Mrs. Kiran Dhir, Parwanoo V. DCIT, Chandigarh

ITA 1039/CHANDI/2014

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 86155 (ITAT-CHANDIGARH)
• Duration Of Justice: 2 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-02-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2008-2009
• Appeal Filed On: 25-11-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S C MITTAL
• Keywords: Reasonable cause

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL CHANDIGARH BENCHES B CHANDIGARH BEFORE SHRI BHAVNESH SAINI, JUDICIAL MEMBER AND SHRI T.R. SOOD, ACCOUNTANT MEMBER ITA NOS. 1038 & 1039/CHD/2014 ASSESSMENT YEAR: 2007-08 AND 2008-09 MRS. KIRAN DHIR, VS. DCIT # 52 CENTRAL CIRCLE- I SECTOR-4 CHANDIGARH PARWANOO PAN NO.AFYPD0246E (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI TEJ MOHAN SINGH RESPONDENT BY : SHRI. S.C. MITTAL DATE OF HEARING : 09/02/2015 DATE OF PRONOUNCEMENT : 10/02/2015 ORDER PER T.R.SOOD, A.M. BOTH THE APPEALS FILED BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER DATED 12.09.2014 PASSED BY THE CIT(A)CENTRAL, GURGAON. 2. IN BOTH THE APPEALS SIMILAR GROUNDS HAVE BEEN RA ISED WHICH ARE AS UNDER: 1. THAT THE LD. COMMISSIONER OF INCOME TAX (APPEALS) ( CENTRAL) HAS ERRED IN LAW AS WELL AS ON FACTS IN UPHOLDING T HE IMPOSITION OF PENALTY OF RS. 25,000/- UNDER SECTION 271A OF THE ACT WHICH IS ARBITRARY AND UNJUSTIFIED. 2. THAT THE LD. COMMISSIONER OF INCOME TAX (APPEALS) H AS FAILED TO CONSIDER THE REASONABLE CAUSE THAT THE BOOKS OF THE ASSESSEE-FIRM WERE DESTROYED IN A FIRE ACCIDENT ON 03.03.2009 IN THE CORRECT PERSPECTIVE AND AS SUCH THE PENALTY IMPOSED IS UNJUSTIFIED. 3. THAT THE ORDER OF THE LD. COMMISSIONER OF INCOME TA X (APPEALS)(CENTRAL) IS ERRONEOUS, ARBITRARY, OPPOSED TO LAW AND FACTS OF THE CASE AND IS, THUS, UNTENABLE. 3. AFTER HEARING BOTH THE PARTIES WE FIND THAT DURI NG THE ASSESSMENT PROCEEDING ASSESSEE WAS ASKED TO PRODUCE THE BOOKS OF ACCOUNTS. IN RESPONSE IT WAS STATED THAT B OOKS HAVE BEEN DESTROYED IN A FIRE ACCIDENT ON 03/03/2009, TH EREFORE DUE TO NON PRODUCTION OF BOOKS PENALTY PROCEEDINGS WERE INITIATED UNDER SECTION 271A. DURING THE PENALTY PROCEEDINGS IN RESPONSE TO THE SHOW CAUSE NOTICE IT WAS AGAIN STATED THAT B OOKS OF ACCOUNTS WERE DESTROYED IN A FIRE ACCIDENT WHICH HA PPENED IN THE FACTORY PREMISES ON 03/03/2009. AO AFTER PERUSI NG THIS REPLY OBSERVED THAT IT WAS NOT CLEAR FROM THE CERTIFICATE ISSUED BY THE FIRE DEPARTMENT WHETHER FIRE WAS THERE IN THE GODOW N OR IN THE OFFICE AND THEREFORE IT WAS IMPROBABLE THAT BOOKS H AVE BEEN DESTROYED IN SUCH ACCIDENT. ACCORDINGLY HE LEVIED A PENALTY OF RS. 25,000/- UNDER SECTION 271A. 4. ON APPEAL THE LD. CIT(A) CONFIRMED THE ACTION OF THE AO. 5. BEFORE US LD. COUNSEL FOR THE ASSESSEE REITERATE D THE SUBMISSIONS MADE BEFORE AO AND CIT(A). HE ALSO FILE D A COPY OF THE CERTIFICATE ISSUED BY THE FIRE STATION, PARWANO O 6. ON THE OTHER HAND LD. DR SUPPORTED THE ORDER OF CIT(A). 7. AFTER CONSIDERING THE RIVAL SUBMISSIONS WE FIND THAT CERTIFICATE ISSUED BY THE FIRE DEPARTMENT CLEARLY M ENTIONS THAT RECORDS OF THE COMPANY WERE DESTROYED IN THE FIRE. THEREFORE IN OUR OPINION THIS IS A REASONABLE CAUSE FOR NON PROD UCTION OF BOOKS OF ACCOUNT AND ACCORDINGLY WE DELETE THE PENA LTY. 8. IN THE RESULT APPEAL OF THE ASSESSEE IS ALLOWED. ITA 1039/CHD/2014 9. THE ISSUE AND FACTS INVOLVED IN THIS CASE ARE ID ENTICAL TO THE FACTS FOR ASSESSMENT YEAR 2007-08. IN THIS CASE ALSO PENALTY HAS BEEN LEVIED FOR NON PRODUCTION OF BOOKS OF ACCO UNTS AND CONTENTION OF THE ASSESSEE IS THAT BOOKS HAVE BEEN DESTROYED IN THE FIRE, THEREFORE, FOLLOWING OUR ORDER IN ITA NO. 1038/CHD/2014 IN THIS CASE ALSO WE DELETE THE PENALTY. 10. IN THE RESULT BOTH THE APPEALS OF THE ASSESSEE ARE ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 10/02/2015 SD/- SD/- (BHAVNESH SAINI) (T.R. SOOD) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED : 10/02/2015 AG COPY TO: THE APPELLANT, THE RESPONDENT, THE CIT, TH E CIT(A), THE DR