AND ULTIMATELY HE DIED ON 29.04.2 014, COPY OF DEATH CERTIFICATE OF SHRI RAM SWAROOP SINGH IS B EING ENCLOSED. 2. THAT THE ASSESSEE REMAINED BHARATPUR, JAIPUR AND DELHI FOR THE TREATMENT OF HIS FATHER, THUS HE NEITHER COULD GET THE ACCOUNTS AUDITED WITH IN TIME PRESCRIBED UNDER THE INCOME TA X ACT AND NOR HE COULD SUBMIT THE INCOME TAX RETURN WITHIN TI ME PRESCRIBED. 3. THAT AFTER THE DEATH OF HIS FATHER, THE ASSESSEE BECAME MENTALLY DISTURBED AND ALSO BECAME PATIENT OF HYPERTENSION. THE ASSESSEE, AFTER RECOVERY OF HIS HEALTH GOT THE ACCO UNTS AUDITED AND SUBMITTED THE INCOME T4AX RETURN FOR THE YEARS 2013-14 AND 2014-15 IN THE MONTH OF FEB. 2015. 4. THAT IN THE CIRCUMSTANCES AS MENTIONED ABOVE HE WAS PREVENTED BY SUFFICIENT CAUSES TO GET THE ACCOUNTS AUDITED AND FURNISH THE INCOME TAX RETURN WITHIN TIME PRESCRIBE D UNDER THE INCOME TAX ACT. IT IS, THEREFORE, REQUESTED THAT THE PENALTY PROCEE DINGS INITIATED UNDER THE ABOVE SECTION MAY KINDLY DROPPED. BY CONSIDERING THESE REASONS FOR DELAY IN GETTING T HE ACCOUNTS AUDITED AND FILING THE RETURN OF INCOME BELATEDLY FOR THESE TWO ASSESSMENT YEARS, THE LD. CIT (A) WAS OF THE VIEW THAT THE ASSESSEE HAS EXPLAINED THE REASON ABLE CAUSE FOR DEFAULT WHICH IS COVERED UNDER SECTION 273B OF THE IT ACT. THE RELE VANT FINDING OF THE LD. CIT (A) IN PARA 4.4 IS AS UNDER :- 4.4. I HAVE CONSIDERED THE ABOVE MENTIONED FACTS OF THE CASE. IT IS OBVIOUS THAT THE ACCOUNT WAS NOT AUDITED WITHIN TIM E PRESCRIBED. HOWEVER, THE APPELLANT HAS FILED SUBMISSION ALONG W ITH EVIDENCES FOR THE DEFAULT AS HIS FATHER WAS SERIOUSLY SICK DURING THOSE DAYS. I HAVE CONSIDERED THE SUBMISSION AND IN MY CONSIDERED VIEW , HERE IS A REASONABLE CAUSE FOR THE DEFAULT AND IT IS COVERED UNDER SECTION 273B OF THE ACT. ACCORDINGLY, TAKING INTO ACCOUNT FACTS AND CIRCUMSTANCES OF 4 ITA NOS. 1006 & 1007/JP/2018 SHRI RAGHUVEER SINGH JADON, DHOLPUR. THE CASE, THE PENALTY OF RS. 1,50,000/- IMPOSED UND ER SECTION 271B OF THE ACT IS DELETED AND THE APPELLANTS GROUND OF AP PEAL ON THE ISSUE IS ALLOWED. 4. HAVING CONSIDERED THE FACTS AND CIRCUMSTANCES OF THE CASE AND THE REASONS EXPLAINED BY THE ASSESSEE, WE CONCUR WITH THE VIEW OF THE LD. CIT (A) THAT THE ASSESSEE HAS EXPLAINED THE REASONABLE CAUSE FOR NOT GETTING ITS ACCOUNTS AUDITED WITHIN THE PRESCRIBED TIME LIMIT AND, THEREFORE, TH E CASE OF THE ASSESSEE IS COVERED UNDER SECTION 273B OF THE IT ACT. ACCORDINGLY, WE DO NOT FIND ANY REASON TO INTERFERE WITH THE ORDER OF THE LD. CIT (A) IN DELE TING THE PENALTY. 5. IN THE RESULT, BOTH THE APPEALS OF THE REVENUE A RE DISMISSED. ORDER IS PRONOUNCED IN THE OPEN COURT ON 03/06/ 2019. SD/- SD/- ( JES'K LH- 'KEKZ ) ( FOT; IKY JKWO (RAMESH C. SHARMA ) (VIJAY PAL RAO) YS[KK LNL;@ ACCOUNTANT MEMBER U;KF;D LNL;@ JUDICIAL MEMBER JAIPUR DATED:- 03/06/2019. DAS/ VKNS'K DH IZFRFYFI VXZSF'KR@ COPY OF THE ORDER FORWARDED TO: 1. THE APPELLANT-THE ACIT, CIRCLE BHARATPUR. 2. THE RESPONDENT SHRI RAGHUVEER SINGH JADON, DHO LPUR. 3. THE CIT(A). 4. THE CIT, 5. THE DR, ITAT, JAIPUR 6. GUARD FILE (ITA NO. 1006 & 1007/JP/2018) VKNS'KKUQLKJ@ BY ORDER, LGK;D IATHDKJ@ ASSISTANT. REGISTRAR 5 ITA NOS. 1006 & 1007/JP/2018 SHRI RAGHUVEER SINGH JADON, DHOLPUR.