NANDKUMAR DAMODAR KALE, MUMBAI V. ACIT CC 32, MUMBAI

ITA 1007/MUM/2012

• Counselvise Citation: [2014] 140 COUNSELVISE.COM (IT) 79156 (ITAT-MUMBAI)
• Duration Of Justice: 2 year(s) 4 month(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-06-2014
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 26-12-2013
• Assessment Year: 2006-2007
• Appeal Filed On: 13-02-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SAMBIT MISHRA
• Assessee Lawyers: R C JAIN; SANDEEP MAHESHWARI
• Keywords: Search and seizure; Period of limitation; Reasonable cause; Time period of passing order
• Section: 142(1); 144; 2

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, MUMBAI BENCH B, MUMBAI BEFORE SHRI SANJAY ARORA, ACCOUNTANT MEMBER AND DR. S.T.M. PAVALAN, JUDICIAL MEMBER ITA NOS. 1003 TO 1008/MUM/2012 ASSESSMENT YEARS: 2002-03 TO 2007-08 NANDKUMAR DAMODAR KALE 8, NANDADEEP, KAILASHPURI, UPPER GOVIND NAGAR, MALAD (EAST), MUMBAI- 400 097 VS. ACIT. CC. 32 MUMBAI (APPELLANT) (RESPONDENT) PERMANENT ACCOUNT NO. :- AAGPK 6466 Q APPELLANT BY : SHRI R.C. JAIN & SANDEEP MAHESHWARI RESPONDENT BY : SHRI SAMBIT MISHRA DATE OF HEARING : 18.06.2014 DATE OF PRONOUNCEMENT : 18.06.2014 O R D E R PER BENCH: THESE SIX APPEALS FILED BY THE ASSESSEE ARE DIRECTE D AGAINST THE ORDER OF THE LD.CIT-37, MUMBAI DATED 02.01.2011 CONFIRMING THE P ENALTY LEVIED BY THE AO U/S 271(1)(B) OF THE ACT FOR THE ASSESSMENT YEARS FROM 2002-03 TO 2007-08. AS THE GROUNDS OF APPEAL FOR ALL THESE ASSESSMENT YEARS AR E IDENTICAL, ALL THE APPEALS ARE HEARD TOGETHER AND DISPOSED OFF BY THIS COMMON ORDE R. 2. BRIEFLY STATED, DURING THE ASSESSMENT YEARS UNDE R CONSIDERATION, THE AO LEVIED PENALTIES OF RS.10,000/- FOR EACH DEFAULT FOR EACH ASSESSMENT YEAR U/S 271(1)(B) FOR THE REASON THAT THE ASSESSEE HAD FAILED TO COMPLY W ITH NOTICES ISSUED BY THE AO U/S 143(2) AND U/S 142(1) OF THE INCOME-TAX ACT. THE YE AR WISE DETAILS AS TO THE DATE OF NOTICES AND THE PENALTY LEVIED ARE EXTRACTED HEREUN DER:- ITA NOS. 1003 TO 1008/MUM/2012 NANDKUMAR DAMODAR KALE ASSESSMENT YEARS: 2002-03 TO 2007-08 2 S. NO. A.Y. NOTICES U/S 143(2) & 142(1) ISSUED ON FINAL OPPORTUNITY GIVEN ON THE DATE PENALTY LEVIED 1 2002-03 08.12.09 10.12.09 24.06.10 RS.20,000/- FOR BOTH NOTICES 2 2003-04 08.12.09 10.12.09 24.06.10 RS.20,000/- FOR BOTH NOTICES 3 2004-05 08.12.09 10.12.09 24.06.10 RS.20,000/- FOR BOTH NOTICES 4 2005-06 08.12.09 10.12.09 24.06.10 RS.20,000/- FOR BOTH NOTICES 5 2006-07 08.12.09 10.12.09 24.06.10 RS.20,000/- FOR BOTH NOTICES 6 2007-08 08.12.09 10.12.09 24.06.10 RS.20,000/- FOR BOTH NOTICES ON APPEAL, THE LD.CIT(A) CONFIRMED THE PENALTY LEVI ED BY THE AO. AGGRIEVED BY THE IMPUGNED ORDER, THE ASSESSEE IS IN APPEAL BEFORE US . 3. HAVING HEARD BOTH THE SIDES AND PERUSED THE MATE RIAL ON RECORD, IT IS NOTED THAT THERE HAS BEEN SEARCH AND SEIZURE ACTION U/S 1 32(1) OF THE INCOME-TAX ACT IN THE CASE OF THE ASSESSEE AND ITS GROUP AND THE ASSE SSMENT FOR SEVEN YEARS IN THE CASES OF THE GROUP HAVE BEEN COMPLETED IN EX-PARTE U/S 144 READ WITH SECTION 153A. IN THIS CONNECTION, IT HAS BEEN BROUGHT ON RECORD T HAT SIMILAR PENALTY LEVIED IN OTHER GROUP CASES HAVE BEEN DELETED BY THE TRIBUNAL. THE COPY OF THE ORDER OF THE TRIBUNAL IN THE CASES OF MR. SAMEER NAND KUMAR KALE AND MS. SONIA SAMEER KAL E IN ITA NOS. 1009 TO 1015/MUM/2012 HAS BEEN SUBMITTED IN THIS REGARD. THE TRIBUNAL, IN THE SAID CASES, HAS ACCEPTED THE CONTENTION OF T HE ASSESSEE THAT THE DETAILS REQUIRED FOR COMPLIANCE IN THE SHOW CAUSE NOTICE, H AVING REGARD TO ANNEXURE-1 TO NOTICES, IS VOLUMINOUS AND THE SAME CAN BE COLLECTE D AND COMPILED ONLY AT A LATER POINT OF TIME. IT IS RELEVANT TO STATE THAT IN THE LIGHT OF IDENTICAL FACTS IN THE CASE IN HAND, SIMILAR CONTENTIONS HAVE BEEN SUBMITTED BY TH E ASSESSEE BEFORE THE AO WHICH IS A MATTER OF RECORD. FURTHER, IT IS NOTED THAT TH E AO HAS ISSUED THE NOTICES ONLY AT THE FAG END OF THE LIMITATION PERIOD AS THE ASSESSM ENT WAS GETTING TIME BARRED. THEREFORE, THE ASSESSEE COULD NOT GET SUFFICIENT TI ME AND ONLY FEW DAYS HAVE BEEN ITA NOS. 1003 TO 1008/MUM/2012 NANDKUMAR DAMODAR KALE ASSESSMENT YEARS: 2002-03 TO 2007-08 3 GIVEN TO THE ASSESSEE TO COMPLY WITH THE NOTICES. C ONSIDERING THE FACT THAT THE CASE OF THE ASSESSEE IS IN THE CONTEXT OF SAME FACTS AS IN THE GROUP CASES DECIDED BY THE TRIBUNAL AFOREMENTIONED, WE FIND THAT THE EXPLANATI ON GIVEN BY THE ASSESSEE THAT THE ASSESSEE COULD NOT COLLECT AND COMPILE THE REQU ISITE INFORMATION AND DETAILS WITHIN SHORT PERIOD AS GRANTED IN THE NOTICES IS RE ASONABLE AND COVERED UNDER REASONABLE CAUSE PROVIDED IN 271(1)(B) OF THE INC OME-TAX ACT. HENCE THE LEVY OF PENALTIES IN THESE CASES ARE NOT WARRANTED AND ACCO RDINGLY DELETED. 4. IN THE RESULT, THE APPEALS FILED BY THE ASSESSEE ARE ALLOWED . ORDER PRONOUNCED IN THE OPEN COURT ON THIS 18 TH DAY OF JUNE 2014. SD/- SD/- (SANJAY ARORA) (DR. S.T.M. PAVALAN) ACCOUNTANT MEMBER JUDICIAL MEMBER MUMBAI, DATED: 18.06.2014. *SRIVASTAVA COPY TO: THE APPELLANT THE RESPONDENT THE CIT, CONCERNED, MUMBAI THE CIT(A) CONCERNED, MUMBAI THE DR B BENCH //TRUE COPY// BY ORDER DY/ASSTT. REGISTRAR, ITAT, MUMBAI.